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814.012english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinanceon protection against major accidents(major accidents ordinance, mao)of 27 february 1991 (status as of 1 august 2019)the swiss federal council,on the basis of articles 10 paragraph 4 and 39 paragraph 1 of the federal actof 7 october 19831 on the protection of the environment (epa)and article 47 paragraph 1 of the waters protection act of 24 january 19912,3ordains:1 sr 814.012 sr 814.203 amended by no i of the o of 13 feb. 2013, in force since 1 april 2013 (as 2013 749).section 1 general provisions art. 1 purpose and scope 1 the purpose of this ordinance is to protect the public and the environment against serious harm or damage resulting from major accidents.2 it applies to:a.4establishments where the threshold quantities for substances, preparations or special wastes specified in annex 1.1 are exceeded;b.5establishments where an activity involving genetically modified or pathogenic organisms or alien microorganisms subject to compulsory containment is carried out which is to be assigned to class 3 or class 4 in accordance with the containment ordinance of 9 may 20126;c.7railway installations in accordance with annex 1.2a;d.transit roads, as defined in the ordinance of 6 june 19838 on transit roads, where dangerous goods are transported or transhipped in accordance with the ordinance of 17 april 19859 on the carriage of dangerous goods by road (sdr) or the relevant international agreements;e.the rhine, where dangerous goods are transported or transhipped in accordance with the ordinance of 29 april 197010 on the carriage of dangerous goods on the rhine (adnr);f.11pipeline installations as defined in the pipelines ordinance of 26 june 201912 which meet the criteria specified in annex 1.3.2bis the enforcement authority may exempt establishments under paragraph 2 letter b from the scope of this ordinance that:a.only carry out class 3 activities with organisms in accordance with annex 1.4 which, due to their properties, cannot spread uncontrollably among the public and in the environment; and b.due to their hazard potential, cannot seriously harm the public or the environment.133 in individual cases, the enforcement authority may make the following establishments, transport routes or pipeline installations subject to this ordinance if, on account of their hazard potential, they could cause serious harm to the public or damage to the environment:14a.15establishments handling substances, preparations or special wastes;b.16establishments where an activity involving genetically modified or pathogenic organisms or alien microorganisms subject to compulsory containment is carried out which is to be assigned to class 2 in accordance with the containment ordinance, in consultation with the swiss expert committee for biosafety;c.transport routes outside establishments, where dangerous goods are transported or transhipped in accordance with paragraph 2;d.17pipeline installations as defined in the pipelines ordinance which do not meet the criteria specified in annex 1.3.184 this ordinance does not apply to installations and forms of transport which are subject to legislation on nuclear energy and radiological protection, insofar as the associated radiation could cause harm to the public or damage to the environment.195 the provisions of article 10 epa are directly applicable to establishments or transport routes which, in the case of exceptional events, could cause serious harm to the public or damage to the environment not arising from substances, preparations, special wastes or dangerous goods, or from genetically modified or pathogenic organisms or alien organisms subject to compulsory containment.204 amended by no ii 8 of the o of 18 may 2005 on the repeal and amendment of ordinances in connection with the commencement of the chemicals act, in force since 1 aug. 2005 (as 2005 2695).5 amended by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).6 sr 814.9127 amended by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).8 [as 1983 678. as 1992 341 art. 7]. now: transit roads ordinance of 18 dec. 1991 (sr 741.272).9 [as 1985 620, 1989 2482, 1994 3006, 1995 4425 annex 1 no ii 11 4866, 1997 422 no ii, 1998 1796 art. 1 no 18 and art. 6, 1999 751 no ii, 2002 419 1183. as 2002 4212 art. 29 para. 1]. now: the o of 29 nov. 2002 (sr 741.621).10 [as 1971 1957, 1977 768, 1983 486, 1987 1454, 1990 1356]. now: o of 3 march 2010 (sr 747.224.141).11 inserted by no i of the o of 13 feb. 2013 (as 2013 749). amended by annex no 2 of the pipelines ordinance of 26 june 2019, in force since 1 aug. 2019 (as 2019 2205).12 sr 746.1113 inserted by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).14 amended by no i of the o of 13 feb. 2013, in force since 1 april 2013 (as 2013 749).15 amended by no ii 8 of the o of 18 may 2005 on the repeal and amendment of ordinances in connection with the commencement of the chemicals act, in force since 1 aug. 2005 (as 2005 2695).16 amended by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).17 inserted by no i of the o of 13 feb. 2013 (as 2013 749). amended by annex no 2 of the pipelines ordinance of 26 june 2019, in force since 1 aug. 2019 (as 2019 2205).18 amended by annex 5 no 2 of the containment o of 25 aug. 1999, in force since 1 nov. 1999 (as 1999 2783).19 amended by no i of the o of 13 feb. 2013, in force since 1 april 2013 (as 2013 749).20 amended by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).art. 2 definitions 1 an establishment comprises installations as defined in article 7 paragraph 7 epa which have closely related operations and are in close proximity to each other (operating area).2 .213 the hazard potential is the sum of the effects which could arise from the quantities and properties of the substances, preparations, special wastes, organisms or dangerous goods in question.22 4 a major accident is an exceptional event occurring in an establishment, on a transport route or in a pipeline installation which has significant effects:23a.outside the operating area;b.on or near the transport route;c.24near the pipeline installation.5 the risk is determined by the extent of the possible harm to the public or damage to the environment resulting from major accidents and the likelihood of their occurrence.21 repealed by no i of the o of 29 april 2015, with effect from 1 june 2015 (as 2015 1337)22 amended by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).23 amended by no i of the o of 13 feb. 2013, in force since 1 april 2013 (as 2013 749).24 inserted by no i of the o of 13 feb. 2013, in force since 1 april 2013 (as 2013 749).section 2 principles of prevention art. 3 safety measures25 1 the person responsible for an establishment, a transport route or a pipeline installation shall take all appropriate measures to reduce risk that are available in accordance with the state of the art of safety technology, supplemented by personal experience, and which are economically viable. these shall include measures to reduce the hazard potential, to prevent major accidents and to limit the effects thereof.262 when measures are selected, account shall be taken of operational and local factors which could cause major accidents, as well as actions of unauthorised persons.3 when measures are implemented, account shall be taken in particular of the principles laid down in annex 2, and in particular the measures in accordance with annexes 2.2-2.5.2725 amended by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).26 amended by no i of the o of 13 feb. 2013, in force since 1 april 2013 (as 2013 749).27 amended by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).art. 428 28 repealed by no i of the o of 29 april 2015, with effect from 1 june 2015 (as 2015 1337)art. 5 summary report 1 the person responsible for an establishment must submit a summary report to the enforcement authority. it shall include:a.a concise description of the establishment, together with a general plan and information on the surrounding area;b.29a list of the maximum quantities of the substances, preparations or special wastes present in the establishment which exceed the threshold quantities specified in annex 1.1, together with the applicable threshold quantities;c.30the risk report specified in article 8 of the containment ordinance of 9 may 201231;d.documents drawn up in the preparation of any property and corporate liability insurance policies;e.details of safety measures;f.an estimate of the extent of possible harm to the public or damage to the environment resulting from major accidents.2 the person responsible for a transport route shall submit a summary report to the enforcement authority. it shall include:a.a concise description of the structural and technical design of the transport route, together with a general plan and information on the surrounding area;b.data on the volume and structure of traffic on the transport route and accident statistics;c.details of safety measures;d.an estimate of the likelihood of a major accident causing serious harm to the public or damage to the environment.3 the person responsible for a pipeline installation shall submit a summary report to the enforcement authority. it shall include:a.a concise description of the structural and technical design of the pipeline installation, together with a general plan and information on the surrounding area;b.data on the type, composition and physical state of the substances and preparations transported, together with the approved operating pressure and accident statistics;c.details of safety measures;d.an estimate of the likelihood of a major accident causing serious harm to the public or damage to the environment.324 .335 the enforcement authority shall exempt the person responsible for a through road from the duty to submit a summary report if, based on the information available, it is able, without a summary report, to assess as valid the assumption that the likelihood of major accidents causing serious harm is sufficiently low.3429 amended by no ii 8 of the o of 18 may 2005 on the repeal and amendment of ordinances in connection with the commencement of the chemicals act, in force since 1 aug. 2005 (as 2005 2695).30 amended by annex 5 no 7 of the containment o of 9 may 2012, in force since 1 june 2012 (as 2012 2777).31 sr 814.91232 amended by no i of the o of 13 feb. 2013, in force since 1 april 2013 (as 2013 749).33 inserted by no i of the o of 13 feb. 2013 (as 2013 749). repealed by no i of the o of 29 april 2015, with effect from 1 june 2015 (as 2015 1337)34 inserted by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).art. 6 assessment of the summary report, risk report 1 the enforcement authority shall verify that the summary report is complete and correct.2 in particular, it shall verify:a.in the case of establishments, whether the estimate of the extent of possible harm or damage (art. 5 para. 1 let. f) is plausible;b.in the case of transport routes, whether the estimate of the likelihood of a major accident causing serious harm or damage (art. 5 para. 2 let. d) is plausible;c.35in the case of pipeline installations, whether the estimate of the likelihood of a major accident causing serious harm or damage (art. 5 para. 3 let. d) is plausible.3 following an on-site inspection, where appropriate, it shall assess the validity of the assumption that:a.in the case of establishments, serious harm to the public or damage to the environment arising from major accidents is not to be expected;b.in the case of transport routes, the likelihood of occurrence of a major accident causing serious harm or damage is sufficiently low;c.36in the case of pipeline installations, the likelihood of occurrence of a major accident causing serious harm or damage is sufficiently low.3bis the enforcement authority shall set out the results of its assessment in writing.374 if the assumption in accordance with paragraph 3 is not valid, it shall order the person responsible to prepare and submit to it a risk report in accordance with annex 4.3835 inserted by no i of the o of 13 feb. 2013, in force since 1 april 2013 (as 2013 749).36 inserted by no i of the o of 13 feb. 2013, in force since 1 april 2013 (as 2013 749).37 inserted by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).38 amended by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).art. 7 assessment of the risk report 1 the enforcement authority shall review the risk report and assess whether the risk is acceptable. it shall set out its assessment in writing.392 when evaluating the acceptability of the risk, it shall take account of local risk factors and pay particular attention to the fact that the likelihood of occurrence of a major accident must be all the lower:a.40the more the need to protect the public or the environment against serious harm or damage arising from major accidents outweighs private and public interests in the operation of an establishment, a transport route or a pipeline installation;b.the greater the extent of the possible harm to the public or damage to the environment.39 amended by no i. of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).40 amended by no i of the o of 13 feb. 2013, in force since 1 april 2013 (as 2013 749).art. 8 additional safety measures 1 if the risk is unacceptable, the enforcement authority shall order such additional measures as may be required. if necessary, these may include restrictions or prohibitions on operations and traffic.2 in the case of measures for which a different public body is responsible, the enforcement authority shall submit appropriate requests to the competent authority. if necessary, the federal council shall coordinate the adoption of measures.art. 8a41 change in circumstances 1 if the person responsible has prepared a summary report, but not a risk report and if the circumstances change significantly thereafter or relevant new findings become available, they must amend the summary report and resubmit it to the enforcement authority.2 if the person responsible has prepared a risk report and the circumstances change significantly thereafter or relevant new findings become available, they must: a.amend the risk report and resubmit it to the enforcement authority;b.amend the summary report instead of the risk report and resubmit it to the enforcement authority if:1.serious harm to the public or to the environment from major accidents need no longer be expected,2.in the case of transport routes and pipeline installations, the probability of a major accident causing serious harm is sufficiently low.41 inserted by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).art. 8b42 inspections 1 in order to verify if the person responsible is fulfilling their duties under this ordinance, the enforcement authority shall conduct regular on-site inspections. it shall set out its assessment in writing.2 the enforcement authority shall decide on the frequency of inspection based on the hazard potential, the type and complexity of the establishment, transport route or pipeline installation and the results of earlier inspections.42 inserted by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).art. 9 and 1043 43 repealed by no i of the o of 29 april 2015, with effect from 1 june 2015 (as 2015 1337)section 3 response to major accidents art. 11 1 the person responsible shall make every effort to respond to major accidents.2 in particular, he shall:a.immediately tackle major accidents and notify the point of contact;b.immediately secure the accident site and prevent further effects;c.remedy any effects as soon as possible.3 he shall submit a report to the enforcement authority within three months after the accident. the report shall include:a.a description of the course and effects of the major accident, and of the response provided;b.information on the effectiveness of the safety measures;c.an assessment of the accident.4 if the person responsible is unable to draw up the report within the period specified, he must submit an application for an extension to the enforcement authority, stating the reasons, together with an interim report on the state of the investigations.section 3a coordination with spatial planning activities44 44 inserted by no i of the o of 21 sept. 2018, in force since 1 nov. 2018 (as 2018 3505). art. 11a45 .46 1 the cantons shall take major accident prevention into account in structure and land use plans and in their other spatial planning activities.472 for establishments, transport routes and pipeline installations, the enforcement authority shall designate the adjoining area in which the construction of buildings and installations may lead to a significant increase in the risk.3 before the competent authority makes a decision on a change to a structure or land use plan in an area as specified in paragraph 2, it shall obtain an expert opinion from the enforcement authority for risk assessment purposes.45 inserted by no i of the o of 13 feb. 2013, in force since 1 april 2013 (as 2013 749).46 repealed by no i of the o of 21 sept. 2018, with effect from 1 nov. 2018 (as 2018 3505).47 amended by no i of the o of 21 sept. 2018, in force since 1 nov. 2018 (as 2018 3505).section 448 responsibilities of the cantons 48 originally before art. 11a. art. 12 point of contact 1 the cantons shall designate a point of contact, which is responsible for receiving notifications of major accidents at any time and immediately alerting the emergency services.2 the cantons shall also ensure that a central office is designated, which immediately forwards notifications of major accidents to the national emergency operations centre (neoc) emergency desk (asn).4949 amended by no i of the o of 13 feb. 2013, in force since 1 april 2013 (as 2013 749).art. 1350 information and alerts 1 the cantons shall inform the public of: a.the geographical location of establishments and transport routes;b.the adjoining areas in accordance with article 11a paragraph 2.2 the cantons shall ensure that, in the event of a major accident, the population affected is informed in good time and, if necessary, alerted and advised how to act.3 they shall also ensure that neighbouring cantons and states are informed in good time and, if necessary, alerted, if major accidents could have significant effects beyond cantonal or national borders.50 amended by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).art. 14 coordination of emergency services the cantons shall coordinate the emergency services with the responsible persons' emergency plans.art. 1551 coordination of inspections as far as possible, the cantons shall coordinate the inspections of establishments and transport routes which they are required to carry out under this and other legislation.51 amended by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).art. 16 provision of information to the foen52 1 the cantons shall periodically provide the federal office for the environment (foen) with information in the form of an overview of the hazard potentials and risks within their territory (risk register), together with the measures implemented.532 to this end, the competent federal and cantonal authorities shall make the necessary information available on request.3 the above is subject to legal requirements concerning secrecy.52 amended by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).53 amended by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).section 5 responsibilities of the confederation art. 17 data collection by the foen54 1 the competent federal and cantonal authorities shall forward to the foen on request any information collected in accordance with this ordinance.2 the foen shall ensure that the data is processed and made available to the competent authorities, insofar as this is necessary for the implementation of this ordinance.3 the above is subject to legal requirements concerning secrecy.54 expression in accordance with no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337). this amendment has been made throughout the text.art. 18 and 1955 55 repealed by no i of the o of 29 april 2015, with effect from 1 june 2015 (as 2015 1337)art. 2056 information 1 the competent federal authorities shall inform the public of:a.the geographical location of establishments, transport routes and pipeline installations;b.the adjoining areas in accordance with article 11a paragraph 2.2 in the event of major accidents which could have significant effects beyond national borders, the competent federal authorities shall inform the relevant swiss missions abroad and the foreign authorities concerned.56 amended by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).art. 2157 57 repealed by no i of the o of 29 april 2015, with effect from 1 june 2015 (as 2015 1337)art. 22 guidelines the foen shall, as required, publish guidelines which explain the essential provisions of the ordinance; these include, in particular, the provisions concerning the scope of the ordinance, safety measures, the preparation of the summary report and risk report, and the review and assessment thereof.section 6 final provisions art. 2358 enforcement 1 the cantons shall enforce this ordinance unless responsibility for enforcement is assigned to the confederation.2 when applying other federal acts or international agreements or resolutions relating to matters regulated by this ordinance, federal authorities shall also be responsible for enforcing this ordinance. participation of the foen and the cantons is governed by article 41 paragraphs 2 and 4 epa; these provisions are subject to legal requirements concerning secrecy.3 the foen shall specify the minimal geodata models and presentation models for official geodata in accordance with this ordinance for which it is designated as the competent federal authority in annex 1 of the ordinance of 21 may 200859 on geoinformation.6058 amended by no ii 8 of the o of 2 feb. 2000 to the federal act on the coordination and simplification of decision-making procedures, with effect from 1 march 2000 (as 2000 703).59 sr 510.62060 inserted by annex 2 no 5 of the o of 21 may 2008 on geoinformation, in force since 1 july 2008 (as 2008 2809).art. 23a61 amendment of annexes 1 detec may, having consulted the persons concerned and insofar as is required by the state of the art in safety technology, the hazard potential and the volume of hazardous goods, amend annexes 1.1 no 3 and 1.2a of this ordinance.2 detec may, in agreement with the federal department of economic affairs, education and research and the federal department of home affairs and having consulted the swiss expert committee for biosafety, amend the list in annex 1.4 if new findings as to the properties of certain organisms so require.61 inserted by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).art. 24 amendment of existing legislation .6262 the amendments may be consulted under as 1991 748.art. 2563 63 repealed by no i of the o of 29 april 2015, with effect from 1 june 2015 (as 2015 1337)art. 25a64 transitional provisions relating to the amendment of 13 february 2013 1 the person responsible for a pipeline installation shall submit the summary report (art. 5 para. 3) to the enforcement authority no later than 5 years after this amendment to the ordinance comes into force.2 the enforcement authority shall waive the requirement to provide information in accordance with paragraph 1 in cases where it already has the necessary information.64 inserted by no i of the o of 13 feb. 2013, in force since 1 april 2013 (as 2013 749).art. 25b65 transitional provisions relating to the amendment of 29 april 2015 persons responsible for establishments that fall within the scope of this ordinance for the first time following the amendment of 29 april 2015 must submit the summary report to the enforcement authority at the latest three years after the said amendment to the ordinance comes into force.65 inserted by no i of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).art. 26 commencement this ordinance comes into force on 1 april 1991.annex 1 scope and summary report annex 1.166 66 amended by no ii para. 2 of the o of 29 april 2015 (as 2015 1337). revised by no ii para. 1 of the o of 21 sept. 2018, in force since 1 nov. 2018 (as 2018 3505).(art. 1 and 5)threshold quantities for substances, preparations or special wastes 1 . 2 determination of threshold quantities 21 substances or preparations 1 for substances or preparations listed in the table under number 3, the threshold quantities specified therein apply.2 for other substances or preparations, the person responsible shall determine the threshold quantity using the criteria specified in number 4 in accordance with annex i of regulation (ec) no 1272/200867 and the criteria specified in number 5 for highly active substances and preparations. the lowest threshold quantity determined in this way is decisive.3 the person responsible need not determine the threshold quantity for a criterion or area if he can argue convincingly that the costs of acquiring the data would be disproportionate.67 regulation (ec) no 1272/2008 of 16 dec. 2008 of the european parliament and of the council on classification, labelling and packaging of substances and mixtures, amending and repealing directives 67/548/eec and 1999/45/ec, and amending regulation (ec) no 1907/2006, oj l 353 of 31.12.2008, s. 1; last amended by regulation (eu) no 2016/1179, oj. l 195 of 20.7.2016, p. 11.22 special wastes the federal department of the environment, transport, energy and communications (detec) shall specify the threshold quantities for special wastes designated as such in the waste list issued in accordance with article 2 of the ordinance of 22 june 200568 on movements of waste. in doing so, it shall take account of their:a.health risks;b.physical risks;c.environmental risks;d.other risks.68 sr 814.6103 substances and preparations with specified threshold quantities nosubstance namecas no1tq (kg)21acetylene74-86-25 00024-aminodiphenyl and its salts 35003ammonium nitrate fertiliser with a nitrogen content 25 %20 0004ammonium nitrate fertiliser with a nitrogen content 25 % and a verifiable negative detonation and smoulder test200 0005arsenic(iii) oxide, arsenic(iii) acid and their salts1327-53-31006arsenic(v) oxide, arsenic(v) acid and/or their salts1303-28-21 0007benzidine and its salts 35008gasoline (regular, super)200 0009chlorine7782-50-520010chromium (vi) and its salts200111,2-dibromo-3-chlorpropane396-12-8500121,2-dibromethane3106-93-450013diethyl sulfate364-67-550014dimethylcarbamoyl chloride 379-44-7500151,2-dimethylhydrazine3540-73-850016ethanol motor fuels4200 00017heating oil, diesel500 00018hexamethylphosphoric triamide 3680-31-950019hydrazine3302-01-250020kerosene200 00021methyl isocyanate624-83-9150222-naphthylamine and its salts 350023nickel compounds in inhalable powder form1 000244-nitrodiphenyl392-93-3500251,3-propane sultone 31120-71-450026sulphur dichloride10545-99-01 00027hydrogen1333-74-05 0001substance identifier in the chemical abstract system2tq (kg)=threshold quantity in kg3carcinogens or preparations that contain these carcinogens in concentrations of over 5 per cent by weight4ethanol fuels with various percentages of ethanol in gasoline4 criteria for determining threshold quantities 41 health risks criteriavalues for criteriatq1 = 200 kgtq1 = 2000 kgtq1 = 20 000 kgtq1 = 200 000 kgclassification/labelling2h330h3003, h310, h331, h370h3013, h3023, h311, h 312, h3144, h 332, h3711tq (kg) = threshold quantity in kg2chemicals ordinance, sr 813.113if the substance or preparation is verifiably not toxic through inhalation nor dermally, for clp categories 1+2 (h300), a threshold quantity of 20 000 kg applies and for clp categories 3+4 (h301/h302), a threshold quantity of 200 000 kg applies.4corrosive substances and preparations (h314) that are also categorised and labelled as gases under pressure (h280/ h281) and/or as oxidising gases, liquids or solids (h270/h 271/h272) have a threshold quantity of 2000 kg, unless they have a lower threshold quantity due to other criteria.42 physical risks criteriavalues for criteriatq1 = 200 kgtq1 = 2000 kgtq1 = 20 000 kgtq1 = 50 000 kgclassification/labelling2h2003, h2013, h2023, h2033, h240, h241h220, h221, h224, h225, h226, h242, h250, h251, h252, h260, h261, h270, h271, h272h2224, h2234, h2281tq (kg) = threshold quantity in kg2chemicals ordinance, sr 813.113the threshold quantity relates to the net quantity of the active explosive substance.4to determine whether a threshold quantity has been exceeded, the stored quantities of flammable aerosol dispensers in the relevant clp categories must be added together on the basis of their net mass.43 environmental risks criteriavalues for criteriatq1 = 200 kgtq1 = 2000 kgtq1 = 20 000 kgtq1 = 200 000 kgclassification/labelling2h400, h410h4111tq (kg) = threshold quantity in kg2chemicals ordinance, sr 813.1144 other risks criteriavalues for criteriatq1 = 200 kgtq1 = 2000 kgtq1 = 20 000 kgtq1 = 200 000 kgclassification/labelling2euh032euh014, euh029, euh0311tq (kg) = threshold quantity in kg2chemicals ordinance, sr 813.115 highly active substances (has) criteria1values for criteriatq2= 20 kga.workplace inhalation threshold in the air3<10 g/m3b.effect dose (ed50)4 10 mgc.cmr substances with major accident potentialcategories 1a and 1b1the listed criteria apply, and the order of the criteria (letters) denotes their priority, i.e. if there is a value under criteria a, criteria b and c are no longer relevant.if a person responsible for a substance/preparation that meets one of the criteria concludes based on their self-assessment that harm to the public in the event of exposure on one occasion may be excluded or that the more serious effect of the substance/ preparation is not relevant to major accidents, the substance/ preparation is not deemed to be an has in terms of the major accidents ordinance. in order to assess whether an effect is relevant to major accidents, the definition of temporary emergency exposure limits (teel-2) applies. the major accidents ordinance does not apply to establishments that handle has only in the form of finished products that are intended for their own use or for supply to professional or commercial users or the general public.2tq (kg) = threshold quantity in kg3mak, tlv, oel, ioel, etc.4corresponds to the effect dose ed50 of 0.17 mg/kg at a body weight of 60 kg. the effect dose relates to the worst effect of the substance/preparation according to the self-assessment by the person responsible.annex 1.269 69 repealed by annex 5 no 2 of the containment o of 25 aug. 1999, with effect from 1 nov. 1999 (as 1999 2783).(art. 1 and 5)annex 1.2a70 70 inserted by no ii para. 1 of the o of 29 april 2015 (as 2015 1337). amended by no ii para. 2 of the o of 21 sept. 2018, in force since 1 nov. 2018 (as 2018 3505).(art. 1)scope for railway installations 1 track sections the major accidents ordinance applies to the track sections between the following operating points (with the exception of sections on foreign territory). the operating points are based on official geodata identifier 98.1 under the ordinance of 21 may 200871 on geoinformation (geoio).kilometre linefrom operating pointto operating pointusual name of the kilometre line on which the operating points lie100lsstdglausanne - simplon tunnel i - iselle109brtustdg(109)simplon tunnel ii131pdsmthles paluds - st-gingolph (frontire)150lssjlausanne - geneva airport151sjlpfrgeneva st-jean - la plaine-frontire152sjgepbst-jean - geneva-eaux-vives - annemasse154fubijonfuret - jonction160renoltserenens vd ouest - lausanne-triage sect.161ltflonalausanne-triage f - lonay a (bif)162ltplonblausanne-triage p1 - lonay b164lecrdenalcheires - denges a166renoltrenens vd ouest - lausanne-triage est169ltsebylausanne-triage sect. - bussigny170lteltslausanne-triage (est - sud)200renodaibrenens vd ouest - vallorbe206renobye(206)renens vd ouest - bussigny est210daibbidaillens - biel/bienne260zolnbiaezollikofen nord - biel/bienne aebistr.265bimabiobiel mett abzweigung - biel/bienne ost266madbirwmadretsch - biel/bienne rb west290wkdthegbern wylerfeld - thun291lguswkdlchligut - wankdorf299thabthscthun abzweigung - thun gb - thun schadau300spnibrlospiez - kandersteg - brig302mgtnmgtn(302)zweiter mittalgrabentunnel310thegspnithun - spiez - interlaken ost330wenestgewengi-ey - ltschberg - st.german (ost)331ferdstge(331)wengi-ey - ltschberg - st.german (west)332frsfrnpfrutigen - frutigen nordportal (ost)400lgutrtrwlchligut - wanzwil - rothrist west410olbiolten - solothurn - biel/bienne450olslgusolten sd - bern451abortr(451)aarburg-oftringen - rothrist gleis 1453bfgrtr(453)rothrist ost - rothrist gleis 4455 uhdbaespunterhalden be - aespli456ohbdaespoberhard be - aespli457 ohbdmathardfeld (spw) - mattstetten459 ruttlgut(459)rtti - lchligut500murbgbasel sbb - olten - lucerne510bsfrbswmulhouse-ville - basel sbb511bsobsnkbasel sbb - basel gb - basel rb514bswbsosncf verbindungslinie5188519315badmllheim (baden) - basel bad bhf520gelnbadgellert - basel bad db521bsnkmuumfahrung sd: basel sbb rb i - muttenz522gelnbsnkumfahrung nord: gellert - pratteln523badbskebasel bad rb - kleinhnigen hafen525bsnkbsaubasel sbb rb - basel auhafen531olnoloolten verbindungslinie540olwoesolten - wschnau594rysppozzgbt west595ryspgidigbt ost600imwchieimmensee - bellinzona - chiasso601ryaberna(601)ryncht - erstfeld nord gleis links604bruaskn(604)brunnen - sisikon (gleis links)605skgruo(605)sisikon - gruonbach (gleis links)606alsaalme(606)al sasso - al motto (binario sinistro)607 mcenribn(607)mt. ceneri - rivera (binario destro)608masnlgn(608)massagno - lugano (binario destro)630giuscdogiubiasco - locarno631cdopinccadenazzo - pino confine638basmchsmbalerna sm - chiasso smistamento639chiechsmmonte olimpino ii - chiasso smistamento640bgrubrugg - rupperswil641ruoru(641)rupperswil ost - rupperswil gleis rechts647bghdknbrugg - hendschiken nord648bgsbgnbrugg sd - brugg nord (vl)649aawoet(649)aarau - wschnau tunnel alt650klwwwoeskillwangen west - lenzburg - dniken ost653gexoimwgexi ost - rotkreuz - immensee west691rblklwwrbl kopf zurich - killwangen west692rblzrbldrbl nord693rbldrblerbl mitte698klwwhblo(698)killwangen west -411- heitersbergl. ost699sdoefg(699)neuer bzbergtunnel700bgprobrugg - pratteln ost701eglstsoeglisau - koblenz - stein sckingen ost703zseogmtzh oerlikon nord - wettingen - gruemet704wuerklwwwrenlos - killwangen west (rbl)706zseoopszurich seebach - glattbrugg sd710zasobgzurich hb - brugg ag711zasnzasszh hardbrcke - kollermhle715zasohrdzurich altstetten ost - zurich hard718zauzasszh aussersihl - zh altstetten sd720zauzbzh langstrasse - thalwil - ziegelbrcke721twtws(721)thalwil - thalwil sd722zaunidszh langstrasse - nidelbad - litti723nidstwnonidelbad sd - thalwil nord725nidbnidonidelbad - nidelbad ost751huerwnozh langstr. - wallisellen - winterthur752zoenhuerzurich oerlikon nord - hrlistein (abzw)757kldorfkloten - dorfnest (berwerfung)760zhdbbuezurich hardbrcke - blach762nhshwinterthur nord - schaffhausen rb ost763bad8519316basel bad bhf - waldshut - schaffhausen764sheulgschaffhausen - singen - konstanz770buenhblach - eglisau - neuhausen824rhkghrromanshorn - konstanz830wilwfwil - weinfelden840wfrhwinterthur nord - romanshorn850gsswnost.gallen - winterthur nord880truehagsargans ost - st.gallen881sasltruesargans schl. west - schleife - trbbach890sasozbsargans ost - ziegelbrcke900sasochwsargans ost - chur west (gleisende)71 sr 510.6202 freight installations the major accidents ordinance applies to the following freight installations:-basel sbb rb (bsrb)-zurich rb limmattal (rbl)-lausanne-triage (lt)-chiasso smistamento (chsm)-geneva-la-prailleannex 1.372 72 inserted by no ii of the o of 13 feb. 2013, in force since 1 april 2013 (as 2013 749).(art. 1)criteria for pipeline installations 1 pipeline installations for the transport of gaseous thermal and motor fuels fall within the scope of this ordinance if they meet the following criteria:a.the approved operating pressure is greater than 5 bar and less than or equal to 25 bar and the product of the approved operating pressure in pascals (pa) and the external diameter in metres is greater than 500,000 pa m (500 bar cm) (pressure is to be taken to mean positive pressure); orb.the approved operating pressure is greater than 25 bar and the product of the approved operating pressure in pascals (pa) and the external diameter in metres is greater than 1,000,000 pa m (1,000 bar cm) (pressure is to be taken to mean positive pressure).2 pipeline installations for the transport of liquid thermal and motor fuels fall within the scope of this ordinance if, with an approved operating pressure of greater than 5 bar, the product of the approved operating pressure in pascals (pa) and the external diameter in metres is greater than 200,000 pa m (200 bar cm) (pressure is to be taken to mean positive pressure).annex 1.473 73 inserted by no ii para. 1 of the o of 29 april 2015 (as 2015 1337). amended by no ii para. 2 of the o of 21 sept. 2018, in force since 1 nov. 2018 (as 2018 3505).(art. 1 para. 2bis)list of organisms which, due to their properties, cannot spread uncontrollably among the public and in the environment deutscher namenom franaisnome italianoenglish nameremarksstliche pferdeenzephalomyelitisvirus de l'encphalite quine de l'estvirus dell'encefalite equina dell'esteastern equine encephalitis virusonly if not working with insect vectorshepatitis b virusvirus de l'hpatite bvirus dell'epatite bhepatitis b virushepatitis c virusvirus de l'hpatite cvirus dell'epatite chepatitis c virushepatitis d virus virus de l'hpatite dvirus dell'epatite dhepatitis d virushepatitis e virus virus de l'hpatite evirus dell'epatite ehepatitis e virushepatitis g virus virus de l'hpatite gvirus dell'epatite ghepatitis g virushumane immundefizienzvirus virus de l'immunodficience humaine virus dell'immunodeficienza umanahuman immunodeficiency virusgelbfieber-virusvirus de la fivre jaunevirus della febbre giallayellow fever virusonly if not working with insect vectorstrypanosomentrypanosomatrypanosomatrypanosomaif working with insect vectorsplasmodienplasmodiumplasmodiumplasmodiumif working with insect vectorshumanes t-lymphotropes virus 1 and 2virus t-lymphotropique humain 1 et 2virus t-linfotropico dell'uomo 1 e 2human t-lymphotropic virus 1 and 2frhsommer-meningoenzephalitis (fsme)virus de la mningo-encphalite tiques, (vmet)virus meningoencefalite da zecche (fsme)tick-borne encephalitis virus (tbe)only if not working with insect vectorsbovine spongiforme enzephalopathie (bse)encphalopathie spongiforme bovine (esb)encefalopatia spongiforme bovina (bse)bovine spongiform encephalopathy (bse)transmissible spongiforme enzephalopathie (tse)encphalopathies spongiformes transmissibles (est) encefalopatie spongiformi trasmissibili (tse)transmissible spongiform encephalopathies (tses)louping ill viruslouping ill viruslouping ill viruslouping ill virusonly if not working with insect vectorsannex 274 74 amended by no ii para 2 of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).safety measures annex 2.1 (art. 3)procedure for establishments, transport routes and pipeline installations when adopting safety measures, the person responsible for an establishment, transport route or pipeline installation must:a.select a suitable site or a suitable route and ensure that appropriate safety distances are maintained;b.establish the organisational requirements;c.arrange for the training of staff and the provision of information to third parties;d.establish the procedures for determining and evaluating major accident scenarios;e.establish the procedures for planning and implementing measures;f.arrange for the monitoring, servicing and review of the safety-critical components;g.establish the procedures for emergency planning;h.arrange for the systematic review of the organisational requirements and procedures and deal with change management (inside and outside the installations);i.document the significant results under letters b-h.annex 2.2 (art. 3)measures for establishments handling substances, preparations or special wastes when adopting general safety measures, the person responsible for an establishment handling substances, preparations or special wastes must:a.as far as possible, replace dangerous substances or preparations with less dangerous ones, or limit the quantities thereof and as far as possible, avoid hazardous processes, methods or operating procedures;b.design load-bearing structures in such a way that no additional serious effects arise as a result of the stresses to be expected in the event of a major accident;c.install adequate warning and alarm systems;d.install suitable and reliable measurement or control systems, which, insofar as required for safety reasons, are multiple, of different types and operate independently of each other;e.install the necessary safety equipment and take the necessary structural, technical and organisational protective measures;f.monitor equipment and the operation of safety-critical components and carry out regular maintenance and inspections and document the checks;g.store substances, preparations or special wastes in an orderly manner, taking account of their properties, and keep up-to-date records of their quantities and location;h.deploy a sufficient number of suitably qualified staff, inform them about high-risk methods and processes used in the establishment, train them to prevent, limit and respond to major accidents, and ensure that the level of expertise is maintained in the event of staff changes;i.document any significant operational failures, their causes and the measures adopted, and retain the documents for a sufficient length of time;j.control access to the establishment;k.provide sufficient own resources for responding to major accidents, draw up an emergency plan for major accidents and discuss it with the emergency services, and carry out periodic exercises on the basis of this plan.annex 2.3 (art. 3)measures for establishments handling microorganisms when adopting general safety measures, the person responsible for an establishment where an activity involving genetically modified or pathogenic alien organisms or alien organisms subject to compulsory containment is carried out must:a.as far as possible, replace dangerous organisms with less dangerous ones;b.install suitable and reliable measurement or control systems, which, insofar as required for safety reasons, are multiple, of different types and operate independently of each other;c.install the necessary safety equipment and take the necessary structural, technical and organisational protective measures;d.monitor equipment and the operation of safety-critical components and carry out regular maintenance and inspections and document the checkse.install adequate warning and alarm systems;f.store organisms or special wastes in an orderly manner, taking account of their properties, and keep up-to-date records of their quantities and location;g.deploy a sufficient number of suitably qualified staff, inform them about high-risk methods and processes used in the establishment, train them to prevent, limit and respond to major accidents, and ensure that the level of expertise is maintained in the event of staff changes;h.document any significant operational failures, their causes and the measures adopted, and retain the documents for a sufficient length of time; i.provide sufficient own resources for responding to major accidents, draw up an emergency plan for major accidents and discuss it with the emergency services, and carry out periodic exercises on the basis of this plan.annex 2.4 (art. 3)measures for transport routes when adopting general safety measures, the person responsible for a transport route must:a.design the transport route in such a way that no additional serious effects arise as a result of the stresses to be expected in the event of a major accident;b.install the necessary safety equipment and take the necessary structural, technical and organisational protective measures;c.install adequate warning and alarm systems;d.monitor equipment and the operation of safety-critical elements of the transport route and carry out regular servicing;e.take the necessary traffic management or control measures for the transport of dangerous goods;f.collect, assess and pass on to the staff concerned any information available on the transport of dangerous goods;g.in cooperation with the emergency services, draw up an emergency plan for major accidents and carry out periodic exercises on the basis of this plan.annex 2.5 (art. 3)measures for pipeline installations when adopting general safety measures, the person responsible for a pipeline installation must:a.taking the surrounding area into account, install the necessary safety equipment and take the necessary structural, technical and organisational protective measures;b.collect, assess and pass on to interested third parties (e.g. staff, emergency services and land owners) any information available on the hazards posed by the thermal and motor fuels transported.annex 375 75 repealed by no ii para. 3 of the o of 29 april 2015, with effect from 1 june 2015 (as 2015 1337)annex 4 risk report annex 4.176 76 revised in accordance with no ii 8 of the o of 18 may 2005 on the repeal and amendment of ordinances in connection with the commencement of the chemicals act, in force since 1 aug. 2005 (as 2005 2695).(art. 6)establishments handling substances, preparations or special wastes 1 principles 1 the risk report must contain all the information required by the enforcement authority in order to verify and assess, in accordance with article 7, the risk posed by the establishment to the public or the environment. this includes, in particular, all the information listed in numbers 2-5.2 in justified cases, certain items of information may be omitted or replaced by others which are equally valid or more appropriate.3 the scope and degree of detail of the information given for each item will depend on the specific circumstances; in particular, consideration is to be given to the type of establishment, the hazard potential, the surrounding area and the safety measures.4 documentation used for the risk report, particularly test results, empirical data, literature references, results of calculations and detailed analyses, are to be kept at the disposal of the enforcement authority.2 basic data 21 establishment and surrounding area -description of the establishment, together with a site plan, including any licences, planning approvals or concessions,-characterisation of the establishment (main activities, organisational structure, number of staff, etc.),-details of the surrounding area, together with a general plan,-division of the establishment into study units and the reasons for this division.22 list of substances, preparations or special wastes present in each study unit -designation (chemical name, cas number, trade name, etc.),-maximum quantity,-location,-details of physical and chemical properties.23 description of installations in each study unit -structure of buildings,-methods and processes,-storage,-incoming and outgoing shipments,-provision of supplies and disposal,-installation-specific major accidents.24 safety measures in each study unit -regulations applied and experience,-measures taken to reduce the hazard potential,-measures taken to prevent major accidents,-measures taken to limit the effects of major accidents.3 analysis for each study unit 31 methods -description of the methods used.32 hazard potentials -overview and characterisation of the main hazard potentials.33 main major accident scenarios 331 release process -possible causes,-description of significant release processes,-estimate of the likelihood of occurrence, given the safety measures in place.332 effects of release -description of effects, based on dispersion considerations,-estimate of the likelihood of occurrence, given the safety measures in place.333 consequences for the public and the environment -description of the extent of possible harm to the public or damage to the environment,-estimate of the likelihood of occurrence, given the safety measures in place.4 conclusions -account of the risk for each study unit, given the safety measures in place,-estimate of the risk posed by the establishment as a whole.5 summary of the risk report -characterisation of the establishment and of the main hazard potentials,-description of the safety measures,-description of the main major accident scenarios,-estimate of the risk posed by the establishment as a whole.annex 4.277 77 revised by annex 5 no 2 of the containment o of 25 aug. 1999 (as 1999 2783), annex 5 no 7 of the containment o of 9 may 2012 (as 2012 2777) and no ii para. 2 of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337).(art. 6)establishments handling organisms 1 principles 1 the risk report must contain all the information required by the enforcement authority in order to verify and assess, in accordance with article 7, the risk posed by the establishment to the public or the environment. this includes, in particular, all the information listed in numbers 2-5.2 in justified cases, certain items of information may be omitted or replaced by others which are equally valid or more appropriate.3 the scope and degree of detail of the information given for each item will depend on the specific circumstances; in particular, consideration is to be given to the nature of the establishment, the hazard potential, the surrounding area and the safety measures. items marked with an asterisk (*) are generally only applicable to production facilities.4 documentation used for the risk report, particularly test results, empirical data, literature references, results of calculations and detailed analyses, are to be kept at the disposal of the enforcement authority.2 basic data 21 establishment and surrounding area -description of the establishment, together with a site plan, including any permits or planning approvals,-characterisation of the establishment,-names of the persons responsible,-information on the surrounding area, together with a general plan.22 activities involving organisms -risk assessment in accordance with article 8 of the containment ordinance of 9 may 201278; in particular, the identity and characteristics of the organisms and the nature and scale of the activity,-the purpose of the contained use,-the culture volumes,*the nature of the intended product and of any by-products which are or may be produced in the course of the activity.78 sr 814.91223 installation -description of the sections of the installation,*the maximum number of persons working in the installation and of persons working directly with the microorganisms.24 waste, wastewater and exhaust air -types and quantities of waste and wastewater arising from the use of organisms,-ultimate form and destination of inactivated wastes.25 safety measures -class of the activity in accordance with the containment ordinance -measures specified in the containment ordinance,-measures taken to prevent major accidents,-measures taken to limit the effects of major accidents.3 analysis 31 methods -description of the methods used.32 hazard potentials -overview and characterisation of the main hazard potentials.33 main major accident scenarios -possible causes of major accidents,-description of significant release events and their effects, based on dispersal considerations,-description of the extent of possible harm to the public or damage to the environment,-estimate of the likelihood of occurrence, given the safety measures in place.4 conclusions -account of the risk, given the safety measures in place,-estimate of the risk posed by the establishment.5 summary of the risk report -characterisation of the establishment and of the main hazard potentials,-description of the safety measures,-description of the main major accident scenarios,-estimate of the risk posed by the establishment.annex 4.3 (art. 6)transport routes 1 principles 1 the risk report must contain all the information required by the enforcement authority in order to verify and assess, in accordance with article 7, the risk posed by the transport route to the public or the environment. this includes, in particular, all the information listed in numbers 2-5.2 in justified cases, certain items of information may be omitted or replaced by others which are equally valid or more appropriate.3 the scope and degree of detail of the information given for each item will depend on the specific circumstances; in particular, consideration is to be given to the specific features and location of the transport route, the surrounding area, the volume and structure of traffic, accident statistics and safety measures.4 documentation used for the risk report, particularly test results, empirical data, literature references, results of calculations and detailed analyses, are to be kept at the disposal of the enforcement authority.2 basic data 21 transport route and surrounding area -description of the transport route, together with a site plan,-information on the structure of the transport route and technical and organisational data,-information on safety equipment,-information on the surrounding area, including a general plan.22 volume and structure of traffic and accident statistics -traffic data, such as the total volume of traffic and the proportion of heavy goods traffic,-data on the volume of dangerous goods traffic as a proportion of total heavy goods traffic,-data on the accident rate, accident black spots and general accident statistics.23 safety measures -regulations applied and experience,-measures taken to reduce the hazard potential,-measures taken to prevent major accidents,-measures taken to limit the effects of major accidents.3 analysis 31 methods -description of the methods used,-description of the survey method used to determine the proportion of dangerous goods traffic.32 hazard potentials -overview and characterisation of the main hazard potentials.33 main major accident scenarios -possible causes of major accidents,-description of significant release events and their effects, based on dispersion considerations,-description of the extent of possible harm to the public or damage to the environment,-estimate of the likelihood of occurrence, given the safety measures in place.4 conclusions -account of the risk, given the safety measures in place,-estimate of the risk posed by the transport route.5 summary of the risk report -characterisation of the transport route and of the main hazard potentials,-description of the safety measures,-description of the main major accident scenarios,-estimate of the risk posed by the transport route.annex 4.479 79 inserted by no ii of the o of 13 feb. 2013, in force since 1 april 2013 (as 2013 749).(art. 6)pipeline installations 1 principles 1 the risk report must contain all the information required by the enforcement authority in order to verify and assess, in accordance with article 7, the risk posed by the pipeline installation to the public or the environment. this includes, in particular, all the information listed in numbers 2-5.2 in justified cases, certain items of information may be omitted or replaced by others which are equally valid or more appropriate.3 the scope and degree of detail of the information given for each item will depend on the specific circumstances; in particular, consideration is to be given to the specific type of pipeline installation, its hazard potential and the surrounding area, as well as to safety measures.4 documentation used for the risk report, particularly test results, empirical data, literature references, results of calculations and detailed analyses, are to be kept at the disposal of the enforcement authority.2 basic data 21 pipeline installation and surrounding area -description of the pipeline installation, together with a route/site plan,-information on the structure of the pipeline installation and technical and organisational data,-information on safety equipment,-information on the surrounding area, including a general plan.22 safety measures -technical standards,-measures taken to reduce the hazard potential,-measures taken to prevent major accidents,-measures taken to limit the effects of major accidents.3 analysis 31 methods -description of the methods used.32 hazard potentials -overview and characterisation of the main hazard potentials.33 main major accident scenarios -possible causes of major accidents,-description of significant release events and their effects, based on dispersion considerations,-description of the extent of possible harm to the public or damage to the environment,-estimate of the likelihood of occurrence, given the safety measures in place.4 conclusions -account of the risk, given the safety measures in place,-estimate of the risk posed by the pipeline installation.5 summary of the risk report -characterisation of the pipeline installation and of the main hazard potentials,-description of the safety measures,-description of the main major accident scenarios,-estimate of the risk posed by the pipeline installation.

814.017 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinanceon the register relating to pollutant release and the transfer of waste and of pollutants in waste water(prtro)of 15 december 2006 (status as at 23 january 2007)the swiss federal council,based on article 46 paragraph 2 of the federal act of 7 october 19831 on the protection of the environment (epa), ordains:1 sr 814.01section 1 general provisions art. 1 aim and scope of application 1 this ordinance is intended to guarantee public access to information on pollutant release and the transfer of waste and of pollutants in waste water by means of a register.2 it applies to facilities with installations in accordance with annex 1.art. 2 definitions in this ordinance:prtr means pollutant release and transfer register (register relating to pollutant release and the transfer of waste and of pollutants in waste water);installation in accordance with annex 1 also includes two or more installations of the same type in a single facility that together exceed the capacity threshold for that type of installation;facility means one or more installations in close proximity to each other that are operated by the same owner or operator as a single operational unit;owner or operator means the owner of a facility or person who actually operates a facility;pollutant means a substance or group of substances in accordance with annex 2;release means the introduction of pollutants into the air, the water or the land either deliberately or accidentally, directly or through sewer systems without final waste-water treatment, in particular by spillage, emission, discharge, injection, disposal or dumping;transfer means the deliberate or inadvertent movement beyond the boundaries of the facility:1.of waste destined for recovery or disposal, or2.of pollutants in waste water destined for waste-water treatment;waste water means water altered by industrial, commercial, agricultural or other use;hazardous waste means waste in terms of article 2 paragraph 2 letter a of the ordinance of 22 june 2005 on the movement of waste2.2 sr 814.610section 2 duties of the facility owner or operator art. 3 duty of care the owner or operator of a facility with installations in accordance with annex 1 must ensure that its information made available to the general public in the register is complete, based on standard definitions and comprehensible.art. 4 reporting requirement 1 the owner or operator of a facility with installations in accordance with annex 1 shall submit to the federal office for the environment (the foen) every year by 1 july the information referred to in article 5 paragraph 1 if that facility in the previous calendar year:a.released a larger quantity of a pollutant into the air, water or land than the quantity stipulated in the form of a threshold value in annex 2 ;b.transferred more than two tonnes of hazardous waste;c.transferred more than 2000 tonnes of other waste; ord.transferred a larger quantity of a pollutant in waste water than the quantity stipulated in the form of a threshold value for water in annex 2.art. 5 content of the report 1 the report must contain:the name, address and geographical coordinates of the facility and the installations in terms of annex 1;the name and address of the owner or operator;c.the quantity of the pollutant that the facility released in the previous calendar year into the air, water, or land including its number (annex 2 first column);d.the quantity of the hazardous waste that was transferred in the previous calendar year. an indication must be given, using the letter "r" or "d", of whether the waste was destined for recovery or disposal respectively in terms of annex 3; for the transborder transfer of hazardous waste, the name and address of the waste recovery or waste disposal facility as well as the address of the location of recovery or disposal must be provided;e.the quantity of other waste that was transferred in the previous calendar year. an indication must be given, using the letter "r" or "d", of whether the waste was destined for recovery or disposal respectively in terms of annex 3.f.the quantity of each pollutant that was transferred in waste water in the previous calendar year including its number (annex 2 first column); andg.the method used for determining the information in letters c - f, with an indication of whether the information is based on measurements, calculations or estimates.2 the method used for determining the information on the release or the transfer must be selected in such a way that the best available information is obtained; if possible, an internationally recognised method should be selected.3 the information must be entered directly into the confidential register provided by the foen; by way of exception, the data may be submitted to the foen in another way. the foen decides on the format of the data.4 anyone who has already submitted information in accordance with article 5 paragraph 1 to the confederation in compliance with other regulations may authorise the confederation to enter that information in the register in accordance with paragraph 3. the foen may request information from other federal agencies that has been obtained in compliance with other regulations and that is suitable for transfer to the register and it shall maintain a list of such information. art. 6 retention obligation 1 the owners or operators of facilities with installations in accordance with annex 1 must retain the collections of data from which the information submitted is derived for a period of five years following the report of the information. these collections must also contain details of the methods of recording the data.2 the collections must be made available to the authorities on request.section 3 duties of the authorities art. 7 maintaining the prtr 1 the foen shall maintain a prtr.2 the prtr shall contain:a.the non-confidential information in accordance with article 5 paragraph 1;information on pollutant release from diffuse sources;electronic links to existing national environmental databases;electronic links to the prtrs of the contracting parties to the protocol and, where possible, of other countries.3 the foen shall update the register:annually with the non-confidential information for the previous calendar year in accordance with paragraph 2 letter a;periodically with information on releases of pollutants from diffuse sources in accordance with paragraph 2 letter b.art. 8 information to the general public 1 the foen shall make the prtr available for inspection by the general public at the latest nine months after expiry of the reporting date in terms of article 4.2 access, in particular via the internet, to information contained in the prtr shall be guaranteed for a minimum of ten years from the date of its electronic publication, in particular on the internet.3 the foen shall ensure that the information contained in the prtr for each calendar year can be searched electronically in accordance with following criteria:a.name of facility and its geographical coordinates;b.installations in accordance with annex 1;c.owner or operator;d.pollutant or waste;e.environmental media into which the pollutant is released;f.recovery or disposal operation in accordance with annex 3;g.name and address of the waste recovery or waste disposal facility as well as the address of the location of recovery or disposal in cases of transborder transfer of hazardous waste.4 it shall ensure that a search can be made for the diffuse sources contained in the register.art. 9 confidentiality 1 information in accordance with article 5 paragraph 1 is deemed to be public if its disclosure is not contrary to any overriding private or public interests that are worthy of protection.2 private or public interests that are worthy of protection are the interests listed in article 7 of the freedom of information act of 17 december 20043.3 anyone who submits documents to the foen must:a.indicate any information that should be treated as confidential; andb.provide reasons why the interest claimed takes precedence over the interest in publication.4 the foen shall assess whether the interest claimed should take precedence. if its assessment is not consistent with the application made by the facility owner or operator, it must inform the facility owner or operator of this by means of a formal decision after giving the owner or operator the opportunity to state his position.5 if information is treated as confidential, notice must be given in the register of the type of information and the reason for its confidentiality.3 sr 152.3art. 10 verification of data 1 the cantons have access to the information held in the confidential register (art. 5 para. 3) on facilities with installations in accordance with annex 1 located on their territory.2 they must verify whether:a.the owner or operator has complied with the reporting requirement; andb.the reported information is complete, based on standard definitions and comprehensible.3 if they ascertain that the requirements of this ordinance have not been fulfilled, they shall notify the foen within 3 months of the expiry of the reporting date under article 4 paragraph 1. the foen must order the required measures.art. 11 advice to the general public and cooperation with the cantons 1 the foen shall inform the general public on a regular basis about the prtr, and provide advice on its use and purpose.2 it shall ensure a regular exchange of information with the cantons and shall cooperate with the cantons in the further development of the prtr.section 4 final provisions art. 12 amendment of current law .44 amendments may be consulted under as 2007 141.art. 13 transitional provisions 1 the report in terms of article 5 paragraph 1 must be submitted for the first reporting year by 1 july 2008.2 if the owners or operators of facilities with installations in accordance with annex 1 report data that relates to the period before the commencement of this ordinance, this data will be processed in accordance with article 9.art. 14 commencement this ordinance comes into force on 1 march 2007.annex 1 (art. 1 para. 2)installations no. installations1. energy sectora.mineral oil and gas refineriesb.installations for gasification and liquefactionc.thermal power stations and other combustion installations with a heat input of more than 50 megawatts (mw)d.coke ovense.coal rolling mills with a capacity of more than 1 t per hourf.installations for the production of coal products and solid smokeless fuel2. production and processing of metalsa.metal ore (including sulphide ore) roasting or sintering installations b.installations for the production of pig iron or steel (primary or secondary melting) including continuous casting with a capacity of more than 2.5 t per hourc.installations for the processing of ferrous metals: 1.hot-rolling mills with a capacity of more than 20 t crude steel per hour2.smitheries with hammers with a energy of more than 50 kilojoules per hammer where the calorific power exceeds 20 mw3.application of protective fused metallic coats with an input of more than 2 t of crude steel per hourd.ferrous metal foundries with a production capacity of more than 20 t per daye.installations1.for the production of non-ferrous crude metals from ore, concentrates or secondary raw materials by metallurgical, chemical or electrolytic processes2.for the smelting, including the alloying, of non-ferrous metals, including recovered products (refining, foundry casting, etc.) with a melting capacity of more than 4 t per day for lead and cadmium or more than 20 t per day for all other metalsf.installations for the surface treatment of metals and plastic materials using an electrolytic or chemical process, where the volume of the treatment vats exceeds 30 m3. mineral industrya.underground mining and related operationsb.opencast mining where the surface of the area being mined exceeds 25 hac.installations for the production of1.cement clinker in rotary kilns with a production capacity of more than 500 t per day2.lime in rotary kilns with a production capacity exceeding 50 t per day3.cement clinker or lime in other furnaces with a production capacity exceeding 50 t per dayd.installations for the production of asbestos and the manufacture of asbestos-based productse.installations for the manufacture of glass, including installations for the manufacture of glass fibres with a melting capacity of more than 20 t per dayf.installations for melting mineral substances including the production of mineral fibres with a melting capacity of more than 20 t per dayg.installations for the manufacture of ceramic products by firing, and in particular roofing tiles, bricks, refractory bricks, tiles, stoneware or porcelain with a production capacity of more than 75 t per day or of a kiln capacity of more than 4 m and of a setting density per kiln of over 300 kg/m4. chemicals industrya.chemicals installations for the production on an industrial scale of basic organic chemicals such as1.simple hydrocarbons (linear or cyclic, saturated or unsaturated, aliphatic or aromatic)2.oxygen-containing hydrocarbons, such as alcohols, aldehydes, ketones, carboxylic acids, esters, acetates, ethers, peroxides, epoxy resins3.sulphurous hydrocarbons4.nitrogenous hydrocarbons, such as amines, amides, nitrous compounds, nitro compounds or nitrate compounds, nitriles, cyanates, isocyanates5.phosphorous-containing hydrocarbons6.halogenic hydrocarbons7.organometallic hydrocarbons8.basic plastic materials (polymers, synthetic fibres, cellulose-based fibres)9.synthetic rubbers10.dyes and pigments11.surface-active agents and surfactantsb.chemical installations for the production on an industrial scale of basic inorganic chemicals such as1.gases, such as ammonia, chlorine or hydrogen chloride, fluorine or hydrogen fluoride, carbon oxides, sulphur compounds, nitrogen oxides, hydrogen, sulphur dioxide, carbonyl chloride2.acids, such as chromic acid, hydrofluoric acid, phosphoric acid, nitric acid, hydrochloric acid, sulphuric acid, oleum, sulphurous acids3.bases, such as ammonium hydroxide, potassium hydroxide, sodium hydroxide4.salts, such as ammonium chloride, potassium chlorate, potassium carbonate, sodium carbonate, perborate, silver nitrate5.non-metals, metal oxides or other inorganic compounds such as calcium carbide, silicon, silicon carbidec.chemical installations for the production on an industrial scale of phosphorus-, nitrogen- or potassium-based fertilisers (simple or compound fertilisers)d.chemical installations for the production on an industrial scale of basic plant health products and of biocidese.installations using a chemical or biological process for the production on an industrial scale of basic pharmaceutical products f.installations for the production on an industrial scale of explosives and pyrotechnic products5. waste and waste water managementa.installations for the incineration, pyrolysis, recovery, chemical treatment, or landfilling of hazardous waste receiving 10 tonnes or more per dayb.installations for the incineration of municipal waste with a capacity of more than 3 t per hourc.installations for the disposal of non-hazardous waste with a capacity of more than 50 t per dayd.landfills, excluding landfills of inert waste receiving more than 10 tonnes per day or with a total capacity of more than 25 000 tonnese.installations for the disposal or recycling of animal carcasses and animal waste with a total capcity of more than 10 t per dayf.municipal waste-water treatment plants with a capacity of more than 100 000 population equivalentsg.independently operated industrial waste-water treatment plants that serve one or more activities described in this annex and have a capacity of more than 10 000 m3 per day6. paper and wood production and processinga.industrial installations for the production of pulp from timber or similar fibrous materialsb.industrial installations for the production of paper and board and other primary wood products (such as chipboard, fibreboard and plywood) with a production capacity of more than 20 t per dayc.industrial installations for the preservation of wood and wood products with chemicals with a production capacity of more than 50 m per day7. intensive livestock production and acquaculturea.installations for the intensive rearing of poultry or pigs1.with more than 40 000 places for poultry2.with more than 2000 places for production pigs (over 30 kg)3.with more than 750 places for sowsb.intensive acquaculture with more than 1000 t fish and shellfish per annum8. animal and vegetable products from the food and beverage sectora.slaughterhouses with a carcass production capacity of more than 50 t per dayb.treatment and processing installations for the production of food and beverage products from:1.animal raw materials (other than milk) with a finished product production capacity of more than 75 t per day2.vegetable raw materials with a finished product production capacity of more than 300 t per day (average value on a quarterly basis)c.installations for the treatment and processing of milk with a capacity to receive more than 200 t per day (average value on an annual basis)9. other activitiesa.installations for the pre-treatment (such as washing, bleaching, or mercerisation) or dyeing of fibres or textiles with a treatment capacity of more than 10 t per dayb.installations for the tanning of hides or skins with a treatment capacity of more than 12 t of finished product per dayc.installations for the surface treatment of substances, objects or products using organic solvents, in particular for dressing, printing, coating, degreasing, waterproofing, sizing, painting, cleaning or impregnating with a consumption capacity of more than 150 kg per hour or of more than 200 t per annumd.installations for the production of carbon (hard-burnt coal) or electrographite by means of incineration or graphitisatione.installations for the building of and painting or removal of paint from ships with a capacity for ships over 100 m longannex 2 (art. 4 para. 1 let. a and d)pollutants notea dash (-) indicates that there is no reporting obligation in respect of the parameter or medium in question.no.cas numberpollutantthreshold value to airto waterto land kg/yearkg/yearkg/year 174-82-8methane (ch4)100 000-- 2630-08-0carbon monoxide (co)500 000-- 3124-38-9carbon dioxide (co2)100 million.-- 4hydro-fluorocarbons (hfcs)100-- 510024-97-2nitrous oxide (n2o)10 000-- 67664-41-7ammonia (nh3)10 000-- 7non-methane volatile organic compounds (nmvoc)100 000-- 8nitrogen oxides (nox/no2)100 000-- 9perfluorocarbons (pfcs)100--102551-62-4sulphur hexafluoride (sf6)50--11sulphur oxides (sox/so2)150 000--12total nitrogen -50 00050 00013total phosphorus-5 0005 00014hydrochlorofluorocarbons (hcfcs)1--15chlorofluorocarbons (cfcs)1--16halons1--177440-38-2arsenic and compounds (as as)2055187440-43-9cadmium and compounds (as cd)1055197440-47-3chromium and compounds (as cr)1005050207440-50-8copper and compounds (as cu)1005050217439-97-6mercury and compounds (as hg)1011227440-02-0nickel and compounds (as ni)502020237439-92-1lead and compounds (as pb)2002020247440-66-6zinc and compounds (as zn)2001001002515972-60-8alachlor-1126309-00-2aldrin111271912-24-9atrazine-112857-74-9chlordane11129143-50-0chlordecone11130470-90-6chlorfenvinphos-113185535-84-8chloro-alkanes, c10-c13-11322921-88-2chlorpyrifos-113350-29-3ddt11134107-06-21,2-dichloroethane (edc)1 00010103575-09-2dichloromethane (dcm)1 00010103660-57-1dieldrin11137330-54-1diuron-1138115-29-7endosulfan-113972-20-8endrin11140halogenated organic compounds (as aox)-1 0001 0004176-44-8heptachlor11142118-74-1hexachlorobenzene (hcb)10114387-68-3hexachlorobutadiene (hcbd)-1144608-73-11,2,3,4,5,6-hexachlorocyclohexane (hch)10114558-89-9lindane111462385-85-5mirex11147pcdd +pcdf (dioxins +furans) (as teq)0.0010.0010.00148608-93-5pentachlorobenzene1114987-86-5pentachlorophenol (pcp)1011501336-36-3polychlorinated biphenyls (pcbs)0.10.10.151122-34-9simazine-1152127-18-4tetrachloroethylene (per)2 000--5356-23-5tetrachloromethane (tcm)100--5412002-48-1trichlorobenzenes (tcbs) 10--5571-55-61,1,1-trichloroethane100--5679-34-51,1,2,2-tetrachloroethane50--5779-01-6trichloroethylene2 000--5867-66-3trichloromethane500--598001-35-2toxaphene1116075-01-4vinyl chloride1 000101061120-12-7anthracene50116271-43-2benzene1 000200 (as btex)*200 (as btex)*63brominated diphenylethers (pbdes)-1164nonylphenol ethoxylates (np/npes) and related substances-1165100-41-4ethyl benzene-200 (as btex)*200 (as btex)*6675-21-8ethylene oxide1 00010106734123-59-6isoproturon-116891-20-3naphthalene100101069organotin compounds (as total sn)-505070117-81-7di-(2-ethyl hexyl)phthalate (dehp)101171108-95-2phenols (as total c)-202072polycyclic aromatic hydrocarbons (pahs)**505573108-88-3toluene-200 (as btex)*200 (as btex)*74tributyltin and compounds-1175triphenyltin and compounds-1176total organic carbon (toc) (as total c or cod/3)-50 000-771582-09-8trifluralin-11781330-20-7xylenes-200 (as btex)*200 (as btex)*79chlorides (as total cl)-2 million.2 million.80chlorine and inorganic compounds (as hcl)10 000--811332-21-4asbestos11182cyanides (as total cn)-505083fluorides (as total f)-2 0002 00084fluorine and inorganic compounds (as hf)5 000--8574-90-8hydrogen cyanide (hcn) 200--86particulate matter (pm10)50 000--single pollutants are to be reported if the threshold for btex (the sum parameter of benzene, toluene, ethyl benzene, xylene) is exceeded.**polycyclic aromatic hydrocarbons (pahs) are to be measured as benzo(a)pyrene (50-32-8), benzo(b)fluoranthene (205-99-2), benzo(k)fluoranthene (207-08-9), indeno(1,2,3-cd)pyrene (193-39-5) (derived from the protocol on persistent organic pollutants to the convention on long-range transboundary air pollution)annex 3 (art. 5 para. 1 let. d and e)disposal and recovery operations 1. disposal operations ("d") -deposit into or onto land (e.g. landfill)-land treatment (e.g. biodegredation of liquid or sludgy discards in soils)-specially engineered landfill (e.g. placement into lined discrete cells which are capped and isolated from one another and the environment)-biological treatment not specified elsewhere in this annex which results in final compounds or mixtures that are discarded by means of any of the operations specified in this part-physico-chemical treatment not specified elsewhere in this annex which results in final compounds or mixtures that are discarded by means of any of the operations specified in this part (e.g. evaporation, drying, calcination, neutralisation, precipitation)-incineration on land-permanent storage (e. g. placement of containers in a mine)-blending or mixing prior to submission to any of the operations specified in this part-repackaging prior to submission to any of the operations specified in this part-storage pending any of the operations specified in this part2. recovery operations ("r") -use as a fuel (other than in direct incineration) or other means to generate energy-solvent reclamation/regeneration -recycling/reclamation of organic substances that are not used as solvents -recycling/reclamation of metals and metal compounds-recycling/reclamation of other inorganic materials-regeneration of acids or bases-recovery of components used for pollution abatement-recovery of components from catalysts-used oil re-refining or other reuses of previously used oil-land treatment resulting in benefit to agriculture or ecological improvement-uses of residual materials obtained from any of the recovery operations specified above in this part-exchange of wastes for submission to any of the recovery operations specified above in this part-accumulation of material intended for any operation specified in this part

