General Information Brochure
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The purpose of this brochure is to provide general explanation about Quilvest (Switzerland) Ltd. (“QVS”), and in particular, the investment services provided by QVS.
GENERAL INFORMATION BROCHURE
The purpose of this brochure is to provide general explanation about Quilvest (Switzerland) Ltd. (“QVS”), and in particular, the investment services provided by QVS. It is not the intention of this brochure to cover all aspect related to the provision of investment and banking services by QVS. Where appropriate, this brochure refers to additional documents which QVS has already provided to its Clients or which may be obtained upon request.
1. GENERAL INFORMATION
1.1 General Information about QVS
QVS is a joint-stock company organized under Swiss law. QVS is licensed to act as a bank and securities firm and is supervised by the Swiss Financial Market Supervisory Authority FINMA, Laupenstrasse 27, CH-3003 Berne (www.finma.ch).
The address of QVS’s registered office and head office is Stockerstrasse 23, 8002 Zurich, Switzerland.
Additional information on QVS’s organization and structure can be found in the Annual Report which QVS will provide upon request.
1.2 Language and Means of Communication
As a rule, a Client may always communicate with QVS in English. QVS may, at its sole discretion, offer to communicate with Clients partly or entirely in other languages.
QVS will generally communicate with Clients by letter, e-mail or e-banking/mobile banking. Clients using the electronic communication have to sign a separate agreement.
2. CLIENT CLASSIFICATION
QVS’s Client classification system distinguishes between three categories of Clients: (i) Retail Clients, (ii) Professional Clients (per-se and elective) and (iii) Institutional Clients or Eligible Counterparties.
This classification is designed to ensure that Clients are treated in a manner appropriate to their knowledge and experience of financial instruments and in accordance with the type, frequency and volume of the transactions involved. In addition, the classification serves to ensure that appropriate and proportionate information can be made available to Clients as required, in order to enable the types of services or financial instruments requested and the associated risks to be assessed.
QVS generally only provides financial services to Clients that qualify as Professional Clients, Institutional Clients or Eligible Counterparties.
2.1 Who is a Retail Client?
All Clients which are not classified as Professional Clients, Institutional Clients or Eligible Counterparties are automatically classified as Retail Clients. Retail Clients are considered to have a low level of experience in financial market dealings and for this reason receive the highest level of regulatory protection.
2.2 Who is a Professional Client?
A Client that meets the respective applicable regulatory requirements will be classified by QVS as a Professional Client. If QVS is unable to determine beyond doubt whether the Client meets those criteria, the Client will be classified as a Retail Client.
Unlike with Retail Clients, QVS assumes that Professional Clients have the knowledge and experience to understand the risks associated with financial services and have the financial means to bear investment risks. Thus, a Professional Client receives a lower level of regulatory protection than Retail Clients.
2.3 Who is an Institutional Client or Eligible Counterparty?
Institutional Clients or Eligible Counterparties are regulated legal entities (e.g. banks, insurance companies) as well as governments, central banks and international or supranational organisations etc. Institutional Clients and Eligible Counterparties are deemed to have the knowledge and experience comparable to a financial service provider and therefore benefit from the lowest available level of regulatory protection.
2.4 Reclassification of Client
Clients may request a reclassification at any time resulting in a lower or higher level of protection provided certain conditions are met. The Client may opt for a lower level of protection (opting-out from protection), i.e. a reclassification from Retail Client to (elective) Professional Client, of from Professional Client to Institutional Client, or the Client may opt for a higher level of protection (opting-in for protection), i.e. a reclassification from Institutional Client or Eligible Counterparty to Professional Client or from Professional Client to Retail Client. However, QVS will only be able to reclassify a Client, if the applicable regulatory requirements are met. QVS will be able to provide more information and the required form.
3. FINANCIAL SERVICES OFFERED BY QVS
3.1 Discretionary asset management
Discretionary asset management services are based on a written agreement between the Client and QVS, setting out the investment strategy and the Client’s individual requirements which QVS shall take into account in the context of the management of the Client’s portfolio. The Client fully delegates the investment decisions concerning his portfolio to QVS. Within this contractual framework, QVS makes investment decisions at its own discretion without prior consultation of the Client.
