General terms and conditions
1) Order:
The subject of the order is the securities trading accomplished by the contractor
(trustee) for the client (investor). Hereby the contractor is free in his
decisions in the context to the investment form selected by the customer and
the written supplementary agreement. All decisions are executed by the contractor
at his best knowledge and with the exclusive goal to administer and increase
the investment in the context of the investment form selected by the customer.
However the contractor must co-ordinate his met purchase or sales decisions
with the client at no time, to announce them or justify them afterwards. Further
on there is no obligation to a certain investment degree.
2) Bank:
The asset administration is processed trough a security deposit in addition
with a related current account with a qualified Swiss Bank. These are set
up by the client exclusively for this purpose and are issued in his name.
A mixture of the capital of the client and the capital of the trustee or the
capital of other customers is thus impossible. The asset administration works
absolutely independent from particular banks, may however recommend a specific
bank to the customer, to offer him suitable conditions within a concerned
security sector. A change of the bank or parallel co-operation with several
institutes is possible.
3) Account/Deposit authority:
The client gives an authority, in which the contractor is particularly authorized,
to purchase and/or sell securities (bonds, funds/index certificates, shares
and/or options or other investment instruments) and receive and acknowledge
all correspondence as well as account-, securities-, deposit-, tax-statements
and performance lists. However the contractor is neither entitled to establish
substitute powers, nor to the conclusion or to the change of credit agreements.
The authority can be cancelled at any time by the account owner without indication
of reasons.
4) Choice of investment form/Supplementary agreements:
The contractor offers investment forms with different risk exposures. Considering
the necessary minimum investment sums and the arrangement with the customer
depending upon his personal investment objectives and his readiness for risk
taking, the contractor decides for one or several of these investment forms.
Within individual investment forms further additional arrangements can be
agreed upon, e.g. about an opted investment strategy between contractor and
client. These have to be fixed in writing in a supplementary agreement during
the order placement, if they do not correspond to the conservative risk consciousness
of the contractor.
One assumes that lower-risk investments can be added to the deposits without
consultation.
5) Option dealing ability:
Even if options trading should be subject to the order, the option dealing
ability must be present to both the client and the contractor with the bank.
The herefore necessary explanation about the risk of loss in connection with
option and stock exchange option dealings, therefore always takes place on
the part of the bank.
6) Starting deposit, beginning
of an asset administration:
An asset administration begins, as soon as the order for asset administration
was accepted by the contractor, and after fulfilling all conditions for the
approvement for the asset administration, in particular that accounts/deposits
were set up, authorities were given, the option dealing ability (if necessary)
is present for both the client and the contractor, and after the initial sum
has been credited to the current account of the client.
7) Fees:
7.1) Profit-sharing and mandate fee for the asset administration:
The contractor charges a profit-sharing fee at a value of at present 10 %
p.a. for his activity, if agreed, plus a mandate fee for the invested capital
of 0,50 % p.a. If no profit-sharing was agreed upon, the mandate fee amounts
to 1.00% p.a. of the invested capital (if there ist a special reduced fee
structure with the bank the customer agreed upon). The mandate fee becomes
due at each end of a quarter of the year and the profit-sharing at the end
of a year.
With this the profit-sharing fee as well as the mandate fee, all costs, which
develop for the contractor, are completely compensated. In particular, these
are all costs for account opening, provision for information and evaluation,
administrative expenses, deposit reports, correspondence with banks etc..
7.2) Bank charges, external expenses, interests, dividends:
All direct (possibly reduced) fees of banks, e.g. account maintenance fees,
deposit fees, cancellation fees, clearing fees, limit fees, bank commissions
for purchase and sale of securities as well as all external expenses calculated
by the bank, e.g. brokerage commissions are principly debited directly to
the client and are not included in profit-sharing in accordance with cipher
(7.1).
8) Bank reports, quarter reports, reporting dates:
All reports, confirmations of orders, account and deposit statements sent
by the bank generally go directly as copy to the trustee’s address.
All originals are kept with the bank for the customer, if required. If asked
for the client receives a current investment report at any time from the contractor,
which shows the value of his invested assets. The dates, for which quarter
reports are provided, are the last working days of the months March, June,
September and December; Basis to the accountings are prices of respective
securities on current settlement dates.
9) Reinvestment of profits:
Resulting profits, interests and dividends are available to be reinvested
in appropriate investment forms.
10) Authorization to the client to execute own transactions:
All transactions concerning the current account and deposit of securities,
may exclusively be accomplished by the contractor. Should the client want
to effect security transactions, he will only be authorized to do so after
consulting the contractor. An offence entitles the contractor to cancel the
administration contract without notice.
11) Increase of deposit:
The client can increase his deposits at any time by transferring the amount
to the relevant deposit and inform the asset administration immediately about
the transaction. Deposits have to amount to a minimum of at least EUR 1'000.—
or a multiple of it. If nothing else is agreed upon in writing, it is tacitly
assumed that the additional amount is to be used by the contractor likewise
as previous deposits.
If desired, it may be agreed upon, that the client can also give a standing
order for monthly transfers to his current account or the assumption of security
positions in his deposit.
12) Withdrawals:
To exclude any abuse, each withdrawal of capital from current account or customer
deposit requires a written order by the client.
A withdrawal of capital is possible at any time, if the minimum investment
is not fallen short. In principle the contractor should be informed as promptly
as possible about time and size of a planned capital deduction, in order to
co-ordinate the necessary procedures.
13) Termination:
The contract can be quit by the client at any time without notice or also
to a certain date without indication of reasons. By cancellation without notice
the account authority expires immediately, i.e. on the contractor’s
part no security transactions will be arranged anymore; the client has to
take care of his account/deposit immediately. In particular the account owner
must pay attention to existing purchase or sales orders as well as to existing
deposit investments. Profit-sharing comes due, if a new highest level of the
deposit should have been achieved at the time the notice of termination of
the contract took effect.
The contractor can quit the present contract with a six week period of notice
to the end of a quarter. Cancellations without notice are only possible due
to a customers behavior contrary to the contract.
14) Exposure to loss, Liability, Guaranty:
All investment strategies imply risks. Despite the risk-conscious portfolio
diversification and the applied investment instruments a deposit development
with fluctuations must be taken in consideration. Since all recommended investment
strategies and/or investment instruments are differently risky, but however
investment forms, a larger loss can also occur at any time; in the most unfavorable
case also up to a total loss of the invested capital.
The customer must be ready and economically able to carry possibly resulting
losses himself.
The asset administrator is in no case liable for damage or losses developping
from his activity, with exception of intent or gross negligence. For all provided
account settlements and quarter reports a right of veto is granted to the
client for 3 months.
15) Validity:
If individual regulations of the agreement should prove as ineffective, the
effectiveness of all other respects is not affected by it. All diverging or
additional agreements need to be in writing.
16) Place of jurisdiction:
General terms and conditions operate under Swiss law. Place of jurisdiction
is Zurich.