814.201english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.waters protection ordinance(wpo)of 28 october 1998 (status as of 1 january 2021) the swiss federal council,based on articles 9, 14 paragraph 7, 16, 19 paragraph 1, 27 paragraph 2, 36a paragraph 2, 46 paragraph 2, 47 paragraph 1 and 57 paragraph 4 of the waters protection act of 24 january 19911 (wpa),2ordains:1 sr 814.202 amended by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).chapter 1 general provisions art. 1 purpose and principle 1 this ordinance shall facilitate the protection of surface and underground waters from harmful effects and enable their sustainable use.2 for this purpose, all measures taken under this ordinance must take account of the ecological goals for waters (annex 1).art. 2 scope 1 this ordinance regulates:a.ecological goals for waters;b.requirements on water quality;c.disposal of waste water;d.disposal of sewage sludge;e.requirements for animal husbandry farms;f.protection of waters in terms of area planning;g.maintenance of appropriate residual flow;h.3prevention and remediation of other harmful effects on waters;i.granting of federal contributions.2 the ordinance applies to radioactive substances, insofar as such substances have biological effects resulting from their chemical characteristics. insofar as these substances have biological effects resulting from radiation, the legislation on radiation protection and nuclear energy applies.3 amended by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).chapter 2 disposal of waste water section 1 differentiation between polluted and non-polluted waste water art. 3 1 the authorities shall assess whether waste water entering a body of water by way of discharge or infiltration is considered to be polluted or non-polluted, taking account of:a.the type, the amount, the characteristics and the temporal occurrence of potential water pollutants substances in the waste water;b.the condition of the receiving waters.2 during infiltration of waste water, they shall also take account of whether: a.waste water can be polluted because of existing soil pollution or the unsaturated subsoil;b.4waste water is sufficiently purified in the soil or in the unsaturated subsoil;c.guide values under the ordinance of 1 july 19985 on the pollution of soil (soilpo) can be maintained in the long term, excepting infiltration into a plant intended for this purpose, or onto roads next to embankments or grass verges.3 precipitation water running off built-up or sealed surfaces is as a rule considered to be non-polluted waste water if it: a.originates from roof surfaces;b.6originates from roads, paths and areas on which no substantial amounts of potential water pollutants are unloaded, processed and stored and if they are sufficiently purified by infiltration into the ground. in assessing whether amounts of substances are substantial, the risk of accidents must be taken into consideration;c.7originates from track installations where there is a long-term guarantee that pesticides will not be used or if pesticides have been sufficiently retained and degraded by a biologically active layer of soil.4 amended by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).5 sr 814.126 amended by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).7 amended by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).section 2 drainage planning art. 4 regional drainage planning 1 the cantons shall ensure that a regional drainage plan (rdp) is drawn up to guarantee appropriate waters protection in a limited, hydrologically-related area in which waters protection measures of the communes must be coordinated.2 the rdp determines in particular:a.the locations of waste water treatment plants and areas which are to be joined to them;b.which and to what extent surface waters are suitable for the discharge of waste water, particularly that arising from precipitation;c.the waste water treatment plants for which requirements in respect of discharge of waste water must be stricter or supplemented.3 in drawing up the rdp, the authorities shall take account of spatial requirements of waters, flood protection and measures for waters protection other than waste water treatment.4 the rdp is mandatory for planning and establishing of waters protection measures in communes.5 it shall be accessible to the public.art. 5 communal drainage planning 1 the cantons shall ensure that general drainage plans (gdp) are drawn up which guarantee adequate waters protection in communes and effective drainage of housing areas.2 the gdp shall specify as a minimum:a.waste water treatment areas that must be served by public sewers;b.areas in which precipitation water running off built-up or sealed surfaces must be disposed of separately from other waste water;c.areas in which non-polluted waste water must be allowed to infiltrate;d.areas in which non-polluted waste water must be discharged into surface waters;e.measures by which non-polluted waste water with permanent flow must be kept away from waste water treatment plants;f.the locations where waste water treatment plants must be set up, and with which treatment system and with what capacity; g.areas in which systems other than waste water treatment plants must be used, and how, in these areas, waste water is to be disposed of.3 the gdp shall be adjusted if necessary:a.to take account of developments in housing areas;b.if a rdp is drawn up or changed.4 it shall be accessible to the public.section 3 discharge of polluted waste water art. 6 discharge into waters 1 the authorities shall authorise the discharge of polluted waste water into surface waters, drainage areas, underground rivers and streams if the requirements on discharge into waters according to annex 3 are complied with.2 they shall set additional or stricter requirements, if:a.the waters concerned by the discharge of waste water do not fulfil water quality requirements according to annex 2 or if this is necessary to comply with international agreements or decisions; andb.on the basis of investigation (art. 47) it is certain that deficient water quality is largely due to discharge of waste water, and procedures necessary to comply are not disproportionate for the waste water treatment plant.3 they may set additional or stricter requirements if the water quality according to annex 2 is not sufficient for a specific use of the body of water concerned.4 they may apply less stringent requirements if:a.by reducing the amounts of waste water discharged, fewer potential water pollutants are discharged even though the concentrations allowed are higher; orb.the environment as a whole is less impaired by the discharge of non-recyclable substances in industrial waste water than by another method of disposal; requirements on water quality according to annex 2 and international agreements or decisions must be complied with.art. 7 discharge into public sewers 1 the authorities shall authorise discharge of waste water from industry according to annex 3.2 or of other waste water according to annex 3.3 into public sewers if the requirements of the relevant annex are complied with.2 they shall set additional or stricter requirements if by discharge of waste water:a.operation of public sewers may be restrict or disrupted; b.in the case of waste water from the central waste water treatment plant, the requirements on discharge into a body of water are not met or may only be met by disproportionate measures, or could restrict or disrupt the operation of the plant in another way; orc.8.d.the operation of the plant in which sludge is incinerated may restricted or disrupted.3 they may apply less stringent requirements if:a.by reducing the amounts of waste water discharged, fewer potential water pollutants are discharged even though the concentrations allowed are higher; orb.the environment as a whole will be less impaired by the discharge of non-recyclable substances in industrial waste water than by another disposal method, and in the case of waste water from the central waste water treatment plant, requirements on discharge into a body of water are met; orc.this is appropriate for the operation of the waste water treatment plant.8 repealed by no i of the o of 4 nov. 2015, with effect from 1 jan. 2016 (as 2015 4791).art. 8 infiltration 1 the infiltration of polluted waste water is prohibited.2 the authorities may authorise the infiltration of communal waste water or of other polluted waste water of comparable composition, if:a.the waste water has been treated and meets the requirements for discharge into waters;b.in the case of the groundwater concerned, water quality requirements according to annex 2 are met after infiltration of the waste water;c.infiltration ensues at an installation intended for the purpose, the directives of the soilpo9 are not exceeded even in the long term, or in the absence of directives soil fertility is also guaranteed in the long term; andd.requirements valid for waste water treatment plants which discharge waste water into a body of water are met (arts. 13-17).9 sr 814.12art. 9 waste water of specific origin 1 polluted waste water occurring outside public sewers for which neither discharge into waters, nor infiltration, nor use combined with farm manure (art. 12 para. 4 wpa) is permitted must be collected in a cesspit which is regularly emptied with its contents being transferred to a central waste water treatment plant or facility for special treatment. 2 waste water from processing farm manure, hydroponics and other horticultural methods must be used in an environmentally compatible manner and reused agriculturally or horticulturally according to the state of the art.3 waste water from mobile sanitation facilities must be collected and may be discharged into public sewers only by using equipment intended for this purpose. excluded from this are sanitation facilities in:a.railway carriages with their own waste water treatment facilities;b.railway carriages for long-distance traffic which were commissioned before 1 january 1 1997;c.railway carriages for regional or urban traffic which were commissioned before 1 january 2000.art. 10 prohibition of waste disposal with waste water it is prohibited:a.to dispose of solid and liquid wastes with waste water unless this is expedient for treatment of waste water;b.to discharge substances in a way which is contrary to instructions on the manufacturer's label or in the directions for use.section 4 construction and operation of waste water treatment plants art. 11 separation of waste water in buildings during construction or substantial building alterations, the persons responsible for the buildings must ensure that precipitation water and permanent flows of non-polluted waste water are channelled off separately from polluted waste water prior to reaching the outside of the building. art. 12 connection to sewers 1 the discharge of polluted waste water into public sewers outside building zones (art. 11 para. 2 let. c wpa) is:a.expedient if the connection may be constructed properly and with standard building expenditure;b.reasonable if the costs of the connection do not substantially exceed those for comparable connections within the building zone.2 the authorities may only authorise new discharges of permanent flows of non-polluted waste water into a central waste water treatment plant (art. 12 para. 3 wpa) if local conditions do not permit infiltration or discharge into a body of water3 in order for a farm to qualify for exemption from the bond to be connected to the public sewers (art 12 para. 4 wpa), its cattle and pig stock must comprise at least eight livestock units.art. 13 expert operation 1 persons responsible for waste water treatment plants must:a.maintain the facilities in working order;b.identify cases of divergence from normal operation, clarify the causes and immediately rectify these;c.during operation take all reasonable measures to contribute to reducing the amount of substances discharged.2 persons responsible for enterprises discharging industrial waste water into public sewers as well as persons responsible for waste water treatment plants discharging waste water into the public sewers or into a body of water must ensure that:a.those responsible for the operation are named;b.operating staff possess the necessary expert knowledge; andc.that amounts and concentrations of substances discharged are determined if the authorisation contains numerical requirements.3 under paragraph 2, the authorities may require that owners:a.determine the amounts and concentrations of substances discharged which would influence the quality of the polluted water and of the receiving waters by virtue of their properties, quantity and period of discharge, even if the authorisation contains no numerical requirements;b.conserve certain waste water test results for an appropriate period;c.determine the effects of waste water discharge or infiltration on water quality if there is a risk that the water quality requirements under annex 2 are not complied with. 4 the amounts and concentrations of substances discharged may be determined arithmetically on the basis of substance flows.art. 14 operational reports 1 persons responsible for enterprises that discharge industrial waste water into public sewers and persons responsible for waste water treatment plants who discharge waste water into public sewers or into a body of water must report to and as instructed by the authorities:a.the amount of waste water discharged;b.the amounts and concentrations of substances discharged which they must determine according to article 13.2 persons responsible for central waste water treatment plants must also report: a.important operating data such as degree of effectiveness, quantity and characteristics of sludge, type of sludge disposal, energy consumption and operating costs;b.conditions in the catchment area of the plant, such as connection rate and the percentage of non-polluted waste water with permanent flow.art. 15 supervision by the authorities 1 the authorities shall examine periodically whether:a.enterprises which discharge industrial waste water into public sewers, and waste water treatment plants which discharge waste water into public sewers or into a body of water are complying with the requirements set out in the authorisation;b.these requirements continue to guarantee adequate waters protection.2 for this purpose, they shall take account of the results of the assessments made by the person responsible.3 they shall adjust the authorisations if necessary and order the required measures. in doing so, they shall take account of the urgency of the required measures, as well as the obligations resulting from international agreements or decisions.art. 16 measures with reference to exceptional events 1 the persons responsible for waste water treatment plants that discharge waste water into a body of water and persons responsible for enterprises who discharge industrial waste water into a waste water treatment plant must take appropriate and economically acceptable measures to reduce the risk of pollution of a body of water arising from exceptional events.2 if in spite of these measures the risk is unacceptable, the authorities shall order the necessary additional measures.3 regulations in the major accidents ordinance of 27 february 199110 and the ordinance of 20 november 199111 on the guarantee of drinking water supplies in emergencies that go further are reserved.10 sr 814.01211 sr 531.32art. 17 reporting on exceptional events 1 persons responsible for waste water treatment plants that discharge waste water into a body of water must ensure that any event which is exceptional is reported immediately to the authorities, if such an event or events could lead to a situation in which it is no longer possible to guarantee compliance with the regulations on the discharge of waste water into a body of water or the intended use or disposal of sludge.2 persons responsible for enterprises that discharge industrial waste water must ensure that exceptional events are immediately reported to the owner of the waste water treatment plant if these could lead to a situation in which the normal, orderly operation of the water or waste water treatment plant is restricted or disrupted.3 the authorities shall ensure that the communities and individuals affected by an exceptional event are informed about possible harmful effects on waters in due time. if substantial effects may be expected beyond cantonal or national boundaries, they shall also ensure that the federal alarm centre, as well as the neighbouring cantons and states are notified.4 .125 reporting and information obligations arising from the major accidents ordinance are reserved.12 repealed by no i of the o of 4 nov. 2015, with effect from 1 jan. 2016 (as 2015 4791).chapter 3 disposal of sludge art. 18 sludge disposal plan 1 the cantons shall draw up a sludge disposal plan and bring it into line with the new requirements within the deadlines imposed by experts.2 the disposal plan sets the following as a minimum:a.how sludge from the central waste water treatment plants should be disposed of;b.which procedures, including construction and modification of installations used for disposal of sludge, are required at what time.3 the sludge disposal plan shall be accessible to the public.art. 19 storage facilities 1 persons responsible for waste water treatment plants shall ensure that they can store the sludge until environmentally compatible disposal is guaranteed.2 if sludge from a waste water treatment plant cannot be disposed of in an environmentally compatible manner at any time, the plant must have a storage capacities of at least two months.133 .1413 amended by annex no 1 of the o of 26 march 2003, in force since 1 oct. 2006 (as 2003 940). 14 repealed by annex no 1 of the o of 26 march 2003, with effect from 1 oct. 2006 (as 2003 940).art. 20 inspection and obligation to report 1 persons responsible for waste water treatment plants must ensure that the quality of sludge is inspected within the deadlines imposed by experts.2 .153 .1615 repealed by no i of the o of 18 oct. 2006, with effect from 1 jan. 2007 (as 2006 4291).16 repealed by no i of the o of 4 nov. 2015, with effect from 1 jan. 2016 (as 2015 4791).art. 21 supply 1 persons responsible for central waste water treatment plants must keep a record of recipients of sludge, the amount supplied, type of disposal declared and time of supply and retain this information for at least ten years and make it available to the authorities on request.2 .173 .184 they may only dispose of sludge other than as planned in the cantonal sludge disposal plan with the agreement of cantonal authorities. if sludge is to be disposed of in another canton, the cantonal authorities shall consult the authorities of the receiving canton in advance.17 repealed by no i of the o of 4 nov. 2015, with effect from 1 jan. 2016 (as 2015 4791).18 repealed by annex 3 no ii 4 of the o of 22 june 2005 on movements of waste, with effect from 1 jan. 2006 (as 2005 4199).chapter 4 requirements for animal husbandry farms art. 22 animal husbandry farms the following are deemed to be animal husbandry farms (art. 14 wpa):a.farms and farming co-operatives that keep livestock;b.other enterprises involved in commercial animal husbandry; enterprises which keep zoo and circus animals or individual draft or riding animals or pets are excepted.art. 23 livestock units (lu) the calculation for converting the number of livestock on any enterprise into lu (art. 14 para. 4 wpa) is based on the quantity of manure produced by them annually. for one lu, this quantity is taken as containing a total of 105 kg of nitrogen and 15 kg of phosphorus. art. 24 normal local farming area 1 the normal local farming area (art. 14 para. 4 wpa) is the agricultural land located within 6 km by road from the livestock buildings in which the farm manure is produced.192 in order to take account of local farming conditions, the cantonal authorities may reduce or extend this limit by a maximum of 2 km.19 amended by annex 9 no 2 of the direct payments ordinance of 23 oct. 2013, in force since 1 jan. 2014 (as 2013 4145).art. 25 exceptions to the requirements relating to agricultural land 1 farms that keep poultry or horses and farms serving the public interest need not have their own or leased agricultural land on which at least half of the farm manure accumulating in the enterprise can be used if it is guaranteed that the farm manure will be used by an organisation or another farm.202 .213 farms serving the public interest (art. 14 para. 7 let. b wpa) are:a.farms that serve experimental, research or development purposes (research institutes, university farms, performance testing institutions, insemination stations, etc.);b.22pig farms that cover at least 25 per cent of the energy needs of pigs with food by-products that come from milk processing;c.23pig farms that cover at least 40 per cent of the energy needs of pigs with food by-products that do not come from milk processing;d. 24pig breeding enterprises that cover at least 40 per cent of the energy needs of pigs with food by-products that come both from milk processing and not from milk processing.4 in mixed animal husbandry farms, the exception under paragraph 1 applies only to that part of the animal husbandry that fulfils conditions for granting an exception.255 the cantonal authorities shall in each case grant an exception under paragraph 1 for a duration of five years at most.2620 amended by annex 9 no 2 of the direct payments ordinance of 23 oct. 2013, in force since 1 jan. 2014 (as 2013 4145).21 repealed by annex 9 no 2 of the direct payments ordinance of 23 oct. 2013, with effect from 1 jan. 2014 (as 2013 4145).22 amended by no ii of the o of 27 oct. 2010, in force since 1 jan. 2011 (as 2010 5881). see also the transitional provision of this modification at the end of the text.23 amended by no iii of the o of 25 may 2011, in force since 1 july 2011 (as 2011 2407).24 inserted by no iii of the o of 25 may 2011, in force since 1 july 2011 (as 2011 2407). see also the transitional provision of this modification at the end of the text.25 amended by annex 9 no 2 of the direct payments ordinance of 23 oct. 2013, in force since 1 jan. 2014 (as 2013 4145).26 amended by annex 9 no 2 of the direct payments ordinance of 23 oct. 2013, in force since 1 jan. 2014 (as 2013 4145).art. 26 and 2727 27 repealed by annex 9 no 2 of the direct payments ordinance of 23 oct. 2013, with effect from 1 jan. 2014 (as 2013 4145).art. 28 inspection of storage facilities for farm manure and liquid digestate28 1 the cantonal authorities shall ensure that storage facilities for farm manure and liquid digestate are regularly inspected; the frequency of the inspections shall correspond to the risk of pollution to the waters.292 the following shall be inspected:a.whether the prescribed storage capacity is available;b.whether the storage facilities (including pipes) leak;c.whether facilities are in working order;d.whether the facilities are operated in accordance with the regulations.28 amended by annex 9 no 2 of the direct payments ordinance of 23 oct. 2013, in force since 1 jan. 2014 (as 2013 4145).29 amended by annex 9 no 2 of the direct payments ordinance of 23 oct. 2013, in force since 1 jan. 2014 (as 2013 4145).chapter 5 protection for waters in terms of area planning art. 29 designation of water protection areas and determination of groundwater protection zones and areas 1 when dividing their territory into water protection areas (art. 19 wpa), the cantons shall indicate those at particular risk and the other areas. those described in annex 4 number 11 as at particular risk include:a.water protection area au for the protection of exploitable underground waters;b.water protection area ao for the protection of water quality of surface waters if this is required to guarantee a specific use of a body of water;c.the area of contribution zu intended for the protection of water quality at existing and planned groundwater wells serving the public interest if the water is polluted by substances which are not sufficiently degraded or retained, or if there is a genuine risk of pollution by such substances;d.30the area of contribution zo intended for the protection of water quality of surface waters if water is polluted by run-off of pesticides or nutrients.2 they shall designate groundwater protection zones (art. 20 wpa) described in annex 4 number 12 in order to protect groundwater wells and groundwater recharge installations serving the public interest. they may designate groundwater protection zones even for planned wells and recharge installations serving the public interest, the locations of which and amount of withdrawals from which are established.3 they shall designate the groundwater protection areas described in annex 4 number 13 (art. 21 wpa) in order to protect the underground waters planned for use.4 they shall base their decisions on the designation of water protection areas and groundwater protection zones and areas on existing hydro-geological findings. if these are not sufficient, they shall ensure that the required hydro-geological investigations are conducted.30 amended by no ii 9 of the o of 18 may 2005 on the repeal and amendment of ordinances in connection with the commencement of the chemicals act, in force since 1 aug. 2005 (as 2005 2695).art. 30 water protection maps 1 the cantons shall draw up waters protection maps and adjust these as necessary. the waters protection maps shall indicate as a minimum:a.water protection areas;b.groundwater protection zones;c.groundwater protection areas; d.groundwater outflow points, wells and recharge installations that are of significance for water supply.2 the waters protection maps shall be accessible to the public. the cantons shall provide the federal office for the environment (foen) and neighbouring cantons concerned with the waters protection maps and their annual modifications in digital form.3131 amended by no i of the o of 4 nov. 2015, in force since 1 jan. 2016 (as 2015 4791).art. 31 protection measures 1 any person who constructs or alters installations or carries out activities which represent a risk to waters in areas particularly at risk (art. 29 para. 1) as well as in groundwater protection zones and areas must take all measures expedient for the protection of the waters according to the circumstances and in particular must:a.take the measures required under annex 4 number 2;b.set up the necessary monitoring, alarm and stand-by arrangements.2 the authorities shall ensure that: a.for existing installations in areas under paragraph 1, where there is a genuine risk of pollution of the waters, measures to protect waters, especially those under annex 4 number 2, are taken, according to circumstances;b.existing installations in groundwater protection zones s1 and s2 that endanger a groundwater well or a recharge installation are removed within an appropriate period of time, and that until removal of these installations other measures for protecting the drinking water are taken, in particular disinfection or filtration.art. 32 authorisations for installations and activities in areas particularly at risk 1 .322 in the areas particularly at risk (art. 29) an authorisation is especially required for:33a.underground buildings;b.installations which damage protective layers or aquicludes;c.using the groundwater (including use for heating or cooling purposes);d.permanent drainage and irrigation;e.exposure of the groundwater table;f.drillings;g.34storage installations for liquid manure and liquid digestate;h.35storage installations for liquids that may pollute waters already in small quantities and with a usable volume of more than 2000 l per storage tank;i.36storage installations for liquids that may pollute waters in groundwater protection zones and areas with a usable volume of more than 450 l;j.37transhipment areas for liquids which may pollute waters.3 if authorisation is required, the applicant must prove that the requirements for protection of waters are fulfilled and provide the documents necessary for this (if necessary hydro-geological investigations).4 the authorities shall grant an authorisation if adequate protection of waters can be guaranteed subject to conditions and requirements. it shall also lay down requirements for decommissioning the installations.32 repealed by no i of the o of 18 oct. 2006, with effect from 1 jan. 2007 (as 2006 4291).33 amended by no i of the o of 18 oct. 2006, in force since 1 jan. 2007 (as 2006 4291).34 inserted by no i of the o of 18 oct. 2006 (as 2006 4291). amended by annex 9 no 2 of the direct payments ordinance of 23 oct. 2013, in force since 1 jan. 2014 (as 2013 4145).35 inserted by no i of the o of 18 oct. 2006, in force since 1 jan. 2007 (as 2006 4291).36 inserted by no i of the o of 18 oct. 2006, in force since 1 jan. 2007 (as 2006 4291).37 inserted by no i of the o of 18 oct. 2006, in force since 1 jan. 2007 (as 2006 4291).art. 32a38 inspection of storage installations for liquids which may pollute waters 1 the persons responsible for storage installations for liquids that may pollute waters that require authorisation must arrange for an external visual inspection to be conducted every ten years in order to check for defects.392 an internal visual inspection must be conducted every ten years for:a.storage tanks with more than 250 000 l usable volume that do not have a protective construction or a double-walled floor;b.single-walled underground storage tanks.3 the persons responsible must arrange for the inspection of the proper functioning of the leak detection system in storage installations for liquids which may pollute waters every two years in the case of double-walled containers and pipes and every year in the case of single-walled containers and pipes.38 inserted by no i of the o of 18 oct. 2006, in force since 1 jan. 2007 (as 2006 4291).39 amended by no i of the o of 4 nov. 2015, in force since 1 jan. 2016 (as 2015 4791).chapter 6 maintaining appropriate rates of residual water flow art. 33 water withdrawals from watercourses 1 for withdrawals from watercourses (art. 29 wpa) which comprise stretches with permanent flow and others without permanent flow, a permit is required if the site of the water withdrawal shows permanent flow. the conditions for granting the permit must be fulfilled only in the stretches with a permanent flow (art. 30 wpa).2 if the waters at the site of water withdrawal shows no permanent flow, the authorities shall ensure that the required measures under federal act of 1 july 196640 on the protection of nature and cultural heritage and the federal act of 21 july 199141 on fish and fisheries are taken.40 sr 45141 sr 923.0art. 33a42 ecological potential when determining the ecological potential of a body of water, consideration shall be given to the following:a.the ecological importance of the body of water in its current state;b.the potential ecological importance of the body of water in a state in which the man-made harm is eliminated to the extent possible at a reasonable cost.42 inserted by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).art. 34 protection and utilisation plan 1 the authorities shall file the application for the approval of a protection and utilisation plan (art. 32 let. c wpa) with the foen43.2 the application shall contain:a.the protection and utilisation plan decided on;b. the justification why the measures planned represent sufficient compensation for a lower minimum residual flow;c. information on how the planned measures should be made binding on all concerned for the duration of the license.3 compensatory measures in the context of the protection and utilisation plan are deemed appropriate if they serve to protect waters or the habitats depending on it. measures that would be necessary in any case, according to federal regulations on environmental protection, are not taken into consideration.43 term in accordance with no i 13 of the o of 7 nov. 2007 on the new system of fiscal equalisation and the division of tasks between the confederation and the cantons, in force since 1 jan. 2008 (as 2007 5823). this amendment has been made throughout the text.art. 35 residual flow report 1 for water withdrawals which are subject to an environmental impact assessment (eia), the residual flow report is part of the environmental impact report (art. 33 para. 4 wpa).2 for water withdrawals on which the federal government must be consulted and which are not subject to an eia, the authorities shall ensure that the opinion of the cantonal expert body on the residual water report or on an amended draft thereof is made available to the foen. the foen may limit itself to making a summary review of the documents.4444 amended by no i 1 of the o of 29 june 2011 on the amendment of ordinances in the environment sector, in force since 1 aug. 2011 (as 2011 3379).art. 36 inventory of existing water withdrawals 1 for water withdrawals serving installations using water power, the inventory shall include (art. 82 para. 1 wpa) as a minimum:a.a description of the water withdrawal and restitution (names, co-ordinates, height above sea level and, where appropriate, names of power stations and dams);b.the beginning and duration of the right of use granted, its extent, in particular the amount of water extractable in m3/s as well as the name of the person entitled to extract (the user);c.the removable amount of water in m3/s;d.the residual flow maintained previously with details of the location or the water endowment flow in l/s;e.other obligations to transfer water imposed on the user;f.the participation of the user in maintaining and correcting the waters;g.further conditions or installations in the interests of waters protection and fisheries;h.the q347 flow rate, the flow regime of the watercourse upstream of the water withdrawal point and the amount withdrawn every month in m3/s, expressed as the average over several years, to the extent that this data is available at the time the inventory is drawn up;i.whether the water is withdrawn from a watercourse flowing through landscapes or habitats which are listed in the national or cantonal inventories.2 for withdrawals using fixed non-hydropower equipment which may be authorised under article 30 letter a wpa, the inventory shall as a minimum state the purpose of the withdrawal and the information in paragraph 1, letters a, b, d, h, and i.3 for withdrawals using fixed non-hydropower equipment which may be authorised under article 30 letters b or c wpa, the inventory shall state the information in paragraph 1 letters a and b.art. 37 list of water withdrawals not listed in the inventory the cantons shall draw up a list of withdrawals for the use of water power from watercourses without permanent flow.art. 38 remediation report 1 for every withdrawal of water listed in the inventory under article 36 paragraphs 1 and 2, the remediation report (art. 82 para. 2 wpa) shall indicate whether the watercourse requires remediation; if this is the case, the report indicates the reasons for such remediation, its extent and the period of time forecast to implement it.2 for every water withdrawal, the report contains in particular:a.the description of the water withdrawal and return (names, co-ordinates, height above sea level and, where appropriate, names of any power stations or dams);b.the rate of q347 flow;c.data relating to the flow regime of the watercourse upstream of the water withdrawal point and in the stretch of residual water flow;d.the amount withdrawn every month in m3/s expressed as the average over several years.3 for water withdrawals where remediation is necessary, the report shall also contain information on:a.remediation measures which may be imposed without infringing rights of use which justify a claim for compensation by the user (art. 80 para. 1 wpa);b.more extensive remediation measures which are necessary because of overriding public interests (art. 80 para. 2 wpa); for watercourses flowing through landscapes or habitats which are listed in national or cantonal inventories, the report shall name the special requirements for the watercourse arising from the protection targets defined in the inventory;c.type of remediation measures (higher levels of water endowment, structural, operational and other measures);d.the expected schedule for completion of the remediation measures.art. 39 information obligation 1 the user must provide the authorities with the information required to draw up the inventory and the remediation report.2 the authorities may require the user to carry out flow measurements.art. 40 submission, updating and accessibility of inventories, lists and remediation reports 1 the cantons shall submit the inventories, lists and remediation reports to the foen.2 they shall update the inventories and lists.3 they shall ensure that the inventories, lists and remediation reports are made accessible to the public after consulting those concerned. business secrecy shall be preserved.art. 41 water withdrawals under licences already granted articles 36-40 apply by analogy to planned water withdrawals for which a licence was granted before the entry into force of the waters protection act (art. 83 wpa).chapter 7 prevention and remediation of other harmful effects on waters45 45 amended by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).section 146 space provided for waters and rehabilitation of watercourses 46 inserted by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955). see also the transitional provision of this modification at the end of the text.art. 41a space provided for watercourses 1 in biotopes of a national importance, in cantonal nature conservation areas, in mire landscapes of exceptional beauty and national importance, in water bird and migratory bird reserves of international or national importance and, in the case of waters-related protection targets, in landscapes of national importance and cantonal landscape conservation areas the width of the space provided for waters must amount to at least:a.for watercourses with a channel bed of less than 1 m natural width: 11 m;b.for watercourses with a channel bed of 1-5 m natural width: 6 times the width of the channel bed plus 5 m;c.for watercourses with a channel bed of more than 5 m natural width: the width of the channel bed plus 30 m.2 in other areas, the width of the space provided for waters must amount to at least:a.for watercourses with a channel bed of less than 2 m natural width: 11 m;b.for watercourses with a channel bed of 2-15 m natural width: 2.5 times the width of the channel bed plus 7 m.3 the width of the space provided for waters calculated in accordance with paragraphs 1 and 2 must be increased where this is required to guarantee:a.protection against flooding;b.the space required for rehabilitation;c.the protection targets for watercourses under paragraph 1 and other overriding interests of nature and landscape conservation;d.a use of the waters.4 provided protection against flooding is guaranteed, the width of the space provided for waters may be adapted:a.to the structural conditions in densely built-up areas;b.to the topographic conditions on stretches of waters:1.in which the waters largely fill the valley floor, and2.that have slopes on both sides that are too steep to permit farming activities.475 in the absence of any overriding interests to the contrary, determining the space provided for waters may be dispensed with if the waters:a.are located in forest or in areas, that are not designed mountain- or valley areas in accordance with the agriculture legislation in the arable land register; b.are culverted;c.are artificially laid out; ord.48are very small.47 amended by no i of the o of 22 march 2017, in force since 1 may 2017 (as 2017 2585).48 inserted by no i of the o of 22 march 2017, in force since 1 may 2017 (as 2017 2585).art. 41b space provided for standing waters 1 the width of the space provided for waters must amount to at least 15 m measured from the shoreline.2 the width of the space provided for waters calculated in accordance with paragraphs 1 must be increased where this is required to guarantee:a.protection against flooding;b.the space required for rehabilitation;c.overriding interests of the nature- and landscape conservation;d.the use of the waters.3 the width of the space provided for waters may be adapted to the structural conditions in densely built-up areas provided protection against flooding is guaranteed.4 in the absence of any overriding interests to the contrary, determining the space provided for waters may be dispensed with if the waters:a.are located in forest or in areas, that are not designed mountain- or valley areas in accordance with the agriculture legislation in the arable land register; b.have a surface area of less than 0.5 ha; orc.are artificially laid out.art. 41c extensive structuring and management of the space provided for waters 1 in the space provided for waters, only fixed installations serving the public interest such as footpaths and hiking trails, run-of-river power plants or bridges may be built. the authority may authorise the following installations provided there are no overriding interests to the contrary:in densely built-up areas, installations that meet zoning requirements;abis.49installations that meet zoning requirements outside densely built-up areas on individual plots of ground that have not been built on within a series of several plots of ground that have been built on;b.agricultural and forestry tracked and gravel paths with a distance of at least 3m from the shoreline of the waters if topographically limited spatial conditions pertain;c.fixed parts of installations that aid water withdrawal or discharge;d.50small installations that serve the use of the waters.512 the continued existence of installations and permanent crops in terms of article 22 paragraph 1 letters a-c, e and g-i of the agricultural terms ordinance of 7 december 199852 in the space provided for waters that are lawfully constructed and useable as intended is in principle protected.533 no fertilisers and plant health products may be used in the space provided for waters. individual treatments of problem plants are permitted outside a 3-metre wide strip along the bank where these cannot be controlled mechanically at a reasonable cost.4 the space provided for waters may be used for agricultural purposes if it is used in accordance with the requirements of the direct payments ordinance of 23 october 201354 as straw fields, hedgerows, field or riparian woodland, riparian meadow along watercourses, extensively used meadow, extensively used pasture ground or wooded pasture ground. these requirements also apply to the use of areas outside the agricultural land in use.554bis if in the case of roads and paths with a base layer or railway lines that run alongside waters the space provided for waters on the land side extends only a few metres beyond the transport infrastructure, the authority may authorise exceptions from the management restrictions in paragraphs 3 and 4 for the part on the land side provided no fertilisers or plant health products can enter the water.565 measures against natural erosion of the banks of a watercourse are permitted only if required for protection against flooding or to prevent an unreasonable loss of agricultural land.6 the following do not apply:a.paragraphs 1-5 to that part of the space provided for waters that exclusively serves to guarantee the use of the waters;b.paragraphs 3 and 4 to the space provided for culverted waters.49 inserted by no i of the o of 22 march 2017, in force since 1 may 2017 (as 2017 2585).50 inserted by no i of the o of 22 march 2017, in force since 1 may 2017 (as 2017 2585).51 amended by no i of the o of 4 nov. 2015, in force since 1 jan. 2016 (as 2015 4791).52 sr 910.9153 amended by no i of the o of 4 nov. 2015, in force since 1 jan. 2016 (as 2015 4791).54 sr 910.1355 amended by annex 9 no 2 of the direct payments ordinance of 23 oct. 2013, in force since 1 jan. 2014 (as 2013 4145).56 inserted by no i of the o of 22 march 2017, in force since 1 may 2017 (as 2017 2585).art. 41cbis 57 farming land with the quality of crop rotation areas in the space provided for waters 1 arable farming land with the quality of crop rotation areas in the space provided for waters must be shown separately by the cantons when making the inventory of crop rotation areas in accordance with article 28 of the spatial planning ordinance of 28 june 200058. it may continue to be included in the cantonal minimum of crop rotation areas. if a related federal decree is issued (art. 5 wpa), these areas may be intensively farmed in emergency situations.2 alternative land must be provided in accordance with the sectoral plan for crop rotation areas (art. 29 of the spatial planning ordinance of 28 june 2000) in compensation for arable farming land with the quality of crop rotation areas in the space provided for waters that is required to implement structural flood protection or rehabilitation measures.57 inserted by no i of the o of 4 nov. 2015 (as 2015 4791). amended by no i of the o of 22 march 2017, in force since 1 may 2017 (as 2017 2585).58 sr 700.1art. 41d planning of rehabilitation projects 1 the cantons shall devise the principles required to plan the rehabilitation of watercourses. the principles shall include information on the following in particular:a.the ecomorphological condition of the waters;b.the installations in the space provided for waters;c.the ecological potential and the agricultural importance of the waters.2 they shall set out in a plan for a period of 20 years the stretches of water to be rehabilitated, the form of the rehabilitation measures and the deadlines by which the measures must be implemented, and shall coordinate the plan with the neighbouring cantons to the extent that this is required. rehabilitation projects shall primarily be planned where their benefits:a.are substantial for nature and the landscape;b.are substantial compared with the probable cost;c.may be increased through coordination with other measures to protect natural habitats or to prevent flooding.3 they shall adopt the plans under paragraph 2 for watercourses by 31 december 2014 and for standing waters by 31 december 2022. they shall submit the plans to the foen one year before their adoption so that the foen may comment thereon.594 they shall renew the plans under paragraph 2 every 12 years for a period of 20 years and shall submit these plans to the foen one year before their adoption so that the foen may comment thereon.59 amended by no i 4 of the o of 28 jan. 2015 on amendments to ordinance law on the environment, in particular in relation to the programme agreements for the programme period 2016-2019, in force since 1 jan. 2016 (as 2015 427).section 260 hydropeaking 60 inserted by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955). art. 41e serious harm due to hydropeaking there is serious harm to indigenous flora and fauna and to their habitats due to hydropeaking where:a.the flow rate for upsurge is at least 1.5 times greater than for downsurge; andb.the site-specific quantity, composition and diversity of the plant and animal communities are changed to their detriment, in particular because regularly and in an unnatural manner fish are run ashore, fish spawning grounds are destroyed, aquatic animals are washed away, turbidity arises or the water temperature is altered in an unlawful manner.art. 41f planning remediation measures for hydropeaking 1 the cantons shall submit to the foen a plan for measures to remediate hydropower plants that cause hydropeaking in accordance with the procedure described in annex 4a number 2.2 the persons responsible for hydropower plants must grant access to the authority responsible for the plan and provide the required information, in particular on:a.the coordinates and the designation the individual parts of the plant;b.the flow rates of the watercourse concerned with measured values at intervals of no more than 15 minutes (hydrograph) over a period covering the past five years; if these measured values are not available, the hydrograph may be calculated using data relating to hydro-electric power production at the plant and the water flow;c.the measures carried out and planned to reduce the effects of hydropeaking;d.the available results of the study on the effects of hydropeaking;e.the planned structural and operational changes at the plant.art. 41g remediation measures for hydropeaking 1 based on the measures plan, the cantonal authority shall order the remediation of hydropeaking and require the persons responsible for hydropower plants to examine various types of remediation measure in order to implement the plan.2 before it decides on the remediation project, it shall consult the foen. with a view to an application under article 30 paragraph 1 of the energy ordinance of 1 november 201761 (eno), the foen shall verify whether the criteria of annex 3 number 2 eno are met.623 the persons responsible for hydropower plants shall verify the effectiveness of the measures taken as required by the authority.61 sr 730.0162 second sentence amended by annex 7 no ii 2 of the energy ordinance of 1 nov. 2017, in force since 1 jan. 2018 (as 2017 6889).section 3 flushing out and emptying of impoundments63 63 inserted by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955). art. 42 .64 1 before an authority authorises the flushing out or emptying of an impoundment, it shall ensure that sediments are removed other than by washing away if this is environmentally compatible and economically acceptable.2 when washing away sediments the authorities shall ensure that communities of plants, animals and micro-organisms are harmed as little as possible, in particular by laying down:a.time and type of flushing out or emptying;b.the maximum concentration of suspended matter in the water which must be respected during the flushing out or emptying;c.to what extent washing away must be carried out so that during the flushing out or emptying, fine matter deposited in watercourses is removed.3 paragraphs 1 and 2 do not apply to the abrupt lowering of the water level following an exceptional event (art. 40 para. 3 wpa).64 repealed by no i of the o of 4 may 2011, with effect from 1 june 2011 (as 2011 1955).section 4 bed load budget65 65 inserted by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955). art. 42a66 serious harm due to change in the bed load budget a change in the bed load budget causes serious harm to the indigenous flora and fauna and their habitats if installations such as hydropower plants, gravel excavation sites, bed load traps or river control structures alter the morphological structures or the morphological dynamics of the waters to their detriment.66 inserted by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).art. 42b67 planning the measures to remediate the bed load budget 1 the cantons shall submit a plan to the foen of their measures to remediate the bed load budget in accordance with the procedure described in annex 4a number 3.2 the persons responsible for installations must allow access to the authority responsible for the plan and provide the required information, in particular on:a.the details and the designation of the installations and in the case of hydropower plants the individual parts of the installation;b.how the bed load is dealt with;c.the measures carried out and the planned in order to improve the bed load budget;d.the available results of the study of the bed load budget;e.the planned structural and operational changes to the installation.67 inserted by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).art. 42c68 measures to remediate the bed load budget 1 in the case of installations which according to the plan require measures to remediate the bed load budget, the cantons shall prepare a study on the nature and extent of the required measures.2 based on the study, the cantonal authority shall in accordance with paragraph 1 order the remediation measures. in the case of hydropower plants, the bed load must wherever possible be made to pass through the installation.3 before it decides on the remediation project in the case of hydropower plants, it shall consult the foen. the foen shall examine with a view to an application under article 30 paragraph 1 eno69 whether the criteria of annex 3 number 2 eno are met.704 the persons responsible for hydropower plants shall verify the effectiveness of the measures taken in accordance with instructions from the cantonal authority.68 inserted by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).69 sr 730.0170 second sentence amended by annex 7 no ii 2 of the energy ordinance of 1 nov. 2017, in force since 1 jan. 2018 (as 2017 6889).art. 43 extraction of gravel, sand and other materials from watercourses 1 in order that the bed load budget in a watercourse is not unfavourably influenced by extraction of gravel, sand or other materials (art. 44 para. 2 let. c wpa), the authorities must ensure that:a.the quantity of bed load extracted from the watercourse does not exceed the natural supply;b.the extraction does not in the long term lead to a subsidence of the bottom outside the extraction perimeter;c.the extraction does not render impossible the maintenance and re-establishment of inventoried floodplains;d.the extraction does not lead to a substantial change in the particle size distribution of the bottom material outside the extraction perimeter.2 extraction according to paragraph 1 should not lead to turbidity that may impair fishing waters.section 5 drainage water from underground buildings71 71 inserted by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955). art. 44 .72 1 drainage water from underground buildings must be contained and channelled off in such a way that it cannot be polluted by such construction operations, in particular by exceptional events. this does not apply to small amounts of drainage water if retention measures prevent the pollution of the receiving waters.2 for the discharge of drainage water from underground buildings into watercourses, the following applies:a.the spillway construction must be such as to ensure homogeneous and rapid mixing of the water;b.the temperature of the receiving waters must not be raised over its near as possible natural state by more than 3 c; if the stretch belongs to a trout zone, the temperature must not be raised by more than 1.5 c; c.the discharge must not result in the water temperature exceeding 25 c.3 depending on local circumstances the authorities shall specify:a.requirements for discharge into lakes and infiltration;b.additional requirements for discharge into watercourses if necessary.72 repealed by no i of the o of 4 may 2011, with effect from 1 june 2011 (as 2011 1955).chapter 8 enforcement art. 4573 enforcement by cantonal and federal authorities 1 the cantons shall enforce this ordinance unless it delegates enforcement to the confederation.2 if the federal authorities apply other federal laws, or international treaties or decisions that relate to the subject matter of this ordinance, they shall also enforce this ordinance. the cooperation of the foen and the cantonal authorities is governed by article 48 paragraph 1 wpa; statutory duties of secrecy are reserved.3 at the request of the cantons, the federal authorities shall take account of their provisions and measures, unless fulfilment of the tasks of the federal authority is thereby rendered impossible or made disproportionately difficult.4 if the federal authorities enact administrative ordinances such as guidelines or instructions that concern waters protection, they shall consult the foen.5 the federal department of the environment, transport, energy and communications (the department) may, if required, amend the lists of parameters and the numerical requirements for water quality in accordance with annex 2 number 11 paragraph 3, number 12 paragraph 5 and number 22 paragraph 2.7473 amended by no ii 12 of the o of 2 feb. 2000 to the federal act on the coordination and simplification of decision-making procedures, in force since 1 march 2000 (as 2000 703).74 inserted by no i of the o of 4 nov. 2015, in force since 1 jan. 2016 (as 2015 4791).art. 46 co-ordination75 1 where required, the cantons shall coordinate measures under this ordinance with each other and with measures in other sectors. they shall also ensure the coordination of the measures with those of neighbouring cantons.761bis they shall take account of plans under this ordinance when drawing up structure and land use plans.772 in drawing up the supply plan for drinking water, they include both groundwater resources already used and those intended for exploitation and ensure that water withdrawals are co-ordinated so that no excessive withdrawals take place and the groundwater resources are used economically. 3 in granting authorisations for discharges and infiltration under articles 6-8 the authorities shall take account of both the requirements of the environmental protection act of 7 october 198378 on public protection from odour emissions as well as the requirements of the employment act of 13 march 196479 and the accident insurance act of 20 march 198180 on protection of the health of staff at waste water treatment plants. 75 amended by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).76 amended by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).77 inserted by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).78 sr 814.0179 sr 822.1180 sr 832.20art. 47 procedures for polluted waters 1 if the authorities establish that a body of water does not fulfil the requirements of annex 2 on water quality or that the specific use of the body of water cannot be guaranteed they shall:a.determine and assess the type and extent of the pollution;b.determine the causes of the pollution;c.assess the effectiveness of possible measures;d.ensure that the required measures are undertaken based on the relevant regulations.2 if several sources of pollution are involved, the measures to be taken by those responsible must be coordinated.art. 48 investigations and assessments 1 investigations and assessments are subject to the recognised state of the art; in particular, the relevant standards of the european committee for standardisation (cen)81 or other standards that provide equivalent results apply. 2 insofar as this ordinance contains no regulations on the type and frequency of sampling or the assessment of compliance with requirements, the authorities shall specify such regulations on a case-by-case basis. 81 standards may be viewed free of charge or obtained for a fee from the swiss association for standardisation (snv), sulzerallee 70, 8404 winterthur; www.snv.ch.art. 49 information 1 the foen shall provide information on the state of waters and waters protection, provided this is in the interest of switzerland as a whole. in particular it shall publish reports on the state of waters protection in switzerland. the cantonal authorities shall provide the necessary information.2 the cantonal authorities shall provide information on the state of waters and waters protection in their canton. at the same time they shall also provide information on the measures taken and their impact and on bathing sites where the requirements for bathing are not met (annex 2 no 11 para. 1 let. e).8282 amended by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).art. 49a83 geoinformation the foen shall provide specifications for the minimum geodata models and presentation models for the official geodata under this ordinance for which it is designated federal specialist authority in annex 1 to the geoinformation ordinance of 21 may 200884.83 inserted by annex 2 no 7 of the o of 21 may 2008 on geoinformation, in force since 1 july 2008 (as 2008 2809).84 sr 510.620art. 5085 85 repealed by no iii 2 of the o of 12 aug. 2015, with effect from 1 oct. 2015 (as 2015 2903).art. 51 international decisions, recommendations and commissions86 1 the department is authorised to approve decisions and recommendations that are based on the following international agreements, with the agreement of the federal department of economic affairs, education and research:87a.convention of 22 september 199288 for the protection of the marine environment of the north-east atlantic (ospar convention);b.convention of 29 april 196389 on the international commission for protection of the rhine against pollution;c.convention of 3 december 197690 on the protection of the rhine against chemical pollution.2 the foen shall supply the approved decisions and recommendations to third parties on request.3 the department shall elect members of the swiss delegations to the inter-state commissions for protection of waters.9186 amended by no ii 12 of the o of 2 feb. 2000 to the federal act on the coordination and simplification of decision-making procedures, in force since 1 march 2000 (as 2000 703).87 amended by no i of the o of 4 nov. 2015, in force since 1 jan. 2016 (as 2015 4791).88 sr 0.814.29389 [as 1965 388, 1979 93. as 2003 1934 art. 19 no 2, 3]. today: convention of 12 april 1999 on the international commission for protection of the rhine against pollution (sr 0.814.284).90 [as 1979 97, 1983 323, 1989 161. as 2003 1934 art. 19 no 2].91 inserted by fig. ii 12 of the o of 2 feb. 2000 to the federal act on the coordination and simplification of decision-making procedures, in force since 1 march 2000 (as 2000 703).chapter 8a92 federal waste water charge 92 inserted by no i of the o of 4 nov. 2015, in force since 1 jan. 2016 (as 2015 4791).art. 51a charge rate the level of the charge in accordance with article 60b wpa amounts to 9 francs per resident per annum. the charge is based on the number of residents that are connected to the waste water treatment plant on 1 january of the calendar year in which the charge is collected.art. 51b data provided by the cantons the cantons must:a.notify the foen each year by 31 march of the number of residents that are connected to each waste water treatment plant on their territory as of 1 january of the calendar year in question;b.submit to the foen by 31 october of each calendar year the final accounts with requests for compensatory payments under article 60b paragraph 2 wpa that are received by 30 september of the same calendar year.art. 51c collection of the charge 1 the foen shall invoice the charge to the subjects liable to pay by 1 june in the calendar year concerned. it shall issue a ruling on the charge in the event of any dispute over the invoice. 2 at the request of the canton, the foen may invoice the canton for the charge if the canton confirms that it collects the charge from the waste water treatment plants on its territory on the same terms as those of the foen. this request must be submitted to the foen by 31 march.3 payment must be made within 60 days of the due date. the charge becomes due on receipt of the invoice or, if the invoice is disputed, on the ruling on the charge taking full legal effect in accordance with paragraph 1. in the event of late payment, interest of 5 per cent becomes due.9393 amended by no i of the o of 22 march 2017, in force since 1 may 2017 (as 2017 2585).art. 51d time limit 1 the right to collect the charge lapses ten years from the end of the calendar year in which it arises. 2 the time limitation period is interrupted and restarted:a.if the subject liable to the charge acknowledges the right to collect it;b.by any official act by which the right to collect the charge is enforced against the subject liable to pay it.3 the right to collect the charge expires in every case 15 years from the end of the calendar year in which it arises.chapter 9 granting of federal subsidies section 194 measures 94 amended by no i 13 of the o of 7 nov. 2007 on the new system of fiscal equalisation and the division of tasks between the confederation and cantons, in force since 1 jan. 2008 (as 2007 5823). art. 52 nitrogen removal at waste water treatment plants95 1 the level of the global compensatory payments made to installations and equipment for nitrogen removal (art. 61 para. 1 wpa) is governed by the number of tonnes of nitrogen removed each year.2 insofar as it is necessary to comply with international agreements or decisions of international organisations, the extent and complexity of the measures may also be taken into account.3 the level of the global compensatory payments shall be agreed between the foen and the canton concerned.95 amended by no i of the o of 4 nov. 2015, in force since 1 jan. 2016 (as 2015 4791).art. 52a96 elimination of organic trace substances at waste water plants 1 compensatory payments in respect of measures to eliminate organic trace substances under article 61a paragraph 1 wpa shall be made to the cantons on a case-by-case basis.2 if the measure giving rise to the compensatory payment is not implemented within five years of payment being assured, the assurance is no longer valid.3 if sewers are constructed instead of installations and equipment to eliminate organic trace substances, the maximum costs attributable are those that could have arisen in the event of measures being taken at the waste water treatment plant itself.4 before the authority decides on the measure, it shall consult the foen.96 inserted by no i of the o of 4 nov. 2015, in force since 1 jan. 2016 (as 2015 4791).art. 53 waste disposal installations compensatory payments made in respect of waste disposal installations eligible for subsidies (art. 62 paras 1 and 2 wpa) shall be made on a case by case basis for planning, initial establishment and extension.art. 54 measures in agriculture 1 the level of the global compensatory payments made in respect of measures in agriculture (art. 62a wpa) is governed by the properties and the number of kilograms of the substances that are prevented from washing away or leaching each year.2 for measures that result in changes in farm structures, the level is also governed by the attributable costs.3 the level of the global compensatory payments shall be agreed between the federal office for agriculture (foag) and the canton concerned.art. 54a97 planning of rehabilitation measures 1 the level of the global compensatory payments made for planning measures to rehabilitate waters (art. 62b para. 1 wpa) is governed by the length the bodies of water to which the plan relates.2 the level of the global compensatory payments shall be agreed between the foen and the canton concerned.97 inserted by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).art. 54b98 implementation of rehabilitation measures 1 the level of the global compensatory payments for measures to rehabilitate waters (art. 62b para. 1 wpa) is governed by:a.the length of the stretch of water that is to be rehabilitated or is opened by the removal of obstructions;b.the width of the channel bed of the watercourse;c.the width of the space provided for the waters that are to be rehabilitated;d.the benefits of rehabilitation for nature and the landscape in comparison with the probable costs;e.the benefits of rehabilitation for recreation;f.the quality of the measures.2 the level of the global compensatory payments shall be agreed between the foen and the canton concerned.3 compensatory payments may be made individually if the measures:a.cost more than five million francs;b.have a supracantonal impact or concern border waters;c.affect protected zones or properties listed in national inventories;d.require a complex or special expert assessment due to the possible alternatives or for other reasons; ore.were unforeseeable.4 the contribution to the attributable costs of the measures under paragraph 3 shall amount to between 35 and 80 per cent and is governed by the criteria listed in paragraph 1.5 compensatory payments for rehabilitation shall only be granted if the canton concerned has drawn up a rehabilitation plan that meets the requirements of article 41d.6 no compensatory payments shall be granted under article 62b paragraph 1 wpa for measures required under article 4 of the federal act of 21 june 199199 on hydraulic engineering.98 inserted by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955). see also the transitional provision relating to this amendment at the end of the text.99 sr 721.100art. 55 initial procurement studies 1 compensatory payments for ascertaining the causes of inadequate water quality in an important body of water with a view to carrying out remediation measures (art. 64 para. 1 wpa) will be paid on a case-by-case basis insofar as the projects concern the state of the body of water and its tributaries.2 the compensatory payments for the provision of fundamentals amount to 30 per cent of the attributable costs and those for the inventories on water supply installations and groundwater resources (art. 64 para. 3 wpa) 40 per cent of the attributable costs.art. 56 training of specialists and provision of information to the public 1 financial assistance for the training of specialists (art. 64 para. 2 wpa) amounts to:a.a maximum of 25 per cent of the costs;b.a maximum of 40 per cent of the costs in the case of projects that are particularly expensive given the number of probable participants.2 financial assistance for the provision of information to the public (art. 64 para. 2 wpa) may be granted to projects if:a.they are of significance for switzerland as a whole; andb.provided the information documents are made available for distribution throughout switzerland.3 the financial assistance for the provision of information to the public amounts to:a.a maximum of 40 per cent the costs for the preparation of documents;b.a maximum of 20 per cent the costs for the conduct of information campaigns.4 the foen shall grant financial assistance for the training of specialists and for the provision of information to the public on a case-by-case basis.art. 57 risk guarantee 1 a risk guarantee for promising new forms of installations and equipment (art. 64a wpa), that perform a public service may be granted provided company guarantees are not available.2 the risk guarantee applies to the costs incurred in rectifying defects or if necessary for the reconstruction of the installations and equipment in the first five years after beginning operations must, provided they are not made necessary through the fault of the person responsible for the installation or equipment.3 the risk guarantee amounts to at least 20 but no more than 60 per cent of the costs in accordance with paragraph 2.4 for the procedure, articles 61c and 61d apply by analogy.art. 58100 attributable costs 1 attributable costs are those costs that are genuinely incurred and are directly connected with implementing projects giving rise to entitlement to subsidy. these include the cost of pilot projects, and in the case of the rehabilitation of bodies of water, the cost of acquiring the required land.2 costs that are not attributable are in particular fees and taxes.100 amended by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).section 2101 procedure for granting global compensatory payments 101 amended by no i 13 of the o of 7 nov. 2007 on the new system of fiscal equalisation and the division of tasks between the confederation and cantons, in force since 1 jan. 2008 (as 2007 5823). art. 59 application 1 the canton shall submit the application for global compensatory payments to the competent federal office (art. 60 para. 1).2 the application must include information on:a.the programme goals to be achieved and in the case of compensatory payments for measures in agriculture information on the goals to be achieved in the canton as a whole;b.the measures probably required to achieve the goals and how they are to be implemented;c.the effectiveness of the measures.art. 60 programme agreement 1 the following authorities are responsible for concluding the programme agreement:a.102the foen for compensatory payments to waste water treatment plants and for the planning and conduct of measures to rehabilitate waters;b.the foag for compensatory payments for measures in agriculture.2 the programme agreement shall be concluded for a specific territory. the subject matter of the programme agreement shall in particular be:a.the strategic programme goals that must be jointly achieved;b.the obligations of the canton;c.the federal subsidy to be provided;d.controlling.3 the duration of the programme agreement amounts in the case of compensatory payments to:a.measures in agriculture: normally 6 years;b.other measures: 4 years.1034 the competent federal office shall issue guidelines on the procedure in the case of programme agreements and on the information and documents on the subject matter of the programme agreement.102 amended by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).103 amended by no i of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).art. 61 payment global compensatory payments are paid out in instalments.art. 61a reporting and controls 1 the canton shall report annually to the competent federal office on the use of the global compensatory payments.2 the competent federal office shall verify by random sample:a.the implementation of individual measures in accordance with the programme goals;b.the use of the subsidies paid out.art. 61b inadequate fulfilment and misuse of subsidies 1 the competent federal office shall withhold all or part of the instalment payments during the programme if the canton:a.fails to fulfil its reporting duty (art. 61a para. 1);b.fails to meet its obligations to a substantial extent through its own fault.2 if on conclusion of the programme it emerges that the canton has failed to meet its obligations, the competent federal office shall require the canton to rectify the situation; it shall set the canton an appropriate deadline for doing so.3 if installations or equipment for which compensatory payments have been made are used for a purpose other than that intended, the competent federal office may require the canton to stop or remedy the misuse within a reasonable period.4 if the defects are not rectified or if the misuse does not stop or is not remedied, the payments may be reclaimed in accordance with articles 28 and 29 of the subsidies act of 5 october 1990104.104 sr 616.1section 3105 procedure for granting compensatory payments or financial assistance in specific cases 105 inserted by no i 13 of the o of 7 nov. 2007 on the new system of fiscal equalisation and the division of tasks between the confederation and cantons, in force since 1 jan. 2008 (as 2007 5823).art. 61c application 1 the application for financial assistance or compensatory payments in specific cases is submitted to the foen.2 it shall issue guidelines on the information and documents to be included in the application.art. 61d granting and payment of subsidies 1 the foen shall specify the subsidies in a ruling or enter into an agreement with the recipient of the subsidies for this purpose.2 it shall pay out the subsidies according to how the project is progressing.art. 61e inadequate fulfilment and misuse of subsidies 1 if the recipient of a promised compensatory payment or financial assistance despite being warned fails to carry out a measure not or does so inadequately, the compensatory payment or financial assistance shall not be paid out or shall be reduced.2 if compensatory payments or financial assistance have been paid out and the recipient despite being warned fails to carry out a measure not or does so inadequately, the payments may be reclaimed in accordance with articles 28 and 29 of the subsidies act106.3 if installations or equipment for which compensatory payments or financial assistance have been paid out are used for a purpose other than that intended, the foen may require the canton to stop or remedy the misuse within a reasonable period.4 if the misuse is not stopped or remedied, the payments may be reclaimed in accordance with article 29 of the subsidies act.106 sr 616.1art. 61f reporting and controls reporting and controls in relation to compensatory payments and financial assistance in specific cases are governed by analogy by article 61a.chapter 10 commencement art. 62 this ordinance comes into force on 1 january 1999.transitional provision to the amendment of 18 october 2006107 107 as 2006 4291installations and parts of installation that were constructed in accordance with the regulations before this amendment comes into force may continue to be operated if they are fit for operation and do not represent a specific risk to the waters; single wall underground storage tanks for liquids which may pollute water may continue to be used until 31 december 2014 at the latest.transitional provisions to the amendment of 4 may 2011108 108 as 2011 19551 the cantons shall specify the space provided for waters in accordance with articles 41a and 41b by 31 december 2018.2 until they have specified the space provided for waters, the regulations on installations in accordance with article 41c paragraphs 1 and 2 apply along waters with a margin on each side with a width in each case of:a.8 m plus the width of the existing channel bed in the case of watercourses with a channel bed of no more than 12 m width;b.20 m in the case of watercourses with an existing channel bed of more than 12 m width;c.20 m in the case of standing waters with a surface area of more than 0.5 ha.3 instead of the criteria under article 54b paragraph 1 letters a and b, the level of the compensatory payments for rehabilitation operations carried out before 31 december 2024 may be determined by the extent of the measures.1094 article 54b paragraph 5 does not apply to rehabilitation operations carried out before 31 december 2015.109 amended by no i 1 of the o of 17 april 2019 on amendments to ordinance law on the environment, in particular in relation to the programme agreements for the programme period 2020-2024, in force since 1 jan. 2020 (as 2019 1487).transitional provision to the amendment of 25 may 2011110 110 as 2011 2407the cantonal authority may grant an exception under article 25 paragraph 1 until 31 december 2015 at the latest to farms that no longer meet the requirements of article 25 paragraph 3 letters c and d, as a result of the ban on the feeding of slaughterhouse and butcher's by-products and left-over food, provided these farms prove that they have used slaughterhouse and butcher's by-products and left-over food as feed and cannot compensate for the loss of such feed by using other food by-products.transitional provision to the amendment of 4 november 2015111 111 as 2015 47911 the cantons shall ensure that the implementation of all the measures required to comply with the requirements of annex 3.1 clause 2 no 8 begin by 31 december 2035 at the latest. they shall fix the last possible date for implement the measures according to their urgency and in doing so take account of the following:a.the remediation and renewal cycles of the waste water treatment plants;b.the size of the waste water treatment plants;c.the volume of waste water in the receiving waters;d.the length of the flow section in waters that are affected by the discharge of waste water.2 for groundwater wells and groundwater recharge installations in highly heterogeneous karst and fissured rock aquifers, zones sh and sm in terms of annex 4 number 125 need not be designated if the groundwater protection zones and areas of contribution were designated under the previous law and have not been modified to a substantial extent.annex 1 (art. 1)ecological objectives for waters 1 surface waters 1 the communities of plants, animals and micro-organisms in surface waters and the surroundings influenced by them shall:a.be close to nature and appropriate to the location as well as reproducing and regulating themselves;b.show a diversity and frequency of species that are specific to unpolluted or slightly polluted waters of the type in question.2 the hydrodynamics (bed load transport rate, and flow regimes) and the morphology should be near-natural. in particular, they should guarantee unreservedly the self-cleaning processes, the natural exchange of substances between water and the channel bed as well as the interactions with the surroundings.3 the water quality shall be such that:a.the temperature conditions are near-natural;b.the water, suspended matter and sediments contain no persistent synthetic substances;c.other potential water pollutants which could enter the water as a result of human activities,-do not accumulate in the plants, animals, micro-organisms, suspended matter or sediments,-do not have any harmful effects on the communities of plants, animals and micro-organisms and on the use of the water,-do not cause an unnaturally high production of bio-mass,-do not harm the biological processes that fulfil the basic physiological needs of plant and animal life, such as the metabolic processes, the reproductive processes and the olfactory orientation of animals,-occur in the body of water in concentrations that are within the range of natural concentrations where they are already present naturally, -occur in the body of water only in near-zero concentrations where they are not naturally present.2 underground waters 1 the biotic community of underground waters shall:a.be close to nature and appropriate to the location;b.be specific to unpolluted or only slightly polluted waters.2 the aquifer (flow section, permeability), the upper and lower confining beds and the hydro-dynamism of the groundwater (groundwater levels, flow regime) should correspond to near natural conditions. in particular, the self-cleaning processes and the interactions between water and its surroundings should be guaranteed unreservedly.3 the groundwater quality shall be such that:a.the temperature conditions are near natural;b.the water contains no persistent synthetic substances;c.other potential water pollutants which could enter the water as a result of human activities:-do not accumulate in the biotic community or in the inert matter of the aquifer,-occur in concentrations that are within the range of natural concentrations where these are already present in natural state groundwater,-do not occur in groundwater where they are not present naturally-have no harmful effects on the use of the groundwater. annex 2112 112 revised by annex 2 no 4 of the plant protection products ordinance of 23 june 1999 (as 1999 2045), no ii 9 of the o of 18 may 2005 on the repeal and amendment of ordinances in connection with the commencement of the chemicals act (as 2005 2695), no iii of the o of 4 nov. 2015 (as 2015 4791), and the correction of 2 feb. 2016 (as 2016 473).(art. 6, 8, 13 and 47)requirements on water quality 1 surface waters 11 general requirements 1 the water quality must be such that:a.no visible colonies of bacteria, fungi or protozoa and no unnatural proliferation of algae or higher water plants are formed in any waters;b.fish-spawning grounds are preserved;c.after application of appropriate treatment, the water complies with requirements of the legislation on foodstuffs; d.groundwater is not contaminated by infiltration of water;e.the hygiene requirements for bathing are met at sites where bathing is expressly permitted by the authorities or where a large number of people normally bathe and the authorities do not advise against it;f.substances that enter waters as a result of human activities do not detrimentally affect the reproduction, development and health of sensitive plants, animals and microorganisms.2 after waste water has undergone homogeneous mixing with the body of water the mixture must not result in:a.the formation of mud;b.any turbidity, discoloration or foam, except in the event of heavy rainfall;c.any noticeable alteration in the odour of the water in comparison with its natural state;d.any lack of oxygen or unfavourable ph values.3 the following numerical requirements apply to every water flow after thorough mixing of the waste water discharged into the receiving waters; a reserve may be made for particular natural conditions such as water discharge from mires, rare high-water peaks or rare low-water events.noparameterrequirements1nitrate (no3- - n)for waters which serve as a source of drinking water:5,6 mg/l n (corresponds to 25 mg/l nitrate)2lead (pb)0.01 mg/l pb (total)10.001 mg/l pb (dissolved)3cadmium (cd)0,2 g/l cd (total)10.05 g/l cd (dissolved)4chromium (cr)0.005 mg/l cr (total)10.002 mg/l cr (iii und vi)5copper (cu)0.005 mg/l cu (total)10.002 mg/l cu (dissolved)6nickel (ni)0.01 mg/l ni (total)10.005 mg/l ni (dissolved)7mercury (hg)0.03 g/l hg (total)10.01 g/l hg (dissolved)8zinc (zn)0.02 mg/l zn (total)10.005 mg/l zn (dissolved)9organic pesticides (biocidal and plant protection products)0.1 g/l per individual substance unless regulated otherwise below.1the dissolved concentration is determinant. if the value specified for the total concentration is respected, it may be assumed that the value for the dissolved concentration is also respected.12 additional requirements for watercourses 1 the water quality must be such that:a.no visible iron sulphide patches form in the channel bed, unless due to particular natural conditions;b.nitrite and ammonia concentrations do not interfere with the reproduction development and health of sensitive organisms, such as salmonidae.2 the oxygen content on the channel bed must not be adversely affected by:a.increased oxygen consumption due to an unnatural excess of oxidisable substances;b.a reduced permeability of the bottom resulting from unnaturally high sedimentation of fine particles (clogging) or artificial sealing.3 the hydrodynamics, morphology and temperature conditions of the water must not be so changed by water withdrawals, water discharges and building activities that its self-purification capacity is reduced or the water quality in the body of water is made insufficient to sustain communities specific to it.4 the introduction or the withdrawal of heat must not alter the temperature in a watercourse by more than 3 c above or below the temperature in its as near natural as possible state, or, in trout water stretches, by more than 1.5 c; furthermore, the water temperature must not exceed 25c. these requirements apply after thorough mixing.5 the following numerical requirements apply to every water flow after thorough mixing of the waste water discharged into the receiving waters; a reserve may be made for particular natural conditions such as water discharge from mires, rare high-water peaks or rare low-water events.no.parameterrequirements1biochemical oxygen demand (bod5)2 to 4 mg/l o2the lower value applies to waters which are naturally only slightly polluted.2dissolved organic carbon (doc)1 to mg/l cthe lower value applies to waters which are naturally only slightly polluted.3ammonium (sum of nh4+ n and nh3 - n)at temperatures:- above 10 c: 0.2 mg/l n- below 10 c: 0.4 mg/l n13 additional requirements for standing waters 1 the morphology and functions of the upper layers of sediments which are essential for providing the water quality required to preserve the communities of plants, animals and micro-organisms must not be durably altered by changes made to the terrain (e.g. dredging, movement of excavated material within the expanse of water, levelling or backfilling of banks, reinforcement of banks or creation of dikes).2 the nutrient content should allow at most an average production of biomass; subject to particular natural circumstances.3 for lakes, moreover, the following applies:a.the regulation of the lake waters, the discharge and extraction of water, the use of water for cooling and for the extraction of heat, should not alter the natural regime of temperatures or the distribution of nutrients within the expanse of water, nor should it disrupt conditions for living and reproduction of organisms, particularly in the riparian zone;b.the oxygen content of the water should at no time and at no lake depth amount to less than 4 mg/l o2; in addition, it must be sufficient for sensitive animals such as worms to be able to inhabit the lake bottom throughout the year and in numbers as close as possible to natural abundance, subject to particular natural conditions.2 underground waters 21 general requirements 1 the concentration of substances in the groundwater for which requirements are specified in no 22 should not continually increase. 2 the quality of the groundwater must be such that it does not pollute surface water after exfiltration.3 the introduction or withdrawal of heat must not alter the temperature of the groundwater by more than 3 c above or below the temperature in its natural state; this does not apply to very local changes in temperature.4 infiltration of waste water into underground waters must not result in:a.any disturbing change in the odour of the water;b.any lack of oxygen or unfavourable ph values;c.any turbidity or discoloration, except in the case of consolidated rock groundwater.5 infiltration installations, withdrawals of water and other interventions connected with construction work must not, insofar as possible, damage the protective upper confining bed, or alter the hydrodynamics in such a way as to have detrimental effects on the quality of water.22 additional requirements for groundwater which is used for drinking water or is intended as such 1 the water quality must be such that after the use of basic water conditioning, it complies with the requirements of the foodstuffs legislation.2 the following numerical requirements apply, subject to the particular natural circumstances. for substances originating from polluted sites, these requirements do not apply in the downstream area where the greater part of these substances is degraded or retained. no.parameterrequirement1dissolved organic carbon (doc)2 mg/l c2ammonium (sum of nh4+ n and nh3 n)in oxic conditions: 0.08 mg/l n (corresponds to 0.1 mg/l ammonium)in anoxic conditions: 0.4 mg/l n (corresponds to 0.5 mg/l ammonium)3nitrate (no3- - n)5.6 mg/l n (corresponds to 25 mg/l nitrate)4sulphate (so42 - )40 mg/l so42 -5chloride (cl -)40 mg/l cl -6aliphatic hydrocarbons0.001 mg/l per single substance7monocyclic aromatic hydrocarbons 0.001 mg/l per single substance8polycyclic aromatic hydrocarbons (pah)0.1 g/l per single substance9volatile organic halogens (vox)0.001 mg/l per single substance10adsorbable organic halogens (aox)0.01 mg/l x11organic pesticides (biocidal products and plant protection products )0.1 g/l per single substance. annex 3 requirements for the discharge of polluted waste water annex 3.1113 113 revised by no i of the o of 31 oct. 2001 (as 2001 3168), no iii of the o of 4 nov. 2015 (as 2015 4791) and no i of the o of 17 april 2019, in force since 1 jan. 2021 (as 2019 1489). see also the transitional provision to the amendment of 4 nov. 2015 above. the correction of 7 feb. 2017 relates to the italian text only (as 2017 509).(art. 6 para. 1)discharge of communal waste water into waters 1 definition and principles 1 communal waste water includes:a.domestic waste water (waste water from households and similar waste water);b.precipitation water running off built-up or sealed surfaces and discharged along with domestic waste water.2 the following requirements apply to communal waste water from waste water treatment plants treating in excess of 200-population equivalent (pe114). they apply at the site of discharge and for the standard operation of the plant, subject to exceptional situations such as unusually heavy rainfall.3 for communal waste water from waste water treatment plants with 200 pe or fewer and for waste water from overflows from combined systems, the authorities determine the requirements from case to case taking local conditions into consideration. 4 if the waste water from a central waste water treatment plant also contains industrial waste water (annex 3.2) or other polluted waste water (annex 3.3), the authorities shall specify the requirements for discharge into waters in their authorisation, if necessary in derogation from the requirements listed in nos 2 and 3, in such a way that no more potential water pollutants are discharged with the waste water than would be the case if the different waste waters were treated separately in compliance with the requirements of the corresponding annexes.114 one pe corresponds to one organic biodegradable load with a biochemical oxygen demand in 5 days of 60 g of oxygen per day. 2 general requirements no.parameterrequirements1total suspended solidsfor waste water from plants of less than 10 000 pe the following requirements apply:-discharge concentration: 20 mg/lfor waste water from plants from 10 000 pe the following applies:-discharge concentration: 15 mg/l 2chemical oxygen demand (cod)for waste water from plants of less than 10 000 pe the following requirements apply:-discharge concentration: 60 mg/l o2 and-removal efficiency, with respect to raw waste water: 80%for waste water from plants of 10.000 pe or over the following requirements apply:-discharge concentration: 45 mg/l o2 and-removal efficiency, with respect to raw waste water: 85%3dissolved organic carbon (doc)for waste water from plants of 2000 pe or over the following requirements apply:- discharge concentration: 10 mg/l and- removal efficiency: 85%, expressed asif the value is not complied with, the authorities shall assess the substances, determine their origin and if necessary specify the required procedures in accordance with annexes 3.2 and 3.3.4transparency (snellen method)30 cm5ammonium (sum of nh4+ n and nh3 - n)if the ammonium concentrations in the waste water are potentially detrimental to the water quality of a watercourse, the following requirements apply if the waste water temperature is higher than 10 c;-discharge concentration: 2 mg/l n and-removal efficiency: 90 %, expressed asin these cases nitrification must be carried out throughout the year: remark: kjeldahl nitrogen is the sum of the nitrogen inform the ammonium, ammonia and organic nitrogen.6nitrite (no2- - n)0.3 mg/l n (guide value)7adsorbable organic halogen (aox)0.08 mg/l x.if the value is not complied with, the authorities shall assess the substances, determine their origin and if necessary specify the required procedures in accordance with annexes 3.2 and 3.3.8organic substances that can pollute waters even in low concentrations (organic trace substances)the removal efficiency with respect to raw waste water and measured using selected substances must amount to 80 % for waste water from:-plants with 80 000 or more connected residents;-plants with 24 000 or more connected residents in the catchment area of lakes; the canton may authorise exceptions if the benefit of removal for the environment and for the drinking water supply is negligible;-plants with 8000 or more connected residents that discharge into a watercourse containing more than 10 % waste water untreated for organic trace substances; the canton shall identify the plants that must take measures as part of a plan for the catchment area; -other plants with 8000 or more connected residents if removal is required due to special hydrogeological conditions;-.115the department shall specify the substances to be used to measure the removal efficiency in an ordinance, and how efficiency is calculated.9biochemical oxygen demand (bod5, with nitrification inhibition)for waste water from plants with less than 10 000 pe for which the bod5 concentrations in the waste water have a detrimental effect on the water quality of a watercourses the following applies:-discharge concentration: 20 mg/l o2and-removal efficiency with respect to raw waste water: 90 %for waste water from plants from 10 000 pe for which the bod5 concentrations in the waste water have a detrimental effect on the water quality of a watercourses the following applies:-discharge concentration: 15 mg/l o2and-removal efficiency with respect to raw waste water: 90 %115 comes into force on 1 jan. 2028 (as 2019 1489).3 additional requirements for discharge into sensitive waters no.parameterrequirements1total phosphorus(after conversion to dissolved orthophosphate)for waste water from plants-in the catchment area of lakes,-situated on watercourses downstream of lakes, if this is required for the protection of the watercourse, and -of 10.000 pe or over, situated on watercourses in the catchment area of the rhine downstream of lakes,the following requirements apply:-discharge concentration: 0.8 mg/l p and-removal efficiency, with respect to raw waste water: 80%2total nitrogenin plants for which no discharge concentration and no removal efficiency for total nitrogen is specified, must be operated in such a way that during waste water purification and sludge treatment as much nitrogen as possible is eliminated. all structural modifications which are possible at no great cost must be undertaken; this applies particularly to plants that already carry out nitrification.prior to 28 february 2002, cantons in the catchment area of the rhine shall work out a plan on how to reduce discharges of nitrogen by 2600 tonnes compared to 1995 with effect from the year 2005 onwards. plants that are earmarked in this plan for nitrogen elimination must be operational by 2005 at the latest.4 frequency of sampling and admissible divergences 41 frequency of sampling 1 the requirements under nos 2 and 3 refer to an examination period of one year and to continuous sampling, conducted at regular intervals on different days of the week. with regard to organic trace substances, the samples must be taken over 48 hours and with regard to other parameters over 24 hours.2 the number of samples per year depends on the size of the plant:a.plants of less 2000 pethe cantonal authorities shall specify the minimum number of samples to be analysed on a case by case basis.b.plants of 2000 pe or overin the first year after the commissioning or extension of the plant at least twelve samples. in the following years at least four samples if the waste water complied with the requirements in the first year. if the waste water does not comply with the requirements in any year, a further twelve samples at least must be analysed the following year. with regard to organic trace substances, at least eight samples must be analysed instead of at least twelve.c.plants of 10 000 pe and overat least twelve samples per year.with regard to organic trace substances, from the second year after the commissioning or extension of the plant at least six samples must be analysed if the waste water complied with the requirements in the first year; if the waste water does not comply with the requirements in any year, a further twelve samples at least must be analysed the following year.d.plants of 50 000 pe and overat least 24 samples per year.with regard to organic trace substances, from the second year after the commissioning or extension of the plant at least twelve samples must be analysed if the waste water complied with the requirements in the first year; if the waste water does not comply with the requirements in any year, a further 24 samples at least must be analysed the following year.42 admissible non-compliant samples 1 the maximum number of non-compliant samples admissible depends on the total number of samples as indicated in the table below.2 the following values must never be exceeded:-total suspended solids 50 mg/l-chemical oxygen demand (bod5) 120 mg/l-dissolved organic carbon (doc) 20 mg/l-biochemical oxygen demand (bod5) 40 mg/l3 the following annual averages must not be exceeded:-phosphorus in plants of 10 000 pe and over0.8 mg/l ptable: admissible number of non-compliant samplesnumber of samples per yearadmissible number of noncompliant samplesnumber of samples per yearadmissible number of noncompliant samples 4- 7 1172-18714 8- 16 2188-20315 17- 28 3204-21916 29- 40 4220-23517 41- 53 5236-25118 54- 67 6252-26819 68- 81 7269-28420 82- 95 8285-30021 96-110 9301-31722111-12510318-33423126-14011335-35024141-15512351-36525156-17113annex 3.2116 116 revised by no i of the o of 22 oct. 2003, in force since 1 jan. 2004 (as 2003 4043).(art. 6 para. 1 and 7 para. 1)discharge of industrial waste water into waters or into public sewer systems 1 definition and principles 1 industrial waste water includes:a.waste water from industrial plants;b.comparable waste water, such as that from laboratories and hospitals.2 any person who discharges industrial waste water must, during production processes and waste water treatment take the require stat-of-the-art measures to avoid polluting waters. in particular, he or she must ensure that:a.as little waste water is generated and as few potential water pollutants are discharged as is technically and operationally feasible and economically acceptable;b.unpolluted waste water and cooling water are separated from polluted waste water;c.polluted waste water is neither diluted nor mixed with other waste water in order to comply with the requirements; dilution or mixing is permitted if this is appropriate for the treatment of the waste water and as a result no more potential water pollutants are discharged than would be the case if the waste waters were treated separately.3 at the site of discharge, when discharging waste water into waters or public sewers they must comply with:a.the general requirements in accordance with no 2; andb.the special requirements for specific substances in accordance with no 3 for waste water from certain industrial sectors. 4 if the person responsible for the concern can prove that he or she has taken the required state-of-the-art measures mentioned in paragraph 2, and that compliance with the general requirements specified in no 2 would be disproportionate, the authorities shall specify less stringent values.5 if the required state-of-the-art measures mentioned in paragraph 2 make it possible to comply with more stringent requirements than those specified in nos 2 and 3, the authorities shall apply more stringent values based on the information received from the person responsible for the concern and after having heard this person.6 if nos 2 and 3 contain no requirements for specific potential water pollutants, the authorities shall specify the necessary requirements based on the state of the art in the authorisation. in so doing they shall take account of international or national standards, directives published by the foen or standards drawn up by the industrial sector concerned in collaboration the foen.7 if industrial waste water also containing communal waste water (annex 3.1) or other polluted waste water (annex 3.3) is discharged into a body of water, the authorities shall specify the requirements in the authorisation in such a way that no more potential water pollutants are discharged with the waste water than would be the case if the different waste waters were treated separately in compliance with the requirements of the corresponding annexes.2 general requirements no.parametercolumn 1: requirements for discharge into waterscolumn 2: requirements for discharge into public sewers1ph6.5 to 9.06.5 to 9.0; divergences are admissible if there is sufficient mixing with other waste waters in the sewers.2temperatureat most 30 c. the authorities may allow minor short-term excesses in summertime.at most 60 c. the temperature in the sewer system must not exceed 40 c after mixing.3transparency (snellen method)30 cm -4total suspended solids20 mg/l -5arsenic (as)0.1 mg/l as (total)0.1 mg/l as (total) 6lead (pb)0.5 mg/l pb (total)0.5 mg/l pb (total) 7cadmium (cd)0.1 mg/l cd (total)0.1 mg/l cd (total) 8chromium (cr)2 mg/l cr (total); 0.1 mg/l cr-vi2 mg/l cr (total) 9cobalt (co)0.5 mg/l co (total)0.5 mg/l co (total) 10copper (cu)0.5 mg/l cu (total)1 mg/l cu (total) 11molybdenum (mo)-1 mg/l mo (total) 12nickel (ni)2 mg/l ni (total)2 mg/l ni (total) 13zinc (zn)2 mg/l zn (total)2 mg/l zn (total) 14cyanide (cn-)0.1 mg/l cn- (free and easily releasable cyanide)0.5 mg/l cn- (free and easily releasable cyanide)15total hydrocarbons10 mg/l 20 mg/l 16volatile chlorinated hydrocarbons(vocl) or volatile organic halogens (vox)0.1 mg/l clor0.1 mg/l x 0.1 mg/l clor0.1 mg/l x 3 special requirements for specific substances from certain industrial sectors in addition to the following requirements, the internationally agreed decisions and recommendations approved by the federal council or the department in under article 51 apply to the whole of switzerland.11731 foodstuff processing no.sector/processcolumn 1: requirements for discharge into waterscolumn 2: requirements for discharge into public sewers-milk processing-fruit and vegetable processing-manufacture and bottling of soft drinks-potato processing-meat processing-breweries-manufacture of alcohol and alcoholic drinks-manufacture of fodder from plant products-manufacture of leather glue, gelatine and bone glue-malt factories-fish processingrequirements for communal waste water in accordance with annex 3.1 apply.excepted are the requirements for total phosphorus in cases in where phosphorus must be added in the waste water treatment plant for the biological treatment step.in fat and oil processing plants, separators must be fitted if necessary.32 secondary iron and steel industry no.sector/processparameter/requirements for discharge into waters and public sewers1continuous casting process water: -at least 95 per cent recirculationtotal suspended solids:-10 g/t processed steel ( daily average)oil:-5 g/t processed steel (daily average)2cold rollingtotal suspended solids:-10 g/t processed steel (daily average)oil:-5 g/t processed steel (daily average)3hot rollingprocess water:-at least 95 per cent recirculationtotal suspended solids:-50 g/t processed steel (daily average)oil:-10 g/t processed steel (daily average)4pickling plantscadmium (cd):-0.2 mg/l cd (daily average) or chromium (cr):-0.1 mg/l cr-vi (daily average)-1 mg/l cr (total) (daily average)nickel (ni):-1 mg/l ni (daily average)zinc (zn):-2 mg/l zn (daily average)acid regeneration:-acid regeneration for reduction of nitrate discharge from pickling plants using more than 20 tonnes of nitric acid per year, or other equivalent measuresfor plants that were commissioned before 1 january 1993, the authorities shall specify the requirements on a case-by-case basis.33 surface treatment / electroplating no.sector/ processparameter / requirements for discharge into waters and public sewers1use of 1,2-dichloroethane to degrease metals1,2-dichloroethane:-0.1 mg/l (monthly average)-0.2 mg/l (daily average)2use of trichloroethene to degrease metals trichloroethene:-0.1 mg/l (monthly average)-0.2 mg/l (daily average)3use of tetrachloroethene to degrease metalstetrachloroethene:-0.1 mg/l (monthly average)-0.2 mg/l (daily average)4surface treatmentvolatile organic halogens (vox):-0.1 mg/l vox (daily average)cyanide (cn-):-0.2 mg/l cn- (unbound) (daily average)mercury (hg):-0.05 mg/l hg (daily average) or -0.03 kg hg per tonne of mercury used (daily average)cadmium (cd):-0.2 mg/l cd (daily average) or-0.3 kg cd per tonne of cadmium used (daily average)chromium (cr):-0.1 mg/l cr-vi (daily average)-0.5 mg/l cr (total) (daily average)alead (pb):-0.5 mg/l pb (daily average)acopper (cu):-0.5 mg/l cu (daily average)anickel (ni):-0.5 mg/l ni (daily average)azinc (zn):-0.5 mg/l zn (daily average); in justified cases the authorities may admit up to 2 mg/l zn (daily average)silver (ag):-0.1 mg/l ag (daily average)tin (sn):-2 mg/l sn (daily average).afor surface treatment plants discharging small quantities of metals (defined as: sum of total chromium, lead, copper, nickel and zinc less than 200 g/day), the authorities may admit up to 2 mg/l (monthly average).34 chemical industry no.sector/processparameter/requirements on discharge into waters and public sewers1manufacture of chlorine by chlorine-alkali electrolysismercury (hg):use of mercury-free processes.for existing plants applies:-0.5 g hg per tonne of chlorine production capacity in monthly average-2.0 g hg per tonne of chlorine production capacity (daily average)2production of cadmium pigmentscadmium (cd):-0.2 mg/l cd (monthly average)-0.4 mg/l cd (daily average)35 manufacture of paper, cardboard and pulp no.sector/processparameter/requirements on discharge into watersparameter/requirements on discharge into public sewers1production of paper or cardboardtotal suspended solids:-1 kg per tonne production of paper or cardboard (daily average) or 50 mg/l (daily average) chemical oxygen demand (cod)/dissolved organic carbon (doc):-according to type of paper: 2,5-5 kg cod per tonne production of paper or cardboard (daily average) or 1,5-2,5 kg doc per tonne production of paper or cardboard (daily average)biochemical oxygen demand (bod5):-according to type of paper: 0.5-1 kg per tonne production of paper or cardboard (daily average); in justified cases the authorities may instead of the above-mentioned requirement admit a value of 25 mg/l bod5 (daily average). the authorities set the requirements from case to caseno.sector/processparameter/requirements on discharge into waters2production of sulphite pulp (bod5):-5 kg per tonne production of air dry pulp (monthly average)chemical oxygen demand (cod):-35 kg per tonne production of air dry pulp (monthly average)-70 kg per tonne production of air dry pulp (monthly average) for plants which were commissioned before 1.1.1997if the correlation between the cod and the total organic carbons (toc) is given and proved, monitoring may be carried out on the toc instead of on the cod.total suspended solids:-4.5 kg per tonne production of air dry pulp (monthly average)8.0 kg per tonne production of air dry pulp (monthly average) from 1.1.2000 for plants which were commissioned before 1.1.1997 and did not increase their production capacity after 1.1.1997 by more than 50 per cent.adsorbable organic halogens (aox), for plants which do not produce exclusively chlorine-free bleached pulp:-0.5 kg per tonne production of bleached air dry pulp (monthly average)molecular chlorine ratio:-less than 0.05 to 0.1, according to type of pulp36 public utilities and waste disposal plants no.sector / processcolumn 1: requirements on discharge into waterscolumn 2: requirements on discharge into public sewers1filter water from water treatmenttotal suspended solids:-30 mg/l (daily average) (guide value)no special requirements 2waste incineration plantsantimony (sb):-0.1 mg/l sbaarsenic (as):-0.1 mg/l asalead (pb):-0.1 mg/l pbacadmium (cd):-0.05 mg/l cdachromium (total cr):-0.1 mg/l cracopper (cu):-0.1 mg/l (cu)anickel (ni):-0.1 mg/l niazinc (zn):-0.1 mg/l znamercury (hg):-0.001 mg/l hgadissolved organic carbon (doc):-10 mg/l docantimony (sb):-0.1 mg/l sbaarsenic (as):-0.1 mg/l asalead (pb):-0.1 mg/l pbacadmium (cd):-0.05 mg/l cdachromium (total cr):-0.1 mg/l cracopper (cu):-0.1 mg/l cuanickel (ni):-0.1 mg/l niazinc (zn):-0.1 mg/l znamercury (hg):-0.001 mg/l hgasulphate:if there is a risk of corrosion in the public sewers, the authorities shall specify a value for admissible sulphate concentrations in each individual case.3processing wastes containing mercurymercury (hg):-0.05 mg/l hg in monthly average-0.1 mg/l hg in daily averagemercury (hg):-0.05 mg/l hg in monthly average-0.1 mg/l hg in daily average4desilverisation of fixative bathssilver (ag):the authorities set the requirements from case to case.silver (ag):-5 mg/l ag5desilverisation of bleach- hardenerssilver (ag) and bleaching agents: the authorities shall apply the requirements in each individual case.silver (ag) and bleaching agents:-5 mg/l agpoorly biodegradable bleaching agents (especially fe-edta -complex and edta-surplus):-the authorities set the requirements from case to case.aguide value for requirements on discharge to be specified by the authorities on a case by case basis depending on the actual conditions.37 other sectors no.sector/ processcolumn: requirements on discharge into waterscolumn 2: requirements on discharge into public sewers1photographic processessilver (ag):the authorities set the requirements from case to case.silver (ag):50 mg/l ag in cases where annual consumption of fixative bath does not exceed 1000 l/a5 mg/l ag in cases where consumption of fixative bath is in excess of 1000 l/a2manufacture of primary batteries containing mercurymercury (hg):-0.05 mg/l hg (monthly average)-0.1 mg/l hg (daily average)-0.03 g/kg hg per kg of mercury used (monthly average)-0.06 g/kg hg per kg of mercury used (daily average)3manufacture of other primary batteries and secondary batteriescadmium (cd):-0.2 mg/l cd (monthly average)-0.4 mg/l cd (daily average)4processes requiring use of pathogenic micro-organisms -pathogenic microorganisms:inactivation5dental surgeries and clinicsamalgam:the authorities specify the requirements on a case to case basis. amalgam:treatment units in which amalgam is processed, shall be equipped with an amalgam separator with a removal efficiency of at least 95%.117 available from the federal office for the environment, 3003 bern.annex 3.3118 118 revised by no i of the o of 11 april 2018, in force since 1 june 2018 (as 2018 1685).(art. 6 para. 1 and 7 para. 1)discharge of other polluted waste water into waters or into public sewers 1 general requirements 1 for polluted waste water other than communal or industrial waste water, the authorities shall determine the requirements on discharge on the basis of the characteristics of the waste water, the state of the art and the condition of the body of waters concerned. in so doing they shall take account of international or national standards, directives published by the foen or standards worked out by the sector concerned in co-operation with the foen.2 precipitation water running off built-up or sealed surfaces and not mixed with other polluted waste water is also regarded as other polluted waste water.3 in order that the state of the art be maintained, polluted waste water from sectors, processes and plants, must comply at least with the requirements of no 2; numerical requirements apply at the site of discharge.2 special requirements 21 continuous cooling installations 1 plants with continuous cooling installations must be designed and operated according to the state of the art so that as little heat as possible is generated and the waste heat is recovered as far as possible.2 dissolved organic carbon in the cooling water (doc) may be increased by at most 5 mg/l doc. 3 if potential water pollutants are added to the cooling water (e.g. biocides), requirements for discharge of these substances shall be specified. 4 in addition, for discharge into watercourses and stretches of standing water on rivers, the following apply:a.the temperature of the cooling water may amount to a maximum of 30 c; in derogation, the authority may permit the temperature to amount to a maximum of 33 c if the temperature of the waters from which the withdrawal is made exceeds 20 c; if the water temperature exceeds 25 c, the authority may permit exceptions if the increase in the water temperature amounts to a maximum of 0.01 c per discharge or the discharge comes from an existing nuclear power plant;b.a watercourse must not warm up by more than 3 c above or below the temperature in its as near natural as possible state, or, in trout water stretches, by more than 1.5 c; furthermore, the water temperature must not exceed 25 c;c.the spillway construction must guarantee rapid mixing;d.the waters must be warmed up slowly enough to avoid any harmful effects on communities of plants, animals and micro-organisms.5 when discharging into lakes, additional requirements in accordance with paragraphs 1-3 of the discharge conditions shall be determined on a case by case basis according to local conditions, in particular concerning the temperature of the cooling water, the depth and type of discharge.6 when discharging into public sewers, in addition to the requirements in accordance with paragraphs 1-3, the temperature of the waste water discharged may not exceed 60 c and the temperature in the sewer systems may not exceed 40 c after mixing.22 closed-circuit cooling installations 1 when discharging mud-loaded water from closed-circuit cooling installations into a body of water the following values may not be exceeded:a.temperature: 30 c; b.total suspended solids: 40 mg/l; c.dissolved organic carbon (doc): 10 mg/l. 2 if potential water pollutants are added to the cooling water, requirements for such substances shall be specified.23 construction sites 1 waste water from construction sites may be discharged into a body of water or public sewers if it complies with the general requirements for industrial waste water in accordance with annex 3.2 number 2. 2 in addition, the following values may not be exceeded when discharging into a body of water:a.aox: 0.08 mg/l x;b.nitrite: 0.3 mg/l n.24 faade and tunnel cleaning 1 waste water from faade or tunnel cleaning may be discharged into a body of water only if it contains no detergent and has been sufficiently purified in a plant.2 it may be discharged into public sewers if it does not make the recovery of the sludge difficult and if the treatment efficiency of the plant is sufficient to eliminate potential water pollutants.25 landfills 1 landfill leachate may be discharged into waters if:a.it complies with the general requirements for industrial waste water in accordance with annex 3.2 number 2;b.the biochemical oxygen demand (bod5) does not exceed 20 mg/l o2; andc.dissolved organic carbon (doc) does not exceed 10 mg/l c.2 it may be discharged into a public sewer if it complies with the general requirements in accordance with annex 3.2 number 2.3 the authorities shall determine on a case by case basis whether the values specified in paragraphs 1 and 2 must be adapted and if additional requirements must be issued due to the composition of the leachate or the condition of the of waters in question.26 gravel conditioning 1 water from gravel washing may be discharged into a body of water if:a.it complies with the general requirements for industrial waste water in accordance with annex 3.2 number 2;b.the ph does not exceed 9.2 it shall not be discharged into a public sewer.27 fish farms 1 only feedstuff low in phosphorus may be used on fish farms.2 plants must be de-sludged according to directions of the authorities.3 water discharged from the plant may not contain more than 20 mg/l (guide value) of total suspended solids. 4 if therapeutic or other potential water pollutants are used, in particular in order to maintain the health of fish, the authorities shall specify the requirements for the protection of the body of water on a case by case basis.28 swimming pools water from swimming pools may be discharged into a body of water only if it does not contain more than 0.05 mg/l (guide value) of disinfectant (e.g. active chlorine).annex 4119 119 revised by annex 2 no 4 of plant protection products ordinance of 23 june 1999 (as 1999 2045), no ii 9 of the o of 18 may 2005 on the repeal and amendment of ordinances in connection with the commencement of the chemicals act (as 2005 2695), no ii of the o of 18 oct. 2006 (as 2006 4291), no ii para. 1 of the o of 4 may 2011 (as 2011 1955) and no iii of the o of 4 nov. 2015, in force since 1 jan. 2016 (as 2015 4791). see also the transitional provision to this amendment above.(art. 29 and 31)planning the protection of waters 1 description of water protection areas at particular risk and determination of groundwater protection zones and areas 11 particularly endangered water protection areas 111 water protection area au 1 the water protection area au comprises the exploitable underground waters as well as the marginal areas necessary for their protection.2 an underground body of water is exploitable or suitable for procurement of water if the water in its natural or enriched state:a.is available in sufficient quantity to be exploitable, demand not being taken into account; andb.complies with the requirements of the foodstuff legislation for drinking water, if necessary after basic treatment.112 water protection area ao the water protection area ao comprises the surface waters and their riparian zone, as far as these are required for guaranteeing special use.113 area of contribution zu the area of contribution zu comprises the region from which, at low water level, about 90 per cent of the groundwater originates that may be at most withdrawn at the groundwater well. if this area can be determined only with disproportionate expense, the area of contribution zu comprises the entire catchment area of the groundwater well.114 area of contribution zo the area of contribution zo comprises the catchment area from which the major part of the pollution of the surface waters originates.12 groundwater protection zones 121 general 1 groundwater protection zones consist of zones s1 and s2 and:a.in the case of unconsolidated sediment and weakly heterogeneous karst and fissured-rock aquifers: zone s3;b.in the case of strongly heterogeneous karst and fissured-rock aquifers: zones sh and sm; zone sm must not be designated in the case of karst and fissured rock groundwater if designation as an area of contribution zu can ensure equivalent protection.2 in the case of extraction wells, the dimensioning of groundwater protection zones is determined by the maximum quantity that could be extracted.122 zone s1 1 zone s1 is intended to prevent damage to and pollution of groundwater wells and recharge installations as well as their immediate surroundings.2 in the case of strongly heterogeneous karst and fissured-rock aquifers, it should also prevent the pollution of the immediate environment of geological structures where concentrated surface water enters the subsoil (sinkholes) and where there is a risk to sources of drinking water.3 it comprises the groundwater well or recharge installation and the immediate surroundings of the installations. in the case of karst or fissured rock groundwater, it also comprises the immediate environment of sinkholes where there is a risk to sources of drinking water.123 zone s2 1 zone s2 is intended to prevent:a.the groundwater being polluted by excavations and underground works near to groundwater wells or recharge installations; and b.the groundwater well inflow being obstructed by underground installations.2 in the case of unconsolidated sediment and weakly heterogeneous karst and fissured-rock aquifers, it should also prevent pathogens and substances that may pollute water from entering the groundwater well in such quantities that there is a risk to sources of drinking water.3 they shall be separated around groundwater wells or recharge installations and shall be dimensioned in such a way that:a.the distance from zone s1 to the outer border of zone s2 shall amount to at least 100 m in the upstream direction; it may be less if hydrogeological investigations prove that the groundwater well or recharge installation are equally well protected by intact and relatively impermeable cover layers; andb.in the case of unconsolidated sediment and weakly heterogeneous karst and fissured-rock aquifers the flow duration of the groundwater from the outer border of zone s2 to the groundwater well or the recharge installation will be at least ten days.124 zone s3 1 zone s3 is intended to guarantee that in the case of imminent dangers (e.g. accidents with substances which may pollute water) enough space and time is available for the necessary measures.2 the distance from the outer border of zone s2 to the outer border of zone s3 is as a rule at least as great as the distance from zone 1 to the outer border of zone s2.125 zones sh and sm 1 zones sh and sm are intended to prevent:a.groundwater from being polluted by the construction and operation of installations and output of substances; andb.the hydrodynamics of the groundwater being adversely affected by building activities.2 zone sh includes areas of high vulnerability in the catchment area of a groundwater well. 3 zone sm includes areas of at least moderate vulnerability in the catchment area of a groundwater well. 4 the vulnerability is determined on the basis of the properties of the covering (soil and protective layer) and of the karst or fissured rock system and the infiltration conditions.13 groundwater protection area groundwater protection areas are demarcated in such a way as to enable the locations of the groundwater wells and recharge installations to be determined appropriately and to demarcate the groundwater protection zones accordingly.2 measures for the protection of waters 21 protection of areas particularly at risk 211 water protection areas au and ao 1 in the water protection areas au and ao, no installations may be constructed that constitute a special risk to a body of water; in particular, the construction of storage tanks with more than 250 000 l usable volume and containing liquids that may pollute waters already in small quantities is not permitted. the authority may permit exceptions for good cause.2 in water protection area au,, no installations may be constructed which lie below the average groundwater level. the authorities may grant exemptions where the flow-through capacity of the groundwater is reduced by a maximum of 10 per cent when compared with its state when uninfluenced by the plant in question.3 for the excavation of gravel, sand and other material in water protection area au:a.a protective layer of material must be left that is at least 2 m above the highest maximum ten-year groundwater level; in the case of a recharge installation, the actual level of the water table applies if it is higher than the maximum ten-year high;b.the excavation area shall be limited in such a way that natural groundwater recharge is guaranteed;c.after excavation, the soil shall be restored so that it offers the same protection as in its original state.212 areas of contribution zu and zo if, due to soil use, waters are polluted in the areas of contribution zu and zo by runoff and leaching of substances such as plant protection products or fertilisers, the cantons shall specify the measures required for waters protection. for example: a.restrictions of use for plant protection products and fertilisers specified by the cantons in accordance with annexes 2.5 number 1.1 paragraph 4 and 2.6 number 3.3.1 paragraph 3 orrchem120;b.limiting the areas for production of large crops and vegetables;c.limiting crop selection and rotation as well as farming techniques;d.refraining from ploughing grasslands in autumn;e.refraining from converting pasture into arable land;f.maintaining permanent plant cover on the soil in all circumstances;g.only using mechanical aids, techniques, equipment and cultural methods that are particularly adapted.120 sr 814.8122 groundwater protection zones 221 zone s3 1 in zone s3, the following are not permitted:a.industrial and commercial plants that place groundwater at risk;b.constructions that decrease the storage volume or the flow capacity of the aquifer; the authority may permit exceptions for good cause if a risk to drinking water sources can be excluded;c.infiltration of waste water, except for infiltration of non-polluted waste water from roof tops (art. 3 para. 3 letter a) through a biologically active soil;d.substantial reductions in the protective covering (soil and protective layer);e.pipelines which are subject to the pipelines act of 4 october 1963121; gas pipelines are exempt;f.circuits that remove heat from or add heat to the subsoil;g.underground storage tanks and pipes containing liquids which may pollute water;h.storage tanks containing liquids which may pollute water with more than 450 l of usable volume in each protective structure; exempted therefrom are free-standing storage tanks with heating oil or diesel that supply energy to buildings or facilities for no more than two years; the total usable volume may amount to a maximum of 30 m3 for each protective structure;i.operating plants containing liquids which may pollute water with more than 2000 l of usable volume; exempted therefrom are plants that are permitted in zone s3 under article 7 paragraph 2 of the low current installations ordinance of 30 march 1994122 or article 7 paragraph 2 of the heavy current installations ordinance of 30 march 1994123.2 the application of plant protection substances, wood protection substances, as well as fertilisers and similar products, is governed by annexes 2.4 numbers 1, 2.5 and 2.6 orrchem.121 sr 746.1122 sr 734.1123 sr 734.2221bis zone sm 1 the following are not permitted in zone sm:a.industrial and commercial plants that place groundwater at risk;b.building activities that have detrimental effects on the hydrodynamics of the groundwater;c.infiltration of waste water, with the exception of the infiltration of non-polluted waste water (art. 3 para. 3) through a biologically active layer of soil and of polluted communal waste water from small treatment plants in compliance with the requirements of article 8 paragraph 2, if the cost of discharging the communal waste water from the protection zone would disproportionate and a risk to drinking water sources can be excluded;d.substantial reductions in the protective covering (soil and protective layer);e.pipelines subject to the pipelines act of 4 october 1963124; exempted therefrom are gas pipelines;f.circuits that remove heat from or add heat to the subsoil;g.underground storage tanks and pipes containing liquids which may pollute water;h.storage tanks containing liquids which may pollute water with more than 450 l of usable volume in each protective structure; exempted therefrom are free-standing storage tanks with heating oil or diesel that supply energy to buildings or facilities for no more than two years; the total usable volume may amount to a maximum of 30 m3 for each protective structure;i.operating plants containing liquids which may pollute water with more than 2000 l of usable volume; exempted therefrom are plants that are permitted in zone s3 under article 7 paragraph 2 of the low current installations ordinance of 30 march 1994125 or article 7 paragraph 2 of the heavy current installations ordinance of 30 march 1994126.2 the application of plant protection substances, wood protection substances, as well as fertilisers and similar products, is governed by annexes 2.4 numbers 1, 2.5 and 2.6 orrchem.124 sr 746.1125 sr 734.1126 sr 734.2221ter zone sh 1 in zone sh, the requirements of number 221bis apply; in addition, the following are not permitted:a.plants and activities that place groundwater at risk;b.the infiltration of waste water, with the exception of the infiltration of non-polluted waste water (art. 3 para. 3) through a biologically active layer of soil.2 for the application of wood protection substances, plant protection substances and fertilisers, annexes 2.4 numbers 1, 2.5 and 2.6 orrchem apply.222 zone s2 1 in zone s2, requirements in accordance with no 221 apply; in addition subject to paragraphs 2 and 3, the following are not permitted:a.the construction of installations; the authorities may permit exceptions for good cause, provided there is no risk to the exploitation of drinking water;b.excavations that cause detrimental change to the protective covering (soil and protective layer);c.infiltration of waste water;d.other activities that place groundwater at risk.2 for the application of wood protection substances, plant protection substances and fertilisers, annexes 2.4 numbers 1, 2.5 and 2.6 orrchem apply.223 zone s1 in zone s1, the only construction work and other activities permitted are those connected with the supply of drinking water, except for the cutting of grass which is then left on site.23 groundwater protection areas 1 construction work and other activities carried on in groundwater protection areas must comply with requirements set out in no 222 paragraph 1.2 if the position and the extent of the future outer protection zone (zone s3) are known, the corresponding areas must comply with the requirements set out in no 221 paragraph 1.annex 4a127 127 inserted by no ii para. 2 of the o of 4 may 2011, in force since 1 june 2011 (as 2011 1955).(art. 41f and 42b)planning remediation measures for hydropeaking and bed load budget 1 definition there are special conditions in particular if:a.two or more installations cause serious harm in the same catchment area; andb.the degree of harm caused by each individual installation cannot yet be assessed.2 planning stages for the remediation of hydropeaking 1 the cantons shall submit an interim report to the foen by 30 june 2013. the report shall contain:a.for each catchment area, a list of the existing hydropower plants that may cause flow fluctuations (pumped-storage power plants and run-of-river power plants);b.information as to which hydropower plants on which stretches of water are seriously harming the indigenous flora and fauna and their habitats due to hydropeaking;c.an assessment of the ecological potential of the seriously harmed stretches of water and of the degree of harm;d.for each hydropower plant that is seriously harming indigenous flora and fauna and their habitats due to hydropeaking: possible remediation measures, their assessment and a list of the measures to be taken and information on the coordination of these measures in the catchment area;e.for hydropower plants for which no decision can yet be made on the remediation measures to be taken under letter d due to special circumstances: a deadline by which the information under letter d must be submitted to the foen.2 they must submit the agreed plan to the foen by 31 december 2014. it shall contain:a.a list of the hydropower plants whose responsible person must take measures to remediate serious harm to the indigenous flora and fauna and their habitats due to hydropeaking, with information on the remediation measures to be taken and the deadlines by which these must be planned and implemented. the deadlines are governed by the urgency of the need for remediation;b.information on how the remediation measures in the catchment area of the body of water concerned will be coordinated with other measures to protect natural habitats and against flooding;c.for hydropower plants for which no decision can yet be made on the remediation measures due to special circumstances: a deadline by which the canton shall specify whether and if applicable which remediation measures must be planned and implemented and by when.3 planning stages in the case of the remediation of the bed load budget 1 the cantons shall submit and interim report to the foen by 31 december 2013. it shall contain:a.a list of stretches of water where the indigenous flora and fauna and their habitats, the groundwater regimen or flood protection are seriously harmed by a change in the bed load budget;b.an assessment of the ecological potential of the seriously harmed stretches of water and of the degree of the harm;c.a list of all hydropower plants on the seriously harmed stretches of water as well as other installations causing serious harm to the stretches of water under letter a;d.a list of the installations whose responsible person must probably take remediation measures, with information on the feasibility of the remediation measures and on the coordination of these measures in the catchment area.2 they shall submit the agreed plan to the foen by 31 december 2014. it shall contain:a.a list of the installations whose responsible person must take measures to remediate serious harm to the indigenous flora and fauna and their habitats, the groundwater regimen or flood protection due to a change in the bed load budget and the deadlines by which the measures must be planned and be implemented. the deadlines are governed by the urgency of the need for remediation;b.information on how other measures to protect natural habitats and against flooding shall be taken into account in the remediation of the bed load budget;c.for installations for which no decision can yet be made on the remediation measures due to special circumstances: a deadline by which the canton shall specify whether and if applicable by when remediation measures must be planned and implemented.annex 5 (art. 62)repeal and amendment of previous law 1. the following are repealed: a.general water protection ordinance of 19 june 1972128;b.ordinance of 8 december 1975129 on waste water discharge;c.ordinance of 22 october 1981130 on zone surveys for protection of bodies of water;d.regulations of 9 august 1972131 of the federal water protection commission.128 [as 1972 967, 1980 48, 1986 1254 no ii 2, 1991 370 annex no 6, 1993 3022 no i, ii]129 [as 1975 2403, 1989 2048, 1993 3022 no iv 5]130 [as 1981 1738]131 [as 1972 1708]2.-5. .132132 the amendments may be consulted under as 1998 2863.