3.2 Investment advisory services
Investment advisory services are based on a written agreement between the Client and QVS, setting out the investment strategy and the Client’s individual requirements which QVS shall take into account when providing investment advisory services to Clients. Based on this, QVS issues investment recommendations to the Client, tailored to the individual objectives and needs of the Client as contractually agreed. The ultimate investment decision remains with the Client.
3.3 Execution only services
QVS defines execution only service as the carrying out of purchase or sale transactions by QVS as instructed by the Client. When rendering execution only services, QVS only executes Client orders without having provided any advice or recommendation to the Client. A Client who has not entered into a discretionary asset management agreement or an investment advisory agreement, can only use execution only services.
3.4 Custody services
QVS offers its Clients safekeeping, booking and administration of assets in custody accounts. QVS provides information on custody accounts with the contractually agreed frequency. QVS is entitled to have financial instruments held in safe custody in its own or external collective custody accounts or with a central collective depository in Switzerland or abroad. For further information about the QVS’ custody services, reference is made to QVS’ General Conditions and the Custody Agreement.
3.5 Other services
In addition, QVS provides other services e.g. lombard loans, consolidation services, foreign exchange services, payment services.
3.6 Non-independence / investment universe
QVS provides its services in a non-independent capacity. It selects the investment products from its pre-defined investment universe, which consists of different types of internal and external financial instruments (e.g. bonds, shares, funds, structured products, private market investments, derivatives).
In defining the investment universe, QVS considers financial instruments issued and/or provided by third parties as well as financial instruments issued and/or provided by QVS and associated or affiliated companies.
If a third-party financial instrument and one of QVS’ own financial instruments are equally suitable for a Client, QVS may give preference to its own financial instruments.
4. GENERAL RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS
Trading in financial instruments involves various risks. Depending on the financial instrument, these risks may significantly differ. More detailed information about the various types of financial services and financial instruments and the related risks can be found in the brochure “Risks Involved in Trading Financial Instruments” published by the Swiss Bankers Association.
5. SUITABILITY AND APPROPRIATENESS PROCEDURES
In order to properly assess which financial instruments and services are suitable for its Client, QVS must have information about the Client’s knowledge and experience relevant to specific financial instruments and services (including nature, extent, frequency of Client transactions with financial instruments), investment objectives (e.g. risk tolerance, investment horizon, purpose of investment) and financial situation (regular income, financial obligations, assets). The information provided by the Client will be taken into account by QVS when it renders financial services to the Client.
Accordingly, QVS will ask its Clients to complete a Client Investment Risk Profile to determine whether the financial instruments and services offered are suitable to achieve each Client’s specific investment strategy and whether the degree of risk related to such financial instruments and services is in line with the Client’s financial capacities.
If a Client fails to provide the necessary information or give incomplete or inaccurate information, QVS may not be in a position to determine which financial instruments or services are suitable for the Client.
Suitable financial instruments and services are basically those that (i) contain risks that the Client is able to understand on the basis of his knowledge and experience; (ii) are in line with the investment objectives; and (iii) involve a level of investment risk that the Client can tolerate. If the Client has been classified as a Professional Client, Institutional Client or Eligible Counterparty, exceptions in the suitability assessment process may apply. These exceptions are described in more detail in the classification and re-classification forms.
For execution only services, neither an appropriateness nor a suitability assessment is conducted. QVS is providing this information to its Clients only once.
6. PRODUCT INFORMATION
7. COST INFORMATION
7.1 Ex-ante disclosure
The costs and charges linked to the QVS’ services are set in the QVS’s fee schedule. QVS discloses the costs and charges of the service in advance in a general and standardized manner or indicated as a bandwidth.
For services provided under discretionary asset management, investment advisory agreements and in certain cases also with regard to execution only services or custody services, QVS will disclose product costs ex-ante. The figures relating to these service costs are based on estimates.