814.41english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.noise abatement ordinance(nao)of 15 december 1986 (status as of 1 july 2021)the swiss federal council,on the basis of articles 5, 12 paragraph 2, 13 paragraph 1, 16 paragraph 2, 19, 21 paragraph 2, 23, 39 paragraph 1, 40 and 45 of the federal act of 7 october 19831 on the protection of the environment (the act),ordains:1 sr 814.01chapter 1 general provisions art. 1 aim and scope 1 this ordinance is intended to protect against harmful and disturbing noise.2 it regulates:a. the limitation of exterior noise emissions caused by the operation of new and existing installations in accordance with article 7 of the act;b. the designation and development of building zones in areas exposed to noise;c. the issuing of planning permission for buildings with rooms sensitive to noise and lying in areas exposed to noise;d. the soundproofing against exterior and interior noise of new buildings with rooms sensitive to noise;e. the soundproofing against exterior noise of existing buildings with rooms sensitive to noise;f. the determination of the exposure to exterior noise and its rating based on exposure limit values.3 it does not regulate:a. protection against noise originating from an industrial site as long as this only affects industrial buildings and dwellings within the site;b. protection against infra- and ultrasound.4.22 repealed by no i of the o of 12 april 2000, with effect from 1 may 2000 (as 2000 1388).art. 2 definitions 1 stationary installations are buildings, transport facilities, building facilities and other immobile equipment that generate exterior noise during operation. these include in particular roads, railway installations, aerodromes, industrial, commercial and agricultural installations, firing ranges and permanent military firing ranges and training grounds.2 new stationary installations also include stationary installations and buildings whose use has been completely altered.3 emission limitation measures are technical, structural or functional modifications to installations, or measures to redirect, restrict or calm the flow of traffic, or structural measures along the emission path. the purpose of the measures is to prevent or reduce the generation or propagation of exterior noise.4 improvements are emission limitation measures for existing stationary installations.5 exposure limit values include impact thresholds, planning values and alarm values. these are set according to the noise characteristics, the time of day and the sensitivity to noise of the buildings and areas to be protected.6 rooms sensitive to noise are:a. rooms in dwellings with the exception of kitchens without dining facilities, washrooms and storerooms;b. rooms in industrial buildings that are regularly occupied by persons for sustained periods of time, with the exception of those for farm animals and those with high levels of industrial noise.chapter 2 vehicles, mobile appliances and machines section 1 emission limitation measures from vehicles art. 3 1 noise emitted from motorised vehicles, aircraft, water craft and railways must be reduced as far as possible by technical and operational means, and to the extent that this is economically acceptable.2 emission limitation measures are governed by the legislation on road traffic, civil aviation, inland navigation or the railways, provided the vehicle concerned is covered by one of these categories of legislation. 3 emission limitation measures for other vehicles is governed by the provisions on mobile appliances and machines.section 2 emission limitation measures for mobile appliances and machines art. 4 principles 1 the emissions of exterior noise from mobile appliances and machines must be reduced to the extent that:a. this is technically and operationally feasible and economically acceptable; and thatb. the well-being of the affected population is not seriously impaired.2 the enforcement authorities shall order operational and structural measures, or those for proper maintenance.3 where it is not possible to avoid exposure to highly disturbing noise due to the operation of military equipment, machines and weapons, the enforcement authorities shall relax the requirements.4 the emissions of appliances and machines that are used to operate a stationary installation are limited according to the provisions on stationary installations.art. 53 conformity assessment and marking of equipment and machines 1 equipment and machines may be placed on the market only following a conformity assessment and the appropriate marking.2 the federal department of the environment, transport, energy and communications (detec) shall specify:4a. the types of equipment and machines subject to the conformity assessment and marking;b. the requirements for preventive emission limitation measures and marking, taking into account internationally recognised standards;c. the documents to be submitted for the purpose of the conformity assessment;d. the test, measurement and calculation procedures;e. the subsequent controls;f. the recognition of foreign test results and labelling.3 amended by no i of the o of 23 aug. 2006, in force since 1 nov. 2006 (as 2006 3693).4 amended by no i of the o of 30 june 2010, in force since 1 aug. 2010 (as 2010 3223).art. 6 regulations on noise from building sites the federal office for the environment5 shall issue regulations covering structural and operational measures to control noise from building sites.5 the name of the administrative unit has been changed in application of art. 16 para. 3 of the publication ordinance of 17 nov. 2004 (as 2004 4937). this change has been made throughout the text.chapter 3 new and modified stationary installations art. 7 emission limitation measures for new stationary installations 1 noise emissions from new stationary installations shall be limited as directed by the enforcement authorities insofar as:a. this is technically and operationally feasible and economically acceptable; andb. the noise exposure level resulting from the installation alone does not exceed the planning values.2 the enforcement authorities shall relax the requirements in cases where compliance with the planning values would place a disproportionate burden on the installation and there is an overriding public interest, particularly regarding questions of spatial planning. the impact thresholds must not, however, be exceeded.66 amended by no i of the o of 16 june 1997, in force since 1 aug. 1997 (as 1997 1588).art. 8 emission limitation measures for modified stationary installations 1 where a stationary installation that already exists when this ordinance comes into force is modified, the noise emissions from the new or modified parts of the installation must be limited as directed by the enforcement authorities as far as this is technically and operationally feasible and economically acceptable.72 if the installation is significantly modified, the noise emissions from the installation as a whole must be limited at least to the extent that the impact thresholds are not exceeded.3 conversions, extensions and operational changes carried out by the person responsible for the installation constitute significant modifications to stationary installations if it is anticipated that the noise exposure level will rise perceptibly as a result either of the installation itself or of the increased demand on existing transport facilities. the rebuilding of an installation constitutes a significant modification irrespective of the circumstances.4 if a new stationary installation is modified, article 7 applies.87 amended by no i of the o of 30 june 2010, in force since 1 aug. 2010 (as 2010 3223).8 amended by no i of the o of 16 june 1997, in force since 1 aug. 1997 (as 1997 1588).art. 9 increased demand on transport facilities the operation of new or significantly modified stationary installations must not lead to a situation in which:a. owing to the increased demand made on a transport facility, the impact thresholds are exceeded; orb. owing to the increased demand made on a transport facility in need of remediation, the noise exposure level rises perceptibly.art. 10 soundproofing measures in existing buildings 1 if the requirements specified in articles 7 paragraph 2 and 8 paragraph 2 or in article 9 are not fulfilled by new or significantly modified public or licensed stationary installations, the enforcement authorities shall require the owners of existing buildings exposed to noise to soundproof the windows of rooms sensitive to noise in accordance with annex 1.2 with the approval of the enforcement authorities, building owners may carry out other structural soundproofing measures provided these reduce the noise within the rooms to the same extent.3 soundproofing measures need not be taken if:a. no perceptible reduction of the noise level in the building is to be expected;b. they conflict with the overriding interest of preserving local character or monuments;c. the building is due to be demolished within three years of putting the new or modified installation into service, or the rooms concerned will be converted to purposes not sensitive to noise within this period.art. 11 costs 1 the person responsible for the new or significantly modified installation bears the costs of limiting the emission it causes.2 if the building owner is required to take soundproofing measures according to article 10 paragraph 1, the person responsible for the installation also bears the customary local costs proven to be due for: a. engineering and supervision of works;b. soundproofing of the windows in accordance with annex 1 and the resulting necessary adaptations;c. the financing if the person responsible has failed to contribute despite being requested to do so by the building owner;d. any fees due.3 if the building owner is required to take soundproofing measures according to article 10 paragraph 2, the person responsible for the installation bears the customary local costs proven to be due insofar as these do not exceed those under paragraph 2. the building owner bears the remaining costs.4 where the need for emission limitation measures or soundproofing measures arises as a result of noise from several installations, the costs are divided among the installations in proportion to their contribution to the noise exposure level.5 the building owner bears the costs for maintenance and renewal of the soundproofing measures.art. 12 inspection the enforcement authorities shall inspect the new or modified installation within one year of its being put into service to check whether the emission limitation and soundproofing measures ordered have been taken. in the event of any doubt, they carry out tests to assess the effectiveness of the measures.chapter 4 existing stationary installations section 1 improvements and soundproofing measures art. 13 improvements 1 in the case of stationary installations that contribute significantly to the impact thresholds being exceeded, the enforcement authorities shall order the necessary improvement measures, after hearing the persons responsible for the installations.2 the installations shall be improved to the extent that:a. is technically and operationally feasible and economically acceptable; andb. the impact thresholds are no longer exceeded.3 unless there are overriding interests, the enforcement authorities give priority to measures which prevent or reduce noise generation in preference to those which simply prevent or reduce noise propagation.4 improvements need not be carried out if:a. the impact thresholds are exceeded only in building zones that have not yet been developed;b. due to the cantonal building and planning legislation, planning, design or structural measures taken at the site exposed to the noise will satisfy the impact thresholds before the time limit specified in article 17.art. 14 relaxation of the requirements for improvements 1 the enforcement authorities shall relax the requirements in cases where:a. improvements would result in unreasonable operational limitations or costs;b. overriding interests, namely those of the preservation of local character, nature and landscape protection, traffic and operational safety, or national security, conflict with the improvement objective.2 unlicensed private installations must not, however, exceed the alarm values.art. 15 soundproofing measures for existing buildings 1 if, as a result of relaxing the requirements, the alarm values for public or licensed stationary installations cannot be complied with, the enforcement authorities shall require the owners of existing buildings exposed to noise to soundproof the windows of rooms sensitive to noise in accordance with annex 1.2 with the approval of the enforcement authorities, building owners may take other soundproofing measures in the building provided these reduce the noise within the rooms to the same extent.3 soundproofing measures need not be taken if:a. no perceptible reduction of noise in the building is to be expected;b. they conflict with the overriding interest of preserving local character or monuments;c. the building is due to be demolished within three years of the soundproofing measures being ordered, or the rooms will be converted to purposes not sensitive to noise within this period.art. 16 costs 1 the person responsible for the installation bears the costs of its improvement.2 the person responsible for a public or licensed installation also bears the costs of soundproofing measures for existing buildings under article 11, unless an exemption has been granted under article 20 paragraph 2 of the act.3 where improvements or soundproofing measures are required as a result of noise from several installations, the costs are divided among the installations in proportion to their contribution to the noise exposure level.4 the building owner bears the costs of maintenance and renewal of the soundproofing measures.art. 17 time limits 1 the enforcement authorities set the time limits for implementing improvements and soundproofing measures according to their urgency. 2 in assessing urgency, the following factors are decisive:a. the extent to which the impact thresholds are exceeded;b. the number of persons affected by the noise;c. the cost-benefit relationship.3 the improvements and soundproofing measures must be completed within 15 years of this ordinance coming into force.4 the time limit (para. 3) for improvements and soundproofing measures on roads are extended:for national roads until 31 march 2015;for trunk roads according to article 12 of the federal act of 22 march 19859 on the application of the earmarked mineral oil tax (minoa), and for other roads until 31 march 201810.5 the time limits specified in the federal act of 24 march 200011 on railways noise abatement apply to the completion of improvements and soundproofing measures on railway installations.126 the improvements and soundproofing measures must be completed: at military aerodromes by 31 july 2020; at civil aerodromes that are used by heavy aircraft by 31 may 2016;at civil shooting ranges that require compulsory improvements as a result of the amendment of 23 august 200613 of annex 7: by 1 november 2016;at military firing ranges and training grounds: by 31 july 2025.149 sr 725.116.210 inserted by no i of the o of 1 sept. 2004, in force since 1 oct. 2004 (as 2004 4167).11 sr 742.14412 inserted by no i of the o of 1 sept. 2004, in force since 1 oct. 2004 (as 2004 4167).13 as 2006 369314 inserted by no i of the o of 23 aug. 2006 (as 2006 3693). amended by no i of the o of 30 june 2010, in force since 1 aug. 2010 (as 2010 3223).art. 18 inspection within one year of completion, the enforcement authorities shall inspect the improvements and soundproofing measures to check compliance with the measures ordered. in case of doubt, they carry out tests to assess the effectiveness of the measures.art. 1915 15 repealed by no i of the o of 1 sept. 2004, with effect from 1 oct. 2004 (as 2004 4167).art. 2016 periodical surveys 1 the federal office for the environment shall enquire regularly of the enforcement authorities as to the status of the improvements and the noise protection measures, in particular concerning roads, railway installations, aerodromes, shooting ranges and military shooting ranges and training areas.2 for roads, the enforcement authorities must provide the following documents in particular by 31 march each year:a summary of:1. the roads or sections of road requiring improvements,2. the time frame within which these roads and sections of road will be improved,3. the total costs of these improvements and noise protection measures, and 4. the number of persons exposed to noise levels above the impact thresholds and alarm values;b. a report on:1. the improvements made to roads and sections of road, and the soundproofing measures implemented in the previous year, and2. the effectiveness and the costs of these improvements and noise protection measures.3 for national roads, it shall obtain the information under paragraph 2 from the federal roads office. for trunk roads and other roads it shall obtain this information from the cantons. the information must be submitted in accordance with the requirements of the federal office for the environment.4 the federal office for the environment shall assess the information in particular in relation to the progress made with improvements and the costs and effectiveness of the measures. it shall inform the enforcement authorities of the results and publishes them.16 amended by no i 14 of the o of 7 nov. 2007 on the new system of fiscal equalisation and division of tasks between the confederation and the cantons, in force since 1 jan. 2008 (as 2007 5823).section 217 federal subsidies for improvements and soundproofing measures on existing trunk roads and other roads 17 amended by no i 14 of the o of 7 nov. 2007 on the new system of fiscal equalisation and division of tasks between the confederation and the cantons, in force since 1 jan. 2008 (as 2007 5823).art. 21 eligibility for subsidies 1 the confederation shall grant subsidies for improvements and soundproofing measures on existing infrastructure for:18trunk roads according to article 12 minoa19;other roads.2 the subsidies granted under paragraph 1 letter a form part of the global payments according to article 13 minoa. the payments under paragraph 1 letter b are granted globally for the road sections defined with the cantons in programme agreements.3 .2018 amended by no i of the o of 21 feb. 2018, in force since 1 april 2018 (as 2018 965).19 sr 725.116.220 inserted by no i of the o of 21 feb. 2018 (as 2018 965). repealed by no i of the o of 12 may 2021, with effect from 1 july 2021 (as 2021 293).art. 22 application 1 the canton submits the application for subsidies for improvements and soundproofing measures for roads according to article 21 paragraph 1 letter b to the federal office for the environment. 2 the application must in particular contain information on:the roads or road sections to be improved during the period covered by the programme agreement;the improvements and soundproofing measures planned and their cost;the efficiency of the measures.art. 23 programme agreement 1 the federal office for the environment concludes the programme agreement with the cantonal authorities responsible.2 the programme agreement covers in particular:a. the roads or road sections to be improved;b. the amount paid by the confederation;c. the control procedures.3 the programme agreement applies for four years; in justified cases a longer or shorter period may be agreed.214 the federal office for the environment issues directives on the procedure followed for programme agreements and on the information and documentation relating to the subjects of the programme agreement.21 amended by no i of the o of 21 feb. 2018, in force since 1 april 2018 (as 2018 965).art. 24 determination of the subsidy 1 the amount of the subsidy for improvements is determined by:a. the number of people who are protected by these measures; and b. the reduction in noise pollution.2 for soundproofing measures on existing buildings, chf 400 is allocated per soundproof window or other equally effective structural noise protection measure.3 the amount of the subsidy is negotiated between the confederation and the canton.art. 24a and 24b repealedart. 25 payment global subsidies are paid out in instalments.art. 26 reports and controls 1 the canton shall report annually to the competent federal office on the use of the subsidies.2 the federal office for the environment shall verify by random sample:implementation of individual measures in accordance with the programme goals;use of the payments made.art. 27 inadequate fulfilment and misuse of subsidies 1 the federal office for the environment shall withhold all or part of the instalment payments during the programme if the canton:fails to fulfil its reporting duty (art. 26 para. 1);fails to meet its obligations to a substantial extent through its own fault.2 if on conclusion of the programme it emerges that the canton has failed to meet its obligations, the competent federal office shall require the canton to rectify the situation; it shall set the canton an appropriate deadline for doing so.3 if installations for which subsidies have been made are used for a purpose other than that intended, the federal office for the environment may require the canton to cease or make good the misuse within a reasonable period.4 if the defects are not rectified or the misuse does not stop or is not remedied, the subsidies may be reclaimed in accordance with articles 28 and 29 of the subsidies act of 5 october 199022.22 sr 616.1art. 28 repealedchapter 5 requirements for building zones and planning permission in areas exposed to noise art. 29 designation of new building zones and new zones with higher noise abatement requirements 1 new building zones for buildings with rooms sensitive to noise and new no-build zones with higher noise abatement requirements shall be designated only in areas in which noise exposure does not exceed the planning values or in which these values can be complied with by planning, design or structural measures.2.23 23 repealed by no i of the o of 16 june 1997, with effect from 1 aug. 1997 (as 1997 1588).art. 3024 development of building zones building zones for buildings with rooms sensitive to noise that have not yet been developed when the act comes into force may only be developed to the extent that the planning values are complied with or can be complied with by a change in the type of use, or by planning, design or structural measures. the enforcement authorities may grant exceptions for small sections of building zones.24 amended by no i of the o of 30 june 2010, in force since 1 aug. 2010 (as 2010 3223).art. 31 planning permission in areas subject to noise 1 if the impact thresholds are exceeded, new buildings and significant modifications to buildings with rooms sensitive to noise may only be authorised if the values can be complied with:by locating the rooms sensitive to noise on the side of the building away from the source of the noise; orby structural or design measures which shield the building against noise.252 if the impact thresholds cannot be complied with by measures under paragraph 1, planning permission may be granted only if there is an overriding interest in constructing the building and the cantonal authorities agree.3 the landowners bear the costs of the measures.25 amended by no i of the o of 16 june 1997, in force since 1 aug. 1997 (as 1997 1588). art. 31a26 special provisions for airports used by large aircraft 1 in the case of airports that are used by large aircraft, the planning values and impact thresholds under annex 5 number 222 are complied with at night if:a. no flight operations are planned between 24 and 06 hours; b. rooms sensitive to noise are protected against exterior and interior noise as a minimum in accordance with the increased requirements for soundproofing under sia standard 181 of 1 june 200627 of the swiss society of engineers and architects; andc. the bedrooms:1. have a window that closes automatically between 22 and 24 hours and can be opened automatically at other times, and2. are designed to guarantee an appropriate indoor climate.2 when designating or developing building zones, the competent authority shall ensure that the requirements set out in paragraph 1 letters b and c are made binding on property owners.3 the federal office for the environment may issue recommendations on the enforcement of paragraph 1 letter c. in doing so, it shall take account of the relevant technical standards.26 inserted by no i of the o of 28 nov. 2014, in force since 2 feb. 2015 (as 2014 4501).27 the said standard may be inspected free of charge at the swiss society of engineers and architects (sia), selnaustrasse 16, 8027 zurich, or obtained for a free from www.sia.ch.chapter 6 soundproofing of new buildings art. 32 requirements 1 the project owner of a new building shall ensure that the soundproofing of the external building elements and partitions of rooms sensitive to noise, and of the stairs and building facilities complies with recognised codes of building practice. these are in particular, for noise from civil aerodromes that are used by heavy aircraft, the stricter requirements, and for noise from other stationary installations, the minimum requirements, of sia standard no 181 of the swiss society of engineers and architects.282 if the impact thresholds are exceeded but the requirements of article 31 paragraph 2 for granting planning permission are fulfilled, the enforcement authorities shall impose stricter requirements for the soundproofing of the external building elements appropriately.3 the requirements also apply to the external building elements, partitions, stairways and building facilities that are converted, replaced or newly installed. on request, the enforcement authorities grant relief if compliance with the requirements would involve unreasonable cost.28 sentence amended by no i of the o of 12 april 2000, in force since 1 may 2000 (as 2000 1388).art. 33 external building elements, partitions and building facilities 1 external building elements form the external boundary of a room (e.g. windows, external doors, external walls, roofs).2 partitions (e.g. internal walls, ceilings, doors) serve to separate individual units, such as dwellings, within the building.3 building facilities are fixed installations such as heating, ventilation, supply and disposal systems, lifts and washing machines.art. 34 application for planning permission 1 the project owner must specify in the application:a. the exterior noise pollution in the event that the impact thresholds are exceeded;b. the use to which the rooms are put;c. the external building elements and partitions of rooms sensitive to noise.2 for building projects in areas in which the impact thresholds are exceeded, the enforcement authorities may demand details of the soundproofing of the external building elements.art. 35 inspections after building works are completed, the enforcement authorities shall make random checks to verify whether the soundproofing measures comply with the requirements. in the event of any doubt, they must carry out a more detailed inspection.chapter 7 investigation, assessment and control of exposure to exterior noise due to stationary installations29 29 amended by no i of the o of 1 sept. 2004, in force since 1 oct. 2004 (as 2004 4167). section 1 investigation art. 3630 obligation to investigate 1 the enforcement authorities shall investigate the exposure to exterior noise due to stationary installations, or order its investigation if they have grounds to believe that the relevant exposure limit values are being exceeded or that this is to be expected.2 they shall take account of increases and reductions in noise exposure levels that are to be expected due to:the construction, alteration or improvement of stationary installations, in particular if the projects in question have already been approved or made available for public inspection at the time of the investigation; andthe construction, alteration or demolition of other structures if the projects have been made available for public inspection at the time of the investigation.3 .3130 amended by no i of the o of 1 sept. 2004, in force since 1 oct. 2004 (as 2004 4167).31 repealed by art. 15 of the o of 4 dec. 2015 on railway noise abatement measures, with effect from 1 jan. 2016 (as 2015 5691).art. 3732 noise pollution register 1 in the case of roads, railway installations, aerodromes and military firing ranges and training grounds, the enforcement authorities shall record in specific registers (noise pollution registers) the noise exposure levels measured in accordance with article 36.33 2 the noise pollution registers specify:the noise pollution measured;the calculation procedure used;the input data for the calculation;the classification of the areas exposed to noise in the land use plan;the sensitivity levels applicable;the installations and their owners;the number of persons who are affected by noise exposure levels above the applicable exposure limit values.3 the enforcement authorities are responsible for the supervision and revision of the registers.4 on request, they submit the noise pollution registers to the federal office for the environment. the office may issue recommendations on the standardised recording and presentation of the data.5 the federal office for civil aviation is responsible for measurement of noise exposure levels produced by basel mulhouse airport on swiss territory.6 any person may have access to the noise pollution register provided that confidentiality with respect to manufacturing and business secrets is ensured, and no conflict with other interests that override exists.32 amended by no i of the o of 1 sept. 2004, in force since 1 oct. 2004 (as 2004 4167).33 amended by no i of the o of 30 june 2010, in force since 1 aug. 2010 (as 2010 3223).art. 37a34 determination and control of noise exposure levels 1 the enforcement authorities state the permitted noise exposure level in their decision on the construction, alteration or improvement of an installation.2 if it is established or anticipated that the noise exposure levels due to an installation will deviate significantly and permanently from those quoted in the decision, the enforcement authorities shall take the necessary measures.3 the federal office for the environment may issue recommendations on the standardised recording and presentation of the noise exposure levels in these decisions.34 inserted by no i of the o of 12 april 2000 (as 2000 1388). amended by no i of the o of 1 sept. 2004, in force since 1 oct. 2004 (as 2004 4167).art. 38 method of determination 1 noise exposure levels are determined in the form of a rating sound level, lr, or a maximum sound level, lmax, on the basis of calculations or measurements.352 noise exposure levels due to aircraft shall principally be determined by calculation. the calculations are carried out using recognised state-of-the-art methods. the federal office for the environment shall recommend suitable calculation procedures.363 the requirements for calculation procedures and measuring instruments are given in annex 2.3735 amended by no i of the o of 1 sept. 2004, in force since 1 oct. 2004 (as 2004 4167 4313).36 inserted by no i of the o of 12 april 2000, in force since 1 may 2000 (as 2000 1388).37 originally para. 2.art. 39 point of determination 1 for buildings, noise exposure levels shall be determined at the centre of open windows in rooms sensitive to noise. noise exposure levels due to aircraft may also be determined in the vicinity of the building.382 in the non-developed sector of zones with higher noise abatement requirements, noise exposure levels shall be measured 1.5 m above the ground.3 in building zones that have not yet been developed, noise exposure levels shall be measured at points where the building and planning legislation allows the building of rooms sensitive to noise.38 the correction of 7 may 2019 concerns the french text only (as 2019 1337).section 2 rating art. 40 exposure limit values 1 the enforcement authorities shall rate the exposure to exterior noise due to stationary installations on the basis of the exposure limit values specified in annexes 3 ff.2 the exposure limit value, it is also considered exceeded if it is less than the sum of the levels of exposure to similar types of noise generated by several installations. this does not apply to the planning values for new stationary installations (art. 7 para. 1).3 in the absence of exposure limit values, the enforcement authorities shall rate the noise exposure levels in accordance with article 15 of the act. they shall also take account of articles 19 and 23 of the act.art. 41 validity of the exposure limit values 1 the exposure limit values apply to buildings with rooms sensitive to noise.2 they also apply:in yet undeveloped building zones in areas where the construction of buildings with rooms sensitive to noise is allowed under the building and planning legislation;in the non-developed areas of zones with higher noise abatement requirements.3 for areas and buildings in which, as a rule, people are present either only during the day or only at night, no exposure limit values apply at night or during the day.art. 42 special exposure limit values for rooms in industrial buildings 1 for rooms in industrial buildings (art. 2 para. 6 let. b) lying in areas of sensitivity levels i, ii or iii, the planning and impact thresholds shall be increased by 5 db(a).2 paragraph 1 does not apply to rooms in schools, institutions and homes. it applies to hotels and guesthouses only if these can be adequately ventilated when the windows are closed.art. 43 sensitivity levels 1 in land use zones according to articles 14 ff. of the spatial planning act of 22 june 197939, the following sensitivity levels apply:sensitivity level i in zones with higher noise abatement requirements, notably in leisure zones;sensitivity level ii in zones in which operations that emit noise are not permitted, notably in residential zones and zones for public buildings and installations;sensitivity level iii in zones in which operations emitting a certain level of noise are permitted, notably in residential and industrial zones (mixed zones) and agricultural zones;sensitivity level iv in zones in which operations emitting a high level of noise are permitted, notably in industrial zones.2 parts of land use zones rated as sensitivity levels i or ii may be assigned the next higher level if they are already exposed to noise.39 sr 700 art. 44 procedures 1 the cantons shall ensure that sensitivity levels are assigned to the land use zones in the building regulations or land use plans of the communes.2 the sensitivity levels are assigned at the time of designation or modification of the land use zones, or at the time of modification of the building regulations.403 prior to assignment, the cantons shall determine the sensitivity levels on a case by case basis in accordance with article 43.4 .4140 amended by no iv 31 of the o of 22 aug. 2007 on the formal revision of federal legislation, in force since 1 jan. 2008 (as 2007 4477).41 repealed by no 1 of the o of 27 june 1995, with effect from 1 aug. 1995 (as 1995 3694).chapter 8 final provisions section 1 enforcement art. 4542 responsibilities of the confederation and the cantons43 1 the cantons shall enforce this ordinance unless it delegates enforcement to the confederation.2 if the federal authorities apply other federal laws or international treaties or decisions that relate to the subject matter of this ordinance, they shall also enforce this ordinance. the cooperation of the federal office for the environment and the cantons is governed by article 41 paragraphs 2 and 4 of the act; statutory duties of secrecy are reserved.3 the following authorities are responsible for enforcing the provisions governing emission limitation measures (art. 4, 7-9 and 12), improvements (art. 13, 14, 16-18 and 20) and the determination and control of noise exposure levels (art. 36, 37, 37a and 40):for railway installations:detec, where the provisions relate to major railway projects under the annex to the railways act of 20 december 195744 and are implemented by means of a planning approval procedure,in other cases, the federal office of transport;for civil aerodromes:detec, where the provisions relate to buildings and installations under article 37 of the air navigation act of 21 december 194845 that are used for operation of an aerodrome and are implemented by means of a planning approval procedure,in other cases, the federal office of civil aviation;for national roads:detec, where the provisions are implemented by means of a planning approval procedure,in other cases the federal roads office;for national defence installations: the federal department of defence, civil protection and sport;for electrical installations:the swiss federal office of energy in cases where the federal inspectorate for heavy current installations (esti) has been unable to deal with objections from or resolve disputes with the federal authorities concerned, in accordance with article 16 paragraph 2 letter b of the electricity act of 24 june 190246,in other cases the esti;for cable railway installations according to article 2 of the cable railways act of 23 june 200647: the federal office of transport48.4 in cases where the responsibility for ordering emission limitation measures and improvements lies with the federal authorities, but that for noise protection lies with the cantonal authorities, the two authorities shall coordinate the necessary measures.5 for national roads, detec is also responsible for enforcing the provisions governing soundproofing measures (art. 10 and 15). it coordinates the enforcement of these provisions with the soundproofing measures that are arranged by the cantons.4942 amended by no ii 14 of the o of 2 feb. 2000 to the federal act on the coordination and simplification of decision-making procedures, in force since 1 march 2000 (as 2000 703).43 inserted by annex 2 no 9 of the o of 21 may 2008 on geoinformation, in force since 1 july 2008 (as 2008 2809).44 sr 742.10145 sr 748.046 sr 734.047 sr 743.0148 amended by no i of the o of 30 june 2010, in force since 1 aug. 2010 (as 2010 3223).49 inserted by no i of the o of 30 june 2010, in force since 1 aug. 2010 (as 2010 3223).art. 45a50 national noise pollution survey the federal office for the environment shall conduct a national survey of noise pollution. it shall publish a geo-referenced presentation of the noise pollution in particular for road, railway and aircraft noise and for noise from military firing ranges and training grounds. it shall updates this presentation at least every five years. 50 inserted by no i of the o of 30 june 2010, in force since 1 aug. 2010 (as 2010 3223).art. 4651 geoinformation the federal office for the environment shall provide specifications for the minimal geodata models and presentation models for official geodata under this ordinance, for which it is designated as the federal specialist authority in annex 1 to the geoinformation ordinance of 21 may 200852.51 amended by annex 2 no 9 of the o of 21 may 2008 on geoinformation, in force since 1 july 2008 (as 2008 2809).52 sr 510.620section 2 transitional provisions art. 4753 stationary installations and buildings 1 stationary installations are deemed to be new stationary installations if the decision authorising the start of building work has not yet taken full legal effect when this ordinance comes into force.2 for stationary installations that are to be modified, articles 8-12 apply only if the decision authorising the modification has not yet taken full legal effect when this ordinance comes into force.3 buildings are deemed to be new buildings if planning permission has not yet taken full legal effect when this ordinance comes into force. 4 for buildings that must be modified, articles 31 and 32 paragraph 3 apply only if planning permission has not yet taken full legal effect when this ordinance comes into force.53 amended by no i of the o of 23 aug. 2006, in force since 1 nov. 2006 (as 2006 3693).art. 4854 54 repealed by no i of the o of 30 june 2010, with effect from 1 aug. 2010 (as 2010 3223).art. 48a55 55 inserted by no i of the o of 1 sept. 2004 (as 2004 4167). repealed by no i of the o of 21 feb. 2018, with effect from 1 april 2018 (as 2018 965).art. 4956 56 repealed by no iv 31 of the o of 22 august 2007 on the formal revision of federal legislation, with effect from 1 jan. 2008 (as 2007 4477).section 3 commencement art. 50 this ordinance comes into force on 1 april 1987.annex 157 57 amended by no ii of the o of 23 aug. 2006, in force since 1 nov. 2006 (as 2006 3693)(art. 10 para. 1 and 15 para. 1)requirements for soundproofing of windows 1 the weighted sound reduction index for the building, including the spectrum-adjustment factor, r'w + (c or ctr), measured on site of the windows and related elements such as roller-shutter boxes and quiet ventilators must be at least equal to the following minimum values, depending on the relevant rating sound level lr:lr in db(a)r'w + (c or ctr) in dbdaynightup to 75up to 7032over 75over 70382 r'w is equal to at least 35 db and at most 41 db.3 for particularly large windows, the enforcement authorities shall impose appropriate requirements that are stricter than paragraphs 1 and 2.4 the weighted sound reduction index for buildings, r'w, and the spectrum-adjustment factor, c or ctr, are determined according to the recognised rules, in particular the iso 140 and iso 717 standards of the international standards organisation.5 the spectrum-adjustment factor ctr applies to predominantly low frequency noise, in particular from roads with a maximum speed of up to 80 km/h and from airfields. the spectrum-adjustment factor c applies to predominantly high frequency noise, in particular from roads with a maximum speed above 80 km/h and from railways.6 the enforcement authorities may order the installation of quiet ventilators in bedrooms.annex 258 58 amended by no ii para. 1 of the o of 23 aug. 2006 (as 2006 3693). revised in accordance with no ii para. 1 of the o of 30 june 2010, in force since 1 aug. 2010 (as 2010 3223).(art. 38 para. 3)requirements for the calculation procedures and measuring instruments 1 calculation procedures 1 the procedures used to calculate noise exposure levels must take account of:the emissions from the noise source of the installation;the distance between the exposure point and the noise source of the installation or the flight paths (attenuation due to propagation and dissipation);the influence of the ground on the propagation of the noise (ground effects);the influence of buildings and natural obstacles on the propagation of the noise (attenuation due to obstacles and reflection).2 the federal office for the environment (foen) recommends suitable state-of-the-art calculation procedures to the enforcement authorities.2 measuring instruments the requirements of the measuring instruments ordinance of 15 february 200659 and the corresponding implementing provisions of the federal justice and police department apply to the instruments used to measure noise exposure levels.59 sr 941.210annex 3 (art. 40 para. 1)exposure limit values for road traffic noise 1 scope the exposure limit values specified in number 2 apply to road traffic noise. this includes noise on roads from motor vehicles (motor vehicle noise) and railways (railway noise).2 exposure limit values sensitivity level (art. 43)planning valuelr in db(a)impact thresholdlr in db(a)alarm valuelr in db(a)daynightdaynightdaynighti504055456560ii554560507065iii605065557065iv6555706075703 determination of the rating sound level 31 principles 1 the rating sound level lr for road traffic noise is determined from the partial rating sound levels for motor vehicle noise (lr1) and railway noise (lr2) as follows:lr = 10 x log (100,1 x lr1 + 100,1 x lr2 )2 the partial rating sound level lr1 is the sum of the equivalent continuous aweighted sound level leq,m resulting from motor vehicles, and the level correction k1:lr1 = leq,m + k13 the partial rating sound level lr2 is the sum of the equivalent continuous aweighted sound level leq,b resulting from the railways, and the level correction k2:lr2 = leq,b + k24 the partial rating sound levels lr1 and lr2 are determined for average day and night traffic flows assuming a dry road surface.32 average day and night traffic 1 the average day and night traffic is defined as the annual average of the hourly traffic between 06 and 22 hours and between 22 and 06 hours.2 the hourly motor vehicle traffic during the day (nt) and at night (nn) are each divided into two partial traffic flows, nt1 and nt2, and nn1 and nn2, respectively.3 the partial traffic flows nt1 and nn1 for motor vehicle traffic include private cars, delivery vehicles, minibuses, motorcycles and trolley buses.4 the partial traffic flows nt2 and nn2 for motor vehicle traffic comprise lorries, articulated lorries, coaches, motorcycles and tractors.5 railway traffic comprises all scheduled and non-scheduled trains, including service journeys.33 determination of average day and night motor vehicle traffic 1 the average day and night traffic (nt, nn) and the partial traffic flows (nt1, nt2, nn1, nn2) are determined:from traffic surveys for existing roads;from forecasts of traffic volume for roads which are to be built or modified.2 where insufficient data is available from traffic surveys, or no detailed forecasts exist, the traffic flows nt, nn, nt1, nt2, nn1 and nn2 are calculated from the average daily traffic (adt; vehicles per 24 h) as follows:nt = 0.058 adt nn = 0.009 adtnt1 = 0.90 nt nn1 = 0.95 nnnt2 = 0.10 nt nn2 = 0.05 nn3 the adt is determined according to the recognised principles of traffic planning and traffic technology.34 determination of the average day and night traffic for railways the average day and night traffic for railways is determined:from the timetable and traffic data for existing railway installations;from traffic volume forecasts for railway installations which are to be built or modified.35 level corrections 1 the level correction k1 for motor vehicle noise is calculated as follows from the average day and night traffic:k1 = -5 for n < 31.6k1 = 10 log(n/100) for 31.6 n 100k1 = 0 for n > 100here, n stands for the hourly motor vehicle traffic nt or nn. 2 the k2 level correction for railway noise is equal to -5. for screeching railway noise that occurs frequently and is clearly audible, the k2 level correction is equal to 0.annex 4 (art. 40 para. 1)exposure limit values for railway noise 1 scope 1 the exposure limit values specified in number 2 apply to the noise from standard and narrow gauge railways.2 noise on roads arising from railways is considered equivalent to road traffic noise (annex 3 number 1).3 the noise from cable railways and railway workshops, energy installations and similar railway works, is considered equivalent to noise from industrial and commercial installations (annex 6 number 1).2 exposure limit values sensitivity level (art. 43)planning valuelr in db(a)impact thresholdlr in db(a)alarm valuelr in db(a)daynightdaynightdaynighti504055456560ii554560507065iii605065557065iv6555706075703 determination of the rating sound level 31 principles 1 the rating sound level lr for railway noise is determined from the partial rating sound levels for vehicle noise (lr1) and shunting noise (lr2) as follows:lr = 10 x log (100,1 x lr1 + 100,1 x lr2)2 the partial rating sound level lr1 is the sum of the equivalent continuous aweighted sound level leq,f resulting from vehicle operation, and the level correction k1:lr1 = leq,f + k13 the partial rating sound level lr2 is the sum of the equivalent continuous aweighted sound level leq,r resulting from shunting, and the level correction k2:lr2 = leq,r + k24 the partial rating sound levels lr1 and lr2 are determined for average day and night traffic flows.32 average day and night operations 1 average day and night operations are hauling and shunting operations from 06 to 22 hours and from 22 to 06 hours respectively, averaged over the year.2 vehicle operations comprise all scheduled and non-scheduled trains, including service journeys.3 shunting comprises all shunting movements and operations intended for the purpose of connecting and disconnecting trains.4 vehicle operations and shunting are determined:a. from the timetable and operating data for existing railway installations;b. from operational forecasts for railway installations which are to be built or modified.33 level corrections 1 the level correction k1 for transport noise is calculated as follows:k1 = -15 for n < 7.9k1 = 10 log (n/250) for 7.9 n 79k1 = 5 for n > 79here, n stands for the number of train journeys per day or night.2 the level correction k2 for shunting noise is based on the frequency and audibility of all pulsating, tonal and screeching types of noise, and is equal to:audibility of all types of noisefrequency of all types of noiseseldomoccasionalfrequentweak024clear246strong468annex 560 60 amended by no i of the o of 30 may 2001 (as 2001 1610). revised in accordance with no ii para. 1 of the o of 30 june 2010, in force since 1 aug. 2010 (as 2010 3223).(art. 40 para. 1)exposure limit values for noise from civil aerodromes 1 scope and definitions 1 the exposure limit values specified in number 2 apply to the noise from civil air transport at civil aerodromes.2 civil aerodromes means the national airports in basel, geneva and zurich, the other licensed aerodromes and the airfields.3 light aircraft means an aircraft having a maximum permissible take-off weight of 8618 kg or less.4 heavy aircraft means an aircraft having a maximum permissible take-off weight of over 8618 kg.5 the noise from repair workshops, maintenance works and similar operations at civil aerodromes is considered equivalent to the noise from industrial and commercial installations (annex 6 sec. 1).2 exposure limit values 21 exposure limit values for light aircraft traffic noise, expressed as lrk sensitivity level (art. 43)planning valueimpact thresholdalarm valuelrk in db(a)lrk in db(a)lrk in db(a)i505565ii556070iii606570iv65707522 exposure limit values for total traffic noise from light and heavy aircraft, expressed as lr for the total traffic noise from civil aerodromes used by heavy aircraft, the following exposure limit values apply in addition to the exposure limits expressed as lrk:221 daytime exposure limit values (06-22 hours), expressed as lrt sensitivity level(art. 43)planning valueimpact thresholdalarm valuelrt in db(a)lrt in db(a)lrt in db(a)i5355 60ii57 60 65iii606570iv657075222 night time exposure limit values for the first (22-23 hours), the second (23-24 hours) and the last night hour (05-06 hours), expressed as lrn sensitivity level(art. 43)planning valueimpact thresholdalarm valuelrn in db(a)lrn in db(a)lrn in db(a)i4345 55 ii47/50150/55160/651iii50 55 65iv55 60 701 the higher value applies for the first night hour (22-23 hours)23 exposure limit values expressed as max for civil aerodromes used exclusively by helicopters (heliports), the following exposure limit values, expressed as max, apply in addition to the exposure limits expressed as lrk:sensitivity level (art. 43)planning valueimpact thresholdalarm valuein db(a)in db(a)in db(a)i707585ii758090iii808590iv8590953 determination of the rating sound level lrk for light aircraft noise 31 principles 1 the rating sound level lrk for light aircraft noise is the sum of the equivalent continuous a-weighted sound level leqk and the level correction k:lrk = leqk + k2 the equivalent continuous sound level leqk is determined for the average number of hourly aircraft movements (number of movements n) for a day with average peak operations.3 aircraft movements are all landings and takeoffs of light aircraft. go-arounds count as two flight movements.32 number of aircraft movements n for existing civil aerodromes for existing civil aerodromes, the number of aircraft movements n is determined as follows:the six months with the greatest amount of traffic during the operating year are identified;for these six months, the average daily number of flight movements is determined separately for each of the seven days of the week. the average daily values for the two days of the week with the most traffic are designated as n1 and n2;n is determined by averaging n1 and n2 over the twelve daytime hours as follows:n = (n1 + n2)/2433 number of aircraft movements n for new civil aerodromes 1 for civil aerodromes which are to be built or modified, the number of flight movements n is determined from forecasts of traffic volume.2 if no detailed forecasts can be made, n is calculated from the forecasted annual number of aircraft movements n as follows:n = (n x 2,4)/(365 x 12)34 level corrections the level correction k is calculated from the annual number of aircraft movements n as follows:k = 0 for n < 15 000k = 10 x log (n/15 000) for n 15 0004 determination of the rating sound level lr for traffic at civil aerodromes used by heavy aircraft 41 principles 1 at civil aerodromes used by heavy aircraft, the rating sound level lr of total traffic is determined based on the relevant aircraft traffic, whereby separate calculations are made for daytime (06-22 hours), and for the first (22-23 hours), second (23-24 hours) and last (05-06 hours) night hours.2 at civil aerodromes used by heavy aircraft, the daytime rating sound level for total traffic lrt is calculated from the rating sound levels for light aircraft lrk and heavy aircraft lrg as follows:lrt = 10 x log (10 0,1 x lrk + 10 0,1 x lrg)3 for heavy aircraft noise, the daytime rating sound level is the sum of the equivalent continuous a-weighted sound level leqg arising from aircraft operations between 06 and 22 hours, averaged over one year:lrg = leqg 4 for heavy aircraft noise, the rating sound level lrn for the first, the second and the last night hour is the equivalent continuous a-weighted sound level leqn, each averaged over one hour, arising from aircraft operations during the periods 22-23, 23-24 hours and 05-06 hours, averaged over one year:lrn = leqn42 relevant aircraft traffic 1 the equivalent continuous sound levels leqg and leqn are determined from the operational data.2 for civil aerodromes that are to be built or modified, the relevant aircraft traffic is determined from forecasts of traffic volume.3 flights taking place after the second night hour (23-24 hours) and before the last night hour (05-06) are assigned to the second night hour (23-24 hours).5 determination of the average maximum noise level max for heliports 1 the average maximum noise level max for heliports is the energetic average of the maximum noise level of a representative number of passing flights or overflights.2 measurements of max are carried out with the instruments set on slow.annex 6 (art. 40 para. 1)exposure limit values for industrial and commercial noise 1 scope 1 the exposure limit values specified in number 2 apply to noise:from industrial, commercial and agricultural installations;from goods handling in industrial, commercial and agricultural installations and at railway stations, aerodromes, etc.;from traffic within the perimeter of industrial and commercial installations and farmyards;from multi-storey car parks and from larger off-road car parks;from heating, ventilation and air-conditioning installations.2 energy, waste processing and transport installations, aerial cableways and cable railways, ski lifts and racing tracks that are used regularly for sustained periods of time are considered equivalent to industrial and commercial installations.2 exposure limit values sensitivity level (art. 43)planning valuelr in db(a) impact thresholdlr in db(a)alarm valuelr in db(a)daynightdaynightdaynighti504055456560ii554560507065iii605065557065iv6555706075703 determination of the rating sound level 31 principles 1 the rating sound level lr for industrial, commercial and similar types of noise is determined from the partial rating sound levels lr,i for each noise phase as follows, whereby separate calculations are made for daytime (07 to 19 hours) and night-time (19 to 07 hours):2 the partial rating sound level lr,i is determined for the average daily duration of the noise phase i as follows:lr,i = leq,i + k1,i + k2,i + k3,i + 10 x log (ti/to)where:leq,i is the equivalent continuous a-weighted sound level during the noise phase i;k1,i is the level correction for the noise phase i;k2,i is the level correction for the noise phase i;k3,i is the level correction for the noise phase i;ti is the average daily duration of the noise phase i in minutes;to = 720 minutes.3 noise phases are time periods in which the exposure point is subject to uniform noise with respect to sound level, frequency and pulse content.32 average daily duration of noise phases 1 the average daily duration (ti) of the noise phase i is calculated from its annual duration (ti) and the annual number of working days (b) as follows:ti = ti/b2 for new or modified installations, the average daily duration of the noise phase i is determined from operational forecasts.33 level corrections 1 value of the level correction k1:a. for noise according to number 1 paragraph 1 letters a and b5b. for noise according to number 1 paragraph 1 letter c0c. for noise according to with number 1 paragraph 1 letter d0 by day5 at nightd. for noise according to number 1 paragraph 1 letter e5 by day10 at night.2 the level correction k2 takes account of the audibility of the tonality content of the noise at the point of exposure and is equal to:a. for non-audible tonality content 0b. for weakly audible tonality content 2c. for clearly audible tonality content 4d. for strongly audible tonality content 6.3 the level correction k3 takes account of the audibility of the pulse content of the noise at the point of exposure and is equal to:a. for non-audible pulse content 0b. for weakly audible pulse content 2c. for clearly audible pulse content 4d. for strongly audible pulse content 6.annex 761 61 amended by no i of the o of 23 aug. 2006 (as 2006 3693.). revised in accordance with no ii para. 1 of the o of 30 june 2010, in force since 1 aug. 2010 (as 2010 3223).(art. 40 para. 1)exposure limit values for noise from civil firing range installations 1 scope 1 the exposure limit values specified in number 2 apply to the noise from civil firing range installations at which only hand guns or small arms are used to fire at stationary or moving targets.2 the hand guns or small arms used at the firing range installations are allocated to the following weapons categories:assault rifles and portable firearms of comparable calibre;small arms with centre fire cartridges, in particular ordnance pistols;small arms with rim fire cartridges;portable firearms with rim fire cartridges;sporting guns with ball cartridges;shotguns;other firearms.3 firing range installations are public if they are used for shooting practice in accordance with articles 62 and 63 of the armed forces act of 3 february 199562.62 sr 510.102 exposure limit values sensitivity level(art. 43)planning valueimpact thresholdalarm valuelr in db(a)lr in db(a)lr in db(a)i505565ii556075iii606575iv657080for noise from public installations according to number 1 paragraph 363, at which, for weapons in categories a or b, the level correction ki < -15, no alarm values apply. for such installations, no soundproofing measures under article 15 are required. the level correction ki is calculated as specified in number 321.63 the reference was amended on 1 aug. 2010 pursuant to art. 12 para. 2 of the publications act of 18 june 2004 (sr 170.512).3 determination of rating sound level 31 principles 1 the rating sound level lr for the noise from firing range installations is the energetic sum of the partial rating sound level lri for the weapons categories:2 the partial rating sound level lri is the sum of the average single shot sound level li of a weapons category and the level correction ki:lri = li + ki3 the average single shot sound level li is the energetic average weighted according to the number of shots of the energetically averaged single shot sound level lj of a type of weapon or type of ammunition:4 the energetically averaged single shot sound level lj must be determined using the measurements of the a-weighted maximum sound level with the fast time constants.where:mj is the number of shots fired annually using a single type of weapon or a single type of ammunition of a weapons category, averaged over three years;mi is the number of shots fired annually using weapons of a single category, averaged over three years.32 level correction 321 calculation 1 the level correction ki is calculated as follows:ki = 10 x log (dwi + 3 x dsi) + 3 x log mi - 44where:dwi is the number of annual firing half-days falling on a weekday, averaged over three years, for each weapons category;dsi is the number of annual firing half-days falling on a sunday or a general public holiday, averaged over three years, for each weapons category.2 when determining the number of firing half-days and the number of shots, all exercises that take place regularly over a period of three years must be taken into account.322 determination of the number of firing half-days 1 any firing exercise taking place in the morning or in the afternoon and lasting more than two hours counts as a firing half-day. exercises lasting two hours or less count as half a firing half-day.2 for new or modified firing range installations, the number of firing half-days is determined on the basis of operational forecasts. for existing firing range installations, the number of firing half-days is determined by counting.323 determination of the number of shots 1 for existing firing range installations, the number of shots mi per weapons category is determined from the operational logs.2 if the operational logs of existing firing range installations are incomplete or if the firing range installations are new or have been modified, the number of shots m is determined from forecasts of future use.annex 864 64 inserted by no ii of the o of 27 june 1995 (as 1995 3694). revised in accordance with no ii para. 2 of the o of 12 april 2000 (as 2000 1388) and of the o of 23 aug. 2006, in force since 1 nov. 2006 (as 2006 3693).(art. 40 para. 1)exposure limit values for noise at military aerodromes 1 scope 1 the exposure limit values specified in number 2 apply to traffic noise from military aerodromes.2 civil regional airports and airfields used for military purposes also count as military aerodromes.3 helicopters are considered equivalent to propeller aircraft.4 noise from repair workshops, maintenance workshops and similar operations at military aerodromes is considered equivalent to the noise from industrial and commercial installations (annex 6 number 1).2 exposure limit values 21 exposure limit values expressed as lr sensitivity level(art. 43)planning valueimpact thresholdalarm valuelr in db (a)lr in db (a)lr in db (a)i505565ii606570iii606570iv65707522 exposure limit values expressed as lrz in addition to the exposure limit values expressed as lr, the exposure limit values specified in annex 5 and expressed as lr, referred to below as lrz, also apply to the noise from civilian traffic at military airfields.3 determination of the rating sound level 31 principles 1 the rating sound level lr for noise from military aerodromes is calculated from the rating sound levels lrm for military aircraft noise and lrz for civil aircraft noise, as follows:lr = 10 log (100,1lrm + 100,1lrz)2 the rating sound level lrz is determined in the same way as the corresponding lr for civil aerodromes specified in annex 5 numbers 3 and 4.3 the rating sound level lrm is determined from the partial rating sound levels lrj, for noise from jet aircraft, and lrp, for noise from propeller aircraft, as follows:lrm = 10 log (100,1lrj + 100,1lrp)4 the partial rating sound level lrj is the sum of the equivalent continuous a-weighted sound level leqj arising from the operation of jet aircraft, and the level corrections k0 and k1:lrj = leqj + k0 + k15 the partial rating sound level lrp is the sum of the equivalent continuous a-weighted sound level leqp arising from the operation of propeller aircraft, and the level corrections k0 and k2:lrp = leqp + k0 + k26 the equivalent continuous sound levels leqj and leqp are calculated for the average number of hourly flight movements for a day with an average level of traffic, whereby flight movements of jet aircraft and propeller aircraft are counted separately (number of flight movements nj and np).7 flight movements are all takeoffs and landings of jet and propeller aircraft. go-arounds count as two flight movements.32 numbers of flight movements nj and np for military aerodromes 1 for existing military aerodromes, the number of flight movements nj and np are determined as follows:a. the six months of the operating year with the greatest amount of traffic are identified, whereby flight movements of jet aircraft and propeller aircraft are counted separately;b. for these six months, the number of flight movements of jet aircraft mj and propeller aircraft mp are determined;c. the numbers of flight movements nj and np are calculated from mj and mp by averaging them over 130 days and twelve daytime hours:nj = mj/(12 x 130) np = mp/(12 x 130)2 for military aerodromes that are to be built or modified, the numbers of flight movements nj and np are determined from forecasts of traffic volume.33 level corrections 1 the level correction k0 is equal to -8.2 the level correction k1 is calculated from the annual number of flight movements of jet aircraft nj as follows:k1 = 0 for nj < 15 000k1 = 10 x log (nj/15 000) for nj 15 0003 the level correction k2 is calculated from the annual number of flight movements of propeller aircraft np as follows:k2 = 0 for np < 15 000k2 = 10 x log (np/15 000) for np 15 000annex 965 65 inserted by no ii para. 2 of the o of 30 june 2010, in force since 1 aug. 2010 (as 2010 3223). (art. 40 para. 1)exposure limit values for noise from military firing ranges and training grounds 1 scope 1 the exposure limit values specified in number 2 apply to the firing noise on military firing ranges and training grounds.2 in addition to the exposure limit values specified in number 2, the exposure limit values specified in annex 7 apply to the noise from civil firing on military firing ranges and training grounds, with the exception of firing by the police and border guards.3 noise from repair workshops, maintenance workshops and similar operations and noise from traffic on military firing ranges and training grounds is considered equivalent to the noise from industrial and commercial installations (annex 6 number 1).4 noise from helicopters on military firing ranges and training grounds is considered equivalent to the noise from heliports (annex 5 numbers 23 and 5).2 exposure limit values sensitivity level (art. 43)planning valueimpact thresholdalarm valuelr in db(a)lr in db(a)lr in db(a)i505565ii556070iii606570iv6570753 determination of the rating sound level 31 principles the rating sound level lr for the firing noise from military firing ranges and training grounds is calculated as follows from the sound levels lae1 and lae2 and the level corrections k1 and k2: lr =10 . log(100. 1.l ae1 +100. 1.(l ae2 +k1) ) - 10 . log(t) + k2where:lr rating sound level for noise from military firing ranges and training grounds;t rating time in seconds = 52 weeks 5 days 12 hours 60 minutes 60 seconds;lae1 sound exposure level of all the shooting events of a year which have taken place mondays to fridays between 07 and 19 hours;lae2 sound exposure level of all the shooting events of a year which have taken place outside of the lae1 timeframe;k1 5k2 1532 determination of shooting operations 1 for existing military firing ranges and training grounds, the number of shots is determined from surveys carried out over three years.2 if, for existing military firing ranges and training grounds, no data on the number of shots is available or if the installations are new or have been modified, the number of shots is determined from forecasts of future use.