7.2 Ex-post disclosure
In every case the service charges are also disclosed by QVS to the Client after the provision of the respective service. Ex-post cost statements may vary from ex-ante cost estimates. When issuing ex-post cost statements, QVS is also reliant on data provided by third parties (e.g. manufactures, product providers, information suppliers), which may apply different statement cut-off dates, different prices (e.g. middle price or closing price on a particular day) or different exchange rates and times.
8. BEST EXECUTION INFORMATION
QVS executes orders in financial instruments in accordance with the principles of best execution for securities business, which are set out in the separate brochure “General information on Best Execution for Client orders”. The brochure is available at the website www.quilvest.ch/legal.
9. CONFLICT OF INTERESTS
QVS undertakes to apply the organizational provisions designed to detect potential conflicts of interest between the interest of QVS and those of the Client or between the interests of different Clients.
Essentially, the policy covers situations in which:
- QVS is likely to make a financial gain or avoid a financial loss at the Client’s expense.
- QVS has an interest in the outcome of the service provided to the Client or the transaction conducted on the Client’s behalf, which is different from the interests of the Client.
- for financial or other reasons, QVS is induced to favour the interests of another Client or group of Clients rather than the Client in question.
- QVS pursues the same business as the Client.
- QVS receives a benefit in connection with the service provided to the Client, other than the commission or charges which are normally invoiced for said service, from a person other than the Client.
QVS’s internal organisation is structured in such a way as to maintain a separation of functions and barriers to information in order to control and/or prevent information being passed between persons involved in the activities in which there is a potential conflict of interest. Insofar as possible, QVS shall also limit any combination of tasks and any hierarchical influences between said different activities.
Accordingly, QVS has an internal body whose task is to identify and manage potential conflicts of interests, and to ensure it has internal procedures which guarantee and ensure compliance with said principles and procedures. QVS has established a Code of Conduct and monitors very strictly any potential combination of functions.
In the event that the provisions laid down by QVS are not adequate to guarantee with reasonable certainty that the risk of harming the Client’s interest will be avoided, QVS will inform the Client in question of the general nature and/or source of said conflicts of interest, before acting in his/her name.
10. INFORMATION AND DISCLOSURE
TO CLIENTS
10.1 Client Information Documents
The Client may request from QVS information and documentation, e.g. relating to the agreed services, the collected Client information, the suitability and appropriateness assessment carried out by QVS (to the extent required).
10.2 Inducements
In connection with the provision of investment and banking services, QVS may receive fees, commissions, reimbursements, discounts or other monetary or nonmonetary benefits (collectively known as “inducements”). If QVS receives such inducements in connection with the provision of investment and banking services, QVS will credit them on the Client’s account.
11. COMPLAINTS HANDLING
11.1 How to contact QVS
Complaints may be communicated to QVS personally or via e-mail to the Client Relationship Manager, by telephone at the number +41 44 224 4444 or by sending a letter to the following address:
Quilvest (Switzerland) Ltd.
Chief Executive Officer
Stockerstrasse 23
CH-8002 Zurich
Switzerland
11.2 Information to be provided
In order to effectively address your complaint, QVS kindly requests that the following information be provided:
- Your name and address
- The exact date/time the event/problem occurred
- A description of the product/service to which your complaint refers
- If applicable, the product name and the securities identification number and the date of purchase.
QVS takes all complaints seriously. After careful examination of the relevant complaint with all involved parties, QVS will attempt to find a solution that satisfies all parties
11.3 Swiss Banking Ombudsman
If it is not be possible for QVS to find a solution which is acceptable to the Client, the Client has the possibility to address concerns to the Swiss Banking Ombudsman, a neutral third party. In general, the Ombudsman only gets actively involved after the bank receives and has had the opportunity to respond to a written Client compliant.
Complaints may be submitted either verbally or in writing to the address indicated below:
Swiss Banking Ombudsman
Bahnhofplatz 9
P.O. Box
CH-8021 Zurich
Switzerland
Phone
+41 43 266 14 14 (German / English) or
+41 21 311 29 83 (French / Italian)
Fax
+41 43 266 14 15
Further information can be found at the following website: www.bankingombudsman.ch/en