814.50 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.radiological protection act(rpa)of 22 march 1991 (status as of 1 may 2017)the federal assembly of the swiss confederation,on the basis of articles 64, 74, 118, 122 und 123 of the federal constitution1,2and having considered the dispatch of the federal council dated 17 february 19883,decrees:1 sr 1012 amended by annex no ii 5 of the foodstuffs act of 20 june 2014, in force since 1 may 2017 (as 2017 249; bbl 2011 5571).3 bbl 1988 ii 181chapter 1 general provisions art. 1 purpose the purpose of this act is to protect people and the environment against dangers from ionizing radiation.art. 2 scope 1 the act applies to all activities, installations, events and situations that may involve an ionizing radiation hazard, and in particular to:a.the handling of radioactive substances and of installations, equipment and articles containing radioactive substances or capable of emitting ionizing radiation;b.events that may lead to an increase in environmental radioactivity.2 the term handling covers extraction, manufacturing, processing, distribution, installation, use, storage, transport, disposal, import, export and transit, and any other form of transfer to a third party.43 articles 28-38 are not applicable to activities requiring a licence under the nuclear energy act of 21 march 20035.64 the federal council may provide for exemptions from this act in the case of substances with low levels of radioactivity.4 amended by annex no ii 4 of the nuclear energy act of 21 march 2003, in force since 1 dec. 2005 (as 2004 4719; bbl 2001 2665).5 sr 732.16 amended by annex no ii 4 of the nuclear energy act of 21 march 2003, in force since 1 dec. 2005 (as 2004 4719; bbl 2001 2665).art. 3 additional provisions in addition to the provisions of this act, the following provisions are applicable:a.7for nuclear facilities, nuclear goods and radioactive waste, the nuclear energy act of 21 march 20038;b.for nuclear damage caused by nuclear facilities or the transport of nuclear materials, the nuclear energy liability act of 18 march 19839;c.for off-site transport of radioactive substances, the federal regulations on the transport of hazardous goods.7 amended by annex no ii 4 of the nuclear energy act of 21 march 2003, in force since 1 dec. 2005 (as 2004 4719; bbl 2001 2665).8 sr 732.19 sr 732.44art. 4 costs-by-cause principle anyone who causes measures to be taken under this act shall bear the costs thereof.art. 5 research, development, training 1 the confederation shall promote scientific research on the effects of radiation and radiological protection, as well as training in the area of radiological protection.2 it may:a.promote development activities in these areas;b.train specialists;c.participate in enterprises devoted to research or training.art. 6 qualifications 1 only duly qualified persons shall be permitted to carry out activities that may involve an ionizing radiation hazard.2 the federal council shall specify the requirements for the qualifications of such persons.art. 7 commissions 1 the federal council shall establish the following advisory commissions:a.commission for radiological protection10;b.commission for abc-protection11.122 it shall define their responsibilities.10 the name of this administrative unit was amended by art. 16 para. 3 of the publications ordinance of 17 nov. 2004 (as 2004 4937), in force since 1 jan. 2015.11 the name of this administrative unit was amended by art. 16 para. 3 of the publications ordinance of 17 nov. 2004 (as 2004 4937), in force since 1 jan. 2015.12 amended by annex no ii 9 of the federal act of 22 march 2002 on the revision of organisational provisions of federal legislation, in force since 1 feb. 2003 (as 2003 187; bbl 2001 3845).chapter 2 protection of people and the environment section 1 principles of radiological protection art. 8 justification of radiation exposure an activity that involves the exposure of people or the environment to ionizing radiation (radiation exposure) may only be carried out if it can be justified in terms of the associated benefits and risks.art. 9 limitation of radiation exposure all measures dictated by experience and the current state of science and technology must be adopted in order to limit the radiation exposure of each individual person and of all parties concerned.art. 10 dose limits the federal council shall, in accordance with the current state of scientific knowledge, specify limits for radiation exposure (dose limits) for persons who may be exposed to an increased level of controllable radiation compared with the general population as a result of their work or other circumstances (exposed persons).section 2 protection of exposed persons art. 11 compliance with dose limits anyone who handles or is responsible for a source must take all measures necessary to ensure compliance with the dose limits.art. 12 determination of the radiation dose 1 in exposed persons the radiation dose must be determined by appropriate methods.2 the federal council shall regulate determination of the radiation dose. it shall define, in particular:a.those cases where radiation exposure is to be measured individually (personal dosimetry);b.the intervals at which the radiation dose is to be determined;c.the requirements for approval of personal dosimetry laboratories;d.the required retention period for the results of personal dosimetry.3 exposed persons are required to undergo any dosimetry prescribed. they shall be informed of the results.art. 13 medical measures for occupationally exposed persons 1 occupationally exposed workers covered by compulsory insurance are subject to the medical measures for the prevention of occupational diseases specified in articles 81-87 of the accident insurance act of 20 march 198113.2 the federal council may also specify medical measures for other occupationally exposed persons.3 occupationally exposed persons are required to undergo any medical examinations prescribed.13 sr 832.20art. 14 disclosure of medical data 1 the physician charged with the medical examination shall disclose to the supervisory authority any data necessary for medical surveillance and the compilation of statistics. the supervisory authority is not permitted either to use such data for other purposes or to pass it on to third parties.2 the federal council shall specify the data to be disclosed to the supervisory authority. it shall define the retention period.art. 15 medical applications 1 no dose limits are specified for patients exposed to radiation for diagnostic or therapeutic purposes.2 the radiation exposure of patients shall be at the discretion of the person responsible. however, such persons must comply with the principles of radiological protection specified in articles 8 and 9.3 the federal council shall issue provisions for the protection of patients.art. 16 responsibility within enterprises 1 the licence holder or the persons in charge of an enterprise are responsible for ensuring compliance with the radiological protection regulations. for this purpose, they are required to appoint an appropriate number of experts and to provide them with the necessary powers and resources.2 all persons working in an enterprise are required to support the management and the experts with regard to radiological protection measures.section 3 monitoring of the environment and protection of the public in the event of increased radioactivity art. 17 environmental monitoring 1 in the environment, there shall be regular monitoring of ionizing radiation and of levels of radioactivity, particularly in air, water, soil, foodstuffs and feedingstuffs.2 the federal council shall take the necessary measures; in particular, it shall designate the bodies and institutions responsible for monitoring.3 it shall ensure that the results of monitoring are published.art. 1814 off-site limits 1 for the purpose of environmental monitoring, the federal council shall specify off-site limits for radionuclides and for direct radiation.2 it shall specify the off-site limits so that, according to the standards of science and technology or based on experience, exposure to radiation below these limits does not endanger human beings, animals or plants, their communities or habitats.3 for radionuclides in foodstuffs, the maximum concentrations in terms of the foodstuffs legislation apply.14 amended by annex no ii 5 of the foodstuffs act of 20 june 2014, in force since 1 may 2017 (as 2017 249; bbl 2011 5571).art. 19 emergency response organization 1 the federal council shall establish an emergency response organization for incidents that could endanger the public as a result of increased radioactivity.2 the emergency response organization shall have, in particular, the following responsibilities:a.in the event of an incident, it shall forecast the dangers arising for the public;b.it shall monitor the extent and course of increased radioactivity and assess possible impacts on people and the environment;c.where there is an imminent danger, it shall order the necessary emergency measures and supervise their implementation.3 the details shall be elaborated by the federal council. it shall ensure that the emergency response organization:a.informs the competent federal and cantonal agencies of the extent of the danger and requests the necessary protective measures;b.informs the public.art. 20 measures in response to danger arising from increased radioactivity 1 in the event of danger arising from increased radioactivity, the federal council shall order the measures necessary:a.to protect the public;b.to secure supplies throughout the country;c.to maintain essential public services.2 it shall issue the regulations required in the event of danger arising from increased radioactivity. in particular, it shall specify:a.the radiation doses acceptable in exceptional situations;b.the duty of persons and undertakings to assume responsibility, within the scope of their usual occupational and entrepreneurial activities, for certain tasks that are indispensable for the protection of the public; the life and health of the persons deployed shall be protected;c.the equipment, training and insurance cover required for persons charged with special tasks.3 if the federal council and the emergency response organization are not in a position to order the necessary measures, the cantonal governments or, in urgent cases, the competent cantonal agencies or, if need be, the communal authorities shall take the necessary measures.art. 21 implementation of measures 1 unless the federal council assigns responsibility for implementation to the federal authorities, the cantons and communes shall be responsible for the preparation and execution of measures in accordance with article 20. the cantons shall collaborate with the emergency response organization.2 if the cantonal or communal bodies responsible for implementation are not in a position to fulfil their functions, the federal council may place them under the authority of the emergency response organization or instruct other cantons to put available resources at their disposal.3 the confederation, cantons and communes may also engage private organizations for the implementation of certain measures.art. 22 emergency protection 1 in cases where the release of dangerous amounts of radioactive substances into the environment cannot be ruled out, the enterprises concerned shall be required, as part of the licensing procedure:a.to establish, at their own expense, an alarm system for the population at risk or to contribute proportionally to the costs of a general alarm system;b.to participate in the preparation and implementation of emergency protection measures.2 the federal council shall define the responsibilities of the competent federal, cantonal and communal agencies.art. 23 international cooperation the federal council may conclude international agreements concerning:a.the mutual exchange of information on environmental radioactivity;b.immediate notification in the event of danger arising from radioactivity that could cross international borders;c.the harmonization of plans for measures to be taken in the event of crossborder radioactive contamination.art. 24 persistently increased environmental radioactivity if increased levels of radioactivity from natural or other sources are detected in the environment over a prolonged period, the federal council may order special measures to limit radiation exposure. it may involve the cantons for purposes of implementation.section 4 radioactive waste art. 25 definition and principles 1 radioactive waste means radioactive substances or radioactively contaminated materials which are not reused.2 radioactive substances are to be handled in such a way that as little radioactive waste as possible is generated.3 radioactive waste arising in switzerland must, as a general rule, be disposed of in this country. by way of exception, an export licence may be granted for the disposal of radioactive waste if:a.the recipient country has consented to the import of the radioactive waste for disposal in an international agreement;b.an appropriate nuclear facility meeting international standards of science and technology is available in the recipient country;c.transit has been approved by the transit countries;d.the sender has entered into a binding agreement with the recipient of the radioactive waste, with the approval of the authority designated by the federal council, to the effect that the sender will take back the waste if necessary 154 by way of exception, an import licence may be granted for radioactive waste that does not originate in switzerland but is to be disposed of in this country if:a.switzerland has consented to the import of the radioactive waste for disposal in an international agreement;b.an appropriate nuclear facility meeting international standards of science and technology is available in switzerland;c.transit has been approved by the transit countries;d.the recipient has entered into a binding agreement with the sender of the radioactive waste, with the approval of the country of origin, to the effect that the sender will take back the waste if necessary.1615 amended by annex no ii 4 of the nuclear energy act of 21 march 2003, in force since 1 dec. 2005 (as 2004 4719; bbl 2001 2665).16 amended by annex no ii 4 of the nuclear energy act of 21 march 2003, in force since 1 dec. 2005 (as 2004 4719; bbl 2001 2665).art. 26 handling of radioactive waste on-site and discharge to the environment 1 on-site, radioactive waste must be handled and stored in such a way as to minimize releases of radioactive substances to the environment.2 the federal council shall specify the conditions under which low-level radioactive waste may be discharged to the environment.3 radioactive waste that is not to be discharged to the environment must be suitably retained or securely contained, possibly in solidified form, collected and stored at a site approved by the supervisory authority while awaiting surrender or export.1717 amended by annex no ii 4 of the nuclear energy act of 21 march 2003, in force since 1 dec. 2005 (as 2004 4719; bbl 2001 2665).art. 27 surrender18 1 anyone who produces radioactive waste not arising as a result of the use of nuclear energy is required to surrender it to a centre designated by the competent authority.2 the waste producer must bear the costs of disposal.193 the federal council shall regulate the treatment of waste on-site and its surrender.204 if immediate surrender or disposal is not possible, or not appropriate for reasons of radiological protection, the waste must be placed in supervised interim storage.2118 amended by annex no ii 4 of the nuclear energy act of 21 march 2003, in force since 1 dec. 2005 (as 2004 4719; bbl 2001 2665).19 amended by annex no ii 4 of the nuclear energy act of 21 march 2003, in force since 1 dec. 2005 (as 2004 4719; bbl 2001 2665).20 amended by annex no ii 4 of the nuclear energy act of 21 march 2003, in force since 1 dec. 2005 (as 2004 4719; bbl 2001 2665).21 amended by annex no ii 4 of the nuclear energy act of 21 march 2003, in force since 1 dec. 2005 (as 2004 4719; bbl 2001 2665).chapter 3 licences and supervision art. 28 mandatory licensing a licence is required by anyone who:a.handles radioactive substances or equipment and articles containing radioactive substances;b.manufactures, distributes, installs or uses installations and equipment capable of emitting ionizing radiation;c.administers ionizing radiation and radioactive substances to humans.art. 29 powers of the federal council the federal council may:a.subject other activities that may involve an ionizing radiation hazard to mandatory licensing;b.exempt activities specified in article 28 letters a or b from mandatory licensing if an ionizing radiation hazard can be ruled out;c.specify the conditions under which certain types of articles, installations and equipment containing radioactive substances or capable of emitting ionizing radiation may, after testing of the standard model, be granted general approval or approval restricted to certain applications.art. 3022 licensing authorities the federal council shall designate the licensing authorities.22 amended by annex no ii 4 of the nuclear energy act of 21 march 2003, in force since 1 dec. 2005 (as 2004 4719; bbl 2001 2665).art. 31 conditions a licence shall be granted if:a.the applicant or an expert appointed by the applicant (art. 16) has the necessary qualifications;b.the enterprise has an appropriate number of experts at its disposal;c.the applicant and the experts ensure safe operation;d.the enterprise has adequate liability insurance;e.the installations and equipment are in accordance with the current state of science and technology with regard to radiological protection;f.radiological protection is assured in accordance with this act and the implementing provisions.art. 32 licence holder and content 1 the licence shall only be valid for the designated enterprise or the designated person.2 it shall contain a description of the licensed activity, including any requirements and stipulations, and give the names of the experts responsible for radiological protection. it shall be granted for a limited period.3 the licensing authority may transfer the licence to a new holder, provided the latter meets the conditions specified in article 31.art. 33 modification the licence shall be modified:a.at the holder's request, if the proposed modification meets the conditions for the granting of a licence;b.automatically, where this is necessitated by changes in the actual or legal conditions specified in article 31.art. 34 revocation and expiry 1 the licence shall be revoked:a.if the conditions for granting it are not met or are no longer met;b.if a stipulation associated with the licence or a measure ordered has not been complied with despite notice being given.2 the licence shall expire:a.if it is duly relinquished by the holder;b.at the end of the specified term;c.if the holder dies or, in the case of legal persons and registered companies, the entry in the commercial register is deleted;d.if the enterprise is discontinued or ownership is transferred.3 the licensing authority shall issue a decree declaring the licence to have expired, subject to the possibility of renewal or a transfer in accordance with article 32 paragraph 3.art. 35 duties of notification and provision of information 1 the licence holder must notify the supervisory authority:a.of any proposed modifications to the structure or operation of installations or equipment which could adversely affect operational safety;b.of any plans to use additional radioactive substances or to increase the activity of licensed radioactive substances.2 the licence holder and persons working for the enterprise must provide information to the supervisory authority and its agents, allow them to consult documents and grant access to the premises insofar as this is necessary for the fulfilment of supervisory responsibilities.3 if an inadmissible radiation exposure is suspected or known to have occurred, the licence holder or expert must notify the competent authorities immediately.art. 36 record-keeping requirements 1 anyone who handles radioactive substances or equipment and articles containing radioactive substances is required to keep records thereof.2 reports are to be submitted regularly to the supervisory authority.3 the federal council may waive the record-keeping requirements for low-level radioactive substances.art. 37 supervision 1 the federal council shall designate the supervisory authorities.2 the supervisory authority shall issue the necessary decrees. if necessary, it may take protective measures at the expense of the party responsible. in particular, it may order the discontinuation of operations or the seizure of dangerous substances, equipment or articles.3 it may engage third parties for the implementation of inspections. their responsibilities under criminal and property law are defined by the government liability act of 14 march 195823; with regard to duties of confidentiality and testimony, they are bound by the regulations applicable for federal officials.23 sr 170.32art. 38 removal of sources of risk 1 once a licence is revoked or has expired, the sources of risk must be removed by the former licence holder or the party responsible for them. in particular:a.radioactive substances are to be transferred to another licence holder or disposed of as radioactive waste;b.installations and equipment capable of emitting ionizing radiation are to be transferred to another licence holder or placed in a condition rendering unauthorised operation impossible.2 if necessary, the federal authorities shall take over or seize substances, installations, equipment and articles and shall remove the sources of risk at the licence holder's expense.3 the licensing authority shall determine whether premises with contaminated or activated areas and their surroundings may be used for other purposes.4 the licensing authority shall issue a decree declaring that the sources of risk have been duly removed.chapter 4 liability24 24 revised by the drafting commission of the federal assembly (art. 33 parlpa; as 1974 1051). art. 39 liability 1 anyone who operates equipment or carries out activities involving an ionizing radiation hazard shall be liable for any resultant damage unless it can be demonstrated that all due care was exercised to avoid the damage.2 where two or more persons are liable under paragraph 1, they shall be jointly and severally liable.3 the above is without prejudice to the nuclear energy liability act of 18 march 198325 with regard to nuclear damage caused by nuclear facilities or the transport of nuclear materials.25 sr 732.44art. 40 limitation of liability claims claims for compensation or redress arising from damage caused by ionizing radiation and not covered by the nuclear energy liability act of 18 march 198326 shall be time-barred three years after the injured party has become aware of the damage and of the identity of the liable party, and in any event 30 years after the cessation of the detrimental effects.26 sr 732.44chapter 5 proceedings, legal recourse and fees art. 41 proceedings and legal recourse proceedings and legal recourse shall be governed by the federal act of 20 december 196827 on administrative procedure and the federal act of 16 december 194328 on the organisation of federal justice.27 sr 172.02128 [bs 3 531; as 1948 485 art. 86, 1955 871 art. 118, 1959 902, 1969 737 art. 80 let. b 767, 1977 237 no ii 3 862 art. 52 no 2 1323 no iii, 1978 688 art. 88 no 3 1450, 1979 42, 1980 31 no iv 1718 art. 52 no 2 1819 art. 12 para. 1, 1982 1676 annex no 13, 1983 1886 art. 36 no 1, 1986 926 art. 59 no 1, 1987 226 no ii 1 1665 no ii, 1988 1776 annex no ii 1, 1989 504 art. 33 let. a, 1990 938 no iii para. 5, 1992 288, 1993 274 art. 75 no 1 1945 annex no 1, 1995 1227 annex no 3 4093 annex no 4, 1996 508 art. 36 750 art. 17 1445 annex no 2 1498 annex no 2, 1997 1155 annex no 6 2465 annex no 5, 1998 2847 annex no 3 3033 annex no 2, 1999 1118 annex no 1 3071 no i 2, 2000 273 annex no 6 416 no i 2 505 no i 1 2355 annex no 1 2719, 2001 114 no i 4 894 art. 40 no 3 1029 art. 11 para. 2, 2002 863 art. 35 1904 art. 36 no 1 2767 no ii 3988 annex no 1, 2003 2133 annex no 7 3543 annex no ii 4 let. a 4557 annex no ii 1, 2004 1985 annex no ii 1 4719 annex no ii 1, 2005 5685 annex no 7. as 2006 1205 art. 131 para. 1]. see now: the federal supreme court act of 17 june 2005 (sr 173.110).art. 42 fees the federal council shall set the fees for:a.the granting, transfer, modification and revocation of licences;b.the exercise of supervision and the performance of inspections;c.the collection, conditioning, storage and disposal of radioactive waste.chapter 6 criminal provisions art. 4329 unjustified radiation exposure of persons 1 any person who wilfully subjects someone to manifestly unjustified radiation exposure shall be liable to a custodial sentence not exceeding three years or to a monetary penalty.302 any person who wilfully subjects another to manifestly unjustified radiation exposure with the intention of damaging that person's health shall be liable to a custodial sentence or to a monetary penalty.313 any person who negligently subjects another to manifestly unjustified radiation exposure shall be liable to a custodial sentence not exceeding three years or to a monetary penalty.3229 amended by annex no ii 4 of the nuclear energy act of 21 march 2003, in force since 1 dec. 2005 (as 2004 4719; bbl 2001 2665).30 amended by art. 333 of the criminal code (sr 311.0) in the amended version of 13 dec. 2002, in force since 1 jan. 2007 (as 2006 3459; bbl 1999 1979).31 amended by art. 333 of the criminal code (sr 311.0) in the amended version of 13 dec. 2002, in force since 1 jan. 2007 (as 2006 3459; bbl 1999 1979).32 amended by art. 333 of the criminal code (sr 311.0) in the amended version of 13 dec. 2002, in force since 1 jan. 2007 (as 2006 3459; bbl 1999 1979).art. 43a33 illegal handling of radioactive substances, unjustified radiation exposure of property 1 any person who wilfully:34a.stores, disposes of or discharges radioactive substances to the environment in contravention of the regulations;b.subjects property of considerable value to manifestly unjustified radiation exposure with the intention of impairing its utilityshall be liable to a custodial sentence not exceeding three years or to a monetary penalty.2 if the offender acted negligently, the penalty shall be a monetary penalty not exceeding 180 daily penalty units.3533 inserted by annex no ii 4 of the nuclear energy act of 21 march 2003, in force since 1 dec. 2005 (as 2004 4719; bbl 2001 2665).34 amended by art. 333 of the criminal code (sr 311.0) in the amended version of 13 dec. 2002, in force since 1 jan. 2007 (as 2006 3459; bbl 1999 1979).35 amended by art. 333 of the criminal code (sr 311.0) in the amended version of 13 dec. 2002, in force since 1 jan. 2007 (as 2006 3459; bbl 1999 1979).art. 44 contraventions 1 any person who wilfully or negligently:36a.37carries out acts requiring a licence without having a licence, obtains a licence illegally, or fails to comply with conditions or stipulations included in the licence;b.fails to take the measures required to comply with dose limits;c.fails to undergo prescribed dosimetry;d.fails to fulfil the duties of a licence holder or expert;e.fails to fulfil the duty to surrender radioactive waste or remove sources of risk;f.infringes an implementing regulation, infringement of which is declared to be punishable, or an order addressed to him or her with reference being made to the penalty provided for in this article.shall be liable to a fine.2 the federal council may provide for fines not exceeding 20,000 swiss francs for infringements of regulations issued to deal with danger arising from radioactivity.3836 amended by art. 333 of the criminal code (sr 311.0) in the amended version of 13 dec. 2002, in force since 1 jan. 2007 (as 2006 3459; bbl 1999 1979).37 amended by annex no ii 4 of the nuclear energy act of 21 march 2003, in force since 1 dec. 2005 (as 2004 4719; bbl 2001 2665).38 amended by art. 333 of the criminal code (sr 311.0) in the amended version of 13 dec. 2002, in force since 1 jan. 2007 (as 2006 3459; bbl 1999 1979).art. 45 applicability of administrative criminal law 1 the special provisions of the federal act of 22 march 197439 (arts. 14-18) on administrative criminal law are applicable.2 articles 6 and 7 of the federal act on administrative criminal law apply to the contraventions specified in article 43.39 sr 313.0art. 46 proceedings and jurisdiction 1 the felonies and misdemeanours specified in articles 43 and 43a shall be subject to federal criminal jurisdiction.402 infringements under article 44 and article 45 paragraph 1 shall be prosecuted and adjudicated by the competent licensing or supervisory authority. proceedings shall be governed by the federal act of 22 march 197441 on administrative criminal law.40 amended by annex no ii 4 of the nuclear energy act of 21 march 2003, in force since 1 dec. 2005 (as 2004 4719; bbl 2001 2665).41 sr 313.0chapter 7 final provisions art. 47 enforcement 1 the federal council shall be responsible for enforcement and shall issue the implementing provisions.2 it may delegate to the competent department or subordinate bodies the task of issuing radiological protection regulations for activities requiring a licence under the nuclear energy act of 21 march 200342. it shall take account of the scope of such regulations.433 it may involve the cantons for purposes of enforcement.4442 sr 732.143 inserted by annex no ii 4 of the nuclear energy act of 21 march 2003, in force since 1 dec. 2005 (as 2004 4719; bbl 2001 2665).44 originally para. 2.art. 48 amendment of current legislation .4545 the amendment may be consulted under as 1994 1933.art. 49 transitional provision for liability claims that arose under current legislation but are not yet time-barred when this act commences, the limitation periods specified in article 40 apply.art. 50 referendum and commencement 1 this act is subject to an optional referendum.2 the federal council shall determine the commencement date.commencement date: 1 october 19944646 federal council decree of 22 june 1994.

814.680 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinanceon the remediation of polluted sites(contaminated sites ordinance, cso)of 26 august 1998 (status as of 1 may 2017)the swiss federal council,based on article 32c paragraph 1 second sentence and article 39 paragraph 1 of the environmental protection act of 7 october 19831 (epa),ordains:1 sr 814.01section 1 general provisions art. 1 aim and subject matter 1 this ordinance is intended to ensure that polluted sites are remediated if they cause harmful effects or nuisances, or if there is a real danger that such effects may arise.2 it regulates the following procedures for treating polluted sites:a.their recording in a register;b.the assessment of the need for monitoring and remediation;c.the assessment of the objectives and urgency of remediation;d.the specification of the measures for investigation, monitoring and remediation.art. 2 definitions 1 polluted sites means sites whose pollution originates from waste, and that are restricted in area. they comprise:a.waste disposal sites, i.e. inoperative or operative landfills and other sites where waste has been deposited, except for sites at which only unpolluted excavation material, quarried material or spoil have been deposited;b.industrial sites, i.e. sites whose pollution originates from inoperative or operative installations or industrial operations in which environmentally hazardous substances have been used;c.accident sites, i.e. sites polluted as a result of extraordinary events, including industrial accidents.2 sites in need of remediation are polluted sites that cause harmful effects or nuisances or where there is a real danger that such effects may arise.3 contaminated sites are polluted sites in need of remediation.art. 3 construction and alteration of buildings and installations polluted sites may be modified by the construction or alteration of buildings and installations only if:a.they are not in need of remediation and the project does not make their remediation necessary; orb.their later remediation is not seriously hampered, or, insofar as they are modified by the project, they are remediated at the same time.art. 4 general requirements for measures investigation, monitoring and remediation measures under this ordinance must correspond to the state of the art and be documented by those responsible.section 2 register of polluted sites art. 5 creation of the register 1 the authorities shall identify the polluted sites by evaluating existing information such as maps, registers and reports. they may obtain information from the holders of the sites or from third parties.2 they shall give notice of the content of the proposed register entry to the holders and provide them with the opportunity to state their opinion and to provide clarification. at the request of the holders, the authorities shall issue a declaratory ruling.3 they shall enter in the register those sites that are established as polluted in accordance with paragraphs 1 and 2 or where there is a high probability that they are polluted. where possible, the entries shall contain the following information:a.location;b.type and quantity of waste delivered to the site;c.period of disposal of waste, period of operation, or time of accident;d.investigations and measures already taken for the protection of the environment;e.effects that have already been ascertained;f.endangered environmental areas;g.particular events such as waste incineration, landslides, floods, fires or major accidents.4 the authorities shall divide the polluted sites into the following categories based on the information contained in the register, particularly with regard to type and quantity of waste delivered to the site:a.sites from which no harmful effects or nuisances are to be expected; andb.sites requiring an investigation as to whether they are in need of monitoring or remediation.5 the authorities shall prepare a list of priorities for performing the investigations. in doing so, they shall pay due regard to the information contained in the register concerning the type and quantity of waste delivered to the polluted site, the likelihood of substances being released and the importance of the environmental areas affected.art. 6 keeping the register 1 the authorities shall add information on the following to the entry in the register:a.the need for monitoring and remediation; b.the objectives and urgency of remediation;c.the measures taken or ordered by them for the protection of the environment.2 they shall delete the site entry in the register if: a.the investigations show that the site is not polluted with environmentally hazardous substances; or b.the environmentally hazardous substances have been eliminated.art. 6a2 coordination with the structure and land use planning the authorities shall take account of the register in their structure and land use planning.2 inserted by annex 6 no 9 of the waste management ordinance of 4 dec. 2015, in force since 1 jan 2016 (as 2015 5699).section 3 need for monitoring and remediation art. 7 preliminary investigation 1 based on the list of priorities, the authorities shall require a preliminary investigation to be carried out within a reasonable period for sites in need of investigation. this shall normally consist of a historical and a technical investigation, so that the need for monitoring and remediation can be assessed (art. 8), and the environmental hazard evaluated (risk assessment).2 the historical investigation shall establish the possible causes of the pollution of the site, in particular:a.the events and the temporal and spatial history of developments at the site;b.the procedures used for handling environmentally hazardous substances at the site. 3 based on the historical investigation, a performance specification shall be prepared on the aim, extent and methods of the technical investigation. the performance specification shall be submitted to the authorities for comment.4 the technical investigation shall establish the type and quantity of substances at the site, the likelihood of their release and the importance of the environmental areas affected.art. 8 assessment of the need for monitoring and remediation 1 based on the preliminary investigation, the authorities shall assess whether the polluted site is in need of monitoring or remediation in accordance with articles 9 - 12. in doing so, they shall pay due regard to effects caused by other polluted sites or by third parties.2 they shall state in the register whether a polluted site is:a.in need of monitoring;b.in need of remediation (contaminated site);c.in need of neither monitoring nor remediation.art. 9 protection of groundwater 1 subject to paragraph 1bis, a polluted site is deemed to be in need of monitoring to protect the groundwater, if:a.any of the concentration values specified in annex 1 is exceeded in the eluate of the material at the site; orb.for groundwater water protection areas au, the concentration of substances originating from the site immediately downstream of the site exceeds 10% of one of the concentration values specified in annex 1; orc.for groundwater outside water protection areas au, the concentration of substances originating from the site immediately downstream of the site exceeds 40% of one of the concentration values specified in annex 1.31bis if after several years of monitoring a site, it is established that, considering the evolution of pollutant concentrations and the characteristics of the site, it is highly probable that the site will not need remediation under paragraph 2, the site is deemed no longer to be in need of monitoring.42 a polluted site is deemed to be in need of remediation to protect the groundwater, if:a.5potential water pollutants originating from the site are detected in groundwater catchments of public interest in concentrations that exceed the detection threshold;b.6for groundwater in water protection areas au7: the concentration of substances originating from the site immediately downstream of the site exceeds one-half the concentration value specified in annex 1;c.8for groundwater outside water protection area au s: the concentration of substances originating from the site immediately downstream of the site exceeds double the concentration value specified in annex 1; ord.it is in need of monitoring in accordance with paragraph 1 letter a, and, owing to insufficient retention capacity, or degradation of substances originating from the site, there is a real danger of groundwater pollution.3 amended by no i of the o of 9 may 2012, in force since 1 aug. 2012 (as 2012 2905).4 inserted by no i of the o of 9 may 2012, in force since 1 aug. 2012 (as 2012 2905).5 amended by no i of the o of 22 march 2017, in force since 1 may 2017 (as 2017 2589).6 amended by annex 5 no. 5 of the o on the protection of waters of 28 oct. 1998, in force since 1 jan. 1999 (as 1998 2863).7 amended by article 29 para. 1 let. a of the o on the protection of waters of 28 oct. 1998 (sr 814.201).8 amended by annex 5 no. 5 of the o on the protection of waters of 28 oct. 1998, in force since 1 jan. 1999 (as 1998 2863).art. 10 protection of surface waters 1 subject to paragraph 1bis, a polluted site is deemed to be in need of monitoring to protect the surface waters, if:9a.any of the concentration values specified in annex 1 is exceeded in the eluate of the material at the site which is susceptible of affecting surface waters; or b.in water that flows into surface waters, a concentration value specified in annex 1 is exceeded for substances originating from the site.1bis if after several years of monitoring a site, it is established that, considering the evolution of pollutant concentrations and the characteristics of the site, it is highly probable that the site will not need remediation under paragraph 2, the site is deemed no longer to be in need of monitoring.102 for the protection of surface waters, a polluted site is deemed to be in need of remediation if: a.in water that flows into surface waters, the concentration of substances originating from the site exceeds by tenfold a concentration value specified in annex 1; orb.it is in need of monitoring in accordance with paragraph 1 letter a, and owing to insufficient retention capacity, or degradation of substances originating at the site, there is a real danger of pollution of surface waters.9 amended by no i of the o of 9 may 2012, in force since 1 aug. 2012 (as 2012 2905).10 inserted by no i of the o of 9 may 2012, in force since 1 aug. 2012 (as 2012 2905).art. 1111 prevention of air pollution 1 for the protection of persons from air pollution, a polluted site is deemed to be in need of monitoring if its interstitial air exceeds a concentration value specified in annex 2, and the emission originating from the site reaches places that may regularly be frequented by persons for longer periods.2 for the protection of persons from air pollution, a polluted site is deemed to be in need of remediation if its interstitial air exceeds a concentration value specified in annex 2, and the emission originating from the site reaches places that may regularly be frequented by persons for longer periods.11 amended by no i of the o of 22 march 2017, in force since 1 may 2017 (as 2017 2589).art. 1212 prevention of pollution of the soil 1 soil that is a polluted site or part thereof is deemed to be in need of remediation if a substance in the soil exceeds a concentration value specified in annex 3. the foregoing also applies to soil that is already subject to a restriction of use.2 soil that is not in need of remediation in accordance with paragraph 1 despite being polluted sites or parts thereof, and the impacts of polluted sites on soil are assessed in accordance with the ordinance of 1 july 199813 on the pollution of soil.12 amended by annex no. ii 2 of the o of 26 sept. 2008 on the charge for the remediation of contaminated sites, in force since 1 jan. 2009 (as 2008 4771).13 sr 814.12art. 13 action of the authorities 1 for polluted sites in need of monitoring, the authorities shall require a monitoring plan to be drawn up and suitable measures to be taken to detect a real danger of harmful effects or nuisances before these become manifest. the monitoring measures shall be applied until there is no longer any need for monitoring in accordance with articles 9-12.142 for sites that are in need of remediation (contaminated sites), the authorities shall require that: a.a detailed investigation be carried out within a reasonable period;b.the site be monitored until completion of remediation.14 amended by no i of the o of 9 may 2012, in force since 1 aug. 2012 (as 2012 2905).section 4 objectives and urgency of remediation art. 14 detailed investigation 1 to specify the objectives and assess the urgency of remediation, the following detailed information shall be obtained and evaluated in a risk assessment:a.type, location, quantity and concentration of the environmentally hazardous substances at the polluted site;b.type, load and temporal development of the existing and possible impacts on the environment; c.location and importance of the environmental areas at risk.2 if the results of the detailed investigation deviate substantially from those of the preliminary investigation, the authorities shall reassess whether the site is in need of remediation in accordance with articles 9-12.art. 15 objectives and urgency of remediation 1 the objective of remediation is the elimination of impacts that led to the need for remediation in accordance with articles 9 - 12, or of the real danger of such effects.2 as regards remediation for the purpose of groundwater protection, deviation from the objective is made if:a.by this means the total environmental impact can be lessened;b.disproportionate costs would otherwise result; and c.15the exploitability of groundwater in water protection areas au is guaranteed, or if surface waters connected to groundwater outside water protection areas au fulfil the requirements of the waters protection legislation regarding water quality.3 as regards remediation for the purpose of surface waters protection, deviation from the objectives is made if:a.by this means the total environmental impact can be lessened;b.disproportionate costs would otherwise result; andc.the waters complies with the requirements of the waters protection legislation regarding water quality.4 remediation is deemed to be of particular urgency if an existing use is impaired or immediately endangered. 5 the authorities shall assess the objectives and the urgency of remediation on the basis of the detailed investigation.15 amended by annex 5 no. 5 of the o on the protection of waters of 28 oct. 1998, in force since 1 jan. 1999 (as 1998 2863).section 5 remediation art. 1616 remediation measures 1 the objective of remediation must be achieved by measures that:a.enable environmentally hazardous substances to be eliminated (decontamination); orb.enable the diffusion of environmentally hazardous substances to be prevented in the long term and monitored (securing).2 .1716 amended by annex no. ii 2 of the o of 26. sept. 2008 on the charge for the remediation of contaminated sites, in force since 1 jan. 2009 (as 2008 4771).17 repealed by no i of the o of 22 march 2017, with effect from 1 may 2017 (as 2017 2589).art. 17 remediation project the authorities shall require that for contaminated sites a remediation project be prepared within a time frame appropriate to the urgency of remediation. this shall describe in particular the following:a.the remediation measures including those for monitoring and for waste disposal, the effectiveness of the measures, the assessment of their results and the time expenditure;b.the impact of the proposed measures on the environment;c.the residual danger to the environment following remediation;d.the shares of the responsibility for the contaminated site in cases where the person required to carry out remediation measures demands a ruling on the allocation of costs (art. 32d para. 318 epa).18 now: para. 4.art. 18 specification of essential measures 1 the authorities shall assess the remediation project. in doing so, they shall pay particular regard to the following:a.the environmental impact of the measures;b.their long-term effectiveness;c.the danger to the environment caused by the contaminated site before and after remediation;d.in cases of incomplete decontamination, the extent to which the measures may be monitored, avenues for remedying the deficiencies and securing the necessary funding for the proposed measures;e.whether the requirements for deviation from the remediation objective in accordance with article 15 paragraphs 2 and 3 are satisfied.2 on the basis of this assessment, they shall issue a ruling containing in particular:a.the final objectives of the remediation;b.the remediation measures, the assessment of results and the time frame to be adhered to;c.further charges and conditions for the protection of the environment.art. 1919 evaluation of results persons required to carry out remediation measures must notify the authorities of the remediation measures carried out and demonstrate that the remediation objectives have been achieved. the authorities shall express an expert opinion in this regard.19 amended by annex no. ii 2 of the o of 26. sept. 2008 on the charge for the remediation of contaminated sites, in force since 1 jan. 2009 (as 2008 4771).section 6 obligation to carry out investigation, monitoring and remediation measures art. 20 1 the investigation, monitoring and remediation measures shall be carried out by the holder of the polluted site.2 if the authorities have reason to believe that the pollution of the site was caused by the action of third parties, the authorities may require them to carry out the preliminary investigation, the monitoring measures or the detailed investigation.3 if the pollution of the site was caused by the action of third parties, the authorities may require these with the approval of the holder to prepare the remediation project and perform the remediation measures.section 7 final provisions art. 2120 enforcement 1 the cantons shall enforce this ordinance unless it delegates enforcement to the confederation.21 the cantons shall submit the information required in article 5 paragraphs 3 and 5 and article 6 as well as the information on remediated sites required by article 17 to the foen by the end of each calendar year.221bis the foen shall evaluate the information and inform the public regularly on the progress with the remediation of contaminated sites.232 if federal authorities apply other federal acts or agreements or decisions under international law that relate to the subject matter of this ordinance, they shall also enforce this ordinance. the cooperation of the foen and of the cantons is governed by article 41 paragraphs 2 and 4 epa; statutory duties of secrecy are reserved. if the federal authorities dispense with issuing a ruling when specifying remediation measures (art. 23 para. 3), they shall consult the cantons concerned about the intended measures.243 the federal authorities shall determine the procedures for categorising polluted sites (art. 5 para. 4), preparing the list of priorities (art. 5 para. 5) and deleting entries in the register (art. 6 para. 2) after consultation with the foen.254 they shall inform the cantons concerned of the content of the register (art. 5 and 6) at regular intervals. these shall include a reference to the relevant polluted sites in their own register.20 amended by no. ii 16 of the o of 2 feb. 2000 relating to the federal act on the coordination and simplification of decision-making procedures, in force since 1 march 2000 (as 2000 703).21 amended by annex no ii 2 of the o of 26 sept. 2008 on the charge for the remediation of contaminated sites, in force since 1 jan. 2009 (as 2008 4771).22 second sentence amended by no i of the o of 22 march 2017, in force since 1 may 2017 (as 2017 2589).23 inserted by annex no. ii 2 of the o of 26. sept. 2008 on the charge for the remediation of contaminated sites, in force since 1 jan. 2009 (as 2008 4771).24 amended by no. i 2 of the o of 29 june 2011 on amendments of ordinances in the field of environment, in force since 1 aug. 2011 (as 2011 3379).25 amended by no. i 2 of the o of 29 june 2011 on amendments of ordinances in the field of environment, in force since 1 aug. 2011 (as 2011 3379).art. 2226 26 repealed by no. ii 16 of the o of 2 feb. 2000 to the federal act on the coordination and simplification of decision-making procedures, with effect from 1 march 2000 (as 2000 703).art. 23 collaboration with those concerned 1 in enforcing this ordinance, the authorities shall collaborate with those directly concerned. in particular, they shall examine whether voluntary measures provided for in sectoral agreements of the private sector are suitable for the enforcement of this ordinance.2 they shall endeavour to reach agreement with those directly concerned on the necessary assessments and measures in accordance with the requirements of this ordinance. to this end, they shall consult those directly concerned at the earliest possible time. 3 they may dispense with issuing rulings if carrying out the required investigation, monitoring and remediation measures is guaranteed by other means. art. 24 deviation from procedural regulations deviation from the procedures specified in this ordinance shall be permitted if:a.immediate measures for the protection of the environment are necessary;b.the need for monitoring or remediation can be assessed, or the required measures determined, on the basis of existing information;c.a polluted site is modified by the construction or alteration of a building or installation;d.voluntary measures by those directly concerned have an equivalent effect to those specified in the ordinance.art. 25 guidelines in preparing guidelines for implementing this ordinance, the federal agency shall collaborate with the cantons and the industrial organisations concerned.art. 25a27 geoinformation the federal office shall specify the minimum geodata models and representation models for geographical base data in accordance with this ordinance for which the federal office is designated as the specialist authority at federal level in annex 1 to the geoinformation ordinance of 21 may 200828.27 inserted by annex 2 no. 11 of the o of 21 may 2008 on geoinformation, in force since 1 july 2008 (as 2008 2809).28 sr 510.620art. 26 amendment of current legislation .2929 the amendment may be inspected in as 1998 2261.art. 27 transitional provision the register (art. 5) shall be prepared by 31 december 2003.art. 28 commencement this ordinance comes into force on 1 october 1998.annex 130 30 revised by annex no. ii 2 of the o of 26 sept. 2008 on the charge for the remediation of contaminated sites (as 2008 4771), no ii of the o of 9 may 2012 (as 2012 2905) and of 22 march 2017, in force since 1 may 2017 (as 2017 2589).(art. 9 and 10)concentration values for assessing the impact of polluted sites on ground and surface waters 1 in assessing the impact of polluted sites on waters, the concentration values in the following table apply. where no concentration values are given in the table for potential water pollutants which are polluting a site, the authority shall specify a value on a case by case basis with the consent of the foen and according to the provisions of the legislation on waters protection.2 where the assessment is based on the eluate of the material of the site, the following requirements apply to sampling, preparation of the eluates and their analysis:a.the number of samples and sampling points shall be chosen such that the samples are representative of the pollution of the site.b.the eluate shall be prepared on the basis of a test column. the elution liquid used shall be oxygen-free deionised water. this must normally flow upwards through the column at a defined rate. prior to analysis, the eluate may normally neither be centrifuged nor filtered in a microfilter.c.the eluate need only be analysed in respect of those substances that are expected to occur at the site based on the historical investigation. in cases where lumped parameters only are analysed, the lowest concentration value of the individual substances shall be taken as the assessment criterion.3 for sites with particularly heterogeneous pollution (e.g. waste disposal sites), if samples can be obtained from the seepage water, these may be regarded as equivalent to an eluate.4 in assessing the impact of volatile substances31, the seepage water shall be regarded as equivalent to an eluate. if it is not possible to take samples of the seepage water, pollutant concentrations shall be calculated based on measurements of interstitial air concentration.5 an eluate test in accordance with paragraph 2 may be dispensed with if the pollutant concentration in the eluate of the material is assessable (i.e. to be above or below the concentration values) on the basis of other information, for example composition and origin of the material at the site, lumped parameters or ecotoxicological investigations, or can be calculated from total content.6 the federal office shall issue guidelines on sampling, preparation of eluates and their analysis, and on assessment of the impact of volatile substances.substanceconcentration valueinorganic substancesantimony 0.01 mg sb/larsenic 0.05 mg as/llead 0.05 mg pb/lcadmium0.005 mg cd/lchromium (vi) 0.02 mg crvi/lcobalt 2 mg co/lcopper 1.5 mg cu/lnickel 0.7 mg ni/lmercury0.001 mg hg/lsilver 0.1 mg ag/lzinc 5 mg zn/ltin 20 mg sn/lammonium** 0.5 mg nh4+/lcyanide (free) 0.05 mg cn-/lfluoride 1.5 mg f-/lnitrite** 0.1 mg no2-/lorganic substancesaliphatic hydrocarbons:-total (c5-c10) 2 mg/l-methyl tert-butyl ether (mtbe) 0.2 mg/lamines-aniline 0.05 mg/l-4-aniline chloride 0.1 mg/lhalogenated hydrocarbons-1,2-dibromoethane (edb) 0.05 g/la-1,1-dichloroethane* 3 mg/l-1,2-dichloroethane (edc)*0.003 mg/l-1,1-dichloroethene* 0.03 mg/l-1,2-dichloroethene (cis and trans)* 0.05 mg/l-dichloromethane (methylene chloride, dcm)* 0.02 mg/l-1,2-dichloropropane*0.005 mg/l-1,1,2,2-tetrachloroethane0.001 mg/l-tetrachloroethene (perc) 0.04 mg/l-tetrachloromethane (carbon tetrachloride)*0.002 mg/l-1,1,1-trichloroethane* 2 mg/l-trichloroethene (tce)* 0.07 mg/l-trichloromethane (chloroform)* 0.04 mg/l-vinyl chloride* 0.5 g/l-chlorobenzene 0.7 mg/l-1,2-dichlorobenzene 3 mg/l-1,3-dichlorobenzene 3 mg/l-1,4-dichlorobenzene 0.01 mg/l-1,2,4-trichlorobenzene 0.4 mg/l-polychlorinated biphenyls (pcbs)b 0.1 g/lmonocyclic aromatic hydrocarbons (btex)-benzene* 0.01 mg/l-toluene 7 mg/l-ethylbenzene 3 mg/l-xylenes 10 mg/lnitro compounds-2,4-dinitrophenol 0.05 mg/l-dinitrotoluene 0.5 g/l-nitrobenzene 0.01 mg/l-4-nitrophenol 2 mg/lphenols-2-chlorophenol 0.2 mg/l-2,4-dichlorophenol 0.1 mg/l-2-methylphenol (o-cresol) 2 mg/l-3-methylphenol (m-cresol) 2 mg/l-4-methylphenol (p-cresol) 0.2 mg/l-pentachlorophenol (pcp)0.001 mg/l-phenol (c6h6o) 10 mg/lpolycyclic aromatic hydrocarbons (pak)-acenaphthene 2 mg/l-anthracene 10 mg/lc-benz[a]anthracene 0.5 g/l-benzo[b]fluoranthene 0.5 g/l-benzo[k]fluoranthene0.005 mg/l-benzo[a]pyrene 0.05 g/l-chrysene 0.05 mg/l-dibenz[a,h]anthracene 0.05 g/l-fluoranthene 1 mg/l3-fluorene 1 mg/l-indeno[1,2,3-cd]pyrene 0.5 g/l3-naphthalene 1 mg/l-pyrene 1 mg/l3adetection thresholdbpcb: the sum of the 6 congeners 28, 52, 101, 138, 153 and 180 multiplied by the factor 4.3 must not exceed the concentration value.cnot normally detectable in the eluate at these concentrations.*to be assessed according to paragraph 4.**applies to surface waters only31 indicated in the table by *.annex 2 (art. 11)concentration values for the assessment of interstitial air at polluted sites 1 in assessing the interstitial air of polluted sites, the concentration values in the following table apply. where no concentration values are given in the table for emissions occurring at the site, e.g. odours or particles, the site is deemed to be in need of remediation if the emissions may lead to excessive ambient concentrations in accordance with the ordinance of 16 december 198532 on air pollution control.2 for sampling and the performance of interstitial air analyses, the following apply:a.samples must be taken using ground gas detectors at a number of points representative of the pollution of the site. it shall be ensured that no extraneous air is included in the samples.b.the interstitial air need only be analysed in respect of those constituents that are expected to occur at the site based on the historical investigation. if the analysis is confined to lumped parameters, the lowest concentration value of the individual substances shall be taken as the assessment criterion.3 interstitial air samples may be dispensed with if it can be demonstrated by other means that the concentration values in the interstitial air cannot be exceeded, i.e. based on precise information concerning the composition and origin of the material at the site.4 the federal agency shall issue guidelines on sampling and on procedures for interstitial air analyses.substanceconcentration valueinorganic substancesmercury 0.005 ml/m3carbon dioxide 5000 ml/m3hydrogen sulphide 10 ml/m3organic substancespetrol (free of aromatics) 500 ml/m3light petrol (aromatic content 0-10 by vol.-%) 500 ml/m3methane10 000 ml/m3halogenated hydrocarbons-chlorobenzene 10 ml/m3-1,1-dichloroethane 100 ml/m3-1,2-dichloroethane (edc) 5 ml/m3-1,1-dichloroethene 2 ml/m3-1,2-dichloroethene (cis and trans) 200 ml/m3-dichloromethane 100 ml/m3-1,2-dichloropropane 75 ml/m3-1,1,2,2-tetrachloroethane 1 ml/m3-tetrachloroethene (perc) 50 ml/m3-tetrachloromethane (carbon tetrachloride) 5 ml/m3-1,1,1-trichloroethane 200 ml/m3-trichloroethene (tce) 50 ml/m3-trichloromethane 10 ml/m3-vinyl chloride 2 ml/m3monocyclic aromatic hydrocarbons (btex)-benzene 1 ml/m3-toluene 50 ml/m3-ethylbenzene 100 ml/m3-xylenes 100 ml/m3polycyclic aromatic hydrocarbons (pak)-benzo[a]pyrene0.0002 ml/m3-naphthalene 10 ml/m332 sr 814.318.142.1annex 333 33 inserted by annex no. ii 2 of the o of 26 sept. 2008 on the charge for the remediation of contaminated sites, in force since 1 jan. 2009 (as 2008 4771). revised by no ii of the o of 9 may 2012 (as 2012 2905) and no i of the o of 14 jan. 2015, in force since 1 march 2015 (as 2015 317).(art. 12 para. 1)concentration values for the assessment of the need for remediation of soil the concentration values in the table below apply in the assessment of the need for remediation of soil. where no concentration values are given in the table for potential soil pollutants which are polluting a site, the authority shall specify a value on a case by case basis with the consent of the foen and according to the provisions of the legislation on the protection of the environment.1 sites used for agricultural or horticultural purposes substanceconcentration valueinorganic substanceslead2000 mg pb/kgcadmium 30 mg cd/kgcopper1000 mg cu/kgzinc2000 mg zn/kgorganic substancespolychlorinated biphenyls (pcbs) 3 mg/kgpolycyclic aromatic hydrocarbons (pahs)* 100 mg/kgbenzo-a-pyrene 10 mg/kg*16 epa pahs: napthalene, acenaphthylene, acenaphthene, fluorene, phenanthrene, anthracene, fluoranthene, pyrene, benz[a]anthracene, chrysene, benzo[a]pyrene, benzo[b]fluoranthene, benzo[k]fluoranthene, dibenz[a,h]anthracene, benzo[g,h,i]perylene, indeno[1,2,3-c,d]pyrene2 sites in private gardens and allotments, children's playgrounds and other facilities where children play regularly substanceconcentration valueinorganic substancesantimony 50 mg sb/kgarsenic 50 mg as/kglead1000 mg pb/kgcadmium 20 mg cd/kgchromium (vi) 100 mg crvi/kgcopper1000 mg cu/kgnickel1000 mg ni/kgmercury 2 mg hg/kgsilver 500 mg ag/kgzinc2000 mg zn/kginorganic substancesvolatile chlorinated hydrocarbons* 1 mg/kgpolychlorinated biphenyls (pcbs)** 1 mg/kgaliphatic hydrocarbons c5-c10*** 5 mg/kgaliphatic hydrocarbons c11-c40 500 mg/kgmonocyclic aromatic hydrocarbons (btex)**** 500 mg/kgbenzene 1 mg/kgpolycyclic aromatic hydrocarbons (pahs)***** 100 mg/kgbenzo[a]pyrene 10 mg/kg*7 volatile chlorinated hydrocarbons: dichloromethane, trichloromethane, tetrachloromethane, cis-1,2-dichloroethylene, 1,1,1-trichloroethane, trichloroethylene (tce), tetrachlorethylene (perc)**6 pcb congeners 4.3: no. 28, 52, 101, 138, 153, 180***c5- to c10 hydrocarbons: area of the fid-chromatogram between n-pentane and ndecane, multiplied by the response factor of n-hexane, minus btex****6 btex: benzene, toluene, ethylbenzene, o-xylene, m-xylene, p-xylene*****16 epa pahs: napthalene, acenaphthylene, acenaphthene, fluorene, phenanthrene, anthracene, fluoranthene, pyrene, benz-a-anthracene, chrysene, benzo[a]pyrene, benzo[b]fluoranthene, benzo[k]fluoranthene, dibenz[a,h]anthracene, benzo[g,h,i]perylene, indeno[1,2,3-c,d]pyrene

814.681 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinance on the charge for the remediation of contaminated sites(ocrcs)of 26 september 2008 (status as of 1 january 2016) the swiss federal council,on the basis of article 32e paragraphs 1, 2 and 5 of the environmental protection act of 7 october 19831 (epa), and of article 57 paragraph 2 of the government and administration organisation act of 21 march 19972,ordains:1 sr 814.012 sr 172.010chapter 1 subject matter art. 1 this ordinance regulates:a.the levying of a charge for the deposit of waste in a landfill in switzerland and on the export of waste for deposit in a landfill abroad;b.the use of the income from the charge to provide payments for:1.the investigation, monitoring and remediation of polluted sites,2.the investigation of sites that are not found to be polluted.chapter 2 charge art. 2 obligation to pay the charge 1 the holders of landfills must pay a charge on the deposit of waste in a landfill in switzerland.2 any person who exports waste for deposit in a landfill must pay a charge. the obligation to pay the charge also applies to waste that is deposited in a landfill abroad following its export for recovery or treatment. the charge is not due if the waste deposited in the landfill is less than 15 per cent of the quantity of waste exported.3 .33 repealed by annex 6 no 10 of the waste management ordinance of 4 dec. 2015, with effect from 1 jan. 2016 (as 2015 5699).art. 3 charge rates 1 the charge rate for waste deposited in a landfill in switzerland is:a.in the case of type b landfills: chf 5 per tonne;b.in the case of type c, d and e landfills: chf 16 per tonne.42 the charge rate for waste deposited in a landfill abroad is:a.in the case of underground landfills: chf 22 per tonne;b.in the case of other landfills: as much as would be charged for the deposit of waste in a landfill in switzerland.3 .54 amended by annex 6 no 10 of the waste management ordinance of 4 dec. 2015, in force since 1 jan. 2016 (as 2015 5699).5 repealed by annex 6 no 10 of the waste management ordinance of 4 dec. 2015, with effect from 1 jan. 2016 (as 2015 5699).art. 4 origin of the right to claim the charge the charge shall become due at the time of deposit in a landfill in switzerland or at the time of export.art. 5 charge declaration 1 persons required to pay the charge must by the 28 february of each year submit a charge declaration to the federal office for the environment (foen) in respect of the charge due for the previous calendar year.2 the declaration must contain all the information required to determine the amount of the charge due. it shall be made on an official form; the foen may permit other forms. holders of landfills must send the canton a copy of the declaration.3 the declaration serves as the basis for determining the charge due; the right to conduct an official assessment is reserved.4 the persons liable to pay the charge must retain the documents relating to the declaration for a minimum of ten years.5 in the case of a delayed or incomplete declaration, default interest of 3.5 per cent per annum is payable on the amount of the charge due.art. 6 charge assessment6 1 the foen shall determine the amount of the charge in a ruling.2 if the person required to pay the charge, despite being sent a reminder, fails to submit their charge declaration to the foen or if the information required to determine the amount of the charge cannot be ascertained due to a lack of reliable documentation, the foen shall make the charge assessment according to its own best judgement.73 in doing so, the foen may base its assessment on the results of its own checks, information from the canton and historical figures.86 amended by annex 6 no 10 of the waste management ordinance of 4 dec. 2015, in force since 1 jan. 2016 (as 2015 5699).7 amended by annex 6 no 10 of the waste management ordinance of 4 dec. 2015, in force since 1 jan. 2016 (as 2015 5699).8 amended by annex 6 no 10 of the waste management ordinance of 4 dec. 2015, in force since 1 jan. 2016 (as 2015 5699).art. 6a9 period allowed for payment 1 the period allowed for payment amounts to 30 days.2 if payment is not made within the period allowed, default interest of 3.5 per cent per annum becomes due.9 inserted by annex 6 no 10 of the waste management ordinance of 4 dec. 2015, in force since 1 jan. 2016 (as 2015 5699).art. 7 additional claim if the foen has erroneously assessed the charge at an amount that is too low, it shall claim the shortfall within two years of issuing its ruling.art. 8 limitation period 1 the right to claim the charge is limited to ten years from the end of the calendar year in which it arises.2 the limitation period shall be interrupted and begin to run again:a.if the person required to pay the charge acknowledges the right to claim the charge;b.following any official act by which the right to claim the charge is asserted against the person required to pay the charge.3 the right to claim the charge is in every case limited to 15 years from the end of the calendar year in which it arises.chapter 3 subsidies section 1 subsidy requirements art. 9 principle 1 the confederation shall pay subsidies to the cantons under article 32e paragraphs 3 and 4 epa for:a.the investigation, monitoring and remediation of polluted sites;b.the investigation, monitoring and remediation of polluted sites at shooting ranges; andc.the investigation of sites that are not found to be polluted.2 it shall also pay subsidies for a clearly defined area of a polluted site if that area fulfils the requirements for a subsidy and further measures are not made more difficult or impossible.art. 10 special subsidy requirements for investigation and monitoring measures 1 for measures for the investigation and monitoring of polluted sites, subsidies shall be paid only if:a.the measures were begun after 1 july 1997;b.an application for a subsidy for a measure carried out before 1 november 2006 is submitted to the foen by 31 december 2010.2 if the person responsible for causing a polluted site cannot be identified or if he is unable to pay (art. 32e para. 3 let. b no 1 epa), subsidies shall be paid for investigation and monitoring measures:a.if the allowable investigation or monitoring costs amount to over 250 000 francs, provided a legally-binding ruling on the allocation of the costs is submitted;b.if the allowable investigation or monitoring costs amount to 250 000 francs or less, provided proper legal justification for the allocation of the costs is provided.3 for measures for the investigation of sites that are not found to be polluted, subsidies shall be paid only if the investigations were begun after 1 november 2006.art. 11 special subsidy requirements for remediation measures 1 the confederation shall pay subsidies for remediation measures only if:a.the measures were begun after 1 july 1997;b.an application for a subsidy for a measure carried out before 1 november 2006 is submitted to the foen by 31 december 2010.2 if the person responsible for causing a polluted site cannot be identified or if he is unable to pay (art. 32e para. 3 let. b no 1 epa), subsidies shall be paid for remediation measures:a.if the allowable remediation costs amount to over 250 000 francs, provided a legally-binding ruling on the allocation of the costs is submitted;b. if the allowable remediation costs amount to 250 000 francs or less, provided proper legal justification for the allocation of the costs is provided.section 2 chargeable costs art. 12 chargeable costs in the case of sites not in need of remediation 1 in the case of sites not in need of remediation, the costs of the following measures are deemed to be chargeable investigation costs:a.establishing that a site is not polluted where that site is already entered in the register or its entry in the register is planned;b.the preliminary investigation of a site requiring investigation under article 7 the contaminated sites ordinance of 26 august 199810 (cso).2 in the case of sites not in need of remediation, the costs of the following measures under article 13 paragraph 1 cso are deemed to be chargeable monitoring costs:a.planning the monitoring measures;b.construction, operation, maintenance and dismantling of the monitoring equipment;c.sampling and analysis.10 sr 814.680art. 13 chargeable costs in the case of sites in need of remediation in the case of sites in need of remediation, the costs of the following measures are deemed to be chargeable remediation costs:a.a preliminary investigation (art. 7 cso11) and detailed investigation (art. 14 cso) as well as monitoring (art. 13 para. 2 let. b cso) in accordance with article 12 paragraph 2;b.preparation of a remediation project (art. 17 cso);c.decontamination including disposal of waste (art. 16 let. a cso);d.construction, operation, maintenance and dismantling of installations and equipment for the long-term prevention and monitoring of the diffusion of environmentally hazardous substances (art. 16 let. b cso); e.proof that the remediation objectives have been achieved (art. 19 para. 1 cso).11 sr 814.680section 3 procedure art. 14 consultation of the foen 1 the canton shall consult the foen before it orders an investigation, monitoring or remediation measure.2 the foen need not be consulted in accordance with paragraph 1 if any one of the requirements of article 16 paragraph 3 is fulfilled.art. 15 application for a subsidy the canton shall submit any application for a subsidy to the foen. this must contain:a.proof that the measures fulfil the requirements of articles 9-11;b.the main principles and elements of the project;c.the official assessment of whether the measures are environmentally compatible and cost-effective and correspond to the state of the art;d.the probable costs of the measures and the probable chargeable costs;e.a copy of the ruling on the allocation of the costs or if applicable proper legal justification for the allocation of the costs if the person responsible cannot be identified or is unable to payart. 16 confirmation and payment of subsidy 1 if the requirements for the subsidy are fulfilled, the foen shall confirm that the subsidy will be paid within the scope of the available resources and shall indicate the probable amount of the subsidy.2 it shall order that the subsidies be paid if:a.it has received a summary audited by the canton of the total of the chargeable costs of the measures actually incurred; b.the income from the charge covers the resources required.3 if the implementation of the measures has begun before confirmation is issued, the foen may in application of article 26 paragraph 3 second sentence of the subsidies act of 5 october 199012 grant a subsidy in particular if:a.the investigation, monitoring or remediation measure costs less than 250 000 francs; orb.new information comes to light during the implementation of structural measures or other measures under the cso13 about the level of pollution at the site or about the costs of the measures required.4 if the income from the charge does not cover all the resources required, the foen shall when paying subsidies consider as a priority projects that were urgently required for reasons of environmental protection or in which a substantial ecological benefit was achieved when compared to the cost. projects that have been postponed shall be given first priority in the following years.12 sr 616.113 sr 814.680chapter 4 enforcement art. 17 responsibilities 1 the foen shall enforce this ordinance and shall provide information each year on the charges levied and the subsidies.2 it may delegate the official assessment of the charge declaration (art. 5 para. 3) wholly or in part to suitable public corporations or private entities. this assessment shall be funded from the income from the charge.3 the cantons shall support the foen in the enforcement of this ordinance. in particular, they shall notify the foen without delay if they establish that persons obliged to pay the charge have provided incomplete or false information.art. 1814 14 repealed by no. i 7.3 of the ordinance of 9 nov. 2011, with effect from 1 january 2012 (as 2011 5227).chapter 5 final provisions art. 19 repeal and amendment of current legislation the repeal and amendment of the current legislation is regulated in the annex.art. 2015 transitional provision the charge rate under article 3 paragraph 1 applies from 1 january 2017. until 1 january 2017, the charge rate for waste deposited in a landfill in switzerland is:a.in the case of type b landfills: chf 3 per tonne;b.in the case of type c landfills: chf 17 per tonne;c.in the case of type d and e landfills: chf 15 per tonne.15 amended by annex 6 no 10 of the waste management ordinance of 4 dec. 2015, in force since 1 jan. 2016 (as 2015 5699).art. 21 commencement this ordinance comes into force on 1 january 2009.annex (art. 19)repeal and amendment of current legislation ithe ordinance of 5 april 200016 on the charge for the remediation of contaminated sites is repealed.iithe following ordinances are amended as follows:.17168 [as 2000 1398, 2007 4525 no. ii 6]17 the amendments may be consulted under as 2008 4771.

814.91 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.federal acton non-human gene technology(gene technology act, gta)of 21 march 2003 (status as of 1 january 2018)the federal assembly of the swiss confederation,based on articles 74 paragraph 1, 104 paragraphs 2 and 3 letter b, 118 paragraph 2 letter a and 120 paragraph 2 of the federal constitution1,2in implementation of the convention of 5 june 19923 on biological diversity and the cartagena protocol of 29 january 20004 on biosafety to the convention on biodiversity,and having considered the dispatch of the federal council dated 1 march 20005and the report of the council of states' committee for science, education and culture dated 30 april 20016 7decrees:1 sr 1012 amended by no i of the fa of 16 june 2017, in force since 1 jan. 2018 (as 2017 6667; bbl 2016 6521).3 sr 0.451.434 sr 0.451.4315 bbl 2000 23916 official bulletin of the federal assembly (ab), enclosures, council of states summer session 2001, p. 22.7 amended by no i of the fa of 19 march 2010, in force since 1 aug. 2010 (as 2010 3233; bbl 2009 5435).chapter 1 general provisions art. 1 purpose 1 the purpose of this act is:a.to protect human beings, animals and the environment from abuses of gene technology;b.to serve the welfare of human beings, animals and the environment in the application of gene technology.2 in particular, it shall:a.protect the health and safety of human beings, animals and the environment;b.conserve biological diversity and the fertility of the soil permanently;c.ensure respect for the dignity of living beings;d.enable freedom of choice for consumers; e.prevent product fraud;f.promote public information;g.take account of the significance of scientific research on gene technology for human beings, animals and the environment.art. 2 precautionary and polluter-pays principles 1 early precautions shall be taken to prevent hazards or harm that may be caused by genetically modified organisms.2 any person who causes measures to be taken under the provisions of this act shall bear the costs. art. 3 area of validity 1 this act applies to the handling of genetically modified animals, plants and other organisms, as well as their metabolic products and wastes.2 for products obtained from genetically modified organisms, only the regulations on labelling and provision of public information (art. 17 and 18) apply.art. 4 reservation of other laws more detailed provisions in other federal laws concerning the protection of human beings, animals and the environment from hazards or harm caused by genetically modified organisms are reserved.art. 5 definitions 1 organisms means cellular or non-cellular biological entities capable of replication or of transferring genetic material. mixtures, articles and products that contain such entities are also regarded as organisms.2 genetically modified organism means organisms in which the genetic material has been altered in a way that does not occur under natural conditions by crossing or natural recombination.3 harm means any harmful effect or nuisance caused by genetically modified organisms to human beings, animals or the environment.4 handling means any activity undertaken in connection with organisms, in particular their production, experimental release, putting into circulation, import, export, keeping, use, storage, transport or disposal.5 putting into circulation means any supply of organisms to third parties in switzerland, in particular by sale, exchange, giving as a gift, renting, lending or sending on approval, as well as their import; supply for activities in contained systems or experimental release does not count as putting into circulation.6 installations means buildings, traffic routes and other fixed installations, as well as modifications to the land. appliances, machines, vehicles, ships and aircraft are also regarded as installations.chapter 2 handling genetically modified organisms section 1 general principles art. 6 protection of human beings, animals, environment and biological diversity 1 genetically modified organisms may only be handled in such a way that they, their metabolic products or wastes: a.cannot endanger human beings, animals or the environment;b.do not harm biological diversity or the sustainable use thereof.2 genetically modified organisms may be released for experimental purposes if:a.the information sought cannot be obtained through experiments in contained systems;b.the experiment also contributes to research on the biosafety of genetically modified organisms;c.they do not contain genes inserted by gene technology which cause resistance to antibiotics used in human or veterinary medicine; and d.according to the current state of knowledge, the dispersal of these organisms and their new traits can be excluded and the principles of paragraph 1 cannot otherwise be contravened.3 genetically modified organisms lawfully intended for use in the environment may only be put into circulation if they do not contain gene technologically inserted resistance genes to antibiotics used in human or veterinary medicine, and if experiments in contained systems and field trials have shown that they:a.do not harm the population of protected organisms or organisms that are important for the ecosystem in question;b.do not lead to the unintended extinction of a species of organism;c.do not severely or permanently harm the material balance of the environment;d.do not severely or permanently harm any important functions of the ecosystem in question, and in particular the fertility of the soil;e.do not disperse or spread their traits in an undesired way; and f.do not otherwise contravene the principles of paragraph 1.4 hazards and harm must be evaluated both individually and as a whole and in terms of their interaction; connections to other hazards and harm from causes other than genetically modified organisms should also be considered.art. 7 protection of production without genetically modified organisms and freedom of choice genetically modified organisms may be handled only in such a way that they, their metabolic products or wastes do not impair production that does not involve genetically modified organisms, or limit consumers' freedom of choice.art. 8 respect for the dignity of living beings 1 in animals and plants, modification of the genetic material by gene technology must not violate the dignity of living beings. in particular, violation is deemed to have occurred if such modification substantially harms species-specific properties, functions or habits, unless this is justified by overriding legitimate interests. in evaluating the harm, the difference between animals and plants must be taken into consideration. 2 whether the dignity of living beings has been respected is determined on a case-by-case basis, by evaluating the severity of the harm suffered by animals or plants against the significance of the legitimate interests. legitimate interests are, in particular: a.human and animal health;b.guaranteeing food security;c.the reduction of harm caused to the environment;d. the preservation and improvement of environmental conditions;e.securing a substantial economic, social or environmental benefit for society;f.increasing knowledge.3 the federal council determines the conditions under which genetic modifications to the genetic material are exceptionally permissible without a weighing of interests.art. 9 genetic modification of vertebrates genetically modified vertebrates may only be produced and put into circulation for purposes of research, therapy, or diagnostics in human or veterinary medicine. art. 10 activities in contained systems 1 any person who handles genetically modified organisms which may not be released for experimental purposes (art. 11) nor put into circulation (art. 12) is required to take all containment measures necessary in particular due to the hazards for human beings, animals or the environment that these organisms represent.2 the federal council shall introduce a notification or authorisation procedure for activities in contained systems.art. 11 experimental releases 1 any person who intends to release for experimental purposes genetically modified organisms which may not be put into circulation for use in the environment (art. 12) requires federal authorisation.2 the federal council determines the requirements and the procedure. in particular, it regulates:a.the consultation of experts;b.the guarantee of funding for measures with which any hazards or harm can be identified, averted or eliminated;c.the provision of information for the public.art. 12 putting into circulation 1 genetically modified organisms may be put into circulation only if the confederation has granted authorisation.2 the federal council determines the requirements and the procedure, and regulates the provision of information to the public. art. 12a8 opposition procedure 1 applications for authorisations for experimental releases of genetically modified organisms and for putting into circulation genetically modified organisms for lawful use in the environment are published by the authorising authority in the official federal gazette and made available for public inspection for 30 days.2 any person who is a party in accordance with the federal act of 20 december 19689 on administrative procedure may file opposition with the authorising authority during the inspection period. a party who fails to file opposition is excluded from subsequent proceedings.8 inserted by no i of the fa of 19 march 2010, in force since 1 aug. 2010 (as 2010 3233; bbl 2009 5435).9 sr 172.021art. 13 inspection of authorisations 1 authorisations are regularly inspected to determine whether they may continue to apply.2 authorised persons must voluntarily inform the authorising authority of new findings that could lead to a re-evaluation of hazards or harm as soon as they become aware of these findings.art. 14 exceptions to the notification or authorisation requirement; self-supervision 1 the federal council may simplify the requirement to notify or obtain authorisation or may grant exemptions if, according to the current state of knowledge or experience, a violation of the principles of articles 6-9 can be excluded.2 if there is no authorisation requirement for an activity in contained systems or for putting into circulation certain genetically modified organisms, the person or company responsible shall monitor compliance with the principles of articles 6-9 themselves. the federal council enacts regulations covering the form, extent and monitoring of the self-supervision.section 2 special provisions art. 15 informing the recipients 1 any person putting organisms into circulation must:a.inform the recipient of the properties that are significant for the implementation of articles 6-9;b. instruct the recipient in such a way that the principles of articles 6-9 are not violated if the organisms are handled appropriately.2 instructions from producers and importers must be followed.3 the supply to agricultural or forestry enterprises10 of genetically modified organisms that are subject to a labelling requirement requires the written permission of the enterprise owner.10 expression in accordance with no i of the fa of 19 march 2010, in force since 1 aug. 2010. (as 2010 3233; bbl 2009 5435). this amendment has been made throughout the text.art. 16 product flow segregation 1 any person handling genetically modified organisms must take appropriate care to avoid undesired mixing with non-genetically modified organisms.2 the federal council enacts regulations on product flow segregation and on measures to prevent contamination, taking account of international recommendations and foreign trade relations.art. 17 labelling 1 any person putting genetically modified organisms into circulation must label them as such for the benefit of the recipient, in order to ensure freedom of choice for the consumer under article 7 and to prevent product fraud. the labelling must contain the words "genetically modified". the federal council determines the details.2 the federal council lays down threshold values below which labelling is unnecessary for mixtures, articles and products that unintentionally contain traces of genetically modified organisms.3 traces of genetically modified organisms are considered to be unintentional if the person responsible for providing labelling proves that the product flows have been carefully monitored and recorded.4 the federal council regulates the labelling of products, in particular of foodstuffs and additives obtained from genetically modified organisms.5 it regulates how organisms that are not genetically modified may be labelled as such when they are put into circulation. it also enacts regulations concerning protection from any misuse of such labelling.6 in enacting the provisions of this article, the federal council takes account of international recommendations and foreign trade relations.art. 18 access to files and public information 1 the right to access information in official documents relating to the handling of genetically modified organisms or products obtained from them is governed by article 10g of the environmental protection act of 7 october 198311.122 after consulting the affected party, the authorities may publish information gathered during enforcement (art. 24 para. 1) and results from surveys or monitoring, insofar as these are of general interest. they may pass on this information in accordance with a federal act or international agreement to a foreign authority or international organisation. manufacturing and trade secrecy are reserved. 11 sr 814.0112 amended by art. 2 no 3 of the federal decree of 27 sept. 2013 (aarhus convention), in force since 1 june 2014 (as 2014 1021; bbl 2012 4323).art. 19 further federal council regulations 1 the federal council enacts further regulations governing the handling of genetically modified organisms, their metabolic products and wastes if, due to their properties, methods of use or quantities used, the principles of articles 6-9 could be contravened.2 in particular, it may:a.regulate their transport, import, export and transit;b.ban or restrict the handling of certain organisms or establish an authorisation procedure for handling them;c.prescribe measures to combat certain organisms or to prevent their occurrence;d.prescribe measures to prevent any harm to biological diversity and to its sustainable use;e.prescribe long-term studies of the handling of certain organisms;f.hold public consultations in connection with authorisation procedures.chapter 3 enforcement art. 20 enforcement powers 1 the confederation enforces this act. the federal council enacts implementing regulations.2 the federal council may delegate certain enforcement tasks under this act to the cantons insofar as these tasks have not already been allocated to them under other federal acts, relating in particular to the handling of articles and products.3 the federal council may also pass on certain enforcement tasks to organisations and persons under public or private law.4 the costs of measures that the authorities take to avert immediate hazards or harm, and the costs incurred in determining and remediating the same are passed on to the perpetrator.art. 21 coordination of enforcement 1 the federal authority carrying out the enforcement of regulations on genetically modified organisms on the basis of another federal act or an international treaty, is also responsible in doing so for enforcing this act. the federal authorities make their decisions with the agreement of the other federal agencies concerned and, where federal law provides, after consulting the cantons concerned.2 if the handling of genetically modified organisms is subject, in addition to a federal notification or authorisation procedure, to a cantonal planning and authorisation procedure, the federal council designates a competent authority to coordinate these procedures. art. 22 swiss expert committee for biosafety 1 the federal council appoints a swiss expert committee for biosafety, comprising experts from the various interested sectors. the interests of protection and use must be appropriately represented.2 the expert committee advises the federal council on issues of biosafety that arise in enacting regulations, and the authorities on their enforcement. it is consulted on authorisation applications. it may publish recommendations on these applications; in important and justified cases, it may commission expert opinions and inquiries.3 it collaborates with other federal and cantonal committees concerned with issues of biotechnology.4 it engages in public dialogue, and makes periodic reports to the federal council about its activities.art. 23 federal ethics committee on non-human biotechnology 1 the federal council appoints a federal ethics committee on non-human biotechnology. it comprises ethicists from outside the government and other persons from a range of subject areas who have scientific or practical knowledge of ethics. different ethical approaches must be represented in the committee.2 the committee pursues and evaluates from an ethical point of view the developments and applications of biotechnology and issues statements on associated scientific and social issues from an ethical point of view. 3 it advises:a.the federal council on enacting regulations;b.federal and cantonal authorities on enforcement. in particular, it issues statements on authorisation applications or planned research of fundamental or exemplary significance; for this purpose it may view documents, request information and consult further experts.4 it collaborates with other federal and cantonal committees concerned with issues of biotechnology.5 it engages in public dialogue on ethical issues of biotechnology, and makes periodic reports to the federal council about its activities. art. 24 duty to provide information; confidentiality 1 every person is obliged to provide the information required for enforcement to the authorities and if necessary to carry out or permit inquiries.2 the federal council may require registers with data about the type, quantity and evaluation of genetically modified organisms to be kept, stored and made available at the request of the authorities.3 the confederation carries out surveys of the handling of genetically modified organisms. the federal council determines which data about genetically modified organisms, recorded in pursuance of other federal acts, must be provided to the federal authority carrying out the survey.4 where there is a legitimate interest in keeping data secret, such as information about trade and manufacturing secrets, such data is treated as confidential.art. 24a13 environmental monitoring 1 the confederation shall organise the development and operation of a monitoring system that can detect the undesirable spread of genetically modified organisms and identify at an early stage potential effects on the environment and biological diversity of genetically modified organisms and their transgenic genetic material.2 the cantons shall provide the confederation with available information and data that is of significance to the environmental monitoring.13 inserted by no i of the fa of 16 june 2017, in force since 1 jan. 2018 (as 2017 6667; bbl 2016 6521).art. 25 fees the federal council sets the fees for enforcement by the federal authorities and may determine the framework for cantonal fees. it may grant exemptions from fee payment. art. 26 promotion of research, public dialogue and education 1 the confederation may commission or support research and technology assessments.2 it promotes public knowledge and public dialogue concerning the uses, opportunities and risks of biotechnology.3 it may promote the basic and continuing education and training of persons entrusted with tasks under this act.1414 the amendment in accordance with the federal act of 20 june 2014 on continuing education and training, in force since 1 jan. 2017, relates only to the french and italian texts (as 2016 689; bbl 2013 3729).chapter 4 legal procedures art. 2715 appeal procedure the appeal procedure is governed by the general provisions on the administration of federal justice. 15 amended by annex no. 93 of the administrative court act of 17 june 2005, in force since 1 jan. 2007 (as 2006 2197; bbl 2001 4202).art. 28 appeal by organisations 1 national environmental protection organisations have a right of appeal against authorisations for putting into circulation genetically modified organisms intended for lawful use in the environment, provided that the organisations were set up at least 10 years before the appeal is filed.2 the federal council designates the organisations with right of appeal.art. 29 appeal by the authorities 1 the federal office for the environment16 has the right to avail itself of cantonal and federal law in contesting decisions by cantonal authorities in application of this act and its implementing regulations.2 the same right of appeal is also accorded to the cantons, insofar as harm to their territory from neighbouring cantons is disputed. 16 the title of this administrative unit was modified by art. 16 para. 3 of the publications ordinance of 17 nov. 2004 (17nov.2004(as20044937).chapter 5 liability art. 30 principles 1 any person subject to the authorisation or notification requirement who handles genetically modified organisms in contained systems, releases such organisms for experimental purposes or puts them into circulation without permission is liable for any loss or damage that occurs during this handling that is due to the genetic modification.2 the person subject to the authorisation requirement is solely liable for any loss or damage that occurs to agricultural or forestry enterprises or to consumers of products of these enterprises through the permitted putting into circulation of genetically modified organisms that is a result of the modification of genetic material if the organisms:a.are contained in agricultural or forestry inputs17; orb.stem from such inputs.3 in relation to liability under paragraph 2, recourse against persons who have handled such organisms inappropriately or have otherwise contributed to the occurrence or exacerbation of the loss or damage is reserved.4 if any loss or damage is caused by any other permitted putting into circulation of genetically modified organisms as a result of the modification of the genetic material, the person subject to the authorisation requirement is liable if the organisms are defective. he or she is also liable for a defect which, according to the state of knowledge and technology at the time when the organism was put into circulation, could not have been recognised.5 genetically modified organisms are defective if they do not provide the safety that is to be expected taking all circumstances into account; in particular:a.the way in which they are presented to the public;b.the use that can reasonably be expected;c.the time at which they were put into circulation.6 a product made from genetically modified organisms is not considered defective for the sole reason that an improved product has later been put into circulation.7 the loss or damage must have been caused as a result of:a.the new properties of the organisms;b.the reproduction or modification of the organisms; orc.the transmission of the modified genetic material of the organisms.8 a person is exempt from liability if he or she can prove that the loss or damage was caused by an act of god or through gross misconduct by the injured party or a third party.9 articles 42-47 and 49-53 of the swiss code of obligations18 apply.10 the confederation, cantons and communes are also liable in accordance with paragraphs 1-9.17 expression in accordance with no i of the fa of 19 march 2010, in force since 1 aug. 2010 (as 2010 3233; bbl 2009 5435). this amendment has been made throughout the text.18 sr 220art. 31 damage to the environment 1 the person who is liable for handling genetically modified organisms must also reimburse the costs of necessary and appropriate measures that are taken to repair destroyed or damaged environmental components, or to replace them with components of equal value.2 if the destroyed or damaged environmental components are not the object of a right in rem or if the eligible person does not take the measures that the situation calls for, the damages are awarded to the community responsible.art. 32 limitation 1 the right to claim damages expires after three years from the time when the injured party becomes aware of the loss or damage and of the person liable, but at the latest after 30 years from:a.the time that the event that caused the loss or damage occurred in the company or installation, or ended; orb.the date on which the genetically modified organisms were put into circulation.2 the right to recourse is also limited in accordance with paragraph 1. the three-year term begins as soon as damages have been paid in full and the person who shares liability is known.art. 33 simplification of proof 1 it is the responsibility of the person claiming damages to prove a causal connection. 2 if this proof cannot be provided with certainty or if production of proof cannot be expected of the claimant, the court may satisfy itself on the balance of probabilities. the court may also have the facts determined ex officio.art. 34 guarantee the federal council may, to protect the injured party:a.require the person subject to the notification or authorisation requirement to provide a guarantee for their liability by taking out insurance or in some other way;b.set the scope and duration of this guarantee or leave this to the authority to decide on a case-by-case basis;c.require those providing a guarantee for the liability to notify the enforcement authority of the existence, suspension or cessation of the guarantee;d.require that the guarantee is not suspended or does not cease until 60 days after receipt of the notification.chapter 6 criminal provisions and administrative measures19 19 amended by no i of the fa of 16 june 2017, in force since 1 jan. 2018 (as 2017 6667; bbl 2016 6521). art. 35 criminal provisions20 1 any person who wilfully:a.handles genetically modified organisms in such a way that the principles of articles 6-9 are violated;b.in handling genetically modified or pathogenic organisms fails to take all necessary containment measures or carries out activities in contained systems without notification or authorisation (art. 10);c.releases genetically modified organisms for experimental purposes or puts them into circulation without permission (art. 11 para. 1 and 12 para. 1);d.21puts genetically modified organisms into circulation without informing and instructing the recipient appropriately (art. 15 para. 1);e.handles genetically modified organisms contrary to instructions (art. 15 para. 2);f.violates provisions on product flow segregation and on the precautions to prevent contamination (art. 16);g.22puts genetically modified organisms into circulation without labelling them as such for the recipient (art. 17 para. 1);h.violates the provisions on the labelling of products obtained from genetically modified organisms (art. 17 para. 4);i.puts genetically modified organisms into circulation and labels them as not genetically modified (art. 17 para. 5);j.violates special provisions on the handling of genetically modified organisms (art. 19).is liable to a custodial sentence not exceeding three years or to a monetary penalty.232 .243 if the offender acts through negligence, he or she is liable to a monetary penalty not exceeding 180 daily penalty units.2520 inserted by no i of the fa of 16 june 2017, in force since 1 jan. 2018 (as 2017 6667; bbl 2016 6521).21 amended by no i of the fa of 19 march 2010, in force since 1 aug. 2010 (as 2010 3233; bbl 2009 5435).22 amended by no i of the fa of 19 march 2010, in force since 1 aug. 2010 (as 2010 3233; bbl 2009 5435).23 amended by no i of the fa of 19 march 2010, in force since 1 aug. 2010 (as 2010 3233; bbl 2009 5435).24 repealed by no i of the fa of 19 march 2010, with effect from 1 aug. 2010 (as 2010 3233; bbl 2009 5435).25 amended by no i of the fa of 19 march 2010, in force since 1 aug. 2010 (as 2010 3233; bbl 2009 5435).art. 35a26 administrative measures the following administrative measures may be taken in respect of infringements of this act, its implementing provisions or decisions issued on the basis thereof:a.prohibition of activities;b.withdrawal of authorisations;c.substitute performance against reimbursement of costs;d.confiscation;e.forfeiture and destruction;f.a charge of up to chf 10,000 or the value of the gross receipts from products put unlawfully into circulation.26 inserted by no i of the fa of 16 june 2017, in force since 1 jan. 2018 (as 2017 6667; bbl 2016 6521).chapter 7 final provisions art. 36 amendment of current legislation the amendment of current legislation is regulated in the annex.art. 37 transitional period for the use of antibiotic resistance genes resistance genes to antibiotics used in human and veterinary medicine may be used in field trials until 31 december 2008.art. 37a27 transitional period for putting genetically modified organisms into circulation no authorisations may be granted until 31 december 2021 for putting into circulation genetically modified plants and parts of plants, genetically modified seeds and other plant propagation material and genetically modified animals for agricultural, horticultural or silvicultural purposes. 27 inserted by no i of the fa of 19 march 2010 as 2010 3233; bbl 2009 5435). amended by no i of the fa of 16 june 2017, in force since 1 jan. 2018 (as 2017 6667; bbl 2016 6521).art. 38 referendum and commencement 1 this act is subject to optional referendum.2 the federal council determines the commencement date.commencement date: 1 january 200428 annex no. 4 art. 54 para. 2 second sentence: 1 august 200529annex no. 3 art. 7a, 7c and 29 no. 1 let. abis and aquater: 2 may 200630the other articles in annex no. 3: at a later date28 federal council decree of 19 nov. 2003.29 as 2005 2601 229330 as 2006 1425annex (art. 36)amendment of current legislation .3131 the amendments may be consulted under as 2003 4803.

814.912english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinanceon handling organisms in contained systems(containment ordinance, containo)of 9 may 2012 (status as of 1 january 2020)the swiss federal council,on the basis of articles 29b paragraphs 2 and 3, 29f, 38 paragraph 3, 39 paragraph 1, 41 paragraphs 2 and 3, 44 paragraph 3, 46 paragraphs 2 and 3, 48 paragraph 2 and 59b of the environmental protection act of 7 october 19831 (epa), and articles 10 paragraph 2, 14, 19, 20, 24 paragraphs 2 and 3, 25 and 34 of the gene technology act of 21 march 20032 (gta), on articles 26 paragraphs 2 and 3, 29 and 78 paragraph 1 of the epidemics act of 28 september 20123and in implementation of article 8 letters g, h and l and article 19 paragraph 4 of the convention of 5 june 19924 on biological diversity,5ordains:1 sr 814.012 sr 814.913 sr 818.1014 sr 0.451.435 amended by no i of the o of 27 sept. 2019, in force since 1 jan. 2020 (as 2019 3131).chapter 1 general provisions art. 1 aim this ordinance is intended to protect human beings, animals and the environment, as well as biological diversity and its sustainable use, from hazards or harm caused by handling organisms, their metabolic products and wastes in contained systems.art. 2 subject matter and scope of application 1 this ordinance regulates the handling of organisms, in particular genetically modified, pathogenic or alien organisms, in contained systems.2 the transport of organisms intended for handling in contained systems is governed by articles 4, 15 and 25 only.3 handling organisms in the environment is governed by the release ordinance of 10 september 20086.4 the protection of people and the environment against serious damage resulting from major accidents involving microorganisms is regulated by the major accidents ordinance of 27 february 19917.85 the protection of employees when handling microorganisms is governed by the ordinance of 25 august 19999 on the protection of employees from dangerous microorganisms.6 this ordinance does not apply to the handling of organisms: a.in accordance with the ordinance of 20 september 201310 on clinical trials in human research;b.in the case of personal use of medical devices for the purposes of in-vitro diagnostics, the dispensing of which is authorised in accordance with article 17 paragraph 3 of the medical devices ordinance of 17 october 200111.126 sr 814.9117 sr 814.0128 amended by no iii 2 of the o of 29 april 2015, in force since 1 june 2015 (as 2015 1337). 9 sr 832.32110 sr 810.30511 sr 812.21312 amended by no i of the o of 27 sept. 2019, in force since 1 jan. 2020 (as 2019 3131).art. 3 definitions in this ordinance:a.organisms means cellular or non-cellular biological entities capable of replication or of transferring genetic material, and in particular animals, plants and microorganisms. mixtures, articles and products containing such entities are also regarded as organisms;b.microorganisms means microbiological entities, in particular bacteria, algae, fungi, protozoa, viruses and viroids; cell cultures, parasites, prions and biologically active genetic material are also regarded as microorganisms;c.small invertebrates means arthropods, annelids, nematodes and flatworms;d.genetically modified organisms means organisms in which the genetic material has been altered by methods of gene technology in accordance with annex 1 in a way that does not occur under natural conditions by crossing or natural recombination, as well as pathogenic or alien organisms that have also been genetically modified;e.pathogenic organisms means organisms that can cause diseases in human beings, domesticated animals and plants, in wild flora or fauna or other organisms, as well as alien organisms that are also pathogenic;f.alien organisms means organisms of a species, sub-species or lower taxonomic level that:1.do not naturally occur in switzerland or in other efta and eu member states (not including overseas areas),2.have not undergone selection for use in agriculture or horticultural production to such an extent that their viability in the wild is reduced;g.invasive alien organisms means alien organisms of which it is known or must be assumed that they will spread in switzerland and could achieve such a high population density that biological diversity or its sustainable use could be harmed or human beings, animals and the environment could be endangered;h.contained system means a system that uses physical barriers or a combination of physical and chemical or biological barriers to limit or prevent contact between organisms and people or the environment;i.handling means any deliberate activity involving organisms, and in particular use, processing, propagation, modification, detection, transport, storage or disposal;j.13improper use means the handling of organisms subject to a containment obligation which illegally and intentionally endangers or harms humans, animals, the environment or biological diversity and their sustainable use.13 amended by no i of the o of 27 sept. 2019, in force since 1 jan. 2020 (as 2019 3131).chapter 2 requirements for handling organisms in contained systems section 1 general requirements art. 4 duty of care 1 any person handling organisms in contained systems must take all due care to ensure that organisms, their metabolic products or wastes:a.cannot endanger people, animals or the environment;b.do not harm biological diversity or its sustainable use.2 the relevant regulations and the distributor's instructions and recommendations must be observed.3 compliance with the duty of care must be clearly documented. the documentation must be retained for ten years following the conclusion of the activity and must be made available on request to the enforcement authorities.art. 5 containment obligation and prior assessments 1 the following organisms must be handled only in contained systems unless they may be handled in the environment in accordance with the release ordinance of 10 september 2008,14 the plant protection products ordinance of 12 may 201015 or the biocidal products ordinance of 18 may 200516:a.genetically modified organisms;b.pathogenic organisms;c.17organisms subject to a containment obligation:1.alien small invertebrates,2.invasive alien organisms as defined in annex 2 of the release ordinance, and3.harmful organisms that are considered particularly dangerous in accordance with the ordinance issued by the federal department of economic affairs, education and research and the federal department of the environment, transport, energy and communications based on articles 4 paragraph 3, 24 paragraph 2 and 29 paragraph 2 of the plant health ordinance of 31 october 201818, and organisms that are considered potential quarantine organisms in accordance with the ordinance issued by the federal office for agriculture (foag) and the federal office for the environment (foen) based on article 5 paragraph 2 of the plant health ordinance.2 any person who handles organisms in contained systems must first determine and assess the risk of the occurrence of the organisms (allocate the organisms to a group) and thereafter determine and assess the risk due to the planned activities with the organisms (classify the activities).3 any person who handles genetically modified animals and plants in contained systems must first ensure by weighing the interests in accordance with article 8 gta that the dignity of living beings is respected.14 sr 814.91115 sr 916.16116 sr 813.1217 amended by annex 8 no 4 of the plant health ordinance of 31 october 2018, in force since 1 jan. 2020 (as 2018 4209).18 sr 916.20art. 5a19 primary detection outside contained systems 1 where a pathogenic organism with the potential to do considerable harm naturally occurs on a frequent basis, is released intentionally or unintentionally or if it is suspected that it has been released, its primary detection may take place exceptionally outside of contained systems if:a.there is no threat to humans, animals, the environment or biological diversity;b.the analyses are carried out in order help an assessment of the situation;c.appropriate security measures are respected; andd.the rapid detection systems used can be shown to be reliable.2 detection as defined in paragraph 1 is only permissible if carried out by employees of the following competent authorities who possess the requisite specialist expertise: a.the cantonal emergency services for b-incidents in accordance with article 3 letter e of the ordinance of 29 april20 on microbiological laboratories;b.the competent veterinary authorities responsible for measures to combat disease in accordance with article 63 of the epizootic diseases ordinance of 27 june 199521;c.the federal or cantonal plant protection services responsible for preventive measures in accordance with article 10, for monitoring in accordance with article 18 and for surveying in accordance with article 19 of the plant health ordinance of 31 october 201822 (pho);d.the establishments authorised in accordance with article 76 pho to conduct assessments in accordance with article 84 pho.19 inserted by no i of the o of 27 sept. 2019, in force since 1 jan. 2020 (as 2019 3131).20 sr 818.101.3221 sr 916.40122 sr 916.20art. 6 grouping of organisms 1 in order to determine the risk of an occurrence of organisms, the extent and probability of harmful effects to human beings, animals or the environment and to biological diversity and its sustainable use must be estimated. in doing so, the criteria in annex 2.1 number 1 must be taken into account.2 in order to assess the risks determined, the organisms must be allocated to one of the following groups according to the criteria in annex 2.1 number 2:a.group 1: organisms whose occurrence presents no risk or a negligible risk;b.group 2: organisms whose occurrence presents a low risk;c.group 3: organisms whose occurrence presents a moderate risk;d.group 4: organisms whose occurrence presents a high risk.3 if certain organisms have already been grouped according to the list in article 26, no new risk determination and assessment need be carried out unless there are indications of an increased or reduced risk in an occurrence of these organisms. in the event of significant new findings, the risk must be determined and assessed again.art. 7 classification of activities 1 in order to determine the risk of a planned activity with organisms in the contained system, the extent and probability of harmful effects to human beings, animals or the environment, biological diversity and its sustainable use must be estimated. in doing so, the group of organisms concerned, the nature of the planned activity and the environmental conditions according to the criteria in annex 2.2 number 1 must be taken into account.2 in order to assess the risks determined, the planned activity must be allocated to one of the following classes according to the criteria in annex 2.2 number 2:a.class 1: activities with no risk or a negligible risk;b.class 2: activities with a low risk;c.class 3: activities with a moderate risk;d.class 4: activities with a high risk.3 the risk must be determined and assessed again if the activity is modified or significant new findings are made.4 in activities where employees may be exposed to microorganisms, the risk determination and assessment in accordance with this ordinance may be combined with the risk assessment in accordance with articles 5-7 of the ordinance of 25 august 199923 on the protection of employees from dangerous organisms.23 sr 832.321section 2 requirements for handling genetically modified or pathogenic organisms or alien organisms subject to a containment obligation art. 8 notification of class 1 activities 1 any person who wishes to carry out class 1 activities with genetically modified organisms must notify this globally, at the latest when beginning the activities.2 any change in the globally notified activities or their termination must be notified.art. 9 notification of class 2 activities 1 any person who wishes to carry out a class 2 activity with genetically modified or pathogenic organisms or alien organisms subject to a containment obligation must notify this at the latest when beginning the activity.2 any technical or administrative change in the notified activity or its termination must be notified.3 if an authorisation is required under article 49 paragraph 2 of the epizootic diseases ordinance of 27 june 199524 (ezdo), this must be obtained before starting the activity.24 sr 916.401art. 10 authorisation of activities in classes 3 and 4 1 any person who wishes to carry out a class 3 or a class 4 activity with genetically modified or pathogenic organisms or alien organisms subject to a containment obligation requires authorisation.2 any technical change in the authorised activity requires further authorisation.3 any administrative change must be notified.art. 11 submission to the authorities 1 notifications and authorisation applications must be submitted to the federal coordination centre for biotechnology.2 notifications and authorisation applications must include the information listed in annex 3. in the information, procedures and methods related in their nature, extent and purpose may be summarised.3 the information must be entered directly into the ecogen electronic database (art. 27a).25 25 amended by no i of the o of 27 sept. 2019, in force since 1 jan. 2020 (as 2019 3131).art. 12 safety measures 1 any person involved in the contained handling of genetically modified or pathogenic organisms or alien organisms subject to a containment obligation must:a.ensure in the case of activities in classes 1 and 2 that any escape by these organisms is limited to the extent that human beings, animals and the environment as well as biological diversity and its sustainable use cannot be endangered;b.ensure in the case of activities in classes 3 and 4 that these organisms cannot escape.2 the general safety measures listed in annex 4 and the special safety measures required according to the type and class of activity must be taken, and an operational safety concept must be devised which takes appropriate account of whether organisms could potentially be put to improper use. the safety measures taken must take account of the risk determined in the individual case and the state of the art of safety technology.26 3 the competent federal office may order in specific cases that:a.individual special safety measures accordingly specified in annex 4 may be modified, replaced or omitted if the applicant has proven that the protection of human beings, animals and the environment as well as biological diversity and its sustainable use is nevertheless guaranteed;b.further special safety measures not listed in annex 4 for the relevant type and class of activity must be taken if such measures have been recommended by international organisations or the swiss expert committee for biosafety (secb) and are regarded as necessary by the competent federal office.26 amended by no i of the o of 27 sept. 2019, in force since 1 jan. 2020 (as 2019 3131).art. 13 guarantee of liability 1 any person who carries out an activity in contained systems with genetically modified or pathogenic organisms of classes 3 or 4 must guarantee legal liability:a.of 20 million francs to cover damage to persons and property (art. 30 gta, art. 59abis para. 1 epa); andb.of 2 million francs to cover damage to the environment (art. 31 gta, art. 59abis para. 9 epa).2 the obligation to guarantee liability may be fulfilled:a.by obtaining liability insurance from an insurance company that is authorised to do business in switzerland;b.by providing security of equivalent value.3 the following are exempt from this guarantee of liability:a.the confederation, its public corporations and institutions;b.the cantons and their public corporations and institutions, provided the cantons cover their liabilities.art. 14 start, suspension and termination of the guarantee 1 the person who guarantees liability must notify the specialist agency appointed by the canton of the start, suspension and termination of the guarantee.2 the suspension and termination of the guarantee, unless previously replaced by a different guarantee, become effective 60 days after receipt of notification by the specialist agency appointed by the canton.art. 15 transport 1 any person transporting genetically modified or pathogenic microorganisms must observe the applicable national and international transport regulations, in particular with regard to labelling and packaging.2 in the case of transport in a manner not covered by paragraph 1 of genetically modified or pathogenic organisms or alien organisms subject to a containment obligation, it must be ensured that any escape of organisms is either limited or prevented, depending on the risk.3 the distributor must inform the recipient of:a.the identity and the quantity of the organisms;b.the properties of the organisms, and in particular whether they are genetically modified, pathogenic or alien organisms;c.that the organisms must be handled in contained systems.art. 16 reporting incidents 1 the specialist agency appointed by the canton must be informed immediately in the event that, when handling organisms in contained systems:a.organisms that should have been prevented from escaping into the environment under article 12 paragraph 1 have done so;b.there was a genuine risk of organisms being released into the environment in the course of activities in classes 3 and 4; orc.27there is a strong suspicion of improper use.2 the cantons shall inform the competent federal office of any reported incidents.27 inserted by no i of the o of 27 sept. 2019, in force since 1 jan. 2020 (as 2019 3131).chapter 3 duties of the authorities section 1 examination of notifications and authorisation applications art. 17 federal coordination centre for biotechnology 1 the confederation operates a coordination centre for biotechnology within the federal office for the environment (foen).2 the coordination centre has the following administrative duties:a.it accepts notifications and authorisation applications under articles 8-12 as well as notifications under the ordinance of 25 august 199928 on the protection of employees from dangerous organisms;b.it examines the notifications and authorisation applications, requests any missing information within 20 days and confirms to the person filing the notification or application that the document is complete;c.it forwards complete notifications and authorisation applications to the competent federal office (art. 18 para. 1) for a decision and to the specialist agencies (art. 18 para. 2) for an opinion;d.it gives notice of receipt of notifications and authorisation applications in the official federal gazette and makes these notifications and authorisation applications available for public inspection unless they are confidential;e.it monitors progress in processing the notifications and authorisation applications received;f.29it maintains the ecogen electronic database (art. 27a);g.it maintains a register of notified and authorised activities and makes this information, and the results of surveys under article 27, publicly accessible via automated information and communications services unless they concern confidential information;h.it is the information and advice centre for enquiries about:1.procedures and the status of notification procedures and authorisation applications,2.forms, guidelines and foreign standards as well as contact addresses within the federal administration,3.the list of classified organisms;i.it may run courses and training sessions in its capacity as an information and advice centre;j.it receives information and reports from the cantons on their supervisory activities under article 23, forwards them immediately to the responsible federal offices and issues an annual report on supervisory activities under this ordinance.28 sr 832.32129 amended by no i of the o of 27 sept. 2019, in force since 1 jan. 2020 (as 2019 3131).art. 18 competent federal office and specialist agencies 1 the following offices are competent to take the decisions required in connection with activities subject to notification or authorisation:a.the federal office of public health (foph) where the main risk of an activity concerns human beings;b.the foen for all other activities.2 the following are the specialist agencies:a.for all activities, the foph, the foen, the federal ethics committee on non-human biotechnology (ecnh), the specialist agency appointed by the canton, and, at its request, the state secretariat for economic affairs (seco);b.for activities in classes 24, the swiss national accident insurance fund (suva);c.for activities in classes 3 and 4 and applications under article 12 paragraph 3 letter a, the secb;d.for activities with organisms pathogenic to animals, the federal food safety and veterinary office (fsvo)30;e.for activities with organisms pathogenic to plants and alien organisms subject to a containment obligation, the federal office for agriculture (foag).3 if the foph, the foen, the foag or the fsvo are the specialist agencies, the competent federal office decides with their consent in cases where the matter in question relates to compliance with the legislation enforced by these agencies.4 in the case of activities with highly contagious epizootic diseases under article 2 ezdo31 that are intended to be carried out outside the institute for virology and immunology (ivi) 32, the competent federal office coordinates its decision with that of the fsvo under article 49 paragraph 2 ezdo.30 the name of the federal office was changed on 1 jan. 2014 in accordance with art. 16 para. 3 of the publications ordinance of 17 nov. 2004 (as 2004 4937). the change has been made throughout the text.31 sr 916.40132 the name of this administrative unit was modified in application of art. 16 para. 3 of the publications ordinance of 17 nov. 2004 (sr 170.512.1) on 1 may 2013. art. 19 notification procedure 1 the competent federal office verifies whether the requirements of articles 4-7 have been met. in doing so, it takes account of any opinions from the specialist agencies.2 the competent federal office may prohibit the activity entirely or in part if there is reason to assume that the requirements of articles 4-7 have not been met. it communicates its decision within 90 days of confirmation of its completeness to the notifying person, the specialist agencies, and the federal coordination centre for biotechnology.3 if the competent federal office fails to issue a decision within the said period, class 1 activities subject to notification and changes to class 2 activities of which the office has already been notified are deemed to be in compliance with this ordinance, unless this is contradicted by substantial new findings.33 33 amended by no i of the o of 27 sept. 2019, in force since 1 jan. 2020 (as 2019 3131).art. 20 authorisation procedure 1 the competent federal office verifies whether the requirements of articles 4-7 and 13 have been met. in doing so, it takes account of the opinions received from the specialist agencies.2 the competent federal office decides on the authorisation application within 90 days of confirmation of its completeness. authorisation is valid for a maximum of five years.3 if there is a risk in delay, and in particular if a rapid diagnosis of new microorganisms is required, the competent federal office may, following a provisional examination of the risk determination and assessment and having informed the specialist agencies, grant authorisation limited until the conclusion of the ordinary procedure.4 the competent federal office communicates its decision to the applicant, the specialist agencies and the federal coordination centre for biotechnology.art. 21 authorisation to modify, replace or omit certain special safety measures 1 within 90 days of confirmation that the application is complete, the competent federal office authorises requested deviations from special safety measures provided the requirements (art. 12 para. 3 let. a) are met. in doing so, it takes account of the opinions received from the specialist agencies.2 the competent federal office communicates its decision the applicant, the specialist agencies and the federal coordination centre for biotechnology.art. 22 standard deadlines 1 if additional information must be submitted in order to consider notifications and authorisation applications, the standard deadlines in this section are extended accordingly.2 if the competent federal office is unable to comply with the deadline for issuing a decision under this section, it notifies the notifying person or applicant and the specialist agencies before expiry of the deadline and informs them when the decision is to be expected.section 2 monitoring in establishments art. 23 duties of the cantons 1 the cantons monitor shall compliance with the duty of care, the containment obligation and the safety measures.2 they also verify by means of spot checks whether:a.the documentation required by article 4 paragraph 3 has been prepared and preserved;b.notification has been given or authorisation granted, if required, for an activity that has been carried out;c.the information on the organisms to be used and the activity given in the notification or authorisation application corresponds with the organisms actually used and the activity carried out;d.a significant change in the proposed activity has been made such that the risk determination and assessment under article 7 paragraph 3 must be repeated;e.public liability is guaranteed.3 the samples, detection methods and materials required for monitoring are made available to the cantons.4 if the monitoring shows cause for complaint, the canton in question orders the required measures to be taken and inform the federal coordination centre for biotechnology.5 if there is justified doubt whether an activity that has only been documented is not subject to a notification or authorisation obligation, the canton informs the federal coordination centre for biotechnology.6 the cantons wherever possible coordinate monitoring under this and other legislation.7 the cantons submit an annual report to the federal coordination centre for biotechnology on their monitoring activities. to do so, they use the template provided by the coordination centre.art. 24 duties of the confederation 1 if the requirements for a notified activity or an authorisation are not met despite a complaint from the canton, the competent federal office, having consulted the canton, shall prohibit the continuation of the notified activity or revoke authorisation.2 the competent federal office decides based on information provided by the canton whether an activity that is only documented is subject to the notification or authorisation obligation or not.section 3 monitoring transport art. 25 the responsibility for monitoring the transport of genetically modified or pathogenic organisms or alien organisms subject to a containment obligation and for ordering any measures is governed by the relevant transport regulations.section 4 obtaining, processing and confidentiality of data art. 2634 lists of classified organisms 1 the foen maintains with consent of the foph, seco, fsvo, foag and suva and after consulting the secb a publicly accessible, non-conclusive list in which organisms are classified in one of the four groups according to the criteria in annex 2.1.2 the foph maintains with the consent of the foen and after consulting seco, the fsvo, the foag, the federal office for civil protection, suva and the secb, a publicly accessible, non-conclusive list of organisms with a high potential for improper use.3 the foen and the foph shall take account of existing lists, in particular those of the european union and its member states and of international organisations.34 amended by no i of the o of 27 sept. 2019, in force since 1 jan. 2020 (as 2019 3131).art. 27 surveys the foen and the foph may carry out surveys of all activities involving genetically modified, pathogenic and alien organisms in contained systems, in particular as to the type and number of and time schedule for these activities.art. 27a35 ecogen electronic database 1 data required to conduct the following tasks are recorded and processed in the ecogen electronic database: a.the notification and authorisation procedures specified in articles 19 and 20;b.reporting incidents under article 16 paragraph 2;c.receiving information and reports on supervisory activities under article 17 paragraph 2 letter j;d.providing information and advice under article 17 paragraph 2 letter h;e.conducting other tasks relating to the implementation of this ordinance.2 the following persons have access to ecogen and may process the data it contains:a.employees of the federal coordination centre for biotechnology and of the offices and agencies responsible listed in article 18 paragraphs 1 and 2: in accordance with their appointed tasks;b.persons making a notification or application: to the extent that the data concerns them.35 inserted by no i of the o of 27 sept. 2019, in force since 1 jan. 2020 (as 2019 3131).art. 28 confidentiality of information 1 the authorities responsible for the enforcement of this ordinance shall treat information as confidential where there is a legitimate and overriding interest in doing so. they classify this information as such when forwarding it to other authorities.2 there is a legitimate interest in particular in preserving trade and manufacturing secrecy.3 any person submitting documents to the authorities must:a.indicate the information which is to be treated as confidential; andb.justify the need for confidentiality.4 an authority that does not wish to accede to a request for confidentiality shall investigate whether the grounds given for confidentiality are justifiable. if its assessment differs from the proposal of the persons supplying the information, the authority, after hearing these persons, shall inform them in a ruling which information they do not find worthy of protection.5 the following information shall always be accessible to the public:a.the name of the persons responsible for the activity and for monitoring biological safety;b.address of the establishment and the installation (location of the activity);c.the type of installation, safety measures and waste disposal;d.a general description of the organisms and of their properties;e.a general description of the activity, and in particular its purpose and its approximate size (e.g. culture volume);f.a summary of the risk assessment;g.the class of the activity.section 5 fees art. 29 obligation to pay a fee 1 any person who causes the federal coordination centre for biotechnology, the foen or the foph to provide a service or the offices to issue a ruling under this ordinance must pay a fee.2 unless this ordinance contains special regulations, the provisions of the general fees ordinance of 8 september 200436apply.36 sr 172.041.1art. 30 level of fees 1 the fees are as follows: francsa.examination of notifications under article 19100-2000b.examination of authorisation applications under article 20300-4000c.examination of authorisation applications under article 21100-40002 the fee is assessed on a time and material basis. if the work involved is unusually high, the fee may be increased by up to 50 per cent.3 when examining applications for a re-assessment, fees of up to 50 per cent of the rates fixed may be charged.4 for services without a fee rate, the fee amounts to 130-190 francs per hour.art. 31 outlays outlays are the costs additionally incurred for an individual service, and in particular:a.remuneration for members of extra-parliamentary committees under the government and administration organisation ordinance of 25 november 199837;b.costs incurred in gathering evidence, conducting scientific investigations or special examinations or obtaining documents;c.costs of work that the federal coordination centre for biotechnology, the foen or the foph arranges to be carried out by third parties.37 sr 172.010.1section 6 guidelines, basic and continuing professional education art. 32 1 the foen and the foph may issue joint guidelines on the implementation of this ordinance, in particular on the determination and assessment of the risks posed by the occurrence of organisms or activities with organisms, transport of organisms, safety measures and related quality controls. they consult the specialist agencies (art. 18 para. 2) beforehand.2 the foen and the foph jointly ensure, in consultation in particular with the secb, that basic and continuing professional education events are held regularly for persons who carry out duties under this ordinance.chapter 4 final provisions art. 33 repeal of current legislation the following ordinances are repealed:1.containment ordinance of 25 august 199938;2.ordinance of 15 october 200139 on fees for services under the containment ordinance.38 [as 1999 2783, 2003 4793 no i 3, 2006 4705 no ii 82, 2007 4477 no iv 35, 2008 4377 annex 5 no 6]39 [as 2001 2878]art. 34 amendment of current legislation the amendment of current legislation is regulated in annex 5.art. 35 transitional provisions 1 activities that are authorised in the proper manner when this ordinance comes into force may be continued until expiry of authorisation in accordance with the previous law.2 activities that have been properly notified before this ordinance comes into force must within five years of this ordinance coming into force be reviewed by the notifying person to verify compliance herewith. if changes to the activity or the safety measures are required due to this ordinance, they must be notified within the same five-year deadline.3 notification of previous activities with genetically modified organisms in class 1 must be replaced within one year of this ordinance coming into force by a global notification under article 8.4 activities with alien organisms subject to a containment obligation may only be carried out without a notification or an authorisation application for one year from the date on which this ordinance comes into force.art. 35a40 transitional provision to the amendment of 31 october 2018 the duty to contain particularly dangerous plants as listed in annex 6 of the plant protection ordinance of 27 october 201041 in accordance with article 5 paragraph 1 letter c applies until 31 december 2023. 40 inserted by annex 8 no 4 of the plant health ordinance of 31 oct. 2018, in force since 1 jan. 2020 (as 2018 4209).41 as 2010 6167, 2011 3331, 2012 6385, 2014 4009, 2015 4567, 2016 2445 3215, 2017 6141, 2018 2041art. 36 commencement this ordinance comes into force on 1 june 2012.annex 1 (art. 3 let. d)definition of gene technology methods 1 gene technology methods means, in particular:a.recombinant nucleic acid techniques, in which nucleic acid molecules synthesised outside an organism are inserted into viruses, bacterial plasmids or other vector systems to produce novel combinations of genetic material, which are then transferred to a recipient organism in which they do not naturally occur but are capable of continued propagation;b.techniques in which genetic material produced outside the organism is inserted directly into an organism, in particular by microinjection, macroinjection and microencapsulation, electroporation or on microprojectiles;c.cell fusion or hybridisation techniques in which cells with novel combinations of genetic material are produced by the fusion of two or more cells through processes that do not occur under natural conditions.2 self-cloning of pathogenic organisms is regarded as a gene technology method. this consists of the removal of nucleic acid sequences from one cell of an organism and the complete or partial insertion of this nucleic acid or a synthetic equivalent (possibly after a previous enzymatic or mechanical treatment) into cells of the same species or cells which are closely related phylogenetically and which can exchange genetic material by natural physiological processes.3 self-cloning of non-pathogenic organisms and the following methods are not regarded as gene technology methods as long as they are not used in association with recombinant nucleic acid molecules or genetically modified organisms:a.mutagenesis;b.cell and protoplast fusion of prokaryotic microorganisms that exchange genetic material by natural physiological processes;c.cell and protoplast fusion of eukaryotic cells, including the production of hybridoma cell lines and the fusion of plant cells;d.in vitro fertilisation;e.natural processes such as conjugation, transduction and transformation;f.changes in ploidy level, including aneuploidy and the elimination of chromosomes.annex 2 determination and assessment of risk annex 2.142 42 corrected by no 2 of the o of 27 sept. 2019, in force since 1 jan. 2020 (as 2019 3131). (arts 6 and 26)assigning organisms to groups 1 risk determination 1 in order to determine the risk due to the occurrence of an organism for human beings, animals or the environment as well as biological diversity and its sustainable use, the following criteria in particular must be taken into account:a.pathogenicity and lethality;b.virulence or attenuation;c.mode of infection, effective infection dose and the infection routes;d.production of non-cellular components such as toxins and allergens;e.the reproductive cycle and survival structures;f.host range;g.the degree of natural or acquired immunity of the host;h.pattern of resistance or sensitivity to antibiotics and other specific agents;i.availability of appropriate prophylaxis and therapy;j.the presence of oncogenic nucleic acid sequences;k.mutagenicity;l.virus production and viral shedding in cell lines;m.parasitic properties;n.potential contamination with pathogenic microorganisms;o.environmental aspects;p.experience with the spread of closely related types of organism in switzerland or in other countries (invasive potential);q.the availability of suitable techniques to record, detect, identify, monitor and combat these organisms;r.potential for improper use.2 in order to determine the risk arising when a genetically modified organism occurs, both donor and receptor organisms, introduced genetic material (inserts), the vector or the vector-receptor system and the genetically modified organism itself must be taken into account, in particular according to the following criteria:a.function of the genetic changes;b.degree of purity and characterisation of the genetic material used in recombination;c.properties of vectors, in particular relating to replication capacity, host range, host specificity, existence of a transfer system, mobilisation and independent infectivity;d.properties of affected nucleic acid sequences, in particular regulatory effects on cell growth, cell cycle and immune system;e.production and supply of organisms and active pharmaceutical substances, allergens or toxins via the genetically modified organism;f.stability and expression of recombinant genetic material;g.mobilisation potential of recombinant genetic material;h.selection pressure for recombinant genetic material.3 in order to determine the risk due to the occurrence of an alien organism for human beings, animals or the environment as well as biological diversity and its sustainable use, the following criteria in particular must be taken into account:a.life cycle and reproduction, in particular with regard to asexual reproduction, generation time and the number of offspring;b.presence of host organisms in the environment;c.environmental aspects and viability, in particular cold tolerance and diapause;d.potential contamination with microorganisms that may be pathogenic for humans, animals and plants;e.invasiveness and ability to suppress native species;f.threat to human, animal and plant health by the organism due to its allergicity, pathogenicity, toxicity or property as a vector;g.harm to other organisms, in particular through competition and hybridisation;h.harm to resource cycles;i.effects on the functioning of the ecosystem;j.resistance or sensitivity to pesticides, herbicides and other agents;k.availability of suitable techniques to detect the organism in the environment and to combat it.2 risk assessment 1 when making a risk assessment, the effects of the organisms on healthy people, animals and plants must generally be considered.2 the risk is considered inexistent or negligible (group 1) if:a.it is unlikely that an organism will cause illness in people, animals or plants or some other damage to the environment or to biological diversity and its sustainable use; andb.such damage is not severe.3 the risk is considered low (group 2) if:a.an organism may cause illness in people, animals or plants or some other damage to the environment or to biological diversity and its sustainable use;b.such illness or damage is rarely severe;c.the organism is unlikely to spread; andd.normally effective preventive or therapeutic measures to combat the illness or damage are available.4 the risk is considered moderate (group 3), if:a.an organism may cause severe illness in people, animals or plants or other severe damage to the environment or to biological diversity and its sustainable use;b.the organism is likely to spread; andc.normally, effective preventive or therapeutic measures to combat the illness or damage are available.5 the risk is considered high (group 4), if:a.an organism may cause severe illness in people, animals or plants or other severe damage to the environment or to biological diversity and its sustainable use;b.the organism is likely to spread; andc.normally, no effective preventive or therapeutic measures to combat the illness or damage are available.6 if, in an individual case, it is unclear to which of two groups an organism belongs, the risk must be assessed by weighing the seriousness of the illness and damage, and the probability that the organism will spread, against the availability of effective preventive or therapeutic measures. in the event of any doubt, an organism must be assigned to the higher of two groups.annex 2.243 43 corrected by no 2 of the o of 27 sept. 2019, in force since 1 jan. 2020 (as 2019 3131). (art. 7)classification of activities 1 risk determination in order to determine the risk arising from planned activities with organisms in a contained system, the following criteria in particular should be taken into account while considering the group to which the organisms concerned have been assigned:a.the nature, extent and purpose of the activity, such as diagnosis, research, production or storage;b.the known or suspected geographical distribution and frequency in switzerland of the organisms concerned or of their hosts and vectors and if applicable of the recombinant genetic material involved endemically, by natural occurrence, immigration, reproduction or genetic transfer;c.the potential for survival, replication and dissemination of the organisms in switzerland, in particular the formation of long-lasting forms;d.the interaction of the organisms concerned with other organisms or involvement in biogeochemical processes;e.host or vector occurrence in switzerland;f.the impact of the activity on pathogenicity, detectability and transmissibility, ability to survive and disseminate, virulence, host spectrum or tropism of the organisms used;g.the influence of the activity on the effectiveness of vaccines, antibiotics, antivirals or other agents with a medical or agricultural use against pathogenic organisms;h.the purpose of the activity in producing novel pathogenic organisms or restoring extinct or extinct pathogenic organisms;i.the potential of the pathogenic organisms for improper use.2 risk assessment 2.1 in general 1 the class of an activity normally corresponds to the group to which the organisms have been assigned. however, the class differs from the group of organisms if the risk assessment indicates, based on the activity and environmental conditions, a considerably increased or reduced risk compared with the group to which the organisms have been assigned.2 an activity is assigned to class 1 if it presents no risk or a negligible risk to people, animals, the environment and biological diversity and its sustainable use, in particular if no impact or a negligible impact on these targets can be expected should organisms escape from the contained system.3 an activity is assigned to class 2 if it presents a low risk to people, animals, the environment and biological diversity and its sustainable use, in particular if a limited, reversible impact on these targets can be expected should organisms escape from the contained system.4 an activity is assigned to class 3 if it presents a moderate risk to people, animals, the environment and biological diversity and its sustainable use, in particular if an irreversible but limited impact on these targets can be expected should organisms escape from the contained system.5 an activity is assigned to class 4 if it presents a high risk to people, animals, the environment and biological diversity and its sustainable use, in particular if an irreversible impact on these targets can be expected or epidemics with serious consequences may possibly occur should organisms escape from the contained system.6 if, in an individual case, it is unclear to which of two classes an organism belongs, it must be assigned to the higher of two classes.2.2 in particular 1 the following activities are normally assigned to class 1:a.analyses of soil, water, air or food samples, provided it can be assumed that the samples are not so contaminated that they pose an increased risk to human beings, animals, the environment and biological diversity and its sustainable use;b.analyses of organisms in groups 1 and 2 from clinical and other biological material for diagnostic purposes, if organisms can be shown to be present by direct or indirect methods without propagation, or if organisms can be shown to be present following slight enrichment carried out exclusively in closed containers;c.activities with certain strains of group 2 organisms, provided such strains have proved in experiments or over many years of experience to be as safe as group 1 organisms.2 analyses of organisms from clinical and other biological material for diagnostic purposes with exception of analyses under paragraph 1 must normally be assigned to class 2. 3 where group 3 pathogenic organisms have been enriched for diagnostic purposes and if this results in an increased risk to human beings, animals or the environment as well as biological diversity and its sustainable use, this activity must be assigned to class 3.4 when group 4 organisms are processed, the activity should in most cases be assigned to class 4. however, if a primary diagnostics of group 4 organisms from non-inactivated clinical material is performed by direct or indirect methods without replication, this activity may be assigned to class 3. where further testing is carried out using the same source material containing group 4 organisms, this activity must in all cases be assigned to class 4.5 primary diagnosis of group 3 organisms that are pathogenic to animals may in exceptional cases and in accordance with article 49 para. 2 ezdo44 be assigned to class 2 if it can be assumed that there is a high probability that no pathogen organisms are present in the samples.44 sr 916.401annex 3 (art. 11 para. 2)information for the notification and authorisation of activities annex 3.1 information for the global notification of activities with class 1 genetically modified organisms the global notification under article 8 includes the following information:a.the names and postal addresses of the establishment, of the persons responsible for the activities and the persons responsible for monitoring biological safety;b.the location and type of the installations where the activities are carried out;c.confirmation that in these installations class 1 activities with genetically modified organisms are carried out;d.confirmation that a weighing of interests under article 8 gta has been carried out for activities with genetically modified animals covered by the animal protection ordinance of 23 april 200845.45 sr 455.1annex 3.246 46 corrected by no 2 of the o of 27 sept. 2019, in force since 1 jan. 2020 (as 2019 3131).information for the notification and authorisation of activities in classes 2-4 1 principles 1 the extent and the level of detail of the technical information required depend on the risk of the activity. in the case of class 2 activities, the technical information for one organism may be used for other organisms with similar properties, provided the activities concerned carry similar risks.2 the documents must indicate what information must be treated as confidential. the need for confidentiality must be justified (art. 28).2 administrative information a.the names and postal addresses of the establishment, the persons responsible for the activities and persons responsible for monitoring biological safety;b.a description of the activities;c.the duration the activities;d.the location and type of the installation;e.confirmation of the guarantee of liability for activities with genetically modified and pathogenic organisms of classes 3 and 4 (art. 13);f.confirmation that a weighing of interests under article 8 gta has been carried out for activities with genetically modified animals covered by the animal protection ordinance of 23 april 200847.47 sr 455.13 technical information a.a description and the group of the organisms and genetic materials to be used or analysed, and in particular of the reference organisms;b.a description of the activities, and in particular of their purpose and the methods to be used;c.the maximum volume of culture media for the organisms to be used;d.a verifiable record of the procedure under article 7 for determining and assessing the risks of the activities;e.the type of waste and method of disposal;f.the planned safety levels and safety measures for the activities and, if applicable, the individual procedures;g.information on the time and place that the human pathogens in groups 3 and 4 are brought into the country.annex 448 48 corrected by no 2 of the o of 27 sept. 2019, in force since 1 jan. 2020 (as 2019 3131).(art. 12)safety measures 1 general safety measures the following safety measures apply to all species and classes of activity:a.compliance with the generally recognised codes of building practice in the construction and maintenance of buildings and installations, in particular with a view to their stability, the safety of persons and property and fire prevention;b.compliance with the operational safety concept and the related operating instructions and codes of conduct;c.employment of at least one person to monitor biological safety and prevent the improper use of organisms; the person must have sufficient knowledge of and competence in both technical matters and safety issues to carry out his or her duties; the tasks include in particular preparing, updating and implementing the safety concept, informing, advising and training staff, verifying compliance with biosafety rules and communicating with the authorities in relation to notifications, authorisation applications, safety measures and the safety concept;d.employment of a sufficient number of staff adequately trained on security issues;e.compliance with the principles of good microbiological practice in accordance with annex 3 number 1 paragraph 1 of the ordinance of 25 august 199949 on the protection of employees from dangerous organisms, including the provision of washing and decontamination facilities for the staff;f.appropriate inspections and maintenance of the monitoring measures and the equipment;g.if required, testing for the occurrence of viable forms of the organisms used outside the primary physical barriers;h.use of suitable storage facilities for equipment and materials that could be contaminated;i.provision of effective decontaminants and disinfectants and procedures in case of a release of organisms;j.measures against any pests and vermin;k.appropriate measures to minimise any previously identified risk of improper use of the organisms, such as restricting access to premises and recording the identity of persons with access to the organisms used. 49 sr 832.3212 special safety measures 2.1 activities with genetically modified or pathogenic organisms depending on the nature and class of the activity, special safety measures that go beyond the general safety measures must be taken which:a.must take account of the risk determined in the specific case;b.must correspond to the state of the art in safety technology;bbis.take account of the possibility of improper use of organisms; c.are listed according to the safety levels in specific installations in the following table, whereby the information under safety levels 1-4 corresponds to the requirements for the conduct of activities in classes 1-4;d.apply mutatis mutandis to the storage and the transport within the installation of organisms.tablekeyp means that the measure is required for production activities.l means that the measure is required for all other laboratory activities.g means that the measure is required for activities in greenhouses.v means that the measure is required for activities in installations with animals.[ ] means that the measure is required for the field of activity in brackets, but may be modified, replaced or omitted with the authorisation of the competent federal office.- means that the relevant measure is not required.msc ii/iii means the class ii/iii microbiological safety cabinet.hepa filter means high efficiency particulate air filternosafety measuressafety level1234building1separate work area- ---p ---p lgvp lgv2restricted access to the work area- ---p lgvp lgvp lgv3animal rooms separated by lockable doors- --vonly in installations with vertebrates- --vonly in installations with vertebrates- --v- --v4access to work area via airlock (separate room).the inside of the airlock must be separated from the outside by changing facilities, and preferably by lockable doors.- -- -- ---[p] [l][g][v]p lgvairlock doors lockable on both sides5shower area in airlock- ---- ---p lgvdepending on the risk this measure may be omitted without authorisation from the competent federal offices.[p] [l][g][v]6facilities for personal decontamination in the work area- ---p lgvp lgvp lgv7observation window or other means of monitoring the work area- ---- ---[p] [l][g][v]p lgv8biohazard warning sign- ---p lgvp lgvp lgv9rooms with easily cleanable floorsp l-vp lgvp lgvp lgv10rooms with easily cleanable walls- ---- ---p lgvp lgv11work area sealed so that fumigation is possible- ---[p] ---[p] [l][g][v]p lgv12work area under negative air pressure with respect to the immediate surroundings- ---- ---[p] [l][g][v]p lgv13air supply to the work area via hepa filter- ---- ---[p] ---[p] [l][g][v]14exhaust air outlet from the work area via hepa filter- ---- ---p [l][g][v]p lgvfor viruses that are not retained by hepa filters, additional measures are required.15microorganisms must be held in a primary contained system that physically separates the process from the rest of the work area. this primary contained system must be entirely within the work area.- ---p ---p ---p ---16the work area must be constructed so that a release of the entire contents of the primary contained system can be captured and retained.p ---p ---p ---p ---17requirements for the air outlet from the primary contained system- ---p ---minimise any escape of organisms p ---prevent any escape of organismsp ---prevent any escape of organisms18the work area must be ventilated so as to minimise the contamination of the air with organisms.- ---[p] ---[p] ---p ---equipment19surfaces resistant to water, acids, alkalis, solvents, disinfectants and decontaminantsp lgvwork benchp lgvwork bench p lgvwork bench and floorp lgvwork bench, floor, ceiling and walls20work area with complete, independent equipment- ---- ---[p] [l][g][v]p lgv21microbiological safety cabinet (msc) when working with microorganisms - ---[p] [l][g][v]p lgvp lgvmsc iii including airlock entry and exit system or msc ii with full protection; full protection may be omitted for activities with animal and plant pathogens if authorised by the competent federal office 22measures against aerosol formation and dissemination- ---p lgvminimiseaerosol dissemination p lgvprevent aerosol disseminationp lgvprevent aerosol dissemination23.24for the animal species concerned, suitable systems for keeping animals (e.g. cages), that are easily decontaminated- --vwashable- --vdecontaminable- --vdecontaminable- --vdecontaminable25filter on isolation chambers (isolation chamber = transparent container in which the animal is kept when inside or outside a cage) or isolation rooms (for large animals)- ---- --[v]- --v- --v26requirements for seals on primary contained systems- ---p ---minimise any escape of organisms p ---prevent any escape of organismsp ---prevent any escape of organismswork organisation27suitable clothing for the work areap lgvfor laboratory activities: laboratory clothingp lgvfor laboratory activities: laboratory clothingp lgvsuitable protective clothing and, if applicable, shoesp lgvchange all clothing and shoes before entering or leaving28personal safety equipmentpersonal safety measures must be adapted to the activity and the organisms used.p lgvp lgvp lgvp lgv29regular disinfection of the workplaces- ---p lgvp lgvp lgv30inactivation of microorganisms in the outflow of sinks, pipes and showers- ---- ---[p] [l][g][v]p lgv31escape of contaminated waste water- -[g]-minimise- -[g]-minimise- -g-prevent- -g-prevent32escape of reproductive plant parts in the air or via vectors- -[g]-minimise- -[g]-minimise- -g-prevent- -g-prevent33.34inactivation of large volumes of culture medium prior to its removal from the primary contained system- ---p ---p ---p ---35minimise or prevent the escape of organisms during internal transport between various work areas p lgvminimisep lgvminimisep lgvpreventp lgvprevent36inactivation of the microorganisms in contaminated material, in waste and on contaminated apparatus, from animals, plants and process fluid in production activities 'p'.p lgvharmless disposal; inactivation of genetically modified microorganisms on site or disposal as hazardous waste; deactivation methods are permissible if their effectiveness is proven.[p] [l][g][v]autoclaving in the building, may take place outside the building if approval given by the federal office responsible;other equivalent deactivation methods are permissible if their effectiveness is proven;may be disposed of as hazardous waste:a. contaminated material, animal cadavers, diagnostic samples;b. solid cultures, if approval given by the federal office responsible[p] [l][g][v]autoclaving in the work area, may take place elsewhere in the building if approval given by the federal office responsible;other equivalent deactivation methods are permissible if validated;the autoclave may be omitted if approval given by the federal office responsible.p lgvdeactivation and pass-through autoclave in work area 2.2 activities with alien organisms subject to a containment obligation 1 for activities with alien organisms subject to a containment obligation, all potential escape paths must be secured by appropriate special safety measures so as to ensure that any escape of alien organisms subject to a containment obligation:a.is so limited in the case of class 1 and 2 activities that human beings, animals and the environment cannot be endangered and biological diversity and its sustainable use cannot be harmed;b.is prevented in the case of class 3 and 4 activities.2 the special safety measures in annex 4 number 2.1 apply mutatis mutandis.annex 5 (art. 34)amendment of current legislation .5050 these amendments may be consulted under as 2012 2777.

818.101english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.federal acton controlling communicable human diseases (epidemics act, epida)of 28 september 2012 (status as of 18 december 2021)the federal assembly of the swiss confederation,on the basis of articles 40 paragraph 2, 118 paragraph 2 letter b, 119 paragraph 2 and 120 paragraph 2 of the federal constitution1, and having considered the federal council dispatch dated 3 december 20102,decrees:1 sr 1012 bbl 2011 311chapter 1 general provisions and principles art. 1 subject matter this act regulates protecting people against communicable diseases and provides for the measures required to do so.art. 2 purpose 1 this act has the aim of preventing and controlling the outbreak and spread of communicable diseases.2 the measures under this act are intended to enable:a. communicable diseases to be monitored and basic knowledge about their spread and development to be made available;b. the dangers of the outbreak and spread of communicable diseases to be recognised, assessed and avoided at an early stage;c. individual persons, specific groups of persons and institutions to contribute to preventing and controlling communicable diseases;d. the organisational, technical and financial requirements for detecting, monitoring, preventing and controlling communicable diseases to be created;e. access to facilities and resources for protection against transmission to be ensured;f. the effects of communicable diseases on society and the persons affected to be reduced.art. 3 definitions in this act:a. communicable disease means an illness that may be transmitted to human beings by pathogens or their toxic products;b. observations means clinical findings (e.g. suspected diagnoses, confirmed diagnoses, deaths), laboratory analysis findings (e.g. test results, direct and indirect evidence of pathogens, typifications, resistance tests), epidemiological findings (e.g. key figures on healthcare-associated infections) and incidents (e.g. suspicious substances, objects) connected with communicable diseases; c. pathogens means natural and genetically modified organisms (e.g. viruses, bacteria, fungi, protozoa and other parasites), substances (e.g. prions, toxins) and genetic material that can cause or aggravate a communicable disease; d. handling pathogens means any activity involving pathogens, in particular their manufacture, reproduction, release, marketing, import, export, transit, retention, use, storage, disposal or transport.art. 4 goals and strategies 1 the federal council shall in consultation with the cantons determine the goals and strategies for detecting, monitoring, preventing and controlling communicable diseases.2 the following in particular must be taken into consideration in determining the goals and strategies:a. the findings of the reports under article 76;b. international recommendations and guidelines;c. the current state of scientific knowledge.3 the confederation and the cantons shall, based on the reports, review whether the goals have been achieved, and take the relevant measures as required.art. 5 national programmes 1 the federal office of public health (foph) shall, in consultation with the cantons, develop topic-specific national programmes for detecting, monitoring, preventing and controlling communicable diseases, in particular relation to:a. vaccinations;b. healthcare-associated infections and resistance in the case of pathogens;c. hiv and other sexually transmitted pathogens.2 the confederation and the cantons shall implement the national programmes within the scope of their powers.art. 6 special situation 1 a special situation arises if:a. the ordinary enforcement agencies are unable to prevent or control the outbreak and spread of communicable diseases, and one of the following risks is present: 1. a high risk of infection and of spread,2. a special risk to public health,3. serious consequences for the economy or for other areas of life;b. the world health organization (who) has announced a public health emergency of international concern and this emergency poses a risk to public health in switzerland. 2 the federal council may, after consulting the cantons, order the following measures:a. measures in relation to individual persons;b. measures in relation to the population;c. a requirement for doctors and other healthcare specialists to participate in combating communicable diseases;d. mandatory vaccinations for population groups at high risk, for persons who are particularly exposed to infection and for persons who carry out certain activities.3 the federal department of home affairs (fdha) shall coordinate the measures taken by the confederation.art. 7 extraordinary situation if an extraordinary situation so requires, the federal council may order the measures required for the entire country or for individual parts of the country.art. 8 preparatory measures 1 the confederation and the cantons shall take preparatory measures to limit the risks to and negative effects on public health at an early stage.2 the foph may instruct the cantons to take specific measures in view of a special risk to public health, in particular:a. measures to detect and monitor communicable diseases;b. measures in relation to individual persons; c. measures in relation to the population;d. measures to distribute therapeutic products.chapter 2 providing and exchanging information art. 9 providing information 1 the foph shall inform the public, specific groups of persons, authorities and experts about the dangers of communicable diseases and about the options for preventing and controlling such diseases.2 it shall regularly publish compilations and analyses about the nature, incidence, causes and spread of communicable diseases.3 it shall publish recommendations on measures against communicable diseases and on handling pathogens and shall adapt them regularly in line with the current state of scientific knowledge. if other federal offices are affected, the foph shall act in consultation with them.4 the foph and the competent cantonal authorities shall coordinate their information activities.art. 10 exchange of information 1 the foph shall ensure that the cantons receive the information pertaining to preventing and combating communicable diseases.2 the competent federal and cantonal bodies shall share research results, specialist knowledge and information on training and monitoring programmes with each other.chapter 3 detection and monitoring section 1 reports art. 11 early detection and monitoring systems the foph shall in cooperation with other federal agencies and the competent cantonal bodies operate systems for the early detection and monitoring of communicable diseases. it shall ensure coordination with international systems.art. 12 duty to report 1 doctors, hospitals and other public or private healthcare institutions shall report observations on communicable diseases, including the information required to identify the persons who are ill, infected or have been exposed and to establish the route of transmission:a. to the competent cantonal authority;b. in the case of certain pathogens, directly to the foph as well.2 laboratories shall report laboratory analysis findings on communicable diseases including the information required to identify the persons who are ill or infected to the competent cantonal authority and the foph.3 the federal council may require that measures taken to prevent and control the disease as well as their effect are reported and that samples and test results are sent to the laboratories designated by the responsible authorities.4 the competent cantonal authorities shall report observations that indicate a risk to public health to the foph.5 any person piloting a ship or an aircraft shall report observations that indicate a risk to public health to the port or airport operator.6 observations must be reported if they relate to communicable diseases that:a. may cause epidemics;b. may cause serious consequences;c. are novel or unexpected; ord. are subject to monitoring by international agreement.art. 13 regulation of reports 1 the federal council shall stipulate the observations on communicable diseases that must be reported, together with the methods, criteria and time limits for reporting. 2 in the case of specific report content, it may restrict the duty to report to selected doctors, to hospitals and other public or private healthcare institutions and to laboratories.art. 14 reports for epidemiological monitoring and for research purposes 1 the foph may agree for the purpose of epidemiological monitoring and for research purposes with doctors, laboratories, hospitals and other public or private healthcare institutions that they report observations that are not subject to the duty to report to a body designated by the foph.2 the report must be made in anonymised form.art. 15 epidemiological investigations 1 the competent cantonal authorities shall ensure the required epidemiological investigations, in particular on the nature, cause, source of infection and spread of a detected or suspected disease. they shall coordinate their activities and inform the foph about the results.2 the competent federal authority shall provide the cantonal authorities with professional support with the epidemiological investigations. it may conduct such investigations itself, particularly if the canton concerned requests it to do so.section 2 laboratories art. 16 licence requirement 1 laboratories that conduct microbiological tests for detecting communicable diseases require a licence from the competent federal authority.2 the federal council shall carry out the following tasks:a. designating the competent federal authority.b. regulating the requirements and procedure for granting the licence.c. specifying the licence holder's obligations.d. regulating supervision and in particular provide for the possibility of unannounced inspections.3 laboratories in doctors' practices, hospital laboratories, pharmacy dispensaries and other laboratories that conduct analyses as part of the universal provision of services under the federal act of 18 march 19943 on health insurance (health insurance act) are exempted from the licence requirement.3 sr 832.10art. 17 national reference centres and confirmation laboratories the foph may designate individual laboratories as national reference centres or as confirmation laboratories and entrust the same with special tests and other special tasks.art. 18 laboratory network the cantons shall operate a network of regional laboratories and ensure cooperation with the competent federal authorities and the high security laboratories.chapter 4 prevention section 1 general preventive measures art. 19 1 the confederation and the cantons shall take measures to control, reduce and eliminate the risks of disease transmission.2 the federal council may issue the following regulations:a. it may require hospitals, clinics and other healthcare institutions to decontaminate, disinfect and sterilise their medical devices.b. it may require businesses and event organisers whose activities increase the risk of transmitting the disease to provide prevention and information materials and comply with a specific code of conduct.c. it may require public health and education institutions to offer information on the dangers of communicable diseases and advice on their prevention and control.d. it may require public and private institutions that have a special obligation to protect the health of people in their care to take suitable preventive measures.e. it may make technical installations that can spread communicable diseases subject to a registration requirement.section 2 vaccinations art. 20 national vaccination plan 1 the foph, in cooperation with the federal commission for vaccination, shall draw up and publish vaccination recommendations in the form of a national vaccination plan.2 doctors and other healthcare specialists shall assist in implementing the national vaccination plan as part of their activities. 3 they shall inform the persons addressed by the vaccination recommendations about the national vaccination plan.art. 21 encouraging people to be vaccinated 1 the cantons shall encourage people to be vaccinated by:a. informing the persons addressed by the vaccination recommendations about the national vaccination plan;b. regularly reviewing the vaccination status of children and young people who are in compulsory education;c. ensuring that the persons addressed by the vaccination recommendations are fully vaccinated.2 they may in particular:a. offer vaccinations as part of school health services;b. administer vaccines free of charge or supply vaccines at below the market price.art. 22 mandatory vaccinations the cantons may declare vaccinations to be mandatory for population groups at high risk, persons who are particularly exposed to infection and persons that carry out certain activities, provided there is a significant risk.art. 23 international certificate of vaccination or other prophylaxis 1 the federal council may introduce a registration or licensing obligation for vaccinations for which an international certificate of vaccination or other prophylaxis under article 36 of the international health regulations (2005) of 23 may 20054 is required.2 the federal council shall carry out the following tasks:a. designating the competent authority;b. regulating the requirements and the procedure for granting licences;c. indicating the vaccination procedure and the permitted vaccines.4 sr 0.818.103art. 24 monitoring and evaluation 1 the competent federal authorities shall in consultation with the cantons regularly review the appropriateness and effectiveness of the vaccination measures.2 the competent cantonal authorities shall collect data on the numbers of persons who have been vaccinated and inform the foph regularly about the vaccination rate and about the measures taken to increase the rate.3 the foph shall regularly draw up reports on monitoring and evaluation and publish these in a suitable form.section 3 biosafety art. 25 duty of care any person who handles pathogens or their toxic products must take all the measures required to ensure that no one can come to any harm.art. 26 handling pathogens in contained systems 1 in the case of activities with pathogens in contained systems, all the containment measures that are required to prevent a risk to the population must be taken.2 the federal council shall introduce a registration or licensing obligation; it shall regulate the requirements and the procedure. 3 it may simplify the registration or licensing obligation or provide for exceptions in the case of specific pathogens and activities if current scientific knowledge and experience indicate that there is no risk to health.art. 27 release and marketing 1 any person who wishes to release or market pathogens for experimental purposes shall require a licence from the confederation.2 the federal council shall regulate the requirements and the procedure for granting the licence as well as the provision of information to the public on experimental releases.3 it may provide for exceptions from the licensing obligation for specific pathogens if current scientific knowledge and experience indicate that there is no risk to health.art. 28 duty to provide information to purchasers any person who markets pathogens must inform customers about their health-related properties and risks and about the required precautionary and preventive measures.art. 29 further regulations issued by the federal council the federal council may issue the following regulations:a. it may regulate the transport of pathogens and introduce a licensing requirement for their import, export and transit.b. it may restrict or prohibit the handling of specific pathogens.c.5 it may specify requirements for contained system equipment and the training of persons handling pathogens.d. it may require the marking of containers that hold pathogens.5 amended by annex no 34 of the fa of 20 june 2014 on continuing education and training, in force since 1 jan. 2017 (as 2016 689; bbl 2013 3729).chapter 5 disease control section 1 measures that apply to individual persons art. 30 principle 1 a measure in accordance with articles 33-38 may only be ordered if: a. less stringent measures to prevent the spread of a communicable disease are not sufficient or appropriate; andb. the measure serves to avert a serious risk to the health of other persons.2 the measure must be necessary and reasonable.art. 31 ordering measures 1 the competent cantonal authorities shall order the measures in accordance with articles 33-38.2 the competent federal authorities shall support the cantons in identifying and notifying persons, in particular persons travelling on international transport services.3 when ordering measures, the persons concerned must be given an explanation of why the measures are being ordered and how long they are expected to apply. 4 the measures may only apply for as long as is necessary to prevent the spread of a communicable disease and to avert a serious risk to the health of other persons. they must be regularly reviewed.art. 32 enforcement of the measures the competent cantonal authorities may compulsorily enforce their orders relating to medical monitoring, quarantine, isolation or medical testing.art. 33 identification and notification any person who is ill, suspected of being ill, infected or suspected of being infected or who is spreading pathogens may be identified and notified.art. 34 medical monitoring 1 any person who is ill, suspected of being ill, infected or suspected of being infected or who is spreading pathogens may be made subject to medical monitoring.2 the person concerned is required to inform the doctor responsible about their state of health and their contacts with other persons.art. 35 quarantine and isolation 1 if medical monitoring is insufficient, the following measures may be taken:a. a person who suspected of being ill or suspected of being infected may be placed in quarantine;b. a person who is ill or infected or who is spreading pathogens may be placed in isolation.2 the person concerned may if necessary be admitted to a hospital or another suitable institution.3 the hospital or the institution must ensure that its staff and other persons at risk are protected against infection.art. 36 medical examination any person who is ill, suspected of being ill, infected or suspected of being infected or who is spreading pathogens may be required to undergo a medical examination and to allow samples to be taken.art. 37 medical treatment any person who is ill, suspected of being ill, infected or suspected of being infected or who is spreading pathogens may be required to undergo medical treatment.art. 38 restriction of certain activities and on practising a profession 1 any person who is ill, suspected of being ill, infected or suspected of being infected or who is spreading pathogens may be wholly or partly prohibited from carrying out certain activities or practising their profession. they may be required to give notice of any change in their canton of residence, their activity or profession to the competent cantonal authority without delay.2 if a person is wholly or partly prohibited from carrying out certain activities or from practising their profession and if they have been required to give notice of a change in their canton of residence, their activity or profession, the competent cantonal authority shall notify the competent authority in the canton concerned about the prohibition or restriction.art. 39 duties of doctors doctors who are treating or monitoring a person who is ill, suspected of being ill, infected or suspected of being infected or who is spreading pathogens shall take all the measures available to them to prevent the spread of a communicable disease. if official measures are required, this must be reported to the competent cantonal authority.section 2 measures in relation to the population and specific groups of persons art. 40 1 the competent cantonal authorities shall order measures to prevent the spread of communicable diseases among the population or within specific groups of persons. they shall coordinate their measures.2 they may in particular take the following measures:a. prohibit or restrict events;b. close schools, other public institutions and private businesses or issue regulations on their operation;c. revoke or restrict the right to enter or leave certain buildings or areas and to carry out specific activities at defined locations.3 the measures may only apply for as long as is necessary to prevent the spread of a communicable disease. they must be regularly reviewed.section 3 measures relating to international travel art. 41 entry and exit 1 the federal council shall issue regulations on international travel to prevent communicable diseases spreading from one country to another.2 if required to prevent the spread of a communicable disease, the foph may require persons entering or leaving switzerland:a. to make their identity, travel route and contact details known;b. to present a certificate of vaccination or other prophylaxis;c. to provide information on their state of health;d. to present proof of a medical test;e. to undergo a medical examination.3 the foph may require persons entering switzerland to submit to a measure in accordance with articles 34, 35, 37 and 38; articles 30-32 apply in an analogous manner. if required, the federal council may extend these measures temporarily to all persons entering switzerland from regions considered to pose a risk.4 the foph may temporarily deny any person who is ill, suspected of being ill, infected or suspected of being infected or who is spreading pathogens the right to leave switzerland if this is required to prevent the spread of a communicable disease.art. 42 operational preparation 1 operators of ports and airports shall make the required operational preparations for implementing the measures under article 41. they shall have their own emergency plans.2 the federal council shall designate the operators of ports and airports that must provide the required capacities in accordance with annex 1 b of the international health regulations (2005) of 23 may 20056.6 sr 0.818.103art. 43 duty to cooperate 1 companies that transport persons by rail, bus, ship or air internationally, airport operators, port operators, railway and bus stations and travel businesses are required to cooperate in carrying out the measures under article 41. they may within the limits of their operational and technical capacities be required:a. to inform travellers about the dangers of communicable diseases and the options for preventing and controlling such diseases;b. to collect the information required for the identification or early detection of persons who are ill, suspected of being ill, infected or suspected of being ill and persons suspected of spreading pathogens;c. to provide the competent authorities with lists of passengers or goods;d. to enable passengers to undergo medical tests;e. to enable the transport of persons who are ill, suspected of being ill, infected, suspected of being infected or who are spreading pathogens to a hospital or other suitable institution.2 they must provide the operational and staff capacities necessary to carry out the measures under paragraph 1.section 4 special measures art. 44 supply of therapeutic products 1 the federal council shall ensure that the population is supplied with the most important therapeutic products that are suitable for controlling communicable diseases, insofar as it is unable to guarantee supply by means of measures under the national economic supply act of 8 october 19827. 2 it may issue regulations on:a. allocating therapeutic products;b. distributing therapeutic products;c. facilitating the import and restricting or prohibiting the export of therapeutic products, provided this is necessary in order to avert a public health risk;d. maintaining stocks of therapeutic products in hospitals and other healthcare institutions.3 it may provide for measures to supply swiss citizens living abroad with therapeutic products.7 sr 531art. 45 goods transport 1 the federal council may issue regulations on the transport and on the import, export and transit of goods that may be carriers of pathogens. it may in particular:a. issue requirements for preventive measures relating to the transport of goods;b. require the testing of goods for specific pathogens;c. issue restrictions and bans on transport and on the import, export and transit of goods.2 it may instruct the cantons to take individual measures.art. 46 transport of dead bodies 1 the federal council shall issue the required regulations on the transport and the burial of dead bodies.2 it shall regulate the transport of dead bodies through switzerland, from another country to switzerland and from switzerland to another country.art. 47 control of organisms 1 if organisms occur that can transmit pathogens to human beings, the competent federal and cantonal bodies shall coordinate any measures required to control such organisms or to prevent their occurrence.2 companies that transport persons by rail, bus, ship or air, airport operators, port operators, railway and bus stations and travel businesses are required to cooperate in carrying out these measures.art. 48 disinfection and disinfestation 1 the competent cantonal authorities shall ensure that disinfection and disinfestation, in particular of means of transport and goods, are carried out to prevent the spread of communicable diseases.2 companies that transport persons by rail, bus, ship or air, airport operators, port operators, railway and bus stations and travel businesses are required to cooperate in carrying out disinfection and disinfestation measures.art. 49 certificates for shipping the competent cantonal authorities shall issue the required health certificates for international shipping.chapter 6 financial measures art. 50 financial assistance to public and private organisations the foph may within the limits of the authorised budget grant financial assistance to public and private organisations for measures in the national public interest for detecting, monitoring, preventing and controlling communicable diseases.art. 51 financial assistance for manufacturing therapeutic products 1 the confederation may provide financial assistance for manufacturing therapeutic products under article 44 in switzerland if supplies to the population in special or extraordinary situations cannot otherwise be guaranteed.2 it may provide the financial assistance within the limits of the authorised budget in the form of basic contributions, investment contributions or project-related contributions.3 it may make the contributions provided the manufacturer:a. is proven to have the knowledge and ability to develop or produce the therapeutic products concerned;b. undertakes to manufacture the therapeutic products in switzerland; andc. guarantees to prioritise the supply of such therapeutic products to the authorities in special or extraordinary situations.art. 52 compensatory payments made to laboratories the foph shall make compensatory payments to the laboratories designated as national reference centres or as confirmation laboratories for the expenses that they incur in carrying out their special tasks.chapter 7 organisation and procedures section 1 cantonal and federal bodies art. 53 chief medical officer 1 each canton shall appoint a chief medical officer. cantons may appoint a joint chief medical officer.2 chief medical officers shall coordinate their activities with other authorities and institutions involved in controlling communicable diseases. if a communicable disease arises in connection with a foodstuff, the chief medical officer shall notify the cantonal chemist.3 the federal council shall specify the required qualifications for chief medical officers.art. 54 coordination body 1 the confederation and the cantons shall establish a body to promote cooperation (coordination body). subsidiary bodies may be established to deal with specific fields, in particular detecting and monitoring, preventing and combating zoonoses.2 the coordination body and its subsidiary bodies shall be made up of federal and cantonal representatives. they may also include other specialists, as required.3 their tasks shall include the following:a. coordinating measures to prepare for situations that pose a particular risk to public health;b. coordinating measures to detect, prevent and control the disease;c. encouraging uniform implementation;d. coordinating the provision of information and communication;e. supporting the federal task force in managing special or extraordinary situations.4 the federal council shall regulate the establishment and management of the coordination body and its subsidiary bodies.art. 55 task force 1 the federal council shall have a task force at its disposal for events that may pose a special risk to public health, in particular to manage a special or extraordinary situation.2 the task force shall have the following tasks:a. advising the federal council;b. supporting the confederation and the cantons in coordinating the measures.art. 56 federal commission for vaccination 1 federal commission for vaccination shall advise the federal council on issuing regulations and the authorities on implementing this act.2 the commission's tasks shall include the following:a. drawing up vaccination recommendations for submission to the foph;b. devising medical criteria for assessing the severity of a vaccination reaction;c. advising the fdha on matters related to compensation (art. 64) or satisfaction (art. 65).3 it shall comprise specialists from outside the administration who have scientific or practical knowledge of vaccination matters.4 it shall work with other federal and cantonal bodies that deal with vaccination matters.art. 57 swiss expert committee for biosafety the swiss expert committee for biosafety shall advise the federal council on issuing regulations and the authorities on implementing this act.section 2 data processing art. 58 processing personal data 1 insofar as is required in order to identify persons who are ill, suspected of being ill, infected, suspected of being infected and persons suspected of spreading pathogens, the foph, the competent cantonal authorities and the public and private institutions entrusted with tasks under this act may process or arrange for the processing of personal data, including health data, with a view to taking measures to protect public health, in particular to detect, monitor and control communicable diseases.2 they shall be responsible for complying with the data protection regulations.3 the data may be retained for a maximum of ten years, unless the specifics of the disease require a longer retention period. thereafter they shall be destroyed or anonymised.art. 59 disclosure of personal data 1 the federal and cantonal bodies responsible for implementing this act may disclose to each other personal data, including data on health, which they require in order to carry out the tasks assigned to them under this act.2 in particular the following data may be disclosed:a. surname, first name, address, date of birth and occupation;b. details of travel routes, places of stay and contacts with persons, animals and objects;c. results of medical tests;d. results of epidemiological investigations;e. details of belonging to a specific risk category;f. details of measures to prevent and combat a communicable disease.3 the foph and the cantonal authorities responsible for implementing this act may disclose personal data, including data on health, which are required to prevent the spread of a communicable disease to the following persons and authorities: a. doctors required to treat communicable diseases;b. cantonal authorities that carry out tasks related to detecting, monitoring, preventing and controlling communicable diseases;c. other federal authorities, insofar as it is necessary in order to implement the legislation applied by those authorities.art. 60 information system 1 the foph shall operate an information system for storing data relating to persons who are ill, suspected of being ill, infected or suspected of being infected or who are spreading pathogens.2 the information system shall contain the following data:a. identification data that enable a person to be uniquely identified and to be contacted;b. details of travel routes, places of stay and contacts with persons, animals and objects;c results of medical tests;d. details of measures to prevent and control a communicable disease.3 the information system shall be used to:a. identify and notify persons who are ill, suspected of being ill, infected or suspected of being infected or who are spreading pathogens;b. organise measures in relation to individual persons in accordance with articles 33-38.4 it shall also assist with the uniform processing of data by the responsible authorities, the production of statistics and checks on implementation.5 the foph is responsible for the security of the information system and the legality of the processing of personal data. the cantons shall take appropriate organisational and technical measures to secure personal data in their area of responsibility.6 the foph shall check whether the data it receives are accurate. it shall correct inaccurate data and destroy unnecessary data and notify the data providers concerned.7 the information system shall be made available online to the foph, the cantonal bodies responsible for implementing this act and the coordinated medical services for tasks within their area of responsibility.8 the federal council shall stipulate the requirements for safeguarding and deleting data and regulate the access rights.9 the right to receive information on the data in the information system and the right to have the data corrected are governed by articles 5 and 8 of the federal act of 19 june 19928 on data protection. requests for information on personal data and for corrections to be made to the data must be sent to the foph.8 sr 235.1art. 60a9 proximity tracing system for the coronavirus 1 in addition to the information system under article 60, the foph shall operate a proximity tracing system for the sars-cov-2 coronavirus (pt system). the pt system records encounters between mobile telephones of persons that participate in the system, and notifies them if they have potentially been exposed to the coronavirus.2 the pt system and the data that it processes serve to notify the persons under paragraph 1 and produce statistics on the pt system. the pt system and the data must not be used for other purposes, in particular by cantonal authorities to order or enforce measures under articles 33-38 or by the police or the prosecution or intelligence services.3 participation in the pt system is voluntary for everyone. authorities, businesses and individuals may not give preference to or discriminate against any person based on their participation or non-participation in the pt system; any agreements to the contrary shall be invalid.4 any person who has been notified by the pt system that they have potentially been exposed to the coronavirus shall be entitled, on providing proof of notification, to be tested free of charge for infection with the coronavirus and for antibodies against the coronavirus.5 the pt system shall be designed according to the following principles:a. in relation to data processing, all appropriate technical and organisational measures must be taken to make it impossible to identify the participants.b. the data shall as far as possible be processed on decentralised components installed by the participants on their mobile telephones. in particular, data recorded on a participant's mobile telephone relating to other persons shall be processed and stored exclusively on that mobile telephone.c. the only data collected or processed in any other manner shall be data required to determine the distance and time of encounters and to issue the notifications; the data do not include location data.d. the data shall be destroyed as soon as they are no longer required for the notification.e. the source code and the technical specifications of all components of the pt system shall be made public. it must be evident that the machine-readable programmes were produced using this source code.6 the federal legislation on data protection applies.7 the federal council shall regulate the details on organising and operating the pt system and on processing the data.8 the federal council shall provide for the pt system to be terminated, and in particular for the deactivation or deinstallation of all components installed on mobile telephones, as soon as the pt system is no longer required to manage the epidemic caused by the coronavirus or if it proves to be insufficiently effective.9 inserted by no i of the fa of 19 june 2020, in force from 25 june 2020 to 31 dec. 2022 (as 2020 2191, 2727; 2021 878 no iii 3; bbl 2020 4461; 2021 2515).art. 61 statistical data the swiss federal statistical office shall, for statistical purposes, provide the foph each year with data from the statistics on causes of death and the medical statistics from hospitals.art. 62 disclosure of personal data to foreign authorities 1 in order to implement this act, the foph and the competent cantonal authorities may provide foreign authorities that have corresponding tasks and supranational and international organisations with personal data, including data on health, provided the state concerned and in particular its legislation or the supranational or international organisation guarantees an appropriate level of privacy protection for the person concerned.2 in particular the following data may be disclosed:a. surname, first name, address, date of birth and occupation;b. details of travel routes, places of stay and contacts with persons, animals and objects;c. results of medical tests;d. results of epidemiological investigations;e. details of belonging to a specific risk category;f. details of measures to prevent and combat a communicable disease.3 in the absence of legislation that guarantees appropriate protection, the data may only be disclosed if:a. adequate guarantees of an appropriate level of protection abroad are provided, for example in a contract;b. the person concerned has consented in the given case;c. disclosure in the given case is essential in order to safeguard public health; ord. disclosure in the given case is required to protect the life or physical integrity of the person concerned.art. 62a10 connecting the pt system to foreign systems the pt system under article 60a may be connected to equivalent foreign systems if an appropriate level of protection for personal privacy is guaranteed in the state concerned by:a. legislation; orb. adequate guarantees, for example in a contract.10 inserted by no i of the fa of 19 june 2020, in force from 25 june 2020 to 31 dec. 2022 (as 2020 2191, 2727; 2021 878 no iii 3; bbl 2020 4461; 2021 2515).chapter 8 compensation section 1 compensation for loss or damage as a result of official measures art. 63 the ordering authority may compensate persons who suffer loss or damage as a result of official measures in accordance with articles 33-38 and 41 paragraph 3, taking account of the financial circumstances of the persons concerned, insofar as the loss or damage is not otherwise covered. section 2 compensation and satisfaction for loss or damage as a consequence of vaccination art. 64 compensation 1 any person who is harmed by an officially ordered or officially recommended vaccination has the right to compensation.2 compensation shall only be awarded if the loss or damage cannot otherwise be covered through reasonable effort. art. 65 satisfaction 1 any person who is harmed by an officially ordered or officially recommended vaccination has the right to satisfaction if the harm is sufficiently serious to justify this; articles 47 and 49 of the code of obligations11 apply by analogy.2 the satisfaction is determined by the seriousness of the harm.3 it may not exceed 70,000 francs.4 satisfaction shall only be awarded if no payment or an insufficient payment is made by other persons. the satisfaction shall be reduced by the amount of any satisfaction payments made by other persons.11 sr 220art. 66 claim, deadlines and interest 1 any person who wishes to claim compensation or satisfaction must file a claim with the fdha.2 any person who has been harmed by a vaccination must file the claim for compensation or satisfaction before reaching the age of 21 or within five years of the vaccination.3 no interest shall be payable on the compensation or the satisfaction.art. 67 reduction or exclusion of compensation or satisfaction the fdha may reduce the compensation or satisfaction or forego making any payment if the person suffering harm was substantially to blame for the harm suffered.art. 68 allocation of costs 1 in the case of recommended vaccinations, the confederation and the canton in which the vaccination takes places shall each pay one half of the costs of the compensation or satisfaction.2 in the case of compulsory vaccinations, the entire costs of the compensation or satisfaction shall be paid by:a. the confederation if it has declared the vaccination to be mandatory;b. the canton that declared the vaccination to be mandatory.art. 69 responsibility and procedure 1 the fdha decides after consulting the federal commission for vaccination and the canton concerned whether compensation or satisfaction is to be paid.2 any person who claims compensation or satisfaction must credibly demonstrate that other persons have not made any payments or that the payments made by other persons are inadequate.3 appeal proceedings are governed by the general provisions on the administration of federal justice.section 3 cover for claims against manufacturers art. 70 1 the confederation may undertake to cover any loss or damage for which the manufacturer of a therapeutic product under article 44 may be held liable as the consequence of the product being used as recommended or ordered by the confederation in a special or extraordinary situation.2 the extent and the modalities of the cover shall be set out in an agreement between the confederation and the manufacturer.chapter 9 funding art. 71 costs borne by the cantons the cantons shall bear the cost of:a. measures in relation to the population or individual persons, insofar as the costs are not otherwise covered;b. epidemiological investigations under article 15 paragraph 1.art. 72 costs of disinfection or disinfestation the proprietor of a mode of transport, an installation or a product shall bear the costs of disinfection or disinfestation.art. 73 cost of supplying therapeutic products 1 the confederation shall bear the cost of supplying the population with therapeutic products pursuant to article 44.2 if therapeutic products are supplied, the costs shall be borne according to the requirements:a. of the federal act of 18 march 199412 on health insurance;b. of the federal act of 20 march 198113 on accident insurance;c. of the federal act of 19 june 199214 on military insurance.3 if the costs are not or not completely assumed in accordance with paragraph 2, they shall be borne by the confederation.12 sr 832.1013 sr 832.2014 sr 833.1art. 74 costs of international travel measures 1 the confederation shall bear the cost of testing, monitoring, quarantine, isolation and treatment ordered by its bodies for passengers on international transport services, as well as the costs incurred as a result of the duty to cooperate under article 43 paragraph 1 letters b, d and e.2 companies that transport persons internationally by rail, bus, ship or air, airport operators, port operators, railway stations and bus stations and travel businesses shall bear the costs incurred for preparations made under article 42 and as a result of the duty to cooperate under article 43 paragraph 1 letters a and c. the confederation may contribute to exceptional outlays and expenditures if these place the companies concerned under an unreasonable financial burden.chapter 10 implementation section 1 cantons art. 75 principle the cantons shall implement this act, unless the confederation is responsible.art. 76 reporting 1 the cantons shall report to the fdha on the implementation of the act. 2 the federal council shall regulate the frequency, form and content of the reports.section 2 confederation art. 77 monitoring and coordination 1 the confederation shall supervise the implementation of this act by the cantons.2 it shall coordinate the implementing measures taken by the cantons, insofar as there is an interest in uniform implementation. 3 it may for this purpose:a. specify the measures that the cantons must take to achieve uniform implementation;b. instruct the cantons to take specific implementing measures in response to risks to public health;c. require the cantons to inform the confederation about implementing measures; d. specify the requirements the cantons must meet in their preparatory and emergency plans.art. 78 implementing provisions 1 the federal council shall issue the implementing provisions.2 it may delegate the issuing of implementing provisions to the responsible federal office, taking account of their scope.art. 79 delegation of implementation tasks 1 the federal council may delegate implementation tasks to public or private organisations.2 it shall supervise the organisations and persons entrusted with implementation tasks.3 public or private organisations that carry out implementation tasks under paragraph 1 are entitled to compensation. the federal council shall regulate the extent and modalities of compensation.art. 80 international cooperation 1 the federal council may enter into international agreements on:a. the exchange of data used for epidemiological monitoring;b. the mutual provision of information on the outbreak and spread of communicable diseases;c. immediate notification where there is an imminent risk of communicable diseases crossing the national border;d. the harmonisation of measures for detecting, monitoring, preventing and controlling communicable diseases;e. the transport of dead bodies beyond the national border;f.15 the connection of the pt system under article 60a to corresponding foreign systems.2 the competent federal agencies shall work with foreign authorities and institutions and with international organisations.3 the foph shall carry out the tasks of the national ihr focal point in accordance with the international health regulations (2005) of 23 may 200516. in particular, it shall report events to the who that could lead to a public health emergency of international concern.15 inserted by no i of the fa of 19 june 2020, in force from 25 june 2020 to 31 dec. 2022 (as 2020 2191, 2727; 2021 878 no iii 3; bbl 2020 4461; 2021 2515).16 sr 0.818.103art. 81 evaluation the federal council shall periodically review the effectiveness, appropriateness and financial viability of the measures under this act.chapter 11 criminal provisions art. 82 misdemeanours 1 unless a more serious offence under the swiss criminal code17 has been committed, any person who wilfully commits any of the following acts shall be liable to a custodial sentence not exceeding three years or to a monetary penalty:a. failing to take the required containment measures when working with dangerous pathogens in contained systems (art. 26);b. releasing or marketing pathogens for experimental purposes without a licence (art. 27);c. marketing pathogens without duly informing customers about their health-related properties and risks and about the required precautionary and preventive measures (art. 28);d. breaching restrictions on certain activities or the practice of a profession (art. 38).2 a person acting through negligence shall be liable to a monetary penalty for misdemeanours under paragraph 1.17 sr 311.0art. 83 contraventions 1 any person who wilfully commits any of the following acts shall be liable to a fine:a. failing to comply with the duty to report (art. 12);b. conducting a microbiological test to detect communicable diseases without a licence (art. 16);c. failing to comply with the regulations on preventing the transmission of diseases (art. 19);d. issuing an international certificate of vaccination or of other prophylaxis without a licence (art. 23);e. failing to comply with the duty of care when handling pathogens or their toxic products (art. 25);f. failing to comply with other regulations on handling pathogens (art. 29);g. failing to comply with a medical monitoring order (art. 34);h. failing to comply with a quarantine or isolation order (art. 35);i. failing to comply with a medical examination order (art. 36);j. failing to comply with measures in relation to the population (art. 40);k. failing to comply with regulations relating to entering or leaving switzerland (art. 41);l. failing to comply with obligations to cooperate (arts 43, 47 para. 2 and 48 para. 2);m. failing to comply with regulations on transport or on the import, export and transit of goods (art. 45);n.18 refusing to provide a person with a service that is offered to the public because that person does not participate in the pt system (art. 60a para. 3).2 a person acting through negligence shall be liable to a fine not exceeding 5,000 francs for contraventions under paragraph 1.18 inserted by no i of the fa of 19 june 2020, in force from 25 june 2020 to 31 dec. 2022 (as 2020 2191, 2727; 2021 878 no iii 3; bbl 2020 4461; 2021 2515).art. 84 jurisdiction and administrative criminal law 1 the prosecution and adjudication of offences is a matter for the cantons.2 articles 6, 7 (offences by businesses) and 15 (forgery of documents, obtaining a false certificate by fraud) of the federal act of 22 march 197419 on administrative criminal law also apply to the cantonal authorities.19 sr 313.0chapter 12 final provisions art. 85 repeal of current legislation the following federal acts are repealed:1. federal act of 18 december 197020 on the control of communicable human diseases;2. federal act of 13 june 192821 on measures against tuberculosis.20 [as 1974 1071; 1985 1992 no i 2; 1991 362 no ii 405; 1997 1155 annex no 5; 2000 1891 no iii 2; 2001 2790 annex no 6; 2003 4803 annex no 7; 2004 4763 annex no ii 3; 2005 2293; 2006 2197 annex no 95 4137; 2008 3437 no ii 34; 2012 7281]21 [bs 4 363; as 1964 965 no iv let a; 1974 1071 art. 37; 1985 1992 no i 3; 1991 362 no ii 406; 2006 2197 annex no 96]art. 86 amendment of current legislation the following federal acts are amended as follows:.2222 the amendments may be consulted under as 2015 1435.art. 87 transitional provisions 1 licences under articles 5 paragraph 1bis, 29a paragraph 1 and 29c paragraph 2 of the epidemics act of 18 december 197023 remain valid until their expiry date or for for five years after this act comes into force, whichever is earlier.2 recognitions under article 5 paragraph 1 of the epidemics act of 18 december 1970 remain valid until their expiry date or for five years after this act comes into force, whichever is earlier.3 laboratories that did not require a licence and did not have valid recognition before this act came into force, but which require a licence after this act comes into force, must apply for the licence within one year after this act comes into force. they may continue to conduct tests until the competent federal authority issues its decision on the licence.23 as 1997 1155; 2001 2790art. 88 referendum and commencement 1 this act is subject to an optional referendum.2 the federal council shall determine the commencement date.commencement date: 1 january 20162424 fcd of 29 april 2015.

818.101.24english is not an official language of the swiss confederation. this translation is provided for information purposes only, has no legal force and may not be relied on in legal proceedings.ordinance 3on measures to combat the coronavirus (covid-19)(covid-19 ordinance 3)of 19 june 2020 (status as of 1 january 2022)the swiss federal council,based on articles 3, 4, 5 letters a and b and 8 of the covid-19 act of 25 september 20201, on article 63 paragraph 3 of the therapeutic products act of 15 december 20002,and on article 41 paragraph 1 of the epidemics act of 28 september 20123 (epida),4ordains:1 sr 818.1022 sr 812.213 sr 818.1014 amended by no i of the o of 19 march 2021 (employees at high risk - extension), in force from 1 april 2021 (as 2021 167).chapter 1 general provisions art. 1 subject matter and purpose 1 this ordinance orders measures applicable to the population, organisations and institutions and the cantons to combat the coronavirus (covid-19).2 the measures serve to ensure switzerland's capacities to manage the epidemic, in particular to maintain the provision of the population with adequate care and a sufficient supply of essential medical goods.art. 2 responsibility of the cantons unless this ordinance provides otherwise, the cantons shall retain their responsibilities.chapter 2 maintenance of capacities to provide healthcare section 1 principle art. 3 1 in order to maintain switzerland's capacities to manage the covid-19 epidemic and in particular to guarantee the provision of the population with adequate care and a sufficient supply of essential medical products, the following measures in particular must be taken: a. measures to restrict the entry of persons from high-risk countries and regions and the import and export of goods;b. measures to guarantee the provision of essential medical goods.2 high-risk countries or regions are countries or regions in which the coronavirus sars-cov-2 has been detected and in which:a. there is an increased risk of infection; orb. a variant of the virus is widespread that carries a higher risk of infection or causes a more severe form of the disease in comparison with the variant of the virus that is prevalent in the schengen area.53 the lists of high-risk countries and regions is published in annex 1.65 amended by annex 3 of the covid-19 ordinance on international travel measures of 23 june 2021, in force since 26 june 2021 (as 2021 380).6 inserted by annex 3 of the covid-19 ordinance on international travel measures of 23 june 2021, in force since 26 june 2021 (as 2021 380).section 2 restrictions on border crossings and the admission of foreign nationals art. 47 border crossings and controls 1 the following persons shall be refused entry for a period of stay of up to three months that does not require a permit and does not involve gainful employment (art. 10 of the foreign nationals and integration act of 16 december 20058 (fnia):foreign nationals who wish to enter switzerland from a high-risk country or from a high-risk region and who do not fall within the scope of the agreement of 21 june 19999 between the european community and its member states, of the one part, and the swiss confederation, of the other part, on the free movement of persons (afmp) or of the convention of 4 january 196010 establishing the european free trade association (efta convention);b. and c.11 . .122 the following persons are exempt from this ban on entry:a. persons who prove that they have been vaccinated against sars-cov-2; the persons who are regarded as having been vaccinated is regulated in annex 1a; orb. persons who provide credible evidence that they are in a situation of special necessity.132bis children under the age of 18 who enter switzerland accompanied by an adult who meets the requirements of paragraph 2 letter a are not required to prove that they have been vaccinated.142ter the exception in paragraph 2 letter a does not apply to persons who wish to enter switzerland from a country or region listed in annex 1 number 2.152quater the state secretariat for migration (sem) shall issue the required directives on exceptions to the ban on entry.163 decisions taken by the competent authorities may be enforced immediately. article 65 of the fnia applies mutatis mutandis. an appeal may be filed against the sem decision within 30 days of notification. the appeal does not have suspensive effect.4 the criminal provisions of article 115 fnia apply mutatis mutandis. in the event of any violation of the provision on entry, a ban on entry may also be imposed.7 amended by no i of the o of 24 june 2020 (relaxation of measures relating to borders, entry and admission for residence and employment), in force since 6 july 2020 (as 2020 2611).8 sr 142.209 sr 0.142.112.68110 sr 0.632.3111 repealed by annex 2 no 2 of the covid-19 ordinance on international travel measures of 27 jan. 2021, with effect from 8 feb. 2021 (as 2021 61).12 amended by no i of the o of 21 dec. 2020, in force since 21 dec. 2020 at 1pm (as 2020 6395).13 amended by annex 3 of the covid-19 ordinance on international travel measures of 23 june 2021, in force since 26 june 2021 (as 2021 380).14 inserted by annex 3 of the covid-19 ordinance on international travel measures of 23 june 2021, in force since 26 june 2021 (as 2021 380).15 inserted by annex 3 of the covid-19 ordinance on international travel measures of 23 june 2021, in force since 26 june 2021 (as 2021 380).16 inserted by annex 3 of the covid-19 ordinance on international travel measures of 23 june 2021, in force since 26 june 2021 (as 2021 380).art. 517 updating the annexes the federal department of justice and police (fdjp) shall update annexes 1 and 1a continuously in consultation with the federal department of home affairs (fdha) and the federal department of foreign affairs (fdfa).17 amended by annex 3 of the covid-19 ordinance on international travel measures of 23 june 2021, in force since 26 june 2021 (as 2021 380).art. 6 and 718 18 repealed by no i of the o of 24 june 2020 (relaxation of measures relating to borders, entry and admission for residence and employment), with effect from 6 july 2020 (as 2020 2611).art. 819 19 repealed by art. 6 no 1 of the covid-19 ordinance on international travel measures of 2 july 2020, with effect from 6 july 2020 (as 2020 2737).art. 9 provisions on cross-border movements of persons and goods 1 the fdjp in consultation with the fdha, the federal department of the environment, transport, energy and communications (detec), the fdf and the fdfa shall decide on restrictions on air passenger services from high-risk countries or regions.2 it may in particular suspend passenger movements for certain flights, close individual airfields with international borders to passenger movements from high-risk countries or regions or prohibit movements of persons to switzerland from high-risk countries or regions entirely.3 restrictions on cross-border movements of persons are set out in annex 2.art. 1020 granting of visas foreign nationals who wish to enter switzerland from a high-risk country or from a high-risk region and who do not fall within the scope of the afmp21 or the efta convention22 shall not be granted a schengen visa for periods of stay of up to three months that do not require a permit and do not involve gainful employment. exempted from the foregoing are applications from persons under article 4 paragraphs 2 and 2bis.20 amended by annex 3 of the covid-19 ordinance on international travel measures of 23 june 2021, in force since 26 june 2021 (as 2021 380).21 sr 0.142.112.68122 sr 0.632.31art. 10a23 extension of deadlines 1 foreign nationals who have been prevented from acting within the deadlines laid down in articles 47 or 61 fnia24 because of measures in connection with the coronavirus may carry out the act required at any time while this ordinance remains in force.2 by carrying out the required act, they shall achieve the position that would have been achieved had they acted within the prescribed deadline.3 if the deadlines under articles 59b or 102a fnia for updating biometric data in order to obtain or extend a permit cannot be met because of the coronavirus, the permit may still be issued or extended at any time while this ordinance remains in force.23 inserted by no i of the o of 24 june 2020 (relaxation of measures relating to borders, entry and admission for residence and employment), in force since 6 july 2020 (as 2020 2611).24 sr 142.20section 3 provision of essential medical goods art. 11 definition 1 medicinal products, medical devices and protective equipment (essential medical goods) that are important and urgently needed to prevent and combat the coronavirus (covid-19) are the goods listed in annex 4.2 the federal department of home affairs (fdha) is responsible for the list and shall update the same regularly in consultation with the interdepartmental working group on medical goods in accordance with article 12 and the spiez laboratory.253 the federal office of public health (foph) shall define the goods that need to be procured and how they should be used. based on these terms of reference, the foph shall determine the quantities required in consultation with:26a. the interdepartmental working group on medical goods: for active substances and drugs, medical devices, personal protective equipment and other equipment;b. the spiez laboratory: for covid-19 tests and associated reagents.25 amended by no i of the o of 18 dec. 2020 (sars-cov-2 rapid tests), in force since 21 dec. 2020 (as 2020 5801).26 amended by no i of the o of 18 dec. 2020 (sars-cov-2 rapid tests), in force since 21 dec. 2020 (as 2020 5801).art. 12 interdepartmental working group on medical goods 1 the interdepartmental working group on medical goods shall comprise as a minimum representatives from the following federal agencies:a. the foph;b. the therapeutic products division of the federal office for national economic supply;c. the swiss agency for therapeutic products (swissmedic);d. the national emergency operations centre (neoc);e. the medical services coordination committee (sanko) for resources management at federal level (resmab);f. the armed forces pharmacy;g. the coordinated medical services (cms).2 the federal council cms delegate chairs the working group.2727 amended by no i of the o of 12 may 2021, in force since 17 may 2021 (as 2021 274).art. 13 duty to report 1 the cantons are obliged on request to report to the cms on the current stocks of essential medical goods in their healthcare facilities.2 laboratories and manufacturers and distributors of in vitro diagnostics (covid-19 tests) are obliged to report regularly to the spiez laboratory on their current stocks of such tests.3 the cms may request details of stocks from companies that store essential medical goods.art. 14 procurement of essential medical goods 1 in order to support the provision of essential medical goods to the cantons and their healthcare facilities, charitable organisations (for example swiss red cross) and third parties (for example laboratories, pharmacies), essential medical goods may be procured if requirements cannot be covered through the normal procurement channels.2 the essential medical goods that are required shall be determined on the basis of the data transmitted in accordance with article 13.3 the armed forces pharmacy is responsible for procuring essential medical goods under paragraph 1 on behalf of the foph.4 the responsible authorities may delegate the procurement of essential medical goods to third parties.5 when procuring essential medical goods, the armed forces pharmacy may take calculated risks and diverge from the provisions of existing directives and the financial budget act of 7 october 200528 in relation to risks, such as prepayment without security or currency hedging.6 the armed forces pharmacy manages the procured essential medical goods as instructed by the interdepartmental working group on medical goods.28 sr 611.0art. 15 allocation of essential medical goods 1 the cantons shall submit requests for allocation to the resmab as required.292 allocation shall be made continuously based on the supply situation and the current number of cases in each canton.3 the cms in consultation with interdepartmental working group on medical goods may allocate essential medical goods to the cantons, to charitable organisations and to third parties.4 the spiez laboratory in consultation with the foph is responsible for allocating in vitro diagnostics (covid-19 tests). allocation when required applies to all tests available in switzerland.29 amended by no i of the o of 12 may 2021, in force since 17 may 2021 (as 2021 274).art. 16 delivery and distribution of essential medical goods 1 the confederation or the third parties that it instructs shall ensure the delivery of the essential medical goods procured under article 14 to a distribution centre for each canton. in exceptional cases, the confederation in consultation with the cantons may supply eligible facilities and organisations directly.2 the cantons shall designate cantonal distribution centres for goods that are not supplied directly to the recipient, and shall give notice of these to the responsible federal authorities.3 they shall ensure that essential medical goods that have been delivered are distributed as required and in good time on their territory.art. 17 direct sales by the confederation the confederation may sell the essential medical goods on the market in return for payment, either itself or through third parties.art. 18 costs 1 the costs of procuring essential medical goods shall be funded in advance by the confederation in the cases where it procures the goods.2 the cantons, charitable organisations and third parties shall notify the confederation as quickly as possible of the purchasing costs of the essential medical goods supplied to them where the confederation has assumed responsibility for their procurement in accordance with article 14 paragraph 1.3 the confederation shall bear the costs of delivering the procured essential medical goods to the cantons.4 the cantons shall bear the costs of distributing these essential medical goods within the canton.5 if the procured goods become freely available in the market again, the confederation may sell its stocks at market prices.3030 inserted by no i of the o of 12 may 2021, in force since 17 may 2021 (as 2021 274).art. 19 requisitioning 1 if the provision of essential medical goods cannot be guaranteed, the fdha at the request of the interdepartmental working group on medical goods may require individual cantons or public healthcare facilities that have adequate stocks of medicinal products under annex 4 number 1 to deliver part of their stocks to other cantons or healthcare facilities. the cantons or healthcare facilities shall charge the recipient directly for the costs of the goods and their delivery at the sale price.2 subject to the requirement of paragraph 1, the fdha at the request of the interdepartmental working group on medical goods may order the requisitioning of essential medical goods held by companies. the confederation shall pay compensation at the sale price.art. 20 manufacture 1 if the provision of essential medical goods cannot otherwise be guaranteed, the federal council at the request of the interdepartmental working group on medical goods may require manufacturers to produce essential medical goods, to prioritise the production of such goods or to increase production volumes.2 the confederation may contribute to the cost of production under paragraph 1 where manufacturers suffer financial disadvantages as a result of the changeover in production or the cancellation of private orders.art. 21 exceptions to the requirement of authorisation for medicinal products 1 medicinal products that are manufactured with active substances under annex 5 for the treatment of covid-19 patients may, provided an application for authorisation of a medicinal product containing one of these active substances has been filed, be placed on the market without authorisation pending swissmedic's decision on authorisation. when examining applications for authorisation, swissmedic may permit a relaxation of the relevant requirements for such medicinal products under the law on therapeutic products on the basis of a risk-benefit analysis.2 amendments to the authorisation for a medicinal product authorised in switzerland containing an active substance under annex 4 number 1 on the basis of which the medicinal product can be used to treat covid-19 patients in switzerland may be made immediately after filing a corresponding amendment application and pending swissmedic's decision on authorisation. swissmedic may, on the basis of a risk-benefit analysis, permit a relaxation of the relevant requirements under the law on therapeutic products for amendments to the authorisation of medicinal products containing an active substance listed in annex 4 number 1.313 the fdha shall regularly update the list in annex 5.324 swissmedic may on the basis of a risk-benefit analysis permit changes to the manufacturing process approved within the framework of the authorisation of medicinal products used to prevent and treat covid-19 in switzerland. it shall specify criteria according to which the person responsible for technical matters may grant an early market release for medicinal products used to prevent and treat covid-19 in switzerland.5 in derogation from article 9a paragraph 1 letter c of the therapeutic products act of 15 december 2000, temporary authorisations may be issued even if an authorised equivalent medicinal product that can be used as an alternative is available in switzerland, provided the authorisations serve to guarantee the supply of medicinal products to prevent and combat the coronavirus in switzerland.3331 amended by no i of the o of 12 may 2021, in force since 17 may 2021 (as 2021 274).32 amended by no i of the o of 18 dec. 2020 (sars-cov-2 rapid tests), in force since 21 dec. 2020 (as 2020 5801).33 inserted by no i of the o of 27 oct. 2021, in force since 28 oct. 2021 (as 2021 634).art. 22 exceptions to the provisions on the import of medicinal products 1 following the submission of a authorisation application for a medicinal product containing active substances listed in annex 5 for the treatment of covid 19 patients, the applicant may import the medicinal product prior to its authorisation or entrust the import of the medicinal product to a company with a wholesale or import licence.341bis pharmacists that have pharmaceutical responsibility in a hospital pharmacy may import non-authorised medicinal products with active substances under annex 5 for the treatment of covid-19 patients. a company with a wholesale or import licence may be instructed to import such medicinal products.352 notice of each import under paragraph 1bis must be given to swissmedic within 10 days of the arrival of goods.363 in order to prevent and treat covid-19 in switzerland, swissmedic may allow the temporary placing on the market of a medicinal product as a short-term solution for the temporary non-availability of an identical medicinal product authorised in switzerland, provided no essentially identical medicinal product is authorised and available in switzerland.4 after submitting its application for authorisation for a covid-19 vaccine and for an operating licence under article 10 paragraph 1 letter b of the therapeutic products act of 15 december 2000, the applicant may instruct a company with a wholesale or import licence to import the covid-19 vaccine before its authorisation and to store the vaccine until authorisation is granted. the company instructed must comply with the international rules on good distribution practice in accordance with annex 4 of the medicinal products licensing ordinance of 14 november 201837.3834 inserted by no i of the o of 12 may 2021, in force since 26 april 2021 (as 2021 274).35 originally para. 1.36 amended by no i of the o of 12 may 2021, in force since 26 april 2021 (as 2021 274).37 sr 812.212.138 inserted by no i of the o of 18 dec. 2020 (sars-cov-2 rapid tests), in force since 21 dec. 2020 (as 2020 5801).art. 23 exceptions for medical devices39 1 in response to an application, swissmedic may authorise the placing on the market and use of medical devices that have not undergone a conformity assessment procedure in accordance with article 23 the medical devices ordinance of 1 july 20204041 (meddo), provided their use for preventing and combating the coronavirus in switzerland is in the interests of public health or patient safety or health and provided, taking account of their intended purpose, their fulfilment of the essential requirements and their effectiveness and performance are adequately proven.2 when assessing the risks under paragraph 1, swissmedic shall in particular take account of the procurement needs identified by the foph for preventing and combating the coronavirus in switzerland.3 authorisation shall be granted to the swiss distributor or the applicant institution or healthcare facility. it may be made subject to a time limit and other conditions and requirements.4 facemasks which have not undergone a conformity assessment procedure under article 23 meddo may be placed on the market without authorisation under paragraph 1 provided they:a. are placed on the market exclusively for non-medical use; andb. are expressly labelled as being for non-medical use.5 facemasks placed on the market in accordance with paragraph 3bis may not be used in hospitals or medical practices by persons in direct contact with patients.5bis the swisscovid app as specified in the ordinance of 24 june 202042 on the proximity tracing system for the coronavirus sars-cov-2 and as specified in the ordinance of 30 june 202143 on a notification system for possible infection with the coronavirus sars-cov-2 at events is not subject to the provisions on the conformity assessment of medical devices.446 the obligations in relation to product surveillance under the meddo, in particular to collecting reports of incidents, continue to apply.39 amended by no i of the o of 25 aug. 2021, in force since 30 aug. 2021 (as 2021 507).40 sr 812.21341 the reference was amended on 26 may 2021 pursuant to art. 12 para. 2 of the publications act of 18 june 2004 (sr 170.512). the amendment has been made throughout the text.42 sr 818.101.2543 sr 818.102.444 inserted by art. 18 of the o of 30 june 2021 on a notification system for possible infection with the coronavirus sars-cov-2 at events, in force from 1 july 2021 until 30 june 2022 (as 2021 411).art. 23a45 45 inserted by no i of the o of 12 march 2021 (as 2021 145). repealed by no i of the o of 23 june 2021, with effect from 26 june 2021 (as 2021 378).art. 23b46 exception for ffp masks 1 ffp masks that do not comply with the principles and procedures for conformity assessment under article 3 paragraph 2 of the ppe ordinance of 25 october 201747 (ppeo) and whose non-compliance with these principles and procedure has not been approved based on article 24 paragraph 3 in its version of 22 june 202048 may not be placed on the market.2 ffp masks under paragraph 1 held in federal and cantonal stocks may be supplied to private hospitals, homes for the elderly and care homes and organisations that provide nursing services and other assistance at home as well as to federal and cantonal facilities such as the armed forces, civil defence units, hospitals and prisons provided the federal or cantonal authority responsible for the supply:a. guarantees by means of testing by a recognised european conformity assessment body for ffp masks that the masks provide a level of safety equivalent to that legally required under the ppeo; andb. guarantees their traceability.3 product information in at least one official language or in english must be available when the masks are supplied. it must be ensured that the user is able to use the product in accordance with the relevant provisions.46 originally art. 23a. inserted by no i of the o of 27 jan. 2021 (tests for sars-cov-2 and ffp masks), in force since 28 jan. 2021 (as 2021 54).47 sr 930.11548 as 2020 2195art. 2449 sars-cov-2 rapid tests for specialist use and the supply and use of sars-cov-2 self-tests50 1 non-automated single-patient rapid tests for direct detection of sars-cov-2 (sars-cov-2 rapid tests) for specialist use may only be carried out in the following facilities:51a. laboratories licensed under article 16 of the epidemics act of 28 september 201252 (epida) and sample collection stations that they operate;b.53 medical practices, pharmacies and hospitals, homes for the elderly and care homes and socio-medical institutions, and test centres operated by or on behalf of the canton.1bis they may also be carried out in and by organisations that provide nursing services and other assistance at home as well as by assistants as defined in the federal act of 19 june 195954 on invalidity insurance (invia).552 sars-cov-2 rapid tests may also be carried out at a location outside the facilities mentioned in paragraph 1 provided a laboratory manager, a doctor or a pharmacist accepts responsibility for complying with the requirements of this article and articles 24a and 24b.56 3 if facilities under paragraph 1 letter a offer sars-cov-2 rapid tests at a location outside the facilities, they must notify the canton of their offer.57 4 facilities under paragraphs 1 letter b and 1bis may carry out sars-cov-2 rapid tests for specialist use without a licence under article 16 epida and outside closed systems provided they comply with the following conditions:58a. suitable safety measures and precautionary measures plans to protect persons, animals, the environment and biological diversity have been prepared and implemented.b.59 the tests are only carried out by persons specifically trained for this purpose according to the instructions provided by the test manufacturer. c. the test results are interpreted under the supervision of persons with the required expertise; external experts may also be consulted.d. the facilities keep records that permit the traceability and prove the quality of the test systems used. the records must be preserved.e. the facilities are authorised by the canton to carry out such tests.4bis sars-cov-2 rapid tests for self-testing by the public (sars-cov-2 self-tests) may be supplied and used if they are intended for self-testing by the manufacturer and certified accordingly.60 5 sars-cov-2 rapid tests are direct detection methods that detect the antigens to sars-cov-2. the tests are not automated and are carried out with the minimum of instruments; only the reading of the test result may be automated.61 49 amended by no i of the o of 18 dec. 2020 (sars-cov-2 rapid tests), in force since 21 dec. 2020 (as 2020 5801).50 amended by no i of the o of 12 march 2021, in force since 15 march 2021 (as 2021 145).51 amended by no i of the o of 23 june 2021, in force since 26 june 2021 (as 2021 378).52 sr 818.10153 amended by no i of the o of 27 jan. 2021 (tests for sars-cov-2 and ffp masks), in force since 28 jan. 2021 (as 2021 54).54 sr 831.2055 inserted by no i of the o of 27 jan. 2021 (tests for sars-cov-2 and ffp masks) (as 2021 54). amended by no i of the o of 12 march 2021, in force since 15 march 2021 (as 2021 145).56 amended by no i of the o of 25 aug. 2021, in force since 30 aug. 2021 (as 2021 507).57 amended by no i of the o of 25 aug. 2021, in force since 30 aug. 2021 (as 2021 507).58 amended by no i of the o of 12 march 2021, in force since 15 march 2021 (as 2021 145).59 amended by no i of the o of 12 march 2021, in force since 15 march 2021 (as 2021 145).60 inserted by no i of the o of 12 march 2021 (as 2021 145). amended by no i of the o of 25 aug. 2021, in force since 30 aug. 2021 (as 2021 507).61 amended by no i of the o of 25 aug. 2021, in force since 30 aug. 2021 (as 2021 507).art. 24a62 permitted sars-cov-2 rapid tests for specialist use 1 the only test systems that may be used for sars-cov-2 rapid tests for specialist use are those authorised in the eu for issuing the eu's digital covid certificate.2 in derogation from paragraph 1, other test systems may also be used provided the sars-cov-2 rapid tests are carried out by laboratories licensed under article 16 epida and the sample collection stations that they operate.62 inserted by no i of the o of 18 dec. 2020 (sars-cov-2 rapid tests) (as 2020 5801). amended by no i of the o of 25 aug. 2021, in force since 30 aug. 2021 (as 2021 507).art. 24b63 notifying the canton of a positives test result in the absence of a confirmatory diagnosis if no confirmatory diagnosis is made following a positive result for a sars-cov-2 rapid test and if the fdha has not required a report on the result of sars-cov-2 rapid tests on the basis of article 19 of the epidemics ordinance of 29 april 201564, the facility or person responsible for conducting the tests must notify the cantonal authority or organisation responsible for contact tracing of the positive test result.63 inserted by no i of the o of 18 dec. 2020 (sars-cov-2 rapid tests) (as 2020 5801). amended by no i of the o of 12 march 2021, in force since 15 march 2021 (as 2021 145).64 sr 818.101.1art. 24c65 lists of sars-cov-2 rapid tests the foph shall maintain continuously updated lists of sars-cov-2 rapid tests for specialist use in accordance with article 24a and the sars-cov-2 self-tests in accordance with article 24 paragraph 4bis and shall publish the lists on its website.65 inserted by no i of the o of 18 dec. 2020 (sars-cov-2 rapid tests) (as 2020 5801). amended by no i of the o of 25 aug. 2021, in force since 30 aug. 2021 (as 2021 507).art. 24d66 responsibility of the cantons for carrying out sars-cov-2 rapid tests the cantons are responsible for monitoring and enforcing compliance with the conditions in articles 24-24b for sars-cov-2 rapid tests that are not carried out at the facilities referred to in article 24 paragraph 1 letter a.66 inserted by no i of the o of 18 dec. 2020 (sars-cov-2 rapid tests) (as 2020 5801). amended by no i of the o of 27 jan. 2021 (tests for sars-cov-2 and ffp masks), in force since 28 jan. 2021 (as 2021 54).art. 24e67 collecting samples for molecular-biological analyses for sars-cov-2 1 samples for molecular-biological analyses for sars-cov-2 may be collected:a. in laboratories licensed under article 16 epida and in sample collection stations that they operate; b. in facilities or by persons in accordance with article 24 paragraphs 1 letter b, 1bis and 2;c. in other sample collection stations, provided the samples are collected under the supervision of laboratories licensed under article 16 epida and the sample collection station has notified the canton that it is carrying out this activity.2 the sample collection station must verify the identity of the person being tested. the sample must be collected by a person trained for this purpose.3 the sample may also be collected by the person being tested themselves:a. in the facility, provided the facility verifies the identity of the person being tested and supervises the collection of the sample as it is being done; orb. outside the facility, provided the facility verifies the identity of the person being tested and guarantees that the sample is correctly assigned to the person being tested by taking suitable precautions, in particular by the video monitoring of the process.67 inserted by no i of the o of 25 aug. 2021, in force since 1 oct. 2021 (as 2021 507).art. 24f68 responsibility for monitoring the collection of samples for molecular-biological analyses for sars-cov-2 swissmedic is responsible for monitoring compliance with the requirements set out in article 24e by laboratories licensed under article 16 epida, including the collection of samples carried out under the supervision of such laboratories by facilities in accordance with article 24e paragraph 1 letter c, and the cantons are responsible for monitoring in the facilities in accordance with article 24e paragraph 1 letter b and for the supervision of collection stations in accordance with article 24e paragraph 1 letter c.68 inserted by no i of the o of 25 aug. 2021, in force since 1 oct. 2021 (as 2021 507).art. 24g69 disclosure of data swissmedic may disclose data on essential medical goods to the federal offices and organisations mentioned in article 12 paragraph 1, provided this is required in order to implement this ordinance. the data must not include sensitive personal data.69 originally art. 24e. inserted by no i of the o of 18 dec. 2020 (sars-cov-2 rapid tests), in force since 21 dec. 2020 (as 2020 5801).chapter 3 healthcare provision art. 25 hospitals and clinics 1 the cantons shall ensure that sufficient capacities (in particular beds and specialist staff) are available in the inpatient departments of hospitals and clinics for covid-19 patients and for other urgently required medical examinations and treatments, in particular in the intensive care units and the general internal medicine departments.2 for this purpose, they may require hospitals and clinics:a. to make their inpatient capacities available immediately or on demand; andb. to restrict or suspend non-urgent medical procedures and treatments.3 the hospitals and clinics must ensure that supplies of medicinal products for covid-19 patients and for other urgently required medical examinations and treatments is guaranteed in their outpatient and inpatient departments.art. 2670 payment of costs for analyses for sars-cov-2 1 the confederation shall pay the effective costs of analyses for sars-cov-2 subject to the requirements and maximum amounts set out in annex 6.712 every week, the foph shall publish on its website the number of molecular-biological analyses for sars-cov-2 in accordance with annex 6 number 1 that were conducted in the previous calendar week in switzerland and in liechtenstein. the fdha may adjust the maximum amounts paid in line with the effective costs.3 for analyses for sars-cov-2 under annex 6, the order to the laboratory must include the information required for electronic invoicing, in particular the tested person's health insurance number or client number.4 persons tested as specified in annex 6 shall not be required to pay a share of the costs in accordance with article 64 of the federal act of 18 march 199472 on health insurance (hia).5 service providers shall not charge persons tested as specified in annex 6 any additional costs. they must pass on any sums that directly or indirectly cover any part of the cost shares in accordance with annex 6 to the reimbursement debtor.6 if the service provider offers services in accordance with annex 6 that must be paid for by the person tested, it must inform the person concerned before carrying out the test that the costs may be covered under article 26b.7370 amended by no i of the o of 12 march 2021, in force since 15 march 2021 (as 2021 145).71 amended by annex no 1 of the o of 3 nov. 2021, in force since 16 nov. 2021 (as 2021 653).72 sr 832.1073 inserted by no i of the o of 25 aug. 2021, in force since 30 aug. 2021 (as 2021 507).art. 26a74 persons liable to pay for the services 1 where a service involving an analysis for sars-cov-2 under annex 6 number 1 is carried out by a service provider that has a paying agent register number (zsr number), payment for the service shall be made under the tiers payant system in article 42 paragraph 2 hia75 by the following insurers:76a. in the case of persons who have mandatory health insurance under the hia, by the health insurance company under article 2 of the health insurance oversight act of 26 september 201477 with which the person tested is insured;b. in the case of persons who have military insurance against illness, by the military insurance;c.78 in the case of persons who do not have mandatory health insurance under the hia, and in the case of persons who have died, by the joint institution under article 18 hia.2 where a service involving an analysis for sars-cov-2 under annex 6 number 1 is carried out by a service provider that does not have a zsr number, the canton in which the sample is taken shall pay for the services.3 where the analysis for sars-cov-2 is conducted in accordance with annex 6 sections 1.1.1 letters i and j, 1.4.1 letters h and i, 3.1.1 letter a and 3.2.1 letter a, the service providers may choose as the person liable to pay for the service:79a. the insurer under paragraph 1 that is liable to pay for the services under the tiers payant system in terms of article 42 paragraph 2 hia; orb. the canton in which the sample for sars-cov-2 is taken.4 where the analysis for sars-cov-2 under annex 6 sections 2, 3.1.1 letters b-d and 3.2.1 letters b and c is conducted, the canton in which the sample for sars-cov-2 is taken shall pay for the services.8074 inserted by no i of the o of 24 june 2020 (as 2020 2549). amended by no i of the o of 12 march 2021, in force since 15 march 2021 (as 2021 145).75 sr 832.1076 amended by no i of the o of 25 aug. 2021, in force since 1 oct. 2021 (as 2021 507).77 sr 832.1278 amended by no i of the o of 1 oct. 2021, in force since 11 oct. 2021 (as 2021 594).79 amended by no i of the o of 12 may 2021, in force since 17 may 2021 (as 2021 274).80 amended by no i of the o of 23 june 2021, in force since 26 june 2021 (as 2021 378).art. 26b81 procedure where the insurer is liable to pay for the service 1 where an insurer is liable to pay for the service under article 26a paragraphs 1 and 3 letter a, the service providers under article 26 paragraph 2 shall send an invoice for services under annex 6 for each person tested to the insurer concerned on a case-by-case basis or collectively every quarter at the latest nine months after providing the services. the invoice may only cover services under annex 6. the invoice shall preferably be sent electronically.2 service providers shall not charge for services under annex 6 as positions 3186.00, 3188.00 and 3189.00 of annex 3 to the health insurance benefits ordinance of 29 september 199582 (hibo).833 the insurers shall check the invoices and ascertain whether the service provider has charged correctly for the services under annex 6. they shall comply with articles 84-84b hia84 in processing the data.4 at the start of january, april, july and october, they shall notify the foph of the number of analyses for which they have paid the service providers, and of the amount paid in each case. the external auditors for the insurers shall each year review the figures and confirm that suitable checks in accordance with paragraph 3 are being made and submit a report to the foph. the foph may request additional information from the insurers on the amounts paid to each service provider.5 the confederation shall reimburse the insurers every quarter for the services that they have paid for.6 if the invoice for the service sent by the service provider is incorrect, the insurer may claim back any payments already made. once the confederation has paid for the service in accordance with paragraph 5, the right to reimbursement passes to the confederation. the insurers shall provide the confederation with the data required to exercise its right to reimbursement. the data may not include any sensitive personal data.6bis and 6ter .857 the joint institution shall invoice the foph every quarter on a time and material basis for the administrative costs of its activities as an insurer under article 26a paragraphs 1 letter c and 3 letter a. the hourly rate shall be 95 francs and includes salary costs, social insurance payments and infrastructure costs. the actual costs of any expenditure on audits, system modifications and negative interest not included in the administrative costs shall be reimbursed.8 invoices for analyses for sars-cov-2 that meet the requirements of annex 6 must be marked analysis for sars-cov-2 without meeting the testing criteria.81 inserted by no i of the o of 27 jan. 2021 (tests for sars-cov-2 and ffp masks) (as 2021 54). amended by no i of the o of 12 march 2021, in force since 15 march 2021 (as 2021 145).82 sr 832.112.3183 amended by no i of the o of 17 dec. 2021, in force since 18 dec. 2021 (as 2021 881).84 sr 832.1085 inserted by no i of the o of 12 may 2021 (as 2021 274). repealed by no i of the o of 25 aug. 2021, with effect from 1 oct. 2021 (as 2021 507).art. 26c86 procedure where the canton is liable to pay for the service 1 where the canton is liable to pay for the service under article 26a paragraphs 2, 3 letter b and 4, the service providers shall send a collective invoice on a quarterly basis to the canton concerned no later than nine months after the services were provided. the invoice may only cover services under annex 6. the invoice shall preferably be sent electronically.2 service providers shall not charge for services under annex 6 as position 3186.00 of annex 3 hibo87.3 the cantons shall check the invoices and ascertain whether the service provider has charged correctly for the services under annex 6. they shall comply with the relevant cantonal data protection provisions.4 at the start of january, april, july and october, they shall notify the foph of the number of analyses for which they have paid the service providers, and of the amount paid in each case.5 the confederation shall reimburse the cantons every quarter for the services that they have paid for. it shall also make a single start-up payment to cantons that arrange for the targeted and repetitive testing of their residents. the cantons shall invoice the confederation for the actual costs of such testing only, up to a maximum of 8 francs per resident. costs related to information technology and logistics may be included.6 if the invoice for the service sent by the service provider is incorrect, the insurer may claim back any payments already made. once the confederation has paid for the service in accordance with paragraph 5, the right to reimbursement passes to the confederation. the insurers shall provide the confederation with the data required to exercise its right to reimbursement. the data may not include any sensitive personal data.86 inserted by no i of the o of 27 jan. 2021 (tests for sars-cov-2 and ffp masks) (as 2021 54). amended by no i of the o of 12 march 2021, in force since 15 march 2021 (as 2021 145).87 sr 832.112.31chapter 4 company meetings art. 27 1 in the case of company meetings, the organiser may, regardless of the probable number of participants and without complying with the period of notice for convening meetings, order the participants to exercise their rights exclusively:a. in writing or online; orb. through an independent proxy appointed by the organiser.2 notification of the order must be given in writing or published online no later than four days before the event.8888 amended by no i of the o of 27 oct. 2021, in force since 28 oct. 2021 (as 2021 634).chapter 4a89 measures to protect employees at high risk 89 inserted by no i of the o of 13 jan. 2021 (employees at high risk) (as 2021 5). amended by no i of the o of 17 dec. 2021, in force from 1 jan. 2022 until 31 march 2022 (as 2021 881; art. 29 para. 7). art. 27a 1 employers shall enable their employees at high risk to carry out their working duties from home. they shall take the appropriate organisational and technical measures to achieve this. employees shall not be entitled to any compensation for expenses related to fulfilling their working duties from home as ordered by this this provision.2 where it is not possible for employees to carry out their regular working duties from home, employers shall, in derogation from the contract of employment and for the same pay, assign the employees concerned equivalent alternative work that can be performed from home.3 where for operational reasons the presence of employees at high risk in the workplace is essential at all or at certain times, they may carry out their regular activities in the workplace provided the following requirements are met:a. the workplace is organised so as to prevent any close contact with other persons, in particular by providing the employee concerned with his or her own room or a clearly separate working area.b. in cases where close contact cannot be avoided at all times, appropriate protective measures shall be taken in accordance with the stop principle (substitution, technical measures, organisational measures, personal protective equipment).4 if it is not possible for the employees concerned to work in accordance with paragraphs 1-3, the employer shall in derogation from the contract of employment assign them equivalent alternative work in their normal workplace for the same pay in conditions which meet the requirements of paragraph 3 letters a and b.5 before the employer takes any measures, he or she shall consult the employees concerned. the employer shall record the measures decided in writing and notify the employees of the same in a suitable manner.6 the employee concerned may decline to carry out work assigned to him or her if the employer fails to meet the requirements of paragraphs 1-4 or if the employee regards his or her personal risk of infection with the coronavirus for specific reasons as being too high despite the employer taking measures in accordance with paragraphs 3 and 4. the employer may request a medical certificate.7 if it is not possible for the employee concerned to work in accordance with paragraphs 1-4, or if the employee declines the work assigned in terms of paragraph 6, the employer shall furlough the employee while continuing to pay his or her salary.8 employees shall give notice that they are at high risk by making a personal declaration. the employer may request a medical certificate.9 article 2 paragraph 3quater of the covid-19 loss of earnings ordinance of 20 march 202090 governs claims for compensation for loss of earnings related to the corona pandemic.10 the following persons are regarded as being at high risk: a. pregnant women;b. persons with the diseases or genetic anomalies listed in annex 7 who cannot be vaccinated on medical grounds.11 the following persons are not regarded as being at high risk:a. pregnant women who have been vaccinated against covid-19, for 365 days from the date on which the vaccination is administered in full;b. persons specified in paragraph 10 who have been infected with sars-cov-2 and have recovered:1. when based on a molecular-biological analysis for sars-cov-2: for 365 days from the eleventh day after confirmation of infection,2. when based on an analysis for sars-cov-2 antibodies in accordance with article 16 paragraph 3 of the covid-19 ordinance on certificates of 4 june 202191: for the term of validity of the certificate concerned.12 the diseases and genetic anomalies referred to in paragraph 10 are defined in annex 7 on the basis of medical criteria. the list of these criteria is not exhaustive. a clinical assessment of the risk in specific cases remains reserved and may lead to persons being classed as being at high risk under paragraph 10bis.13 the fdha shall continually update annex 7 based on the state of science.14 for the general protection of employees, article 25 of the covid-19 special situation ordinance of 23 june 202192 applies.90 sr 830.3191 sr 818.102.292 sr 818.101.26chapter 5 final provisions art. 28 repeal of another enactment the covid-19 ordinance 2 of 13 march 202093 is repealed.93 [as 2020 773, 783, 841, 863, 867, 1059, 1065, 1101, 1131, 1137, 1155, 1199, 1245, 1249, 1333, 1401, 1501, 1505, 1585, 1751, 1815, 1823, 1835, 2097, 2099, 2213 art. 14 n. ii]art. 28a94 transitional provision to the amendment of 11 september 2020 personal protective equipment that was permitted under article 24 of the previous law may continue to be placed on the market until 30 june 2021.94 inserted by no i of the o of 11 sept. 2020 (extension; test costs), in force since 18 sept. 2020 (as 2020 3695).art. 28b95 transitional provisions to the amendment of 23 june 2021 1 licences for placing sars-cov-2 self-tests on the market that swissmedic has granted based on article 23a of the previous law remain valid until the licence expires.2 pharmacies may continue to supply sars-cov-2 self-tests licensed under article 23a of the previous law provided the requirements of article 24 paragraph 4bis letter b are met.3 applications that are pending when the amendment of 23 june 2021 comes into force shall be processed in accordance with article 23a of the previous law.95 inserted by no i of the o of 23 june 2021, in force since 26 june 2021 (as 2021 378).art. 28c96 transitional provision to the amendment of 25 august 2021 sars-cov-2 rapid tests for specialist use that are permitted based on article 24a of the previous law may continue to be used until 25 october 2021 provided the requirements of article 24 are met.96 inserted by no i of the o of 25 aug. 2021, in force since 30 aug. 2021 (as 2021 507).art. 29 commencement and term 1 this ordinance comes into force on 22 june 2020 at 00.00.2 it applies until 13 september 2020.973 .984 the term of application of this ordinance shall be extended to 31 december 2021, subject to paragraph 5.995 article 27 applies until the provisions on the conduct of general meetings in the amendment of 19 june 2020100 to the swiss code of obligations101 (company law) comes into force, but at the latest until 31 december 2023.1026 the term of application of this ordinance shall be extended to 31 december 2022, subject to paragraphs 5 and 7.1037 article 27a and annex 7 apply until 31 march 2022.10497 amended by no ii of the o of 12 aug. 2020 (requirement to wear masks in aircraft; large-scale events), in force since 15 aug. 2020 (as 2020 3547).98 repealed by no ii of the o of 12 aug. 2020 (requirement to wear masks in aircraft; large-scale events), with effect from 15 aug. 2020 (as 2020 3547).99 inserted by no i of the o of 11 sept. 2020 (extension; test costs) (as 2020 3695). amended by no i of the o of 27 oct. 2021, in force since 28 oct. 2021 (as 2021 634).100 as 2020 4005101 sr 220102 inserted by no i of the o of 27 oct. 2021, in force since 28 oct. 2021 (as 2021 634).103 inserted by no i of the o of 17 dec. 2021, in force since 1 jan. 2022 (as 2021 881).104 inserted by no i of the o of 17 dec. 2021, in force since 1 jan. 2022 (as 2021 881).annex 1105 105 amended by no i of the fdjp o of 15 dec. 2021, in force since 20 dec. 2021 (as 2021 880).(art. 3 para. 3, 4 para. 2ter and art. 5)list of high-risk countries and regions 1. high-risk countries and regions (art. 3 para. 2 let. a) all countries and regions outside the schengen area, with the exception of:- andorra- argentina- australia- bahrain- bulgaria- canada- chile- colombia- croatia- cyprus- holy see- hong kong- indonesia- ireland- kuwait- macau- monaco- new zealand- qatar- peru- romania- rwanda- san marino- saudi arabia- south korea- taiwan (chinese taipei)- united arab emirates- uruguay2. high-risk countries and regions with a variant of the sars-cov-2 virus that carries a higher risk of infection or causes a more severe form of the disease in comparison with the variant of the virus prevalent in the schengen area (art. 3 para. 2 let. b) - botswana- eswatini- lesotho- mozambique- namibia- south africa- zimbabweannex 1a106 106 inserted by annex 3 of the covid-19 ordinance on international travel measures of 23 june 2021 (as 2021 380). revised in accordance with annex no 3 i of the o of 17 sept. 2021 (as 2021 563) and annex no 1 of the o of 3 nov. 2021, in force since 16 nov. 2021 (as 2021 653).(art. 4 para. 2 let. a and art. 5)persons who have been vaccinated 1 persons who have been vaccinated are persons who have been vaccinated with a vaccine that:a. is authorised in switzerland and which has been administered in full in accordance with the foph recommendations;b. has been authorised by the european medicines agency for the european union and has been administered in full in accordance with the requirements or recommendations of the country in which the vaccination was administered; c. has been authorised under the who emergency use listing and has been administered in full in accordance with the requirements or recommendations of the country in which the vaccination was administered; ord. has been shown to have the same composition as a vaccine licensed under letters a, b or c, but marketed by the licence holder under another name, and which has been administered in full in accordance with the requirements or recommendations of the country in which the vaccination was carried out.2 the period during which persons who have been vaccinated are exempt from the ban on entry under article 4 paragraph 1 amounts to 365 days from the date of vaccination in full; the janssen ad26.cov2.s / covid-19 vaccinevaccine is regarded as being effective for 365 days from the 22nd day after it was administered in full.3 proof of vaccination may be provided in the form of a covid-19 certificate in accordance with article 1 letter a number 1 of the covid-19 ordinance on certificates of 4 june 2021107 or a recognised foreign certificate in accordance with section 7 of the covid-19 ordinance on certificates.4 proof may also be provided in a different form from that in number 3. it must be a form of proof that is customary at the time. in addition to the surname, forename and date of birth of the person concerned, it must include the following information:a. the date of vaccination;b. the vaccine used.107 sr 818.102.2annex 2108 108 rendered obsolete by the repeal of art. 8 (see art. 6 no 1 of the covid-19 ordinance on international travel measures of 2 july 2020, as 2020 2737).annex 3109 109 amended by no i of the fdjp o of 27 nov. 2021 (as 2021 780). revised by no iii of the o of 3 dec. 2021, in force since 4 dec. 2021 (as 2021 814).(art. 9 para. 3)restrictions on cross-border movements of persons there are no entries currently on this list.annex 4110 110 amended by no i of the foph o of 6 oct. 2020 (list of important medical products and list of active substances for the treatment of covid-19) (as 2020 4129). revised by no ii para. 1 of the o of 27 jan. 2021 (tests for sars-cov-2 and ffp masks) (as 2021 54), no i para. 1 of the fdha o of 14 april 2021 (amendment of the lists of important medical products and of active substances for the treatment of covid-19 (as 2021 212), no ii of the o of 12 may 2021 (as 2021 274), and no i of the fdha o of 17 aug. 2021 (amendment of the list of important medical products and list of active substances for the treatment of covid-19), in force since 25 aug. 2021 (as 2021 493).(art. 11 para. 1, 19 para. 1 and 21 para. 2)list of important medicinal products, medical devices and protective equipment (essential medical goods) 1. active substances or medicinal products with the listed active substances 1. tocilizumab 2. remdesivir 3. propofol 4. midazolam 5. ketamine 6. dexmedetomidine 7. dobutamine 8. sufentanil 9. remifentanyl10. rocuronium11. atracurium12. suxamethonium13. noradrenalin14. adrenalin15. insulin16. fentanyl17. heparin18. argatroban19. morphine20. paracetamol (parenteral)21. metamizol (parenteral)22. lorazepam23. dexamethasone24. co-amoxicillin25. piperacillin/tazobactam26. meropenem27. imipenem/cilastatin28. cefuroxime29. ceftriaxone30. amikacin31. posaconazole32. fluconazole33. voriconazole34. caspofungin35. esmolol (parenteral)36. metoprolol (parenteral)37. labetalol (parenteral)38. clonidine39. amiodarone40. furosemide41. vaccines against covid-1942. vaccines against influenza43. vaccines against bacterial pneumonia (prevnar 13)44. medical gases45. casirivimab/imdevimab46. bamlanivimab/etesevimab47. medical oxygen 48. infusion solutions49. sotrovimab2. medical devices within the meaning of the medical devices ordinance of 17 october 2001111 111 sr 812.213 1. ventilators2. monitoring equipment for intensive care3. in vitro diagnostics (covid-19 tests), including pre-analytical components and instruments4. surgical masks / op masks (hygiene masks)5. surgical gloves / examination gloves6. infusion sets7. pipette tips with filters8. test kits (tubes and swabs)9. single-use syringes and cannulae10. blood gas syringes3. personal protective equipment and other equipment 3.1 personal protective equipment within the meaning of the ppe ordinance of 25 october 2017112 112 sr 930.115 1. respirators (ffp2 and ffp3)2. aprons 3. protective overalls 4. protective eyewear 5. disposable caps3.2 further equipment 1. hand disinfectants 2. surface disinfectants 3. ethanol4. hygiene products for intensive care (such as absorbent pads, diapers, faecal collectors, oral hygiene items)annex 5113 113 amended by no i para. 2 of the fdha o of 14 april 2021 (amendment of lists of important medical products and of active substances for the treatment of covid-19) (as 2021 212). revised by no i of the fdha o of 17 aug. 2021 (amendment of the list of important medical products and list of active substances for the treatment of covid-19), in force since 25 aug. 2021 (as 2021 493).(art. 21 paras 1 and 3, as well as 22 para. 1)list of active substances for the treatment of covid-19 1. casirivimab/imdevimab2. bamlanivimab/etesevimab3. sotrovimabannex 5a114 114 inserted by no iii para. 1 of the o of 18 dec. 2020 (sars-cov-2 rapid tests) (as 2020 5801). repealed by no ii para. 1 of the o of 25 aug. 2021, with effect from 30 aug. 2021 (as 2021 507).annex 6115 115 inserted by no ii of the o of 28 oct. 2020 (sars-cov-2 rapid antigen tests) (as 2020 4495). amended by no iii of the o of 12 march 2021 (as 2021 145). revised by no ii of the o of 12 may 2021 (as 2021 274), of 23 june 2021 (as 2021 378), the correction dated 29 june 2021 (as 2021 407), annex no 3 i of the o of 17 sept. 2021 (as 2021 563), no ii para. 2 of the o of 25 aug. 2021 (as 2021 507), no ii of the o of 1 oct 2021 (as 2021 594), annex no 1 of the o of 3 nov. 2021 (as 2021 653) and no ii para. 1 of the o of 17 dec. 2021 in force since 18 dec. 2021 (as 2021 881).(art. 26, 26a, 26b and 26c)services and maximum amounts paid for sars-cov-2 analyses 1 standard tariff for symptom- and case-based testing 1.1 molecular-biological analyses for sars-cov-2 1.1.1 the confederation shall pay the costs of molecular-biological analyses for sars-cov-2 in following cases only:a. persons who have symptoms;b. persons who have been in close contact with an infected person as defined in article 7 paragraph 1 of the covid-19 special situation ordinance of 23 june 2021116;c. persons who wish to leave contact quarantine early in accordance with article 8 of the covid-19 special situation ordinance;d. . e. persons who have been notified by the swisscovid app that they have potentially been in close contact with a person infected with sars-cov-2; the confederation shall pay the costs of a single test;f. persons resident abroad who work, study or train in switzerland, in cases where they are required to produce a negative molecular-biological test result for sars-cov-2 when entering their foreign country of residence and no other authority will cover the costs;g. persons resident in switzerland who work, study or train abroad where they are required to produce a negative molecular-biological test result for sars-cov-2 when entering the foreign country concerned and no other authority will cover the costs;h. following a positive result from a:- sars-cov-2-rapid test for specialist use,- sars-cov-2 self-test;i. following a positive result from a pooled molecular-biological analysis:1. in accordance with number 1.2,2. in accordance with numbers 1.7, 2.2 and 3.2;j. as part of outbreak investigation and control procedures ordered by a doctor.1.1.2 it shall pay the costs only if the services are provided:a. when collecting a sample, by:1. the following service providers under the hia117:- doctors- pharmacists- hospitals- laboratories under article 54 paragraph 3 of the ordinance of 27 june 1995118 on health insurance (hio) and hospital laboratories under article 54 paragraph 2 hio that are licensed under article 16 paragraph 1 epida- care homes- organisations that provide nursing services and other assistance at home,2. test centres operated by or on behalf of a canton,3. socio-medical institutions that admit persons for treatment or care, for rehabilitation or for socio-professional rehabilitation or employment,4. assistants as defined in the invia119;b. when an analysis is conducted, by laboratories under article 54 paragraph 3 hio and hospital laboratories under article 54 paragraph 2 hio that are licensed under article 16 paragraph 1 epida.1.1.3 it shall pay a maximum of 153.50 francs of the cost of molecular-biological analyses for sars-cov-2. this amount covers the following services and cost components:a. for collecting a sample:servicemaximum amountpatient consultation and taking sample, including protective materials22.50 fr.for supervising the taking of the sample by the person tested and assigning the sample to the person concerned15 fr.reporting the test result to the person tested and to the responsible authorities under article 12 paragraph 1 epida, and requesting the activation code generated by the proximity tracing system for the coronavirus sars-cov-2 (pt system) when infection is detected and for issuing the covid-19 test certificate 2.50 fr.detailed doctor-patient consultation on the indications, where such is carried out22.50 fr.b. for the molecular-biological analysis:servicemaximum amountif conducted on behalf of another service provider, comprising:- analysis and report to the authorities under article 12 paragraph 2 epida, if the number of analyses conducted in switzerland and liechtenstein during a calendar week amounts to:106 fr.- < 100 000 82 fr.- 100 000 - < 150 000 74 fr.- 150 000 - < 200 000 70 fr.- > 200 000 64 fr.- ordering processing, overheads and sampling material 24 fr.if conducted without being requested by another service provider, comprising:- analysis and report to the authorities under article 12 paragraph 2 epida, if the number of analyses conducted in switzerland and liechtenstein during a calendar week amounts to: 87 fr.- < 100 000 82 fr.- 100 000 - < 150 000 74 fr.- 150 000 - < 200 000 70 fr.- > 200 000 64 fr.- ordering processing, overheads and sampling material 5 fr.116 sr 818.101.26117 sr 832.10118 sr 832.102119 sr 831.201. 2 pooled molecular-biological analyses for sars-cov-2 1.2.1 the confederation shall pay the costs of pooled molecular-biological analyses for sars-cov-2 only as part of outbreak investigation and control procedures ordered by a doctor.1.2.2 it shall pay the costs only if the services are provided:a. when collecting a sample, by:1. the following service providers under the health insurance act:- doctors- pharmacists- hospitals- laboratories under article 54 paragraph 3 hio and hospital laboratories under article 54 paragraph 2 hio that are licensed under article 16 paragraph 1 epida- care homes- organisations that provide nursing services and other assistance at home,2. test centres operated by or on behalf of a canton,3. socio-medical institutions that admit persons for treatment or care, for rehabilitation or for socio-professional rehabilitation or employment,4. assistants as defined in the invia;b. when an analysis is conducted, by laboratories under article 54 paragraph 3 hio and hospital laboratories under article 54 paragraph 2 hio that are licensed under article 16 paragraph 1 epida.1.2.3 it shall pay a maximum of 315 francs for pooled molecular-biological analyses for sars-cov-2. this amount covers the following services and cost components:a. for collecting a sample:servicemaximum amountpatient consultation and taking sample, including protective materials22.50 fr.for supervising the taking of the sample by the person tested and assigning the sample to the person concerned15 fr.b. for the pooled molecular-biological analysis:servicemaximum amountif conducted on behalf of another service provider, comprising:274 fr.- analysis with a minimum pool size of 4 82 fr.- ordering processing, overheads and sampling material 24 fr.- surcharge for additional sampling up to a maximum pool size of 25 8 fr.if conducted without being requested by another service provider, comprising:255 fr.- analysis with a minimum pool size of 4 82 fr.- ordering processing, overheads and sampling material 5 fr.- surcharge for additional sampling up to a maximum pool size of 25 8 fr.c. for centralised pooling: servicemaximum amountwhen conducted at compulsory school level and at upper secondary level in cases under number 1.2.1 for the creation of each pool 18.50 fr.1.3 analyses for sars-cov-2 antibodies 1.3.1 the confederation shall pay the costs of analyses for sars-cov-2 antibodies:a. if instructed to do so by the responsible cantonal body;b. if instructed to do so by a doctor four weeks after full vaccination in accordance with foph recommendations in the case of persons with severe immodeficiency;c. if instructed to do so by a doctor with a view to deciding whether a specific person should undergo therapy with monoclonal antibodies.1.3.2 it shall pay the costs only if the services are provided:a. when collecting a sample, by:1. the following service providers under the health insurance act:- doctors- pharmacists- hospitals- laboratories under article 54 paragraph 3 hio and hospital laboratories under article 54 paragraph 2 hio that are licensed under article 16 paragraph 1 epida- care homes- organisations that provide nursing services and other assistance at home,2. test centres operated by or on behalf of a canton,3. socio-medical institutions that admit persons for treatment or care, for rehabilitation or for socio-professional rehabilitation or employment,4. assistants as defined in the invia;b. when an analysis is conducted, by laboratories under article 54 paragraph 3 hio and hospital laboratories under article 54 paragraph 2 hio that are licensed under article 16 paragraph 1 epida.1.3.3 it shall pay a maximum of 96.50 francs for the analysis for sars-cov-2 antibodies. this amount covers the following services and cost components:a. for collecting a sample:servicemaximum amountpatient consultation and taking sample,including protective materials22.50 fr.reporting the test result to the person tested and to the responsible authorities under article 12 paragraph 1 epida 2.50 fr.detailed doctor-patient consultation on the indications, where such is carried out22.50 fr.b. for the analysis for sars-cov-2 antibodies:servicemaximum amountif conducted on behalf of another service provider, comprising:49 fr.- analysis and report to the authorities under article 12 paragraph 2 epida25 fr.- ordering processing, overheads and sampling material24 fr.if conducted without being requested by another service provider, comprising:30 fr.- analysis and report to the authorities under article 12 paragraph 2 epida25 fr.- ordering processing, overheads and sampling material 5 fr.1.4 immunological analyses for sars-cov-2 antigens and sars-cov-2 rapid tests for specialist use 1.4.1. the confederation shall pay the costs of immunological analyses for sars-cov-2 antigens and for sars-cov-2 rapid tests for specialist use according to the diagnostic standard in the following cases only:a. persons who have symptoms;b. persons who have been in close contact with an infected person as defined in article 7 paragraph 1 of the covid-19 special situation ordinance;c. persons who wish to leave contact quarantine early in accordance with article 8 of the covid-19 special situation ordinance;d. . e. persons who have been notified by the swisscovid app that they have potentially been in close contact with a person infected with sars-cov-2; the confederation shall pay the costs of a single test;f. persons resident abroad who work, study or train in switzerland, in cases where they are required to produce a negative molecular-biological test result for sars-cov-2 when entering their foreign country of residence and no other authority will cover the costs;g. persons resident in switzerland who work, study or train abroad where they are required to produce a negative molecular-biological test result for sars-cov-2 when entering the foreign country concerned and no other authority will cover the costs;h. following a positive result from a pooled molecular-biological analysis;1. in accordance with number 1.2, 2. in accordance with numbers 1.7, 2.2 and 3.2;i. as part of outbreak investigation and control procedures ordered by a doctor:j.120 .k. children under the age of 16;l. persons who can prove that they cannot be vaccinated on medical grounds; as proof, a medical certificate is required from a doctor who who is authorised to practise their profession under their own professional responsibility under the medical professions act of 23 june 2006121;m. visitors to hospitals, homes for the elderly and care homes and other socio-medical institutions that admit persons for treatment or care, rehabilitation or for socio-professional rehabilitation or employment;n. persons who do not fall under letters a-m, provided they have already received one dose of a vaccine but they are not vaccinated in accordance with annex 1a number 1, for six weeks from receiving the single dose of the vaccine, in the case of the janssen ad26.cov2.s / covid-19 vaccine, for 22 days.o. any persons who do not fall under letters a-n.1.4.2 .1.4.3 it shall pay the costs only if the services are provided:a. when collecting a sample and conducting an analysis, by:1. the following service providers under the health insurance act:- doctors- pharmacists- hospitals- laboratories under article 54 paragraph 3 hio and hospital laboratories under article 54 paragraph 2 hio that are licensed under article 16 paragraph 1 epida- care homes- organisations that provide nursing services and other assistance at home,2. test centres operated by or on behalf of a canton,3. socio-medical institutions that admit persons for treatment or care, for rehabilitation or for socio-professional rehabilitation or employment,4. assistants as defined in the invia.1.4.4 it shall pay a maximum of 88.50 francs for immunological analyses for sars-cov-2 antigens and for sars-cov-2 rapid tests for specialist use. this amount includes the following services and cost components:a. for collecting a sample:servicemaximum amountpatient consultation and taking sample, including protective materials22.50 fr.reporting the test result to the person tested and to the responsible authorities under article 12 paragraph 1 epida and requesting the activation code generated by the pt system when infection is detected and for issuing the covid-19 test certificate 2.50 fr.detailed doctor-patient consultation on the indications, where such is carried out22.50 fr.b. for the immunological analysis for sars-cov-2 antigens and for a sars-cov-2 rapid test for specialist use:servicemaximum amountif carried out without being requested by another authorised service provider, comprising:11 fr. - analysis and report to the authorities under article 12 paragraph 2 epida 6 fr.- ordering processing 5 fr.if carried out on behalf of another authorised service provider, comprising:30 fr.- analysis and report to the authorities under article 12 paragraph 2 epida 6 fr.- order processing, overheads and samplingmaterials24 fr.120 in force until 10 oct. 2021 (as 2021 145, 507, 582).121 sr 811.111.5 molecular-biological detection of one or more sars-cov-2 variants of concern 1.5.1 on the order of the competent cantonal authority and provided the results lead to specific measures by the canton, the confederation shall, if a molecular-biological analysis produces a positive result, pay the costs of the molecular-biological detection of one or more sars-cov-2 variants of concern (vocs), but only.1.5.2 it shall pay the costs only if the services are provided by laboratories under article 54 paragraph 3 hio and hospital laboratories under article 54 paragraph 2 hio that are licensed under article 16 paragraph 1 epida.1.5.3 on the order of the competent cantonal authority, molecular biological detection may be carried out by one of the following methods:a. mutation-specific pcr testing;b. partial genome sequencing.1.5.4 it shall pay 106 francs for the molecular-biological detection of one or more sars-cov-2 variants of concern. the amount covers the following services and cost components:servicemaximum amountif carried out without being requested by another authorised service provider, for the analysis and report to the authorities under article 12 paragraph 2 epida82 fr.if carried out on behalf of another service provider, comprising:106 fr.- analysis and report to the authorities under article 12 paragraph 2 epida82 fr.- order processing, overheads and sampling materials24 fr.1.6 diagnostic sequencing for sars-cov-2 1.6.1 the confederation shall pay the costs of diagnostic sequencing for sars-cov-2 2 by means of whole genome sequencing only if ordered by the competent cantonal authority and only in the following cases:a. in cases where there is reasonable suspicion of the presence of a sars-cov-2 variant, in particular in the case of specific severe cases in hospitals and in selected cases in persons suffering from severe immunosuppression;b. the targeted sequencing of samples in the case of outbreaks in hospitals, homes for the elderly and care homes;c. targeted and random sequencing in the event of major outbreaks.1.6.2 it shall pay the costs only if the services are provided by:a. micro-biological diagnostic laboratories that hold a licence under article 16 epida;b. reference laboratories that meet the requirements of article 17 epida.1.6.3 it shall pay a maximum of 221 francs for sequencing for sars-cov-2. the amount covers the following services and cost components:servicemaximum amountconduct of the analysis, comprising:221 fr.- analysis and report to the authorities under article 12 paragraph 2 epida197 fr.- order processing, overheads and samplingmaterials 24 fr.1.7 pooled molecular-biological analyses for sars-cov-2 for individual persons 1.7.1 the confederation shall pay the costs of pooled molecular-biological saliva analyses for sars-cov-2 for the following persons on an individual basis, provided they are not symptomatic:a. persons in accordance with number 1.4.1 letter k;b. persons in accordance with number 1.4.1 letter l;c. persons in accordance with number 1.4.1 letter n;d. all persons who do not fall under letters a-c.1.7.2 it shall pay the costs only if the services are provided by the following service providers:a. for the supervision of the person being tested when taking the sample by:1. the following service providers under the hia:- doctors- pharmacists- hospitals- laboratories in accordance with article 54 paragraph 3 hio and hospital laboratories in accordance with article 54 paragraph 2 hio that hold a licence in accordance with article 16 paragraph 1 epida- care homes- organisations that provide nursing services and other assistance at home,b. when an analysis is conducted, by laboratories under article 54 paragraph 3 hio and hospital laboratories under article 54 paragraph 2 hio that are licensed under article 16 paragraph 1 epida.1.7.3 in the case of pooled molecular-biological analyses for sars-cov-2 for individual persons, it shall pay a maximum of 36 francs. the amount covers the following services and cost components:a. for taking the sample:servicemaximum amountfor supervising the taking of the sample by the person tested and assigning the sample to the person concerned 15 fr.for reporting the test result to the person tested and issuing the covid-19 test certificate 2.50 fr.b. for pooled molecular-biological analyses for individual persons:servicemaximum amountif carried out on behalf of another authorised service provider, comprising: 16 fr.- for the analysis 13 fr.- order processing, overheads and samplingmaterials 3 fr.if carried out on behalf of another authorised service provider, comprising: 13.50 fr.- for the analysis 13 fr.- order processing, overheads and samplingmaterials 0.50 fr.c. for centralised pooling: servicemaximum amountfor organising the pool, per person 2.50 fr.2 reduced tariff for targeted and repetitive testing 2.1 sars-cov-2 rapid tests rapid tests for specialist use 2.1.1 the confederation shall pay the costs of sars-cov-2 rapid tests for specialist use only in following cases:a. in the case of targeted and repetitive testing in schools, universities and training centres in order to prevent and detect outbreaks, provided the responsible authority or organisation in the canton makes provision for this and submits a plan to the foph;b. in situations with a significantly higher probability of transmission, provided the responsible authority or organisation in the canton makes provision for this and submits a plan to the foph;c. in relation to testing over a limited period in connection with uncontrolled outbreaks of infection, provided the responsible authority or organisation in the canton makes provision for this;d. in the case of tests before and during school camps for participants and supervisors, provided the responsible authority or organisation in the canton makes provision for this and submits a plan to the foph.2.1.2 it shall pay the costs only if the services are provided:a. when collecting a sample and conducting an analysis, by:1. the following service providers under the health insurance act:- doctors- pharmacists- hospitals- laboratories under article 54 paragraph 3 hio and hospital laboratories under article 54 paragraph 2 hio that are licensed under article 16 paragraph 1 epida- care homes- organisations that provide nursing services and other assistance at home,2. test centres operated by or on behalf of a canton,3. socio-medical institutions that admit persons for treatment or care, for rehabilitation or for socio-professional rehabilitation or employment,4. assistants as defined in the invia.2.1.3 it shall pay shall pay a maximum of 30.50 francs for a sars-cov-2-rapid test for specialist use. the amount covers the following services and cost components:servicemaximum amountif the sample is not taken by the tested person him- or herself: taking the sample and conducting a test, including the test materials, the protective materials and working time, and for the analysis and order processing28 fr.if the sample is taken by the tested person him- or herself: taking the sample and conducting a test, including the test materials, the protective materials and working time, and for the analysis and order processing14 fr.for issuing the covid-19 test certificate 2.50 fr.2.2 pooled molecular-biological analyses for sars-cov-2 2.2.1 the confederation shall pay the costs of pooled molecular-biological analyses for sars-cov-2 only in following cases:a. in the case of targeted and repetitive testing in schools, universities and training centres in order to prevent and detect outbreaks, provided the responsible authority or organisation in the canton makes provision for this and submits a plan to the foph or provided the testing is coordinated via a platform made available by the confederation;b. in situations with a significantly higher probability of transmission, provided the responsible authority or organisation in the canton makes provision for this and submits a plan to the foph or provided the testing is coordinated via a platform made available by the confederation;c. in relation to testing over a limited period in connection with uncontrolled outbreaks of infection, provided the responsible authority or organisation in the canton makes provision for this or provided the testing is coordinated via a platform made available by the confederation;d. in the case of testing for participants and supervisors before and during camps, provided the responsible authority or organisation in the canton submits a plan to the foph or provided the testing is coordinated via a platform made available by the confederation.2.2.2 it shall pay the costs only if the services are provided:a. when collecting a sample and conducting an analysis, by:1. the following service providers under the health insurance act:- doctors- pharmacists- hospitals- laboratories under article 54 paragraph 3 hio and hospital laboratories under article 54 paragraph 2 hio that are licensed under article 16 paragraph 1 epida- care homes- organisations that provide nursing services and other assistance at home,2. test centres operated by or on behalf of a canton,3. socio-medical institutions that admit persons for treatment or care, for rehabilitation or for socio-professional rehabilitation or employment,4. assistants as defined in the invia;b. it shall pay the costs only if the services are provided by laboratories under article 54 paragraph 3 hio and hospital laboratories under article 54 paragraph 2 hio that are licensed under article 16 paragraph 1 epida.2.2.3 it shall pay a maximum of 311.50 francs for pooled molecular-biological analyses for sars-cov-2. the amount covers the following services and cost components:a. for collecting a sample: servicemaximum amounttaking the sample, including the protective materials and working time16.50 fr.b. for the pooled molecular-biological analysis:servicemaximum amountif conducted on behalf of another service provider, comprising:274 fr.- analysis with a minimum pool size of 4 82 fr.- ordering processing, overheads and sampling material 24 fr.- surcharge for additional sampling up to a maximum pool size of 25 8 fr.if conducted without being requested by another service provider, comprising:255 fr.- analysis with a minimum pool size of 4 82 fr.- ordering processing, overheads and sampling material 5 fr.- surcharge for additional sampling up to a maximum pool size of 25 8 fr.c. for centralised pooling: servicemaximum amountwhen conducted at compulsory school level, at upper secondary level and at school camps, for the creation of each pool 18.50 fr.d. for the certificate:servicemaximum amountfor issuing the covid-19 test certificate 2.50 fr.3 basic tariff for targeted and repetitive testing 3.1 sars-cov-2 rapid tests for specialist use 3.1.1 the confederation shall pay the costs of sars-cov-2 rapid tests for specialist use only in following cases:a. where targeted and repetitive testing is carried out in hospitals, homes for the elderly and care homes and other socio-medical institutions that admit persons for treatment or care, for rehabilitation or for socio-professional rehabilitation or employment;b. where targeted and repetitive testing is carried out in businesses and clubs, provided the responsible authority or organisation in the canton submits a plan to the foph;c. where a contact person is in quarantine and targeted and repetitive testing is carried in the business where the contact person works, with at least one test per week;d. .3.1.2 .3.1.3 it shall pay the costs of sars-cov-2 rapid tests for specialist use under section 3.1.1 only if the services are provided by:1. the following service providers under the health insurance act:- doctors- pharmacists- hospitals- laboratories under article 54 paragraph 3 hio and hospital laboratories under article 54 paragraph 2 hio that are licensed under article 16 paragraph 1 epida- care homes- organisations that provide nursing services and other assistance at home,2. test centres operated by or on behalf of a canton;3. socio-medical institutions that admit persons for treatment or care, for rehabilitation or for socio-professional rehabilitation or employment;4. assistants as defined in the invia.3.1.4 it shall pay a maximum of 8.50 francs for a sars-cov-2 rapid test for specialist use under section 3.1.1. this amount covers the following services and cost components:servicemaximum amountconducting the sars-cov-2 rapid test for specialist use, test materials only 6.00 fr.for issuing the covid-19 test certificate 2.50 fr.s3.2 pooled molecular-biological analyses for sars-cov-2 3.2.1 the confederation shall pay the costs of pooled molecular-biological analyses for sars-cov-2 only in following cases:a. where targeted and repetitive testing is carried out in hospitals, homes for the elderly and care homes and other socio-medical institutions that admit persons for treatment or care, for rehabilitation or for socio-professional rehabilitation or employment;b. where targeted and repetitive testing is carried out in businesses and clubs, provided the responsible authority or organisation in the canton submits a plan to the foph or provided the testing is coordinated via a platform made available by the confederation;c. where a contact person is in quarantine and targeted and repetitive testing is carried out in the business where the contact person works, with at least one test per week.3.2.2 it shall pay the costs only if the services are provided by laboratories under article 54 paragraph 3 hio and hospital laboratories under article 54 paragraph 2 hio that are licensed under article 16 paragraph 1 epida.3.2.3 it shall pay a maximum of 295 francs for pooled molecular-biological analyses for sars-cov-2. the amount covers the following services and cost components:servicemaximum amountif conducted on behalf of another service provider, comprising:274 fr.- analysis with a minimum pool size of 4 82 fr.- order processing, overheads and sampling materials 24 fr.- surcharge for additional sampling up to a maximum pool size of 25- for conducting a centralised pool in cases under number 3.2.1 letters b and c for the creation of each pool 8 fr. 18.50 fr.if conducted without being requested by another service provider, comprising:255 fr.- analysis with a minimum pool size of 4 82 fr.- order processing, overheads and sampling materials 5 fr.- surcharge for additional sampling up to a maximum pool size of 25- for conducting a centralised pool in cases under number 3.2.1 letters b and c for the creation of each pool 8 fr.18.50 fr.for issuing the covid-19 test certificate 2.50 fr.3.3122 . 122 in force until 30 sept. 2021 (as 2021 507). 4 limitations 4.1 if both a molecular-biological analysis for sars-cov-2 in accordance with number 1.1 and an analysis for sars-cov-2 antibodies in accordance with number 1.3 are carried out on the same person on the same day, the confederation shall make only one payment of the amount due for collecting a sample in accordance with number 1.1.3 letter a and 1.3.3 letter a and the amount due for the order processing, overheads and sampling materials in accordance with the number 1.1.3 letter b and 1.3.3 letter b.4.2 .4.3 if both a molecular-biological analysis for sars-cov-2 in accordance with number 1.1 and the molecular-biological detection of one or more sars-cov-2 variants of concern in accordance with number 1.5 or sequencing for sars-cov-2 in accordance with number 1.6 are carried out by the same service provider, the confederation shall make only one payment in respect of its share of the costs for order processing and overheads in accordance with numbers 1.1.3 letter b and 1.5.3 letter a or 1.6.3.4.4 in the case of analyses for sars-cov-2, where the person tested can take the sample, no charge may be made for collecting a sample.annex 7123 123 inserted by no ii of the o of 13 jan. 2021 (employees at high risk), in force from 18 jan. 2021 to 31 dec. 2021 (as 2021 5) (as 2021 5). amended by no ii para. 1 of the o of 17 dec. 2021, in force from 1 jan. 2022 until 31 march 2022 (as 2021 881; art. 29 para. 7).(art. 27a para. 10 let. b, 12 and 13 and art. 29 para. 7)diseases and genetic anomalies that make the persons concerned persons at high risk according to the current state of science, a high risk can only be assumed for certain categories of adult person. the following criteria therefore apply to adults only.1. high blood pressure (hypertension) - arterial hypertension with end-organ damage- therapy-resistant arterial hypertension2. cardio-vascular diseases 2.1 general criteria - patients with dyspnoea of functional class nyha ii and nt per bnp > 125 pg/ml- patients with 2 cardio-vascular risk factors (one of which is diabetes or arterial hypertension)- prior stroke and/or symptomatic vasculopathy- chronic renal insufficiency (stage 3, gfr <60ml/min)2.2 other criteria 2.2.1 coronary heart disease - myocardial infarction (stemi and nstemi) in the past 12 months- symptomatic chronic coronary syndrome despite medical treatment (irrespective of any prior revascularisation)2.2.2 disease of the heart valves - moderate or serious stenosis and/or regurgitation in addition to at least one general criterion- any surgical or percutaneous valve replacement in addition to at least one general criterion2.2.3 cardiac insufficiency - patients with dyspnoea of functional class nyha ii-iv or nt-pro bnp > 125pg/ml despite medical treatment for any lvef (hfpef, hfmref, hfref)- cardiomyopathy with any cause- pulmonary arterial hypertension2.2.4 arrhythmia - atrial fibrillation with a cha2ds2-vasc score of at least 2 points- prior implant of pacemaker (incl. icd and/or crt implantation) in addition to one general criterion2.2.5 adults with congenital heart disease - congenital heart disease according to the individual assessment of the attending cardiologist3. chronic lung and respiratory diseases - chronic obstructive lung diseases gold grade ii-iv- pulmonary emphysema- unmanaged asthma, in particular serious bronchial asthma- interstitial lung diseases / pulmonary fibrosis- active lung cancer- pulmonary arterial hypertension- pulmonary vascular disease- active sarcoidosis- cystic fibrosis- chronic lung infections (atypical mycobacteriosis, bronchiectasis, etc.)- ventilated patients- diseases involving a severely reduced lung capacity4. diabetes - diabetes mellitus, with long-term complications or a hba1c of > 8% or more5. diseases/therapies that weaken the immune system - serious immunosuppression (e.g. hiv infection with a cd4+ t-cell count < 200l)- neutropenia 1 week- lymphocytopenia <0.2x109/l- hereditary immunodeficiencies- use of medication that suppresses the immune defences (such as long-term use of glucocorticoids (prednisolone equivalent > 20 mg/day), monoclonal antibodies, cytostatics, biologics, etc.)- aggressive lymphomas (all entities)- acute lymphatic leukaemia- acute myeloid leukaemia- acute promyelocytic leukaemia- t-cell prolymphocytic leukaemia- primary lymphomas of the central nervous system- stem cell transplantation- amyloidosis (light-chain (al) amyloidosis)- chronic lymphatic leukaemia- multiple myeloma- sickle-cell disease- bone marrow transplants- organ transplants- persons on a waiting list for a transplant6. cancer - cancer undergoing medical treatment7. obesity - patients with a body mass index (bmi) of 40 kg/m2 or more8. liver disease - cirrhosis of the liver9. kidney disease - chronic renal insufficiency from gfr < 60 ml/min10. trisomy 21

818.101.25 english is not an official language of the swiss confederation. this translation is provided for information purposes only, has no legal force and may not be relied on in legal proceedings.ordinance on the proximity tracing system for the sars-cov-2 coronavirus(ptso)of 24 june 2020 (status as of 18 march 2021)the swiss federal council, on the basis of article 60a paragraph 7 of the epidemics act of 28 september 20121 (epida),ordains:1 sr 818.101art. 1 subject matter this ordinance regulates the details of the organisation, operation and data processing of the proximity tracing system for the sars-cov-2 coronavirus under article 60a epida (pt system).art. 2 structure 1 the pt system comprises the following components:a.a proximity data management system (the pdm system), consisting of a software application that users install on their smartphones (the swisscovid app), and a back end (pdm back end);b.a system for managing codes for releasing the notifications (the code management system), consisting of a web-based front end and a back end.2 the pdm back end and the code management system are operated as a central server by the federal office of public health (foph).art. 3 voluntary nature 1 installation and use of the swisscovid app are voluntary.2 the express consent of the infected person is required before a notification is sent to app users who have potentially been exposed to the coronavirus.art. 4 federal authority responsible the foph is the federal authority responsible for all components of the pt system under data protection law.art. 5 basic operation procedure 1 during basic operations, the pdm back end makes its content available online to the swisscovid apps. the content comprises a list with the following data:a.the private keys of infected app users which were effective in the period in which other app users were potentially exposed to the coronavirus ("the relevant period");b.the date of each key.2 the swisscovid app carries out the following functions via an interface to the mobile phone's operating system: a.it generates a new private key at least every day that does not permit the swisscovid app, the mobile telephone or the user to be traced.b.it exchanges a variable identification code at least every half-hour with all compatible apps within bluetooth range; the identification code is derived from the current private key but may not be traced back to that key and does not permit the swisscovid app, the mobile telephone or the user to be traced.c.it stores the identification codes received, details of the strength of the signal, the date and the estimated duration of the encounter.d.it periodically retrieves the list of private keys belonging to infected app users from the pdm back end and checks whether any of the identification codes it has stored locally were generated using a private key on the list.e.2if it establishes that any one of the locally stored identification codes was generated using a private key on the list, and if the encounter requirements set out in the annex number i are met, the app issues a notification; the distance of the encounter is estimated based on the strength of the signal received.3 the operating systems' functions used via the interface must meet the requirements of article 60a epida and this ordinance; this does not apply to the rule relating to the source code under article 60a paragraph 5 letter e epida. the foph shall ensure that these requirements are met, in particular by obtaining related assurances.4 .32 amended by no i of the o of 18 nov. 2020, in force since 19 nov. 2020 (as 2020 4733).3 repealed by no i of the o of 18 nov. 2020, with effect from 19 nov. 2020 (as 2020 4733).art. 6 procedure following an infection 1 if a user tests positive for the coronavirus, an authorised agency may with the consent of the infected person request a unique activation code with time-limited validity from the code management system; to do so, the agency sends the code management system the date on which the first symptoms occurred or, if the infected person has not displayed any symptoms, the date of the test.42 the authorised agency gives the activation code to the infected person.5 the infected person may choose to enter the activation code into their swisscovid app.3 the code management back end sends confirmation to the swisscovid app that the code entered is valid. it deducts the number of days specified in annex number 2 from the recorded date.6 the resulting date is the start of the relevant period. the code management back end sends this date to the infected person's swisscovid app.4 the infected person's swisscovid app sends the private keys that were effective in the relevant period to the pdm back end, together with their dates.5 the pdm back end records the received private keys with their dates on its list.6 after the private keys have been sent, the swisscovid app generates a new private key. this key cannot be used to identify earlier private keys.4 amended by no i of the o of 18 nov. 2020, in force since 19 nov. 2020 (as 2020 4733).5 amended by no i of the o of 18 nov. 2020, in force since 19 nov. 2020 (as 2020 4733).6 second sentence amended by no i of the o of 18 nov. 2020, in force since 19 nov. 2020 (as 2020 4733).art. 7 content of the notification 1 the notification contains:a.the information that the app user has potentially been exposed to the coronavirus;b.7a note of the days on which exposure may have occurred;c.the information that the foph operates an infoline that provides advice free of charge;d.recommendations from the foph on what to do.2 the pt system does not issue any instructions to app users.7 amended by no i of the o of 18 nov. 2020, in force since 19 nov. 2020 (as 2020 4733).art. 8 content of the code management system 1 the code management system contains the following data:a.the activation codes;b.the date on which the first symptoms occurred, or, if the infected person has not displayed any symptoms, the date of the test;c.the time when the data in accordance with letters a and b will be destroyed.2 these data cannot be used to identify app users.art. 8a8 form of access to the code management system the code management system may be accessed via:a.a specialist from the authorised agency via the front end; orb.an interface between the code management system and a system operated by the authorised agency.8 inserted by no i of the o of 18 nov. 2020, in force since 19 nov. 2020 (as 2020 4733).art. 9 access to the code management system via the front end9 1 the following persons acting for the authorised agency may request the activation code via the front end:10a.cantonal medical officers;b.the armed forces surgeon general;c.other staff of the cantonal medical services or of the armed forces medical services;d.third parties acting on behalf of the cantonal medical services or the armed forces medical services;e.11staff at medical practices;f.12staff at laboratories with authorisation under article 16 epida;g.13staff at the facilities specified in article 24 paragraph 1 letter b of the covid 19 ordinance 3 of 19 june 202014;h.15staff of the infoline under article 7 paragraph 1 letter c.2 the code management system is accessed via the federal administration's central access and permission system for web applications. the provisions of the ordinance of 19 october 201616 on federal identity management systems and directory services apply.3 the foph assigns and manages access rights to the code management system. it may authorise cantonal medical officers and the armed forces surgeon general or a specific member of their auxiliary personnel to grant access rights to auxiliary personnel.9 amended by no i of the o of 18 nov. 2020, in force since 19 nov. 2020 (as 2020 4733).10 amended by no i of the o of 18 nov. 2020, in force since 19 nov. 2020 (as 2020 4733).11 amended by no i of the o of 18 nov. 2020, in force since 19 nov. 2020 (as 2020 4733).12 inserted by no i of the o of 18 nov. 2020, in force since 19 nov. 2020 (as 2020 4733).13 inserted by no i of the o of 18 nov. 2020, in force since 19 nov. 2020 (as 2020 4733).14 sr 818.101.2415 inserted by no i of the o of 18 nov. 2020, in force since 19 nov. 2020 (as 2020 4733).16 sr 172.010.59art. 9a17 access to the code management system via the interface the foph shall enable the authorised agencies under article 9 paragraph 1 to connect their systems via the interface to the code management system, provided the systems concerned provide an appropriate level of security.17 inserted by no i of the o of 18 nov. 2020, in force since 19 nov. 2020 (as 2020 4733).art. 10 services from third parties 1 the foph may instruct third parties to provide the swisscovid app with online access to the list of data required for notifications.2 it may the assign the task of granting rights of access to the code management system to third parties. the third party concerned must guarantee that the authorisation of specialists is verified reliably and in accordance with the law.3 the third parties must be contractually required to comply with the requirements of article 60a epida and of this ordinance; this does not apply to the regulation relating to the source code under article 60a paragraph 5 letter e epida. the foph shall verify compliance with the requirements.art. 11 records of access 1 articles 57i-57q of the government and administration organisation act of 21 march 199718 and the ordinance of 22 february 201219 on the processing of personal data accumulated through the use of the confederation's electronic infrastructure apply to the storing and the evaluation of the records of access to the pdm back end, the code management system and the list under article 10 paragraph 1.2 apart from these records and records of encounters, the pt system does not maintain any record of the activities of the front end of the code management system and the swisscovid app.18 sr 172.01019 sr 172.010.442art. 12 disclosure for statistical purposes the foph shall regularly provide the swiss federal statistical office (fso) with the latest collection of data in the two back ends in a completely anonymised form for statistical assessment.art. 13 destruction of the data 1 the data in the pdm system shall be destroyed both on the smartphones and in the pdm back end 14 days after they are recorded.2 the data in the code management system shall be destroyed 24 hours after they are recorded.3 the record data of third parties assigned tasks under article 10 paragraph 1 shall be destroyed 7 days after they are recorded.4 in addition, the destruction of record data is governed by article 4 paragraph 1 letter b the ordinance of 22 february 201220 on the processing of personal data accumulated through the use of the confederations electronic infrastructure.5 the data made available to the fso shall also be destroyed in accordance with this article.20 sr 172.010.442art. 14 verification of the source code 1 the foph shall publish the data that allows verification of whether the machine readable programmes of all components of the pt system have been produced using the published source code.2 it shall also verify this itself.art. 15 deactivation of the swisscovid app and reporting 1 when this ordinance ceases to apply, the foph shall deactivate the swisscovid app and instruct users of the swisscovid app to remove the app from their mobile phones.2 the foph shall submit a report to the federal council within six months of this ordinance ceasing to apply.art. 15a21 connection of the pt system to related foreign systems 1 the pt system may only be connected to a foreign system (art. 62a epida) if that system meets the requirements of article 60a paragraph 5 letters a-d epida.2 when connected, the va backend and the foreign system are linked to an interconnection system for the mutual transmission of the private keys of infected app users.3 the connection system is subject to the following rules:a.it is operated by the foph or the responsible foreign body.b.article 60a paragraph 5 letter e epida and article 14 of this ordinance apply to the source code and the technical specifications of the connection system that the foph operates.c.the data processing purposes are governed by article 60a paragraph 2 epida. d.the data in the system may be passed on to the fso and the responsible foreign body in completely anonymised form for statistical purposes. e.the data shall be erased as soon as they are no longer required in order to notify app users, but at the latest 14 days after their transmission to the system.4 if the pt system is connected to a foreign system, the following applies in relation to the pt system's operating procedures in addition to articles 5 and 6:a.during basic operations, the va backend retrieves the private keys of infected users of the foreign system and the date of these keys from the connection system and places them on its list.b.following an infection, the va backend transmits the private keys of the infected persons with the relevant date to the foreign system via the connection system.21 inserted by no i of the o of 12 march 2021, in force since 18 march 2021 (as 2021 144).art. 16 repeal of other legislation the covid-19 ordinance of 13 may 202022 on the proximity tracing pilot trial is repealed.22 [as 2020 1589]art. 16a23 updating the annex the federal department of home affairs (fdha) shall update the annex to this ordinance in accordance with the current state of the art.23 inserted by no i of the o of 18 nov. 2020, in force since 19 nov. 2020 (as 2020 4733).art. 17 commencement and duration this ordinance comes into force on 25 june 2020 at 00.00 and applies until 30 june 2022.annex24 24 amended by no ii of the o of 18 nov. 2020, in force since 19 nov. 2020 (as 2020 4733).(art. 5 para. 2 let. e and 6 para. 3)epidemiological conditions for an encounter and relevant period 1. epidemiological conditions for an encounter the epidemiological conditions for an encounter to have taken place are fulfilled if the following requirements are met:a.there has been physical proximity of 1.5 metres or less to at least one mobile phone that pertains to an infected user.b.the sum of the duration of all encounters in terms of letter a within any single day is equal to or in excess of fifteen minutes.2. start of the relevant epidemiological period number of days to be deducted: two.

818.101.26english is not an official language of the swiss confederation. this translation is provided for information purposes only, has no legal force and may not be relied on in legal proceedings.ordinanceon measures during the special situation to combat the covid-19 epidemic(covid-19 special situation ordinance)of 23 june 2021 (status as of 10 january 2022)the swiss federal council,on the basis of article 6 paragraph 2 letters a and b of the epidemics act of 28 september 20121 (epida),ordains:1 sr 818.101section 1 general provisions art. 1 subject matter and purpose 1 this ordinance introduces measures to combat the covid-19 epidemic that apply to the general public, organisations and institutions, and the cantons.2 the measures serve to prevent the spread of the coronavirus (covid-19) and to break chains of transmission.art. 2 responsibility of the cantons 1 unless this ordinance provides otherwise, the cantons shall retain their responsibilities in accordance with the epida.2 face masks must be worn in upper secondary schools in accordance with article 6. the cantons are responsible for measures relating to compulsory and upper secondary schools.22 amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).art. 33 certificates 1 in this ordinance:a. vaccination certificate means a covid-19 vaccination certificate under article 1 letter a number 1 of the covid-19 certificates ordinance of 4 june 20214 or a recognised foreign certificate certifying vaccination under section 7 of the covid-19 certificates ordinance;b. recovery certificate means a covid-19 recovery certificate under article 1 letter a number 2 of the covid-19 certificates ordinance or a recognised foreign certificate certifying recovery under section 7 of the covid-19 certificates ordinance;c. test certificate means a test certificate under article 1 letter a number 3 of the covid-19 certificates ordinance or a recognised foreign certificate certifying recovery under section 7 of the covid-19 certificates ordinance;d. exemption certificate means a covid-19 exemption certificate under article 1 letter a number 4 of the covid-19 certificates ordinance.3 amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021, let. d from 10 jan. 2022, to 24 jan. 2022 (as 2021 882).4 sr 818.102.2art. 3a5 access restrictions 1 restrictions on access to businesses, establishments and events for people with specific certificates apply only to person aged 16 or above.2 if access is restricted to persons who hold either a vaccination or recovery certificate and a test certificate, a person does not need a test certificate unless their vaccination or recovery certificate has been valid for more than 120 days. this does not apply to persons with a recovery certificate based on antibody tests in accordance with article 16 paragraph 3 covid-19 certificates ordinance of 4 june 20216.3 persons holding an exemption certificate have the same access to businesses, establishments and events as persons who hold both a vaccination or recovery certificate and a test certificate. the exemption from the requirement to wear a face mask in accordance with article 6 paragraph 2 letter i does not apply to them.4 persons who have a medical certificate confirming that they cannot be vaccinated for a medical reason in accordance with annex 4 shall be treated in the same way as persons with a vaccination or recovery certificate with regard to access to businesses, establishments and events, provided they present a test certificate. the exemption from the mask requirement under article 6 paragraph 2 letter i does not apply to them.5 the medical certificate must be issued by a doctor registered in switzerland who is authorised to practise their profession under their own professional responsibility under the medical professions act of 23 june 20067 and holds a federal postgraduate qualification in the field of medicine that encompasses the reason provided.5 inserted by no i of the o of 3 dec. 2021 (extension of the requirement to wear a face mask and access restrictions to persons with a certificate) (as 2021 813). amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021, para. 3 from 10 jan. 2022, to 24 jan. 2022 (as 2021 882).6 sr 818.102.27 sr 811.11section 2 measures involving persons art. 4 principle every person shall follow the recommendations of the federal office of public health (foph) on hygiene and social distancing during the covid-19 epidemic8.8 available at www.bag.admin.ch > diseases > infections diseases: outbreaks, epidemics, pandemics > current outbreaks and epidemics > new coronavirus > protect yourself and others.art. 5 persons travelling on public transport 1 persons travelling on public transport vehicles, such as trains, trams, buses, ships, aircraft and cableways, must wear a face mask in enclosed areas of such vehicles. the following persons are exempt from this requirement:a. children under the age of 12;b. persons who can prove that they are unable to wear face masks for compelling reasons, in particular medical reasons; in order to prove medical reasons, a medical certificate is required from a professional who is authorised to practise their profession under their own professional responsibility in accordance with the medical professions act of 23 june 20069 or the psychology professions act of 18 march 201110.2 public transport vehicles are:a. vehicles operated by companies with a concession under article 6 or a licence under article 7 or 8 of the passenger transport act of 20 march 200911;b. aircraft operated by companies holding an operating licence in accordance with articles 27 or 29 of the civil aviation act of 21 december 194812 that are used for scheduled or charter flights.9 sr 811.1110 sr 935.8111 sr 745.112 sr 748.0art. 6 persons in publicly accessible areas of businesses and establishments 1 a face mask must be worn in publicly accessible indoor areas of businesses and establishments.2 the following persons are exempt from the requirement in paragraph 1:a. children under the age of 12;b. persons who can prove that they are unable to wear a face mask for compelling reasons, in particular medical reasons; proof of medical reasons must be provided in accordance with article 5 paragraph 1 letter b;c. persons in institutions that provide childcare outside the family or in educational institutions, in the event that wearing a face mask significantly impedes the provision of care or the ability to teach;d. persons undergoing a medical or cosmetic procedure to the face;e. performers, in particular speakers;f.13 persons in the sport and culture sectors who are exempted under a provision of this ordinance from the requirement to wear a mask;g.14 persons in restaurants, bars and clubs: if they sit at a table;h.15 persons in the public area at events: when consuming food or drink while seated;i.16 persons in in publicly accessible businesses and establishments or at events to which access is restricted to persons who have both a vaccination or recovery certificate and a test certificate.3 and 4 .175 socio-medical institutions may in consultation with the responsible cantonal authority provide in their precautionary measures plans that the following persons are exempted from the requirement under paragraph 1 in their publicly accessible areas:a. residents who have been vaccinated against covid-19: for the period specified in annex 2; b. residents who were infected with sars-cov-2 and have recovered: for the period specified in annex 2.6 the persons who are regarded as vaccinated in terms of paragraph 5 letter a are defined in annex 2.13 amended by no i of the o of 8 sept. 2021 (extension of use of covid-19 certificate), in force from 13 sept. 2021 to 24 jan. 2022 (as 2021 542).14 inserted by no i of the o of 8 sept. 2021 (extension of use of covid-19 certificate) (as 2021 542). amended by no i of the o of 3 dec. 2021 (extension of the requirement to wear a face mask and access restrictions to persons with a certificate), in force from 6 dec. 2021 until 24 jan. 2022 (as 2021 813).15 inserted by no i of the o of 3 dec. 2021 (extension of the requirement to wear a face mask and access restrictions to persons with a certificate), in force from 6 dec. 2021 until 24 jan. 2022 (as 2021 813).16 inserted by no i of the o of 3 dec. 2021 (extension of the requirement to wear a face mask and access restrictions to persons with a certificate) (as 2021 813). amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).17 repealed by no i of the o of 8 sept. 2021 (extension of use of covid-19 certificate), with effect from 13 sept. 2021 to 24 jan. 2022 (as 2021 542).section 3 measures relating to contact quarantine and isolation art. 7 ordering contact quarantine 1 the responsible cantonal authority shall place into quarantine persons who within the periods specified below have had close contact with the following infected persons:a. a person whose infection with sars-cov-2 has been confirmed or is probable and who is displaying symptoms, where contact takes place in the period from 48 hours before the symptoms began until 10 days thereafter;b. a person whose infection with sars-cov-2 has been confirmed but who is asymptomatic, where contact takes place in the period from 48 hours before the person was tested until the person goes into isolation.2 the following persons are exempt from contact quarantine:a. persons who prove that they have been vaccinated against covid-19: for the period specified in annex 2;b. persons who prove that they were infected with sars-cov-2 and have recovered: for the period specified in annex 2; c. persons who carry out an activity that is of high importance to society and for which there is an acute shortage of staff; while working and when travelling to work.3 the persons who are regarded as vaccinated in terms of paragraph 3 letter a are defined in annex 2.4 persons working for businesses that have a testing plan that meets the following requirements are exempted from contact quarantine while working and when travelling to work:the plan allows employees simple access to tests and provides that employees are regularly informed of the advantages of the tests.employees are able to take a test at least once a week.c. the requirements are met for the confederation to pay the cost of the tests in accordance with annex 6 sections 3.1 and 3.2 the covid-19 ordinance 3 of 19 june 202018.5 the persons specified in paragraph 4 must remain in contact quarantine when not at work or travelling to work.6 in respect of specific persons or categories of persons, the responsible cantonal authority may:a. in justified cases authorise additional exemptions from or relaxations of the regulations on contact quarantine for specific persons;b. in cases other than those under paragraph 1 or even if the requirements under paragraphs 2 and 3 are met, place a person in contact quarantine if this is necessary in order to prevent the spread of covid-19.7 it shall notify the foph of measures taken in respect of specific categories of persons under paragraph 6.18 sr 818.101.24art. 8 duration and early termination of contact quarantine 1 contact quarantine shall last for 10 days from the time of last close contact with the person under article 7 paragraph 1.2 persons in contact quarantine may leave quarantine early if the following requirements are met:a. the person provides the responsible cantonal authority with proof of a negative result for one of the following tests on or after the seventh day of quarantine:1. a molecular-biological test for sars-cov-2,2.19 a sars-cov-2-rapid test for specialist use,3.20 a laboratory immunological analysis for sars-cov-2 antigens;b. the responsible cantonal authority agrees to the early termination of quarantine.3 persons over the age of 12 who leave quarantine early pursuant to paragraph 4 must wear a face mask and maintain a distance of at least 1.5 metres from other persons when outside their home or accommodation until the point in time at which quarantine would have ended.19 amended by annex no 1 of the o of 17 dec. 2021, in force since 18 dec. 2021 (as 2021 881).20 inserted by annex no 1 of the o of 17 dec. 2021, in force since 18 dec. 2021 (as 2021 881).art. 9 isolation 1 the responsible cantonal authority shall order persons who are suffering from covid-19 or who have been infected with sars-cov-2 to isolate for 10 days.2 if a person displays particularly serious symptoms or if he or she suffers from severe immunosuppression, the responsible cantonal authority may order a longer period in isolation.3 the period in isolation begins:a. on the day that symptoms begin;b. if the person suffering from covid-19 or infected with sars-cov-2 is asymptomatic: on the day the test is carried out.4 the responsible cantonal authority shall terminate isolation after 10 days at the earliest, provided the person in isolation:a. has been symptom-free for at least 48 hours; orb. continues to display symptoms but these are such that the continuation of isolation is no longer justified.section 4 measures relating to publicly accessible establishments, businesses and events art. 10 precautionary measures plan 1 operators of publicly accessible businesses and establishments, including education and training institutions, and organisers of events must draw up and implement a precautionary measures plan. 2 the precautionary measures plan must provide for the following:a. measures relating to hygiene and ventilation;b. measures relating to compliance with the requirement to wear a mask under article 6;c. the recording of the contact data of persons present in accordance with article 11 where required by this ordinance. d. measures relating to persons who are not required to wear a mask in accordance with article 6 paragraph 2;e.21 measures relating to maintaining the required distance, unless access is restricted to persons with a vaccination, recovery or test certificate or is more strictly restricted.223 if entry is restricted to persons with a vaccination, recovery or test certificate, the precautionary measures plan must also include the following measures:23a. measures on implementing the entry restrictions;b.24 measures relating to persons with a covid-19 exemption certificate under article 21a of the covid-19 certificates ordinance of 4 june 202125;c.26 measures concerning persons with a certificate under article 3a paragraph 4 confirming that they cannot be vaccinated for medical reasons.274 the requirements of paragraphs 2 and 3 are specified in more detail in annex 1.5 a person must be designated in the precautionary measures plan as responsible for implementing the plan and as the contact for the competent authorities.21 amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).22 amended by no i of the o of 3 dec. 2021 (extension of the requirement to wear a face mask and access restrictions to persons with a certificate), in force from 6 dec. 2021 until 24 jan. 2022 (as 2021 813).23 amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882). 24 in force since 10 jan. 2022 (as 2021 813 no vi para. 2).25 sr 818.102.226 inserted by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).27 amended by no i of the o of 3 dec. 2021 (extension of the requirement to wear a face mask and access restrictions to persons with a certificate), in force from 6 dec. 2021 until 24 jan. 2022 (as 2021 813).art. 11 recording contact data 1 if contact data are recorded in accordance with annex 1 number 1.4, the persons concerned must be informed about the recording and its purpose. if the contact data are already known, the persons concerned must be informed that the data will be used and of the purpose for which they are used.2 the contact data must on request be passed on in electronic form without delay to the responsible cantonal authority or organisation in accordance with article 33 epida for the purpose of identifying and notifying persons who may have been infected. 3 the data recorded may not be used for any purposes other than those provided for in this ordinance, must be retained for 14 days after the persons concerned participated in the event or visited the establishment or business, and must be destroyed immediately thereafter.art. 12 special provisions for restaurants, bars and clubs 1 in restaurants, bars and clubs in which food and drinks are consumed on the premises, the following applies:a. proprietors must restrict access to indoor areas to persons with a vaccination or recovery certificate. proprietors must ensure that the premises are effectively ventilated. guests must be seated, unless access for persons is restricted to persons with either a vaccination or recovery certificate and a test certificate.b. proprietors may restrict access to outdoor areas to persons with a vaccination, recovery or test certificate. if access to outdoor areas is not restricted, either the required distance must be maintained between each group of guests or effective partitioning must be in place.c. if the outdoor area of a restaurant, bar or club is at an event venue with access restriction, this access restriction also applies to the outdoor area of the restaurant, bar or club.282 .29 3 workplace canteens, restaurants and food outlets in airport transit zones and social institutions, in particular those open to the public, may choose not to restrict entry provided appropriate precautionary measures are in place, such as requiring guests or groups of guests to maintain the required distance from each other and to remain seated while consuming food and drinks.304 .31 28 amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).29 repealed by no i of the o of 8 sept. 2021 (extension of use of covid-19 certificate), with effect from 13 sept. 2021 to 24 jan. 2022 (as 2021 542).30 amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).31 repealed by no i of the o of 3 dec. 2021 (extension of the requirement to wear a face mask and access restrictions to persons with a certificate), with effect from 6 dec. 2021 until 24 jan. 2022 (as 2021 813). art. 1332 special provisions for discotheques and dance venues and other businesses and establishments in the culture, entertainment, leisure and sport sectors 1 discotheques and dance venues must restrict entry to persons with a test or recovery certificate and a test certificate. they must also record guests' contact details.2 publicly accessible businesses and establishments in the culture, entertainment, leisure and sport sectors in which visitors do not only have access to outdoor areas must restrict entry for persons aged 16 and over to those with a certificate.32 amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).art. 1433 outdoor events 1 access to outdoor events for persons aged 16 or over must be restricted to persons with a vaccination, recovery or test certificate. the organisers may restrict access to persons with a vaccination or recovery certificate or by other means.342 a restriction on access is not required if the following requirements are met:a. the maximum number of persons, whether visitors or participants, is 300;b. the visitors do not dance.3 in the case of events involving family and friends (private events) with a maximum of 50 persons that take place outdoors but not in publicly accessible businesses and establishments, a restriction on access is not required and there is no requirement to draw up and implement a precautionary measures plan; only article 4 applies.33 amended by no i of the o of 3 dec. 2021 (extension of the requirement to wear a face mask and access restrictions to persons with a certificate), in force from 6 dec. 2021 until 24 jan. 2022 (as 2021 813).34 amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882). art. 14a35 35 inserted by no i of the o of 8 sept. 2021 (extension of use of covid-19 certificate), (as 2021 542). repealed by no i of the o of 3 dec. 2021 (extension of the requirement to wear a face mask and access restrictions to persons with a certificate), with effect from 6 dec. 2021 (as 2021 813).art. 1536 indoor events 1 access to indoor events must be restricted to persons with a vaccination or recovery certificate. the organisers may restrict access to persons with both a vaccination or recovery certificate and a test certificate.37 2 in the case of religious events, funerals, events relating to the usual activities and services of authorities, events relating to the formation of political opinion and meetings of established self-help groups for addiction and mental health issues that are held indoors, a restriction on access is not required if the following requirements are met:a. the maximum number of persons, whether visitors or participants, is 50.b. the requirement to wear a face mask in accordance with article 6 is observed; in addition, the required distance must be maintained where possible.c. no food or drinks may be consumed.d. the organiser must draw up a precautionary measures plan in accordance with article 10 and implement the same.e. the organiser must record the contact data of the persons present.3 in the case of private events with a maximum of 30 persons that are not held in indoor areas of publicly accessible establishments or businesses, it is not necessary to draw up and implement a precautionary measures plan. if no more than 10 persons are present, nor is it necessary to restrict access; in this case, article 4 only applies.3836 amended by no i of the o of 3 dec. 2021 (extension of the requirement to wear a face mask and access restrictions to persons with a certificate), in force from 6 dec. 2021 until 24 jan. 2022 (as 2021 813).37 amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882). 38 amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).art. 16 special provisions for large-scale events39 1 any person planning to hold an event involving more than 1000 persons, whether visitors or participants, (large-scale events), shall require authorisation from the competent cantonal authority.2 authorisation shall be granted provided:a. it can be assumed that the epidemiological situation in the canton or region concerned permits the event to be held;b. it can be assumed that at the time the event is held the canton has the required capacities in the following areas:1. capacities to identify and notify persons who may have been infected as required under article 33 epida,2. capacities in the healthcare sector to treat both covid-19-patients and other patients without restriction; this includes in particular the capacity to carry out non-urgent medical procedures;c.40 the organiser submits a precautionary measures plan under article 10.3 if a large-scale event is being held in two or more cantons, authorisation is required from each canton. the cantons shall coordinate the procedure together.4 any person who wishes to hold similar events regularly in the same establishment may request authorisation to do so in a single application.4bis the competent cantonal authority may grant exemptions from the obligation to restrict access in the case of outdoor sporting events that take place over long distances or over areas in open terrain and where neither access controls nor barriers are possible due to local conditions.415 the canton shall revoke authorisation or shall issue additional restrictions if:a. the epidemiological situation has deteriorated to the extent that holding the event is no longer possible, in particular because the required capacities under paragraph 2 letter b can no longer be guaranteed; orb. an organiser did not comply with the measures set out in the precautionary measures plan at an event that has already been held and cannot guarantee that the measures will be complied with in future.39 amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).40 amended by no i of the o of 3 dec. 2021 (extension of the requirement to wear a face mask and access restrictions to persons with a certificate), in force from 6 dec. 2021 until 24 jan. 2022 (as 2021 813).41 inserted by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).art. 1742 42 repealed by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).art. 1843 special provisions for trade and consumer fairs the following applies to trade and consumer fairs: a.44 if the fair does not take place exclusively outdoors, access must be restricted to persons with a vaccination or recovery certificate; the organisers may also restrict access to persons who have either a vaccination or recovery certificate and a test certificate.b. the organiser must draw up and implement a precautionary measures plan in accordance with article 10. c. if more than 1000 persons are present on any day, whether they are visitors or participants, the fair must be authorised by the competent cantonal authority; the authorisation requirements and the requirements for revoking authorisation in article 16 paragraphs 2, 4 and 5 apply.43 amended by no i of the o of 8 sept. 2021 (extension of use of covid-19 certificate), (as 2021 542).44 amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).art. 19 special provisions for meetings of political bodies, political and civil society demonstrations and collecting signatures 1 restrictions on numbers do not apply to the following events:a. meetings of the legislatures at federal, cantonal and communal level;b. meetings of public-sector bodies that cannot be postponed;c. meetings required to ensure the proper functioning of institutional beneficiaries under article 2 paragraph 1 of the host state act of 22 june 200745;d.46 hearings before arbitration or judicial authorities.2 articles 10 and 11 do not apply to political and civil society demonstrations and to collecting signatures.3 articles 14-17 do not apply to events in accordance with paragraphs 1 and 2.45 sr 192.1246 inserted by no 1 of the o of 17 dec. 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).art. 19a47 special provisions for tertiary-level education, professional education and training and continued education and training in the case of the following education and training and continued education and training programmes and activities, access must be restricted to persons with a vaccination, recovery or test certificate: a. teaching and research activities in a bachelor or master degree course or a phd programme and examinations at tertiary education institutions;b. teaching activities for federally recognised courses and post-graduate studies at professional education institutions and examinations at professional education institutions;c. federal professional examinations and advanced federal professional examinations;d. examinations as part of continuing education and training programmes in accordance with article 3 letter a of the federal act of 20 june 201448 on continuing education and training (ceta); e. officially ordered continuing education and training; f. preparatory courses for federal examinations; g. programmes for acquiring basic skills in accordance with article 13 ceta;h. programmes for fulfilling integration criteria in accordance with article 58a of the foreign nationals and integration act of 16 december 200549.47 inserted by no i of the o of 8 sept. 2021 (extension of use of covid-19 certificate), (as 2021 542). amended by no i of the o of 17 dec. 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).48 sr 419.149 sr 142.20art. 2050 special provisions for sports or cultural activities 1 the following applies to sports and cultural activities outdoors:a. there is no requirement to restrict access. b. there is no requirement to wear a face mask. c. there is no requirement to maintain the required distance.2 the following applies to sports and cultural activities involving two or more persons in publicly accessible indoor areas of businesses and establishments: a. access must be restricted to persons with a vaccination or recovery certificate; it may also be restricted to persons that have both a vaccination or recovery certificate and a test certificate.b. the requirement to wear a face mask is governed by article 6.c. the premises must be adequately ventilated.3 the following persons shall have access with a vaccination, recovery or test certificate to sports or cultural activities in publicly accessible indoor areas of businesses and establishments but are not required to wear a face mask there:a. in the case of sports activities, including sports events:1. elite athletes who hold a national or regional swiss olympic card or members of the national squad of a national sports association,2. athletes in teams competing in a professional or semi-professional league or a national junior league; if play is only professional or semi-professional in the male or female league, the exemption from the mask requirement also applies to the league of the other sex;b. in the case of cultural activities, including events:1. professional artists,2. professional artists in training.4 children and young adults under the age of 16 are not required to wear a face mask for sports or cultural activities in publicly accessible indoor areas of businesses and establishments.5 where a sports or cultural activity is carried out as part of an event at which stricter access restriction apply than for the activity, the access restrictions for the event also apply to the persons carrying out the activity. the foregoing does not apply to the persons specified in paragraph 3. 6 for sports and cultural activities, a precautionary measures plan must be drawn up and implemented only if the activities are carried out in groups of more than five persons; in the case of persons who carry out activities in terms of their employment, the requirements in article 25 apply.50 amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).art. 2151 special provisions for child and youth work in the case of the activities of organisations and institutions involved in public child and youth work involving persons under the age of 16, only the requirement to draw up and implement a precautionary measures plan in accordance with article 10 applies. the precautionary measures plan shall indicate the permitted activities.51 amended by no i of the o of 8 sept. 2021 (extension of use of covid-19 certificate), in force from 13 sept. 2021 to 24 jan. 2022 (as 2021 542).art. 22 relaxation of requirements by the cantons the responsible cantonal authority may authorise a relaxation of the requirements under article 10 paragraphs 2-4 provided:52overriding public interests so require; b. the epidemiological situation in the canton or the region concerned permits this; andc. the organiser or operator submits a precautionary measures plan under article 10 that includes specific measures to prevent the spread of the coronavirus and to break transmission chains.52 amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).art. 23 additional measures by the cantons 1 the canton shall take additional measures under article 40 epida if:a. the epidemiological situation in the canton or in a region so requires; it shall assess the situation in particular based on recognised indicators and their trends;b. as a result of the epidemiological situation, it is no longer able to provide the capacities required to identify and notify persons who may have been infected as stipulated in article 33 epida.2 it shall in particular guarantee freedom of religion and conscience and that political rights may be exercised.art. 24 inspections and obligations to cooperate 1 the operator and organisers must:a. submit their precautionary measures plan to the responsible cantonal authorities if requested to do so; b. allow the responsible cantonal authorities access to the establishments, businesses or events.2 the responsible cantonal authorities shall conduct regularly checks on compliance with the precautionary measures plans, in particular in restaurant-type establishments.3 if they establish that no adequate precautionary measures plan has been drawn up or that a plan has not been implemented or only in part, they shall take appropriate measures immediately. they may issue reminders, close down establishments or businesses or prohibit or break up events.section 5 measures to protect workers art. 2553 preventive measures 1 employers must guarantee that their employees are able to comply with the foph recommendations on hygiene and social distancing. to do so, they must plan and implement the related measures.2 in indoor areas, including vehicles, in which two or more persons are present, each person must wear a face mask. the requirement does not apply to persons who:a. engage in activities during which a mask cannot be worn on safety grounds or because of the nature of the activity; orb. are not required to wear a face mask in accordance with article 6 paragraph 2 letters b, c, e and f.3 employers shall arrange for further measures in accordance with the stop principle (substitution, technical measures, organisational measures, personal protective equipment), in particular the option of physical separation, separate teams, regular ventilation of rooms or wearing face masks outdoors.4 they are entitled under the following conditions to verify that their employees hold a vaccination, recovery or test certificate: a. verification is to ensure appropriate precautionary measures or implementation of a testing plan pursuant to article 7 paragraph 4.b. the result of such a verification may not be used for any other purpose.c. verification and any resulting measures are recorded in writing.d. the employees or their representatives are consulted in advance.5 employers are required to ensure that their employees are able to work from home where the nature of the activity permits and provided this can be reasonably expected. they shall implement the required organisational and technical measures. 6 for the protection of particularly vulnerable employees, article 27a of covid-19 ordinance 3 of 19 june 202054 also applies.53 amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).54 sr 818.101.24art. 26 implementation, inspections and obligations to cooperate 1 pursuant to the health protection provisions in article 6 of the employment act of 13 march 196455, the authorities implementing the employment act and the federal act of 20 march 198156 on accident insurance are responsible for implementing article 25.2 the competent implementing authorities may conduct inspections of businesses and locations at any time without prior notice.3 employers must allow the competent implementing authorities access to their premises and locations.4 the instructions given by the competent implementing authorities during their on-site inspections must be implemented immediately.55 sr 822.1156 sr 832.20section 6 reporting obligation of the cantons relating to capacities in the provision of healthcare art. 27 the cantons are required to report the following to the coordinated medical services regularly:a. the total number and occupancy of hospital beds;b. the total number and occupancy of hospital beds that are intended for the treatment of covid-19 cases, and the number of patients currently being treated for covid-19;c. the total number and occupancy of hospital beds in intensive care and the number of patients with covid-19 currently being treated and ventilated in intensive care;d. the total number and occupancy of devices for extracorporeal membrane oxygenation (ecmo);e. the details of availability of medical and nursing staff in hospitals;f. the maximum numbers, i.e. the total number of patients and total number of covid-19 patients, that can be treated by their hospitals, taking account of the available beds and the available staff.section 7 criminal provisions art. 28 any person who commits any of the following acts shall be liable to a fine:a.57 as an operator or organiser, wilfully or negligently failing to comply with any of the following provisions: article 10 paragraphs 1-3, articles 12, 13, 14 paragraphs 1 and 2, 15, 18 letters a and b, 19a and 20 paragraphs 2, 3 and 5;b. as an operator or organiser, wilfully or negligently processing contact data recorded pursuant to article 11 for other purposes in contravention of article 11 paragraph 3 or retaining such details for longer than 14 days after the person or persons concerned participated in the event or visited the establishment or business;c.58 wilfully holding an event involving more persons than are permitted under articles 14 paragraphs 2 and 3; and 15 paragraphs 2 and 3 with the applicable access restrictions;d.59 wilfully holding a large-scale event under article 16 paragraph 1 or a trade or consumer fair under article 18 letter c without the required authorisation or in derogation from the approved precautionary measures plan;e.60 wilfully or negligently failing to wear a face mask in contravention of articles 5 paragraph 1, 6 paragraph 1 or 15 paragraph 2 letter b in enclosed areas of public transport vehicles or in publicly accessible indoor and outdoor areas of businesses and establishments, unless an exception pursuant to article 5 paragraph 1 or 6 paragraph 2 applies;f. 61 .g.62 as a guest in a restaurant, wilfully contravening the requirement to be seated in article 12 paragraph 1 letter a;h.63 wilfully obtaining access without the required certificate to an establishment, business or event for which such a certificate is required.57 amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).58 amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).59 amended by no i of the o of 8 sept. 2021 (extension of use of covid-19 certificate), in force from 13 sept. 2021 to 24 jan. 2022 (as 2021 542).60 amended by no i of the o of 3 dec. 2021 (extension of the requirement to wear a face mask and access restrictions to persons with a certificate), in force from 6 dec. 2021 until 24 jan. 2022 (as 2021 813).61 repealed by no i of the o of 8 sept. 2021 (extension of use of covid-19 certificate), with effect from 13 sept. 2021 to 24 jan. 2022 (as 2021 542).62 inserted by no i of the o of 8 sept. 2021 (extension of use of covid-19 certificate) (as 2021 542). amended by no i of the o of 3 dec. 2021 (extension of the requirement to wear a face mask and access restrictions to persons with a certificate), in force from 6 dec. 2021 until 24 jan. 2022 (as 2021 813).63 inserted by no i of the o of 8 sept. 2021 (extension of use of covid-19 certificate) (as 2021 542). amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).section 8 updating the annexes art. 29 1 the federal department of home affairs shall update annexes 1, 2 and 4 in accordance with the latest scientific knowledge.642 it shall update annex 1 in consultation with the federal department of economic affairs, education and research and annex 2 in consultation with the federal commission for vaccination.64 amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).section 9 final provisions art. 30 repeal of another ordinance the covid-19 special situation ordinance of 19 june 202065 is repealed.65 [as 2020 2213, 2735, 3547, 3679, 4159, 4503, 5189; 2021 52, 60, 110, 145, 213, 222, 275, 297, 300, 308]art. 31 amendment of other legislation the amendment of other legislation is regulated in annex 3.art. 32 transitional provision authorisations for pilot projects that have been granted on the basis of article 6bquater of the covid-19 special situation ordinance of 19 june 202066 remain valid until 30 june 2021.66 as 2021 297art. 32a67 transitional provision to the amendment of 17 december 202 1 until 24 january 2022, persons who can provide a certificate confirming that they can neither be vaccinated nor tested on medical grounds may have the same access to businesses, establishments and events as persons who have a vaccination, recovery or test certificate. the exception to the requirement to wear a mask under article 6 paragraph 2 letter i does not apply to them. 2 the certificate must be issued by a doctor registered in switzerland who is authorised to practise their profession under their own professional responsibility in accordance with the medical professions act of 23 june 200668.67 inserted by annex no 2 of the o of 3 nov. 2021 (as 2021 653). amended by no i of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).68 sr 811.11art. 33 commencement and duration this ordinance comes into force on 26 june 2021 at 00.00.annex 169 69 revised by no ii of the o of 8 sept. 2021 (extension of use of covid-19 certificate) (as 2021 542), of 1 oct. 2021 (proof for persons who can neither be vaccinated nor tested on medical grounds) (as 2021 590), annex no 2 of the o of 3 nov. 2021 (as 2021 653), no ii of the o of 3 dec. 2021 (extension of the requirement to wear a face mask and access restrictions to persons with a certificate) until 24 jan. 2022 (as 2021 813) and no ii para. 1 of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).(arts 10 para. 4, 11 para. 1 and 29)requirements for precautionary measures plans 1 precautionary measures plans for publicly accessible businesses and establishments and for events to which entry for persons aged 16 and over is not restricted to those with a certificate 1.1 general remarks 1.1.1 principlethere is an increased risk of infection if persons are unable to keep a distance of 1.5 metres from each other for more than 15 minutes.1.1.2 protection against infection with covid-19 1 the operator or organiser shall ensure when choosing the measures under article 10 paragraph 2 that guests, persons in attendance and participants are provided with effective protection against infection with covid-19. 2 where employees are at work in publicly accessible businesses and establishments and at events, the precautionary measures plan must reconcile the measures for guests, persons in attendance or participants with the measures to protect the employees under article 25. 3 in order to achieve effective protection in accordance with paragraphs 1 and 2, the operator or organiser shall if necessary take different measures for individual areas of the establishment business or event, for example for seating or catering areas, or for individual groups of persons, for example, by forming permanent teams.1.1.3 reason for recording contact dataif provision must be made in the precautionary measures plan in accordance with article 10 paragraph 2 letter d for recording contact data, the reasons for doing so must be stated in the plan.1.1.4 informing the persons present the operator or organiser shall inform the persons present (guests, participants, persons in attendance) about the measures that apply in the establishment, business or at the event, such as any requirement to wear a face mask, the recording of contact data.1.2 hygiene 1.2.1 all persons must be able to wash their hands regularly. hand sanitiser and, in the case of publicly accessible washbasins, soap must be made available.1.2.2 all contact surfaces must be regularly cleaned.1.2.3 a sufficient number of waste bins must be provided, in particular for disposing of paper handkerchiefs and face masks.1.3 social distancing 1.3.1 persons must keep a minimum of 1.5 metres distance from each other (the required distance).1.3.2 in derogation from number 1.3.1, the seating area seats must be arranged or occupied so that where possible and one seat remains free or an equivalent distance is maintained between the seats.1.3.3 .1.3.4 the movement of persons should be controlled so that the required distance can be maintained between all persons.1.3.5 the requirements on distancing do not apply to groups of persons for whom compliance with social distancing is not expedient, in particular in the case of schoolchildren, families or persons who live in the same household.1.4 recording of contact data 1.4.1 .1.4.2 if contact data are recorded, the operator or organiser must inform the participants of the following:a. that it is likely that the required distance cannot be maintained and that there is therefore an increased risk of infection;b. that participants may be contacted by the competent authority or organisation in the canton, and that this authority or organisation has the power to order quarantine for persons who have been in contact with a person who has covid-19.1.4.3 contact details may in particular be recorded via booking or membership systems or by using a contact form.1.4.4 the following details must be recorded:a. surname and first name;b. address;c. telephone number.1.4.5 the operator or organiser must take appropriate measures to ensure that the contact data recorded are accurate.1.4.6 in the case of families or other groups with persons who know each other, it is sufficient to record the contact data of only one person in the family or group concerned.1.4.7 the operator or organiser must guarantee the confidentiality of the contact data when recording the same, and data security, in particular in storing the data. 2 precautionary measures plans for publicly accessible businesses and establishments and events to which entry is restricted to persons with a vaccination, recovery or test certificate or more strictly the precautionary measures plan shall include measures related to:a. the orderly and uninterrupted conduct of entry checks, including the training of staff and the electronic verification of certificates with the verification app pursuant to article 29 of the covid-19 ordinance on certificates of 4 june 202170 or a different app that can verify certificates with data minimisation pursuant to article 28 of the covid-19 ordinance on certificates and that complies with the principles set out in article 29 paragraph 2 letters a and b of the covid-19 ordinance on certificates;abis. checking the identity of persons during entry checks pursuant to letter a; suitable photo id must be shown; ater. recording personal data during entry checks pursuant to letter a; the following shall apply: 1. the operator or organiser must inform the persons affected in advance that their data will be processed.2. the data may not be used for any other purpose.3. the data may only be retained if this is required for the purposes of the entry check; it must be destroyed no later than 12 hours after the end of the event.b. the provision of information to visitors and participants on the requirement to have a certificate and on the applicable hygiene and social distancing measures;c. hygiene, in particular the provision of disinfectant, regular cleaning, and ventilation;d. a requirement to wear a face mask for staff and other persons working at the event who come into contact with visitors on the premises.e. the presence of persons holding documentary proof in accordance with article 3a paragraph 4 or 32a paragraph 1, such as the requirement for these persons to wear a face mask or, if they are able to provide a certificate exempting them from this requirement under article 5 paragraph 1 letter b, specifications on maintaining the required distance.70 sr 818.102.2annex 271 71 revised by annex no 4 of the o of 17 sept. 2021 (as 2021 563), annex no 2 of the o of 3 nov. 2021 (as 2021 653), no ii of the fdha o of 29 nov. 2021 (as 2021 785) and annex no 1 of the o of 17 dec. 2021, in force since 18 dec. 2021 (as 2021 881).(art. 6 para. 5 and 6, 7 para. 2 and 3 and 29)requirements for an exemption from the requirement to wear a mask and from contact quarantine for persons who have been vaccinated or who have recovered 1 persons who have been vaccinated 1.1 persons who have been vaccinated in terms of this ordinance are persons, who have been vaccinated with a vaccine that: a. is authorised in switzerland and which has been administered in full in accordance with the foph recommendations; b. has been authorised by the european medicines agency for the european union and has been administered in full in accordance with the requirements or recommendations of the country in which the vaccination was administered;c. has been authorised under the who emergency use listing and has been administered in full in accordance with the requirements or recommendations of the country in which the vaccination was administered;d. has been shown to have the same composition as a vaccine licensed under letters a, b or c, but marketed by the licence holder under another name, and which has been administered in full in accordance with the requirements or recommendations of the country in which the vaccination was carried out.1.2 the period during which vaccinated residents of socio-medical institutions are exempt from the requirement to wear a mask (art. 6 para. 5) and persons who have been vaccinated are exempt from contact quarantine (art. 7 para. 2 let. a) shall amount to 365 days from the date of vaccination in full; the janssen ad26.cov2.s / covid-19 vaccine is regarded as being effective for 365 days from the 22nd day after it was administered in full.2 persons who have recovered residents of socio-medical institutions who have recovered are exempt from the requirement to wear a mask (art. 6 para. 5 let. b) and persons who have recovered are exempt from contact quarantine (art. 7 para. 2 let. b) for the following periods: a. when based on a molecular-biological analysis for sars-cov-2 or a sars-cov-2-rapid test for specialist use or a laboratory immunological analysis for sars-cov-2 antigens: from the 11th to the 365th day after confirmation of infection;b. when based on an analysis for sars-cov-2 antibodies in accordance with article 16 paragraph 3 of the covid-19 ordinance on certificates of 4 june 202172: for the term of validity of the certificate concerned.72 sr 818.102.2annex 3 (art. 31)amendment of other legislation the legislation below is amended as follows:.7373 the amendments may be consulted under as 2021 379.annex 474 74 inserted by no ii para. 2 of the o of 17 dec 2021 (mask requirement at upper-secondary level, restrictions on access to persons with a vaccination or recovery certificate, restrictions on private events. requirement to work from home, requirements at tertiary level and in cet), in force from 20 dec. 2021 to 24 jan. 2022 (as 2021 882).(art. 3a para. 4)medical reasons why a person may not be able to receive a vaccine medical reasons why a person may not be able to receive a vaccine are as follows:a. severe allergies to components of vaccines authorised in switzerland confirmed by a specialist in allergology and immunology, namely the following absolute or relative contraindications of an allergic nature before or after vaccination where there is no option or recommendation to administer a different vaccine of the same or a different technology:1. severe anaphylaxis (grade iii or iv) with unclear or as yet undetermined cause,2. idiopathic anaphylaxis,3. a general reaction or anaphylaxis to ingredients of the vaccine,4. known or probable immediate-type sensitisation to polyethylene glycol, tromethamine or polysorbate 80, 5. anaphylaxis following the first dose of the vaccine;b. severe non-allergic vaccination reactions after the first or second dose of an mrna vaccine, namely myocarditis or pericarditis, with no option or recommendation to perform the second vaccination or booster with a vaccine of the same or a different technology;c. capillary leak syndrome with no option or recommendation to be vaccinated with a vaccine other than the janssen covid-19 vaccine;d. pregnancy for the first 12 weeks of pregnancy and the time needed to establish the vaccination schedule;e. severe mental impairment that generally makes vaccination impossible despite psychological or medical support and individual care.

818.101.27english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinance on measures to combat the covid-19 epidemic in international travel(covid-19 ordinance on international travel)1of 23 june 2021 (status as of 20 december 2021)1 ru 2021 380 amended by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 563).the swiss federal council,on the basis of articles 41 paragraphs 1 and 3 and 79 paragraph 1 of the epidemics act of 28 september 20122 (epida),3ordains:2 sr 818.1013 amended by no i of the o of 3 dec. 2021, in force since 4 dec. 2021 (as 2021 814).section 1 purpose and subject matter art. 14 1 this ordinance aims to prevent the cross-border spread of the sars-cov-2 coronavirus.2 it regulates the following for persons entering switzerland:a. the recording of contact data and any other health data required;b. the test requirement.3 it also regulates for persons who enter switzerland from a country or region with a variant of the virus of concern, quarantine and its enforcement.4 amended by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 563).section 2 countries and regions with a variant of the virus of concern art. 2 1 categorisation as a country or region with a variant of the virus of concern requires proof or the presumption that in this country or region a variant of the virus is widespread:a. that carries a higher risk of infection or causes a more severe form of the disease than the variants of the virus that are present in switzerland; orb. that escapes detection and for which there is no defence through pre-existing immunity to the variants of the virus present in switzerland (immune evasive).52 the list of countries and regions with a variant of the virus of concern that is immune evasive or the immune evasive status of which is unclear is provided in annex 1 number 1.3 the list of countries and regions with a variant of the virus of concern that is not immune evasive is provided in annex 1 number 2.4 regions on the border with switzerland which have close economic, social and cultural ties with switzerland may be exempted from inclusion in the lists mentioned in paragraphs 2 and 3 even if they meet the requirements set out in paragraph 1. the regions deemed to be border regions are listed in annex 1a.65 amended by no i of the o of 3 dec. 2021, in force since 4 dec. 2021 (as 2021 814).6 amended by no i of the o of 1 oct. 2021, in force since 4 oct. 2021 (as 2021 591).section 3 recording contact data art. 3 persons subject to the requirement 1 the requirement to record contact data pursuant to article 49 of the epidemics ordinance of 29 april 20157 and where necessary to record health data applies to all persons entering the country.8 2 an exemption to the requirement under paragraph 1 applies to persons who:9a. carry goods or passengers across the border in terms of their professional activities;b. travel through switzerland without a stopover;c.10 enter the country as a cross-border commuter; ord.11 enter the country from a region listed in annex 1a.3 the exemptions under paragraph 2 letters c and d do not apply to persons entering switzerland with an airline or coach company that offers long-distance travel.127 sr 818.101.18 amended by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 563).9 amended by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 563).10 inserted by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 563).11 inserted by no i of the o of 17 sept. 2021 (as 2021 563). amended by no i of the o of 1 oct. 2021, in force since 4 oct. 2021 (as 2021 591).12 inserted by no i of the o of 17 dec. 2021, in force since 20 dec. 2021 (as 2021 883).art. 4 obligations of persons subject to the requirement 1 the persons specified in article 3 must record their contact data before entry as follows:a. online by means of the platform for recording contact data for travellers13 provided by the federal office of public health (foph); or b.14 on the paper passenger locator forms provided by the foph, in duplicate.2 persons who enter switzerland but not as a passenger with a travel operator pursuant to article 5 and who record their contact details on a passenger locator form must retain the form for 14 days.1513 the platform for recording contact data for travellers can be accessed at https://swissplf.admin.ch14 amended by no i of the o of 3 dec. 2021, in force since 4 dec. 2021 (as 2021 814).15 amended by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 563).art. 5 obligations for travel operators 1 rail, coach, ship or airline operators carrying passengers specified in article 3 internationally shall ensure that passengers provide their contact data in accordance with article 4 paragraph 1. 2 they shall send the contact data under article 4 paragraph 1 letter b to the foph on request within 24 hours. 3 they shall retain the contact data for 14 days and thereafter destroy the data.4 they shall send the foph on request within 48 hours lists of all cross-border train, coach or ship journeys or flights that they have scheduled for the following month. 5 they shall send the contact data under article 4 paragraph 1 letter b and the lists under paragraph 4 via the platform for travel operators16 provided by the foph.16 the platform for passenger transport operators can be accessed at https://swissplf.admin.chart. 6 duties of the foph and the cantons 1 the foph shall ensure that the contact data is available in order to enforce the provisions on the test requirement under article 8 and the quarantine requirement under article 9. it shall also ensure that the data is forwarded immediately to the cantons responsible for the persons entering switzerland.172 as soon as it is notified that a person infected with sars-cov-2 has entered switzerland, the foph shall take the following measures:a. it shall request the travel operator to provide the contact data recorded on paper relating to the persons who entered switzerland at the same time as the person infected with sars-cov-2.b. it shall establish the identity of the persons who were in close contact with the person infected with sars-cov-2 on the basis of contact data recorded online and the contact data in accordance with letter a.c. it shall forward the processed contact data immediately to the cantons responsible for the persons entering switzerland.3 the foph may delegate its duties under paragraphs 1 and 2 to third parties. in doing so, it shall ensure that data protection and data security are guaranteed.4 the foph or the third parties shall destroy the data one month after the entry of the persons concerned.5 the cantons shall destroy the data one month after they have received the same from the foph or from third parties.17 amended by no i of the o of 3 dec. 2021, in force since 4 dec. 2021 (as 2021 814).section 418 requirement to be tested before departure 18 amended by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 563).art. 7 1 airlines and coach companies offering long-distance journeys must inform their passengers that they must be tested for sars-cov-2 before departure for switzerland and that they will only be permitted to board the aircraft or coach if they can provide a negative test result.192 airlines must verify before departure whether a negative test result is available. the requirements for the test and for proof of testing are regulated in annex 2a.203 airlines and coach companies must not permit passengers who are unable to provide a negative test result to board the aircraft or coach. 4 they may carry the following passengers without these passengers being required to produce a negative test result: a. persons under 16 years of age; b. persons who can provide a medical certificate to prove that they must be transported to switzerland as a matter of urgency on medical grounds;c.21 persons who enter switzerland from from countries or regions that are not specified in annex 1 number 1 and are using a swiss airport while in transit without leaving that airport before continuing their journey;cbis.22 persons who travel through switzerland with a coach company without leaving the coach;d. and e.23 .f. persons who provide proof in the form of a medical certificate that they are unable on medical grounds to take a sars-cov-2 test.5 persons aged six and over who enter switzerland from a country or region specified in annex 1 number 1 must be able to provide a negative test result in accordance with paragraph 2.2419 amended by no i of the o of 3 dec. 2021, in force since 4 dec. 2021 (as 2021 814).20 amended by no i of the o of 17 dec. 2021, in force since 20 dec. 2021 (as 2021 883).21 amended by no i of the o of 3 dec. 2021, in force since 4 dec. 2021 (as 2021 814).22 inserted by no i of the o of 1 oct. 2021, in force since 4 oct. 2021 (as 2021 591).23 repealed by no i of the o of 3 dec. 2021, with effect from 4 dec. 2021 (as 2021 814).24 amended by no i of the o of 3 dec. 2021, in force since 4 dec. 2021 (as 2021 814).section 5 requirement for persons entering switzerland to be tested, to quarantine and to report art. 825 test requirement 1 persons entering switzerland must be able to show a negative test result. the requirements for tests and proof of testing are regulated in annex 2a.262 persons who are unable to provide proof of a negative test under paragraph 1 on entering switzerland must immediately undergo one of the following tests on entry:27a. a molecular-biological analysis for sars-cov-2; orb.28 a sars-cov-2 rapid test for specialist use in accordance with article 24a paragraph 1 of covid-19 ordinance 3 of 19 june 202029 unless it is based on a sample taken solely from the nasal cavity or on a saliva sample;c.30 a laboratory immunological analysis for sars-cov-2 antigens in accordance with article 19 paragraph 1 letter c of the covid-19 certificates ordinance of 4 june 202131.2bis the persons specified in paragraphs 1 and 2 must also take a test between the fourth and seventh day after entering switzerland. the test and the proof of testing requirements are regulated in annex 2a.323 persons who test negative between the fourth and seventh day after entering switzerland must provide the canton with a covid-19 test certificate in accordance with the covid-19 certificates ordinance of 4 june 202133. persons who test positive must notify the canton of the test result.344 on entry into switzerland from a country or region specified in annex 1 number 1, paragraph 1 applies to all persons aged six or over.3525 amended by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 563).26 amended by no i of the o of 17 dec. 2021, in force since 20 dec. 2021 (as 2021 883).27 amended by no i of the o of 3 dec. 2021, in force since 4 dec. 2021 (as 2021 814).28 amended by annex no 2 of the o of 17 dec. 2021, in force since 18 dec. 2021 (as 2021 881).29 sr 818.101.2430 inserted by annex no 2 of the o of 17 dec. 2021, in force since 18 dec. 2021 (as 2021 881).31 sr 818.102.232 inserted by no i of the o of 3 dec. 2021, in force since 4 dec. 2021 (as 2021 814).33 sr 818.102.234 amended by no i of the o of 3 dec. 2021, in force since 4 dec. 2021 (as 2021 814).35 inserted by no i of the o of 3 dec. 2021, in force since 4 dec. 2021 (as 2021 814).art. 936 quarantine requirement 1 on entering switzerland, persons who in the ten days before entry have stayed in a country or region listed in annex 1 must travel immediately and directly to their home or to other suitable accommodation. they must remain there without leaving at any time for 10 days following their entry (quarantine on entry).372 where a person has entered switzerland from a country or region that does not have a variant of the virus of concern, the competent cantonal authority may take account of the duration of the person's stay in that country or region when calculating the time to be spent in quarantine.3 persons required to quarantine on entry who have entered switzerland from a country that is not specified in annex 1 number 1 may leave quarantine within 10 days provided they undergo either a molecular-biological analysis for sars-cov-2, a sars-cov-2-rapid test for specialist use in accordance with article 24a paragraph 1 of covid-19 ordinance 3 of 19 june 202038 or a laboratory immunological analysis for sars-cov-2 antigens in accordance with article 19 paragraph 1 letter c of the covid-19 certificates ordinance of 4 june 202139 and the result is negative. the test may be carried out at the earliest on the seventh day of quarantine. the competent cantonal authority may, in justified cases, suspend the early termination of quarantine.403bis the persons mentioned in paragraph 3 may leave quarantine in order to be tested. when doing so, they must wear a face mask and maintain a distance of at least 1.5 metres from other persons.414 persons who leave quarantine early pursuant to paragraph 5 must wear a face mask and maintain a distance of at least 1.5 metres from other persons when outside their home or accommodation until the point in time at which quarantine under paragraph 2 would have ended.36 amended by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 563).37 amended by no i of the o of 3 dec. 2021, in force since 4 dec. 2021 (as 2021 814).38 sr 818.101.2439 sr 818.102.240 amended by annex no 2 of the o of 17 dec. 2021, in force since 18 dec. 2021 (as 2021 881).41 inserted by no i of the o of 3 dec. 2021, in force since 4 dec. 2021 (as 2021 814).art. 9a42 exemptions from the test and quarantine requirement 1 the following persons are exempt from the requirement to be tested under article 8 and to quarantine from the requirement to under article 9:a. . 43b. persons who in the course of their professional activities transport passengers or goods across borders;c.44 .d. persons who travel through switzerland without stopping;e. and f.45 .g. who enter switzerland on important and immediate medical grounds;h. who enter switzerland as cross-border commuters.2 the following persons are also exempt from the requirement to be tested in article 8:a.46 persons under the age of 16, unless they are entering switzerland from a country or region specified in annex 1 number 1;b. persons who can prove that they are unable on medical grounds to take a sars-cov-2 test.c.47 persons who enter switzerland from a region listed in annex 1a, provided the country or region concerned is not listed in annex 1 number 1.d.48 persons whose activity in switzerland is essential to maintain the proper functioning of institutional beneficiaries in terms of article 2 paragraph 1 of the host state act of 22 june 200749 and who can prove this by providing confirmation from the federal department of foreign affairs (fdfa);e.50 persons whose activity in switzerland is essential to maintain switzerland's diplomatic and consular relations and who can prove this by providing confirmation from the fdfa.2bis the test requirement in accordance with article 8 paragraph 2bis does not apply to:a. persons who enter switzerland from countries or regions that are not specified in annex 1 number 1 and who provide proof that they have been vaccinated against sars-cov-2; the persons who are regarded as having been vaccinated, the duration for which the vaccination is regarded as effective and the accepted forms of proof are regulated in annex 2;b. persons who enter switzerland from countries or regions that are not specified in annex 1 number 1 and who provide proof that they have been infected with sars-cov-2 and have recovered; the duration of the exemption and the accepted forms of proof are regulated in annex 2.512ter the quarantine requirement in accordance with article 9 does not apply to the following persons:a. persons whose activity in switzerland is essential to maintaining: 1. the proper functioning of the health service,2. public security and order,3. the proper functioning of institutional beneficiaries in terms of article 2 paragraph 1 of the host state act,4. switzerland's diplomatic and consular relations;b. persons who as transit passengers have spent less than 24 hours in a country or region specified in annex 1;c. persons who re-enter switzerland after participating in an event in a country or region specified in annex 1, provided they can prove that their participation and stay took place in compliance with a specific precautionary measures plan; participation in an event includes in particular participation on a professional basis in a sporting competition, cultural event or specialist conference;d. persons who enter switzerland from a country or region specified in annex 1 in order to participate in an event in switzerland; participation in an event includes in particular participation on a professional basis in a sporting competition, cultural event or specialist conference;e. persons who enter switzerland from countries or regions that are not specified in annex 1 number 1 and who provide proof that they have been vaccinated against sars-cov-2; the persons who are regarded as having been vaccinated, the duration for which the vaccination is regarded as effective and the accepted forms of proof are regulated in annex 2;f. persons who enter switzerland from countries or regions that are not specified in annex 1 number 1 and who provide proof that they have been infected with sars-cov-2 and have recovered; the duration of the exemption and the accepted forms of proof are regulated in annex 2.523 the exemptions under paragraphs 1-2ter do not apply to persons displaying symptoms of covid-19, unless the person concerned can provide certified medical evidence that the symptoms have a different cause.534 the competent cantonal authority may in justified cases permit further exemptions from the requirement to be tested and to quarantine or may relax certain conditions.42 inserted by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 563).43 repealed by no i of the o of 1 oct. 2021, with effect from 4 oct. 2021 (as 2021 591).44 repealed by no i of the o of 3 dec. 2021, with effect from 4 dec. 2021 (as 2021 814).45 repealed by no i of the o of 3 dec. 2021, with effect from 4 dec. 2021 (as 2021 814).46 amended by no i of the o of 3 dec. 2021, in force since 4 dec. 2021 (as 2021 814).47 amended by no i of the o of 1 oct. 2021, in force since 4 oct. 2021 (as 2021 591).48 inserted by no i of the o of 1 oct. 2021, in force since 4 oct. 2021 (as 2021 591).49 sr 192.1250 inserted by no i of the o of 1 oct. 2021, in force since 4 oct. 2021 (as 2021 591).51 inserted by no i of the o of 17 dec. 2021, in force since 20 dec. 2021 (as 2021 883).52 originally para. 2bis. inserted by no i of the o of 1 oct. 2021 (as 2021 591). amended by no i of the o of 3 dec. 2021, in force since 4 dec. 2021 (as 2021 814).53 amended by no i of the o of 17 dec. 2021, in force since 20 dec. 2021 (as 2021 883).art. 10 requirement to report54 1 persons who must take a test under article 8 paragraph 3 must provide the competent cantonal authorities with the covid-19 test certificate in accordance with the covid-19 certificates ordinance of 4 june 202155 or the positive test result within two days and:56a. inform them of the number of the passenger locator form completed in accordance with article 4 paragraph 1 letter a; orb. provide them with a copy of the paper passenger locator form in accordance with article 4 paragraph 1 letter b.2 persons required to quarantine on entry under article 9 must report to the competent cantonal authority within two days of their arrival in switzerland and must follow the instructions given by the authority.54 amended by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 563).55 sr 818.102.256 amended by no i of the o of 1 oct. 2021, in force since 4 oct. 2021 (as 2021 591).section 6 checks and reports57 57 amended by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 563). art. 11 border control authorities58 1 the border control authorities may conduct risk-based checks on persons entering switzerland. in doing so, they shall verify:59a.60 that the person checked has tested negative in accordance with article 8 paragraphs 1 and 4; b. that the contact data of the person checked has been recorded in accordance with article 4 paragraph 1.2 if the person checked is unable to produce a negative test result or show that their contact data has been recorded, the border control authority shall report the matter to the competent cantonal authority. the report shall include the details of the person checked, the time and place of the check, the address the person has specified in switzerland, and the outcome of the check.3 the border control authorities may impose fixed penalty fines.58 inserted by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 563).59 amended by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 563).60 amended by no i of the o of 17 dec. 2021, in force since 20 dec. 2021 (as 2021 883).art. 11a61 cantons the cantons may check that a negative test result has been provided in accordance with article 8 paragraph 3.61 inserted by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 563).art. 11b62 obligation on private individuals to conduct checks 1 any person who provides accommodation on a commercial basis to persons staying in switzerland for tourist or business purposes must check whether they can provide test results pursuant to article 8 paragraphs 1, 2bis and 4.2 persons who are unable to provide a negative test result must be reported to the competent cantonal authority. 62 inserted by no i of the o of 3 dec. 2021, in force since 4 dec. 2021 (as 2021 814).section 7 updating the annexes art. 12 1 the federal department of home affairs shall update annex 1 continuously in consultation with the federal department of justice and police, the federal department of finance and the federal department of foreign affairs.2 it shall update annex 2 in accordance with the latest scientific knowledge and in consultation with the federal commission for vaccination.3 it shall update annex 2a in accordance with the latest scientific knowledge.6363 inserted by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 563).section 8 final provisions art. 13 repeal and amendment of other legislation 1 the covid-19-ordinance on international passenger transport of 27 january 202164 is repealed.2 the amendment of other legislation is regulated in annex 3.64 [as 2021 61, 94, 276, 298, 352]art. 14 commencement this ordinance comes into force on 26 june 2021 at 00.00.annex 165 65 amended by no i of the fdha o of 3 aug. 2021 (as 2021 465). revised by no ii of the o of 3 dec. 2021, in force since 4 dec. 2021 (as 2021 814).(art. 2 paras 2 and 3, 3 para. 1 let. a, 7 para. 4 let. c and 5, 8 para. 4, 9 paras 1 and 3, 9a para. 2 lets a and c and 2bis lets b-f, and 12 para. 1)list of countries and regions with a variant of the virus of concern66 66 if a state is on the list, this includes all its areas, islands and overseas territories, even if these are not separately listed.1. countries and regions with a variant of the virus of concern that is immune evasive is or the immune evasive status of which is unclear (art. 2 paras. 1 and 2) there are no entries currently on this list2. countries and regions with a variant of the virus of concern that is not immune evasive (art. 2 paras. 1 and 3) there are no entries currently on this listannex 1a67 67 inserted by no ii of the o of 1 oct. 2021, in force since 4 oct. 2021 (as 2021 591).(art. 2 para. 4, 3 para. 2 let. d and 9a para. 2 let. c)regions bordering switzerland regions in germany:- baden-wrttemberg- bavariaregions in france:- grand-est- burgundy / franche comt- auvergne / rhne-alpesregions in italy:- piedmont- aosta valley- lombardy- trentino / south tyrolregions in austria:- tyrol- vorarlbergregions in liechtenstein:- entire principalityannex 268 68 revised by no ii para. 1 of the o of 17 sept. 2021 (as 2021 563), annex no 3 of the o of 3 nov. 2021 (as 2021 653) and no ii of the o of 17 dec. 2021, in force since 20 dec. 2021 (as 2021 883).(art. 9a para. 2bis lets a and b, 2ter lets e and f and 12 para. 2)persons who have been vaccinated and who have recovered 1 persons who have been vaccinated 1.1 persons who have been vaccinated are persons who have received a vaccine that: a. is authorised in switzerland and which has been administered in full in accordance with the foph recommendations; b. has been authorised by the european medicines agency for the european union and has been administered in full in accordance with the requirements or recommendations of the country in which the vaccination was administered;c. is authorised under the who emergency use listing and has been administered in full in accordance with the requirements or recommendations of the country in which the vaccination was administered; ord. has been shown to have the same composition as a vaccine licensed under letter a or b but marketed by a licence holder under a different name, and which has been administered in full in accordance with the requirements or recommendations of the country in which the vaccination was carried out.1.2 the vaccination is regarded as being effective for 365 days from the date on which it was administered in full; the janssen ad26.cov2.s / covid-19 vaccine is regarded as being effective for 365 days from the 22nd day after it was administered in full. 1.3 proof of vaccination may be provided in the form of a covid-19 certificate in accordance with article 1 letter a number 1 of the covid-19 certificates ordinance of 4 june 202169 or a recognised foreign certificate in accordance with section 7 of the covid-19 certificates ordinance.1.4 proof may also be provided in a different form from that in number 1.3. it must be a form of proof that is customary at the time. in addition to the surname, forename and date of birth of the person concerned, it must include the following information:a. the date of vaccination;b. the vaccine used.69 sr 818.102.22 persons who have recovered 2.1 recovery is valid for the following duration:a. when based on a molecular-biological analysis for sars-cov-2: from the eleventh to the 365th day after confirmation of infection;b. when based on an analysis for sars-cov-2 antibodies in accordance with article 16 paragraph 3 of the covid-19 ordinance on certificates of 4 june 202170: for the term of validity of the certificate concerned.2.2 proof of recovery may be provided in the form of a covid-19 certificate in accordance with article 1 letter a number 2 of the covid-19 certificates ordinance of 4 june 2021 or a recognised foreign certificate in accordance with section 7 of the covid-19 certificates ordinance.2.3 proof may also be provided in a different form from that in number 2.2. it must be a form of proof that is customary at the time. in addition to the surname, forename and date of birth of the person concerned, it must include the following information:a. confirmation of the infection including the name and address of the confirming body (test centre, doctor, pharmacy, hospital);b. confirmation that isolation has been terminated or confirmation from a doctor of recovery.70 sr 818.102.2annex 2a71 71 inserted by no ii para. 1 of the o of 17 sept. 2021(as 2021 563). revised by no ii of the o of 3 dec. 2021 (as 2021 814) and annex no 2 of the o of 17 dec. 2021, in force since 18 dec. 2021 (as 2021 881).(art. 7 para. 2, 8 paras 1 and 2bis and 12 para. 3)test and proof of testing requirements 1. the test procedure must be an up-to-date scientific and technical procedure, whereby:a. a molecular-biological analysis for sars-cov-2 may not have been taken more than 72 hours previously;b. a sars-cov-2 rapid test for specialist use or a laboratory immunological analysis for sars-cov-2 antigens may not have been taken more than 24 hours previously.2. the document showing the test result must contain the following information:a. surname, first name and date of birth of the person tested;b. date and time the test was carried out;c. type of test under no 1 letter a or b;d. test result.annex 3 (art. 13 para. 2)amendment of another enactment .7272 the amendments may be consulted under as 2021 380.

818.102.2english is not an official language of the swiss confederation. this translation is provided for information purposes only, has no legal force and may not be relied on in legal proceedings.ordinance on certificates to prove covid-19 vaccination, covid-19 recovery or a covid-19 test result(covid-19 certificates ordinance)of 4 june 2021 (status as of 10 january 2022)the swiss federal council,based on article 6a paragraphs 1, 4 and 5 of the covid-19 act of 25 september 20201,ordains:1 sr 818.102section 1 subject matter art. 1 this ordinance regulates:a. the form, content, issuance and revocation of the following covid-19 certificates to prove:1. vaccination against covid-19 (covid-19 vaccination certificate),2. recovery from sars-cov-2 infection (covid-19 recovery certificate),3. a negative result following sars-cov-2 test analysis (covid-19 test certificate);4.2 that the holder can neither be vaccinated nor tested on medical grounds (covid-19 exemption certificate);b. the specifications for verifying these certificates;c. the recognition of corresponding foreign certificates;d. the information systems operated by the confederation in connection with these certificates;e. the apps offered by the confederation for certificate holders and checkers;f. the tasks of the cantons in connection with issuing and revoking certificates;g.3 the payment of costs by requesting persons.2 inserted by no i of the o of 3 nov. 2021, in force since 10 jan. 2022 (as 2021 653, 813).3 inserted by no i of the o of 1 oct. 2021, in force since 11 oct. 2021 (as 2021 592).section 2 issuance, form and revocation of covid-19 certificates art. 2 request any person wishing to obtain a covid-19 certificate must submit a request to an issuer specified in article 6 or 7.art. 3 information and identification of the requesting person 1 the issuer shall inform the requesting person about:a. the type and extent of the data processing required to create and sign the covid-19 certificate;b. the conditions under which the issued certificate is revoked.2 the issuer shall verify the identity of the requesting person, with presentation of an identity document for this purpose where necessary.art. 4 retrieval of the covid-19 certificate from the system for issuing covid-19 certificates 1 the issuer shall transmit the information to be included in the certificate to the system operated by the federal office of information technology, systems and telecommunication (foitt) for issuing covid-19 certificates in accordance with article 26.2 the system generates the certificate. it shall transmit it to the issuer, provided the issuer is responsible for transmitting or delivering the certificate to the requesting person.art. 5 transmission or delivery of the covid-19 certificate to the requesting person 1 the issuer shall ensure the rapid and secure transmission or delivery of the covid-19 certificate to the requesting person.2 the issuer is responsible for compliance with data protection requirements during transmission and delivery. in particular, it must be ensured that third parties are unable to obtain knowledge of the information contained on the certificate.3 the confederation may propose to the cantons that it take care of printing the certificates in hard copy and transmitting certificates to requesting persons.4 it shall charge the cantons for the costs of printing and transmitting covid-19 vaccination certificates of people vaccinated from 15 july 2021 onwards.44 inserted by no i of the o of 30 june 2021, in force since 3 july 2021 (as 2021 410).art. 6 general provisions concerning the issuers of covid-19 certificates 1 the cantons and the surgeon general shall designate the respective issuers for the various types of covid-19 certificates.2 issuers shall be natural persons who:a. have the necessary expertise to assess the requirements for issuing certificates;b. use it systems and products that allow issuers to be uniquely identified and securely authenticated;c. guarantee compliance with the applicable law and in particular with this ordinance.3 the cantons and the surgeon general shall notify the foitt of the designated issuers. notification shall include the following information:a. first name, surname, address, email address and telephone number of the issuer;b. details of the identification provider used and the identifier this provider uses to identify the person concerned;c. details of which certificates the issuer is authorised to issue;d. the date on which designation becomes valid and expires.4 the designated issuers may call on the services of other persons to whom they have the right to give instructions in order to issue certificates. they shall be responsible for the acts and omissions of these persons.5 the cantons and the surgeon general shall supervise the issuance and revocation of certificates by the issuers in accordance with the applicable federal and cantonal regulations.6 they shall revoke such designation if there are clear indications that the issuer no longer meets the requirements. they shall notify the foitt of the revocation of a designation.art. 7 issuers with more extensive rights 1 the cantons and the surgeon general shall ensure that in the following cases requests for a covid-19 vaccination certificate or covid-19 recovery certificate pursuant to article 16 paragraph 1 are processed, even if an issuer under article 6 has no access to the relevant medical history or primary documentation for this purpose:5a. if the person received the vaccination or recovered from the illness in switzerland;b. if the person received the vaccination or recovered from the illness abroad:1. in the case of swiss citizens,2. in the case of foreign nationals who are entitled to enter switzerland under article 4 of the covid-19 ordinance of 19 june 20206 and can credibly demonstrate that they are planning to enter switzerland or are already in switzerland.72 they shall designate at least one issuer for dealing with such requests.3 the request for issuance of a covid-19 vaccination certificate or covid-19 recovery certificate under paragraph 1 must be submitted in an official language of the canton, in english or an officially certified translation into one of these languages must be provided together with the documents listed in articles 13 paragraph 2 letter c and 16.84 if there is any doubt as to whether the documents submitted are genuine, the issuer may:a. demand that the requesting person: 1. appear in person,2. submit officially certified documents,3. submit the information or documents required to assess the request;b. obtain further information from the competent foreign authorities in compliance with article 62 of the epidemics act of 28 september 20129.105 if there is still doubt as to whether the documents submitted are genuine despite taking the foregoing measures, the issuer may decline the request. in such an event, the requesting person is not entitled to a refund of any fee paid.115 amended by no i of the o of 3 nov. 2021, in force since 16 nov. 2021 (as 2021 653).6 sr 818.101.247 amended by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 564).8 inserted by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 564).9 sr 818.10110 inserted by no i of the o of 1 oct. 2021, in force since 11 oct. 2021 (as 2021 592).11 inserted by no i of the o of 1 oct. 2021, in force since 11 oct. 2021 (as 2021 592).art. 8 automated procedure for issuing covid-19 recovery certificates 1 for the purpose of issuing covid-19 recovery certificates, the cantons may use an automated procedure to retrieve information on the requesting person's recovery from the information system in accordance with article 60 of the epidemics act of 28 september 201212 and compare it with the information in the request.2 for this purpose, they may provide the requesting person with an electronic request form supplied by the confederation.3 if the comparison with the data retrieved from the information system shows that the requirements for issuing a certificate are met, the system for issuing covid-19 certificates (art. 26) shall generate the certificate.4 if the result of the comparison is unclear or negative, the competent cantonal body shall contact the requesting person and manually check whether the requirements for issuing a certificate are met.5 the cantons shall ensure that the requesting person may also submit the request in hard copy or in any other suitable form.12 sr 818.101art. 9 form of the covid-19 certificates 1 the requesting person may choose to have the covid-19 certificate issued in hard copy or electronic format.2 the covid-19 certificates bear a regulated electronic seal of the federal office of public health (foph) as the means of verification of the authenticity and integrity of the information.3 both forms of certificate display the content as a human-readable text and two-dimensional machine-readable code (barcode). however, the barcode and the data stored in it in sealed electronic format are also considered to be a certificate.4 certificates are issued in an official language of the confederation as chosen by the requesting person and in english.5 they contain a unique certificate identifier.art. 10 revocation of covid-19 certificates 1 the issuers specified in articles 6 and 7 and the competent cantonal authorities shall revoke a covid-19 certificate at the request of the holder if the holder credibly demonstrates that:a. the certificate contains incorrect information; orb. errors have repeatedly occurred when verifying the authenticity, validity or integrity of the certificate.2 a revocation request must contain the following:a. the unique certificate identifier;b. information on the identity of the holder, insofar as is necessary to assess the grounds for revocation in accordance with paragraph 1, as well as the further details required to assess the grounds for revocation.3 even in the absence of a request, issuers are obliged without delay to revoke the certificates they have issued which do not meet the requirements of this ordinance or which attest to facts which turn out to be incorrect.4 the foitt and the competent cantonal authorities shall revoke certificates in the issuer's place if the issuer fails to do so within a reasonable period in accordance with paragraphs 1 or 3.5 issuers, the foitt and the competent cantonal authorities shall revoke certificates in the system for issuing covid-19 certificates (art. 26), which shall transmit the identifiers of the revoked certificates to the system for retrieving revoked certificates (art. 27).6 issuers, the foitt and the competent cantonal authorities shall document the revocation of certificates with the following information:a. the unique certificate identifier;b. information that makes it clear why the decision to revoke the certificate was made.1313 inserted by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 564).art. 11 free of charge 1 the requesting person shall not be charged for the issuance or revocation of covid-19 certificates with the exception of the cases specified in paragraph 2 and article 26a paragraph 3.142 the cantons may make provision for issuers to charge an appropriate share of the cost in the following cases:a. when a certificate has to be reissued repeatedly due to loss;b. when issuing a certificate to persons in accordance with article 7 paragraph 3 who do not have a place of residence in the canton concerned or, in the case of swiss citizens living abroad, do not have their last place of residence or their home commune in the canton concerned.1514 amended by no i of the o of 1 oct. 2021, in force since 11 oct. 2021 (as 2021 592).15 amended by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 as 2021 564).section 3 general content of all covid-19 certificates art. 12 1 all covid-19 certificates shall contain the following information in accordance with annex 1:a. details of the identity of the holder;b. details of the electronic seal issuer;c.16 .2 covid-19 certificates in human-readable form shall also contain the following information:a. a general statement on the meaning of the certificate in accordance with annex 1 number 3;b.17 in the case of a covid-19 vaccination certificate pursuant to article 15 paragraph 318, a covid-19 recovery certificate pursuant to article 16 paragraph 3 or a covid-19 exemption certificate pursuant to article 21a19: a reference to the certificate being valid for a limited period and only in certain geographical areas in accordance with annex 1 number 4.2016 repealed by no i of the o of 3 nov. 2021, with effect from 16 nov. 2021 (as 2021 653).17 correction of 24 nov. 2021 (as 2021 750).18 words in force since 30 nov. 2021 (as 2021 653, 750).19 words in force since 10 jan 2022 (as 2021 653, 750, 813 no v).20 inserted by no i of the o of 3 nov. 2021, in force since 16 nov. 2021 (as 2021 653).section 4 covid-19 vaccination certificates art. 13 requirements 1 a covid-19 vaccination certificate shall be issued for vaccines that:a. are authorised in switzerland;b. are authorised by the european medicines agency for the eu in accordance with regulation (ec) no 726/200421;c. are authorised in accordance with the who emergency use listing; ord. can be shown to have the same composition as a vaccine authorised in accordance with letters a, b or c, but which is marketed by the licence holder under another name (licensed products).222 a covid-19 vaccination certificate shall be issued for each dose:a. at the time of vaccination;b. subsequent to the vaccination if the administration of the vaccine, including the information in accordance with article 14, is evident from the medical history or primary documentation that the issuer has on the person requesting the certificate;c. subsequent to the vaccination if no medical history or primary documentation is available and the administration of the vaccine, including the information in accordance with article 14, can be reliably established from one of the following supporting documents:1. an international certificate of vaccination in accordance with the model in annex 6 to the international health regulations (2005) of 23 may 200523, indicating the vaccine administered and bearing the signature and stamp of the body responsible,2. confirmation of vaccination issued by a cantonal vaccination centre,3. a vaccination record indicating the vaccine administered and bearing the signature or stamp of the body responsible in switzerland,4. any other swiss or foreign document equivalent to one of the documents mentioned in numbers 1 to 3.2bis .242ter in the case of vaccines and their licensed products that are not authorised for switzerland nor for the eu but which are permitted under the who emergency use listing, a certificate may be issued to persons in the following categories provided the person concerned attends in person at the issuer's office:a. swiss citizens;b. foreign nationals holding a short stay permit, residence permit, settlement permit or cross-border commuter permit in accordance with articles 32-35 of the foreign nationals and integration act of 16 december 200525 (fnia);c. persons temporarily admitted under article 83 paragraph 1 fnia;d. persons requiring protection in accordance with article 66 of the asylum act of 26 june 199826;e. persons seeking asylum who hold a permit or confirmation of their status in accordance with article 30 of asylum ordinance 1 of 11 august 199927;f. holders of a legitimation card in accordance with article 17 of the host state ordinance of 7 december 200728;g. holders of a ci permit in accordance with article 22 paragraph 3 of the host state ordinance.293 covid-19 certificates in accordance with paragraph 2 letter c may only be issued by the issuers specified in article 7 if the person concerned has been vaccinated in full in accordance with annex 2 number 3.3021 regulation (ec) no 726/2004 of the european parliament and of the council of 31 march laying down community procedures for the authorisation and supervision of medicinal products for human and veterinary use and establishing a european medicines agency, oj l 136, 30.4.2004, p. 1; last amended by regulation (eu) no 2019/5, oj l 4, 7.1.2018, p. 24.22 amended by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 564).23 sr 0.818.10324 inserted by no i of the o of 17 sept. 2021 (as 2021 564). repealed by no i of the o of 3 nov. 2021, with effect from 16 nov. 2021 (as 2021 653).25 sr 142.2026 sr 142.3127 sr 142.31128 sr 192.12129 inserted by no i of the o of 17 sept. 2021 (as 2021 564). amended by no i of the o of 3 nov. 2021, in force since 16 nov. 2021 (as 2021 653).30 amended by no i of the o of 3 nov. 2021, in force since 16 nov. 2021 (as 2021 653).art. 1431 content in addition to the general content of all covid-19 certificates, covid-19 vaccination certificates shall contain the details in accordance with annex 2 on the covid-19 vaccination carried out, and in particular whether the vaccine has been administered in full.31 amended by no i of the o of 30 june 2021, in force since 3 july 2021 (as 2021 410).art. 15 validity 1 the start and duration of the validity of covid-19 vaccination certificates are governed by annex 2.2 the period of validity begins at the earliest on the day on which the final dose is administered, provided the vaccine is administered in full in accordance with the requirements of annex 2.323 in the case of persons that do not belong to any of the categories specified in article 13 paragraph 2ter, covid-19 vaccination certificates for vaccines and their licensed products that are neither authorised for switzerland nor for the eu but which are permitted under the who emergency use listing are valid only in switzerland and for a maximum of 30 days from issuance; the validity of such certificates otherwise ends in accordance with the provisions of annex 2 number 1.2.3332 amended by no i of the o of 30 june 2021, in force since 3 july 2021 (as 2021 410).33 inserted by no i of the o of 3 nov. 2021, in force since 30 nov. 2021 (as 2021 653).section 5 covid-19 recovery certificates art. 16 requirements 1 a covid-19 recovery certificate shall be issued when a person has been infected with sars-cov-2 and has recovered. the finding that the person has been infected with the virus must be based on the positive result of a molecular-biological analysis for sars-cov-2.2 a request for the issuance of a covid-19 certificate that cannot be processed under the automated procedure for issuing covid-19 recovery certificates pursuant to article 8 must be accompanied by the following documents:a. proof of a positive molecular-biological analysis for sars-cov-2 that includes the following information:1. the requesting person's surname, first name and date of birth,2. the date and time at which the sample was taken,3. the name and address of the test centre or the institution where the test was carried out;b. confirmation of termination of isolation or a medical certificate confirming recovery from a competent authority with official duties, including the name and address of this authority.343 a covid-19 recovery certificate shall be issued to persons who have tested positive for sars-cov-2 antibodies provided:a. the sample was taken in switzerland by a facility specified in annex 6 number 1.3.2 letter a of the covid-19 ordinance 3 of 19 june 202035;b. the analysis was carried out in switzerland by a facility specified in annex 6 number 1.3.2 letter b covid-19 ordinance 3;c. the sample was taken after 15 november 2021;d. a clearly positive serology was detected by analysis using a ce-marked certified immunoassay in the form of a quantifiable result.364 covid-19 recovery certificates pursuant to paragraph 3 may only be issued by a facility specified in annex 6 number 1.3.2 letter a of the covid-19 ordinance 3 or by a facility specified in annex 6 number 1.3.2 letter b of the covid-19 ordinance 3 that has been instructed by a facility specified in annex 6 number 1.3.2 letter a of the covid-19 ordinance 3 to carry out the analysis.3734 inserted by no i of the o of 1 oct. 2021, in force since 11 oct. 2021 (as 2021 592).35 sr 818.101.2436 inserted by no i of the o of 3 nov. 2021, in force since 16 nov. 2021 (as 2021 653).37 inserted by no i of the o of 3 nov. 2021, in force since 16 nov. 2021 (as 2021 653).art. 1738 content in addition to the general content of all covid-19 certificates, covid-19 recovery certificates shall specify that the holder contracted covid-19 or tested positive for covid-19 antibodies, as well as the dates on which the samples were taken and the analyses in accordance with annex 3 number 2 were carried out.38 amended by no i of the o of 3 nov. 2021, in force since 16 nov. 2021 (as 2021 653).art. 18 validity 1 the start and duration of the validity of covid-19 recovery certificates are governed by annex 3.2 a covid-19 recovery certificate pursuant to article 16 paragraph 1 shall be valid at the earliest from the eleventh day after infection was confirmed by the positive result of a molecular-biological analysis for sars-cov-2.393 a covid-19 recovery certificate pursuant to article 16 paragraph 3 shall be valid at the earliest from the day on which the sample was taken.404 covid-19 recovery certificates pursuant to article 16 paragraph 3 are only valid in switzerland.415 covid-19 recovery certificates pursuant to article 16 paragraph 1 shall contain an expiry date that is compatible with the requirements of regulation (eu) 2021/95342. under annex 3 number 1.2 letter a, they may remain valid beyond the date specified.4339 amended by no i of the o of 3 nov. 2021, in force since 16 nov. 2021 (as 2021 653).40 inserted by no i of the o of 3 nov. 2021, in force since 16 nov. 2021 (as 2021 653).41 inserted by no i of the o of 3 nov. 2021, in force since 16 nov. 2021 (as 2021 653).42 regulation (eu) 2021/953 of the european parliament and of the council of 14 june 2021 on a framework for the issuance, verification and acceptance of interoperable covid-19 vaccination, test and recovery certificates (eu digital covid certificate) to facilitate free movement during the covid-19 pandemic, amended by oj l 211 of 15.6.2021, p. 1.43 inserted by no i of the o of 3 nov. 2021, in force since 16 nov. 2021 (as 2021 653).section 6 covid-19 test certificates art. 19 requirements 1 a covid-19 test certificate shall be issued in the event of a negative result of:a. a molecular-biological analysis for sars-cov-2;b.44 a sars-cov-2 rapid test for specialist use in accordance with article 24a of the covid-19 ordinance 3 of 19 june 202045, unless it is based on a sample taken only from the nasal cavity or on a saliva sample.c.46 a laboratory immunological analysis for sars-cov-2 antigens, provided: 1. the analysis was carried out by a laboratory licensed under article 16 of the epidemics act of 28 september 201247,2. the test is authorised in eu for issuing an eu digital covid certificate,3. the sample was taken by a facility specified in annex 6 number 1.4.3 letter a of the covid-19 ordinance 3, and4. the test is not based on a sample taken solely from the nasal cavity or on a saliva sample.1bis the foph shall maintain an updated list of sars-cov-2 rapid tests in accordance with paragraph 1 letter b of laboratory immunological analyses for sars-cov-2 antigens in accordance with paragraph 1 letter c, and publish it on its website.481ter in derogation from paragraph 1, no certificates shall be issued for analyses for sars-cov-2 in respect of which the confederation pays the costs in accordance with annex 6 numbers 1.1.1 letters a-e h, i number 1 and j, 1.2.1, 1.4.1 letters a-e, h number 1, i and m, 2.1.1 letter c, 2.2.1 letter c, 3.1.1 letter c and 3.2.1 letter c of the covid-19 ordinance 3.492 requests for test certificates may be submitted at the latest when the sample is taken.44 amended by no i of the o of 3 nov. 2021, in force since 16 nov. 2021 (as 2021 653).45 sr 818.101.2446 inserted by annex no 3 of the o of 17 dec. 2021, in force since 18 dec. 2021 (as 2021 881).47 sr 818.10148 inserted by no i of the o of 30 june 2021 (as 2021 410). amended by annex no 3 of the o of 17 dec. 2021, in force since 18 dec. 2021 (as 2021 881).49 inserted by no iv of the o of 25 aug. 2021 (as 2021 507). amended by no iii of the o of 1 oct. 2021, in force since 11 oct. 2021 (as 2021 594).art. 20 content in addition to the general content of all covid-19 certificates, covid-19 test certificates shall contain information on the test carried out in accordance with annex 4.art. 21 validity 1 covid-19 test certificates shall be valid from the time they are issued.2 the duration of validity is governed by annex 4.3 it shall be a maximum of 72 hours from the time the sample was taken.section 6a50 covid-19 exemption certificates 50 inserted by no i of the o of 3 nov. 2021, in force since 10 jan. 2022 (as 2021 653, 813). art. 21a requirements a covid-19 exemption certificate shall be issued to persons who can neither be vaccinated nor tested on medical grounds. proof must be provided in the form of a medical certificate from a doctor based in switzerland who is authorised to practise their profession under their own professional responsibility in accordance with the medical professions act of 23 june 200651.51 sr 811.11art. 21b content in addition to the general content of all covid-19 certificates, covid-19 exemption certificates shall contain the information specified in annex 4a numbers 2 and 3, in machine-readable form, and in particular the statement that the holder may be subject to alternative protective measures.art. 21c validity 1 the start and duration of the validity of covid-19 exemption certificates is governed by annex 4a number 1.2 validity begins at the earliest on the day on which the medical certificate is issued stating that the person concerned can neither be vaccinated nor tested on medical grounds.3 covid-19 exemption certificates are valid only in switzerland.section 7 foreign certificates art. 22 recognition of certificates issued by an eu member state or an efta state 1 the recognised vaccination, recovery and test certificates issued by a member state of the european union (eu) or a state of the european free trade association (efta) are listed in annex 5.2 the federal department of home affairs (fdha) shall update annex 5 continuously in consultation with the federal department of finance (fdf) and the federal department of foreign affairs (fdfa).523 it shall include in the annex certificates that were issued in accordance with the provisions applicable in the eu and whose states of origin grant reciprocal rights. however, it may decide not to include certificates for vaccines that are not authorised for the eu by the european medicines agency in accordance with regulation (ec) no. 726/200453.52 amended by no i of the o of 1 sept. 2021, in force since 7 sept. 2021 (as 2021 522).53 regulation (ec) no. 726/2004 of the european parliament and of the council of 31 march 2004 laying down community procedures for the authorisation and supervision of medicinal products for human and veterinary use and establishing a european medicines agency, oj l 136 of 30.04.2004, p. 1; last amended by regulation (ec) no. 2019/5, oj l 4 of 7.1.2018, p. 24.art. 23 recognition of other foreign certificates 1 the recognised foreign certificates attesting vaccination, recovery or testing that have not been issued by an eu or efta member state are listed in annex 5.2 as soon as the european commission makes a decision regarding the equivalence of one or more interoperable certificates from third countries, the fdha shall update annex 5 accordingly. however, it shall only accept certificates from the third countries listed in annex 5, which grant switzerland reciprocal rights.543 it may include certificates from other states provided the following requirements are met:a. the foreign certificate contains the information specified in article 12 and in articles 14, 17 or 20 in conjunction with the relevant annexes.b. the information under letter a can be checked electronically for authenticity, integrity and validity.c. requirements equivalent to those under this ordinance apply to the issuance of the respective certificates.4 it shall delete those certificates that no longer meet the requirements from the list.54 amended by no i of the o of 17 sept. 2021, in force since 20 sept. 2021 (as 2021 564).art. 24 significance of recognition recognised foreign certificates shall be equivalent to the covid-19 certificates issued in accordance with this ordinance. in particular, the apps for storing and verifying certificates (arts. 28 and 29) shall treat them as certificates issued in accordance with this ordinance.section 8 federal information systems and software provided by the confederation art. 25 system for managing signature certificates 1 the foitt shall operate an information system that is used to do the following with signature certificates in order to check the authenticity, integrity and validity of electronic signatures of covid-19 certificates:a exchange them with corresponding foreign systems, particularly within the framework of the eu digital covid certificate system of the european union;b make them available to the apps that are used to store and verify certificates.2 signature certificates for the following covid-19 certificates are not delivered to foreign systems:a. covid-19 vaccination certificates pursuant to article 15 paragraph 3;b. covid-19 recovery certificates pursuant to article 16 paragraph 3;c. covid-19 exemption certificates pursuant to article 21a paragraph 1.5555 inserted by no i of the o of 3 nov. 2021, in force since 16 nov. 2021, let. a since 30 nov. and let. c since 10 jan. 2022 (as 2021 653, 750, 813).art. 26 system for issuing covid-19 certificates 1 the foitt shall operate an information system for generating, transmitting and revoking covid-19 certificates.2 the personal data of requesting persons may not be retained for longer than is necessary for generating, signing and transmitting the certificate, or for revoking it.3 in order to detect and prevent misuse and for the purpose of any subsequent revocation of certificates, the system shall log which issuer retrieved which certificates and when.art. 26a56 system for requesting covid-19 certificates for vaccination or recovery abroad 1 the foitt shall operate a system that can be used to submit requests under article 7 paragraph 1 letter b and by issuers to process these requests.2 the system shall allocate the requests as follows:a. requests for the issuance of a certificate to a person resident or with place of origin in switzerland: to the canton of residence or in the case of swiss citizens living abroad, to the last canton of residence, or, if the person has never been resident in switzerland, the canton in which the place of origin is located;b. requests for the issuance of a certificate to a person who does not fall under letter a: to the canton in which the person spends or plans to spend their first night in switzerland. 3 the confederation shall charge the issuer in advance a fee of 30 francs for processing a request for the issuance of a certificate to a person pursuant to paragraph 2 letter b. it shall pass on the revenues from this fee to the canton at the end of each quarter. requests for which no fee has been paid may be declined. the provisions of the general fees ordinance of 8 september 200457 also apply.4 the requests, the documents submitted and the unique certificate identifier shall be retained for 30 days and then deleted from the system.56 inserted by no i of the o of 1 oct. 2021, in force since 11 oct. 2021 (as 2021 592).57 sr 172.041.1art. 27 system for retrieving revoked certificates 1 the foitt shall operate a system that is used to retrieve revoked certificates and contains the unique certificate identifier for this purpose.2 the list of revoked certificate identifiers shall be made available to apps used for checking and storing covid-19 certificates.art. 28 storage app: general58 1 the foitt shall provide software that the holders of covid-19 certificates can install on their mobile telephones or similar devices and use for the secure transmission and electronic storage of the certificates.2 the following principles apply to the software:a. it may disclose the contents of certificates or make statements about it solely with the holder's consent in the individual case.b. the contents of certificates must be protected against unauthorised access by means of appropriate measures.c. the foitt shall publish the source code and technical specifications for the software it makes available.58 amended by no i of the o of 30 june 2021, in force since 12 july 2021 (as 2021 410).art. 28a59 storage app: retrieval of certificates with data minimisation 1 the app for storing covid-19 certificates shall enable holders to obtain a certificate with data minimisation for use in switzerland.2 to do so, the holder uses the app to send a covid-19 certificate to the system for issuing covid-19 certificates. if the certificate sent is valid, the system generates the data-minimised certificate and send it to the storage app.3 the certificate with data minimisation contains:a. the general content in accordance with article 12 letter a and annex 1 section 1; b. the designation of swiss covid-19 certificate with data minimisation;c. the expiry date.4 the period of validity of the certificate with data minimisation shall correspond to the shortest period of validity of covid-19 test certificates in accordance with annex 4; however, it shall end in any case when the underlying certificate expires.59 inserted by no i of the o of 30 june 2021, in force since 12 july 2021 (as 2021 410).art. 29 verification app 1 the foitt shall provide one or more software programs that can be installed on mobile telephones or similar devices and used for the electronic verification of the authenticity, integrity and validity of covid-19 certificates, including certificates with data minimisation, and corresponding foreign certificates.602 the following principles apply to the software programs:a. they shall verify the authenticity, integrity and validity of covid-19 certificates without transmitting or storing personal data.b. they shall verify foreign certificates according to the rules applicable to covid-19 certificates.c. they shall issue the result of the verification solely in the following form:1. verification successful (green background) or unsuccessful (red background) and, if applicable, information on the reasons for the failure of verification;2. information in accordance with annex 1 that allows the certificate to be assigned to the holder.d. they can verify the authenticity, integrity and validity of the certificates without being connected to the internet at the time of verification; however, the verification of validity requires an updated list from the system for retrieving revoked certificates, which requires an internet connection.e. the foitt shall publish the source code and technical specifications for the software programs it makes available.3 any person who is shown a certificate for verification may not retain it or the information read from it or use it for any purpose other than verification. the foregoing does not apply to storing information on the period of validity of certificates at facilities that may only be accessed by persons who have personal authorisation for repeated access. the data subject must be appropriately informed about the nature and extent of the data processing and must expressly consent to that processing.6160 amended by no i of the o of 30 june 2021, in force since 12 july 2021 (as 2021 410).61 amended by no i of the o of 3 nov. 2021, in force since 16 nov. 2021 (as 2021 653).art. 30 access to the systems for issuing covid-19 certificates and for retrieving revoked covid-19 certificates 1 users shall log on to the system for issuing covid-19 certificates via the federal administration's central access and authorisation system for web applications. the provisions of the ordinance of 19 october 201662 on federal identity management systems and directory services (iamo) apply.2 the foitt may go beyond article 21 of the iamo and connect other external iam systems to the confederation's iam systems, provided these allow for secure identification.3 it may deny or revoke access especially in the event of concerns about ict security.62 sr 172.010.59art. 31 federal body responsible the foitt is the federal body responsible under the data protection legislation for:a. the implementation of the necessary technical and organisational measures for the systems it operates;b. the apps it makes available.art. 32 costs of information systems and apps63 1 the confederation shall bear the costs of the procurement and operation of the information systems, and of the provision of the apps.2 it shall not collect any fees for the use of the systems and apps.63 amended by no i of the o of 1 oct. 2021, in force since 11 oct. 2021 (as 2021 592).section 9 final provisions art. 3364 updating annexes 1 to 4 in consultation with the fdf and the fdfa, the fdha shall update annexes 1 to 4 in accordance with the internationally harmonised standards in order to achieve interoperability with the certificates of as many states as possible and international recognition of the certificates issued in accordance with this ordinance.64 amended by no i of the o of 1 sept. 2021, in force since 7 sept. 2021 (as 2021 522).art. 34 conclusion of international treaties in connection with the development and implementation of the eu digital covid certificate the fdha shall be responsible for concluding international treaties for the adoption of delegated and implementing acts issued by the european commission for the development and technical implementation of the eu digital covid certificate.art. 35 commencement this ordinance comes into force on 7 june 2021 at 00.00 and applies until 31 december 2022.annex 165 65 revised by no ii of the o of 30 june 2021 (as 2021 410), of 17 sept. 2021 (as 2021 564), by no ii para. 1 of the o of 3 nov. 2021 (as 2021 653) and no i of the fdha o of 29 nov. 2021, in force since 30 nov. 2021 (as 2021 785).(arts 12, 28a para. 3 let. a, 29 para. 2 let. c no 2 and 33)general content of covid-19 certificates 1 details of the holder a. officially recorded surname and first name(s) (in that order)b. date of birth2 details of the country in which the vaccine was administered or the test was carried out, and details of the electronic seal issuer a. country in which the vaccine was administered or the test was carried out or, if this information is not available and the vaccination was administered or the test carried out by an international organisation, an internationally recognised code for this organisationb. electronic seal issuer (federal office of public health)3 statement for covid-19 certificates in a human-readable form covid-19 certificates that are in a human-readable form must contain the following statement:"this certificate is not a travel document.the scientific evidence on covid-19 vaccination, testing and recovery continues to evolve, also in view of new variants of concern of the virus.before travelling, please check the applicable public health measures and related restrictions applied at the point of destination."4 statement for certificates that are only valid in switzerland "this certificate is only valid in switzerland."annex 266 66 revised by no ii of the o of 30 june 2021 (as 2021 410), by no ii para. 1 of the o of 3 nov. 2021 (as 2021 653), no i of the fdha o of 15 nov. 2021 (as 2021 669), annex no 3 of the o of 17 dec. 2021 (as 2021 881) and no i of the fdha o of 5 jan. 2022, in force since 6 jan. 2022 (as 2022 2).(arts. 14, 15 and 33)special provisions concerning covid-19 vaccination certificates 1 start of validity and maximum duration 1.1 start of validity:a. for double-dose vaccination in accordance with numbers 3.2, 3.4 and 3.5: on the day of administration of the second dose;b. for single-dose vaccination in accordance with numbers 3.1 and 3.5: on the 22nd day after administration of the dose;c. for a vaccination in accordance with the requirements of number 3.3: on the day of administration of a dose of a vaccine in accordance with numbers 3.1 and 3.2,d. in the case of additional doses: on the day the additional dose is administered.1.2 duration of validity: a. for a vaccination in accordance with number 1.1 letter a: 365 days from the date of administration of the final dose;b. for a vaccination in accordance with number 1.1 letter b: 365 days from the 22nd day after the first dose was administered;c. for a vaccination in accordance with number 1.1 letter d: 365 days.2 details of the vaccine administered a. disease against which the vaccination was administered (covid-19)b. vaccination/prophylaxis (type of vaccine/how it works) c. immunologic agent (name of vaccine/product name)d. holder of the vaccine authorisation or, if not indicated for vaccine doses administered abroad, information on the manufacturer e. number of vaccine doses administered in a series and the total number of doses administeredf. date on which the final dose was administered3 requirements for full vaccination 3.1 a person is regarded as fully vaccinated after receiving at least one dose of the janssen ad26.cov2.s/covid-19 vaccine.3.2 a person is regarded as fully vaccinated after receiving at least two doses of the following vaccines: a. bnt162b2 / comirnaty / tozinameran;b. mrna-1273 / spikevax / moderna covid-19 vaccine;c. azd1222 / vaxzevria / astrazeneca covid-19 vaccine;d. sars-cov-2 vaccine from the sinopharm beijing institute of biological products (bibp) co., ltd.; e. coronavac (vaccine from sinovac life sciences co., ltd);f. bharat biotech covid-19 vaccine / covaxin.g. nuvaxovid / nxv-cov2373 / novavax.3.3 a person is regarded as fully vaccinated after receiving one dose of a vaccine specified in number 3.2, provided the person has already been infected with sars-cov-2. the following requirements apply when establishing that the person has been infected with sars-cov-2:a. the finding that the person has been infected must be based on one of the following tests:1. the positive result of a molecular-biological analysis for sars-cov2;2. the positive result of a sars-cov-2 rapid test for specialist use pursuant to article 24a paragraph 1 of the covid-19 ordinance 3 of 19 june 202067;3. a positive analysis for sars-cov-2 antibodies pursuant to article 16 paragraph 3.4. the positive result of a laboratory immunological analysis for sars-cov-2 antigens.b. at least 28 days must have elapsed between taking the sample and administering the vaccine.3.4 a person is regarded as fully vaccinated after receiving the following combination of vaccines:a. bnt162b2 / comirnaty / tozinameran and mrna-1273 / spikevax / moderna covid-19 vaccine;b. azd1222 / vaxzevria / astrazeneca covid-19 vaccine and bnt162b2 / comirnaty / tozinameran;c. azd1222 / vaxzevria / astrazeneca covid-19 vaccine and mrna-1273 / spikevax / moderna covid-19 vaccine.3.5 vaccines that demonstrably have the same composition but have been placed on the market by the licence holder under a different name are deemed equivalent to the vaccines specified in numbers 3.1-3.4. proof is considered to be provided for the following licensed vaccine products:a. licensed products of azd1222 / vaxzevria / astrazeneca covid-19 vaccine:- covishield / chadox1_ncov-19- covid-19 vaccine recombinant (vaccine from the fundao instituto oswaldo cruz [fiocruz])- r-covi (vaccine from r-pharma)b. licensed products of nuvaxovid / nxv-cov2373 / novavax:- nxv-cov2373 / covovax67 sr 818.101.24annex 368 68 revised by no ii para. 1 of the o of 3 nov. 2021 (as 2021 653) and by no i of the o of the fdha of 22 nov. 2021, in force since 23 nov. 2021 (as 2021 721).(arts. 17, 18 para. 1 and 33)special provisions concerning covid-19 recovery certificates 1 start of validity and maximum duration 1.1 the period of validity shall begin a. for covid-19 recovery certificates pursuant to article 16 paragraph 1: on the eleventh day after the positive result of a molecular biological analysis for sars-cov-2;b. for covid-19 recovery certificates pursuant to article 16 paragraph 3: on the day on which the sample was taken for analysis for sars-cov-2 antibodies.1.2 period of validity: a. for covid-19 recovery certificates pursuant to article 16 paragraph 1: 365 days from the date of the test result referred to in number 1.1 letter a;b. for covid-19 recovery certificates pursuant to article 16 paragraph 3: 90 days from the date on which the sample was taken in accordance with number 1.1 letter b.2 details of the disease contracted and the date of recovery 2.1 for recovery certificates pursuant to article 16 paragraph 1:a. disease from which the holder has recovered (covid-19)b. date of the first positive result of a molecular-biological analysis for sars-cov-2 c. start of validityd. end of validity2.2 for recovery certificates pursuant to article 16 paragraph 3:a. disease for which an analysis has been carried out to establish the presence of antibodies (covid-19);b. date on which the sample was taken for analysis for sars-cov-2 antibodies;c. finding (confirmed);d. facility or institution responsible for carrying out the analysis for antibodies.annex 469 69 revised by annex 3 no 3 of the covid-19 special situation ordinance of 23 june 2021 (as 2021 379), no ii of the o of 30 june 2021 (as 2021 410) and no iv of the o of 3 dec. 2021 (extension of the requirement to wear a face mask and access restrictions to persons with a certificate), in force until 24 jan. 2022 (as 2021 813) and annex no 3 of the o of 17 dec. 2021, in force since 18 dec. 2021 (as 2021 881).(arts. 20, 21 para. 2, 28a para. 4 and 33)special provisions concerning covid-19 test certificates 1 . 2 duration of validity the duration is calculated from the time the sample is taken and is as follows: a. for pcr tests: 72 hours;b. for sars-cov-2 rapid tests for specialist use: 24 hours.c. for laboratory immunological analyses for sars-cov-2 antigens: 24 hours.3 details of the test carried out a. disease tested for (covid-19)b. type of test (pcr or sars-cov-2 rapid test or laboratory immunological analysis for sars-cov-2 antigens)c. name of the test (if sars-cov-2 rapid test or laboratory immunological analysis for sars-cov-2 antigens)d. manufacturer of the test (if sars-cov-2 rapid test or laboratory immunological analysis for sars-cov-2 antigens)e. date and time of the test sample collectionf. test result (negative)g. test centre or institution where the test was carried outannex 4a70 70 inserted by no ii para. 2 of the o of 3 nov. 2021, in force since 10 jan. 2022 (as 2021 653, 813).(art. 21b and 21c)special provisions concerning covid-19 exemption certificates 1 duration of validity the certificates are valid for 365 days. 2 information provided on covid-19 exemption certificates a. start of validityb. issuing body3 statement on compliance with alternative protective measures the holder may be required to wear a face mask at events and in establishments where a certificate is required in accordance with the applicable precautionary measures plan.annex 571 71 amended by no i of the o of 7 july 2021 (as 2021 428). revised by no ii of the o of 17 sept. 2021 (as 2021 564), no i of the fdha o of 22 nov. 2021 (as 2021 721), of 21 dec. 2021 (as 2021 896) and of 5 jan. 2022, in force since 6 jan. 2022 (as 2021 2).(arts. 22, 23 paras. 1 and 2)list of recognised foreign certificates 1 recognised certificates issued by an eu member state or an efta state 1.1 vaccination, recovery and test certificates issued by an eu member state or efta state in accordance with regulation (eu) 2021/95372 and the eu legislative acts adopted on the basis thereof are recognised.1.2 vaccination certificates are recognised only if they have been issued for vaccinations with a vaccine that: a. has authorisation for the eu from the european medicines agency; b. is authorised in accordance with the who emergency use listing procedure; orc. has been shown to have the same composition as a vaccine licensed under letter a or b but is marketed by a licence holder under a different name and which has been administered in full in accordance with the requirements or recommendations of the country in which the vaccination was carried out.2 other recognised certificates 2.1 vaccination, recovery and test certificates that are interoperable in accordance with regulation (eu) 2021/953 and have been issued by the following countries are recognised:- albania- andorra- armenia- cape verde- el salvador- faroe islands- georgia- holy see- israel- morocco- moldova- monaco- montenegro- north macedonia- panama- san marino- serbia- thailand- turkey- ukraine- united kingdom- uruguay2.2 vaccination and test certificates that are interoperable in accordance with regulation (eu) 2021/953 and have been issued by the following countries are recognised:- new zealand- singapore- togo- united arab emirates2.3 vaccination certificates that are interoperable in accordance with regulation (eu) 2021/953 and have been issued by the following countries are recognised:- lebanon- tunisia2.4 vaccination certificates are only recognised if they have been issued for vaccinations with a vaccine that meets the requirements of number 1.2.72 regulation (eu) 2021/953 of the european parliament and of the council of 14 june 2021 on a framework for the issuance, verification and acceptance of interoperable covid-19 vaccination, test and recovery certificates (eu digital covid certificate) to facilitate free movement during the covid-19 pandemic, as amended by oj l 211, 15.6.2021, p. 1.

830.2 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.federal acton the institution for the administration of the swiss federal social security funds ahv, iv and eo(social security funds act)of 16 june 2017 (status as of 1 january 2019)the federal assembly of the swiss confederation, based on articles 59 paragraph 4, 61 paragraph 4, 112 paragraph 1 and 116 paragraphs 3 and 4 of the federal constitution1, and having considered the federal council dispatch dated 18 december 20152,decrees:1 sr 1012 bbl 2016 311section 1 legal form, seat and task art. 1 legal form and seat 1 a public law institution with its own legal personality is established by the confederation to administer the oasi, invi and lec (ahv/avs, iv/ai, eo/apg) social security funds.2 the institution organises itself, unless this act provides otherwise, and keeps its own accounts.3 it is run in accordance with business management principles.4 the federal council determines its seat.5 the institution is entered in the commercial register under the name compenswiss (ausgleichsfonds ahv/iv/eo) / compenswiss (fonds de compensation avs/ai/apg) / compenswiss (fondi di compensazione avs/ai/ipg) / compenswiss (fonds da cumpensaziun avs/ai/ucg).art. 2 task the institution administers the following social security funds:a.the social security fund for old age and survivors' insurance (the oasi/ahv/avs social security fund) under article 107 of the federal act of 20 december 19463 on old-age and survivors insurance (oasia/ahvg/lavs);b.the social security fund for invalidity insurance (invi/iv/ai social security fund) under article 79 of the federal act of 19 june 19594 on invalidity insurance (invia/ivg/lai);c.the social security fund for the loss of earnings compensation scheme (lec/eo/apg social security fund) under article 28 of the loss of earnings compensation act of 25 september 19525 (leca/eog/lapg).3 sr 831.104 sr 831.205 sr 834.1section 2 asset management, legal transactions and liability art. 3 asset management 1 each social security fund has its own segregated pool of assets within the institution. these are managed jointly.2 a separate investment and risk profile is to be defined for each social security fund.3 as a rule, the assets of the social security funds are jointly invested. the share of each social security fund in the jointly invested assets and in the return on investment is determined by the degree to which it participates in the individual investments.4 the assets of the social security funds must be managed in such a manner that each social security fund is guaranteed the best possible relationship between security and achieving a return consistent with market conditions in accordance with its investment and risk profile.5 each social security fund must retain sufficient liquidity at all times in order that the compensation offices:a.may be paid the clearing balances in their favour; and b.may receive the advances required to provide the statutory benefits under the oasi/ahv/avs, invi/iv/ai and lec/eo/apg.6 cross-financing between the social security funds is prohibited; the foregoing does not apply to short-term cash flows within the treasury.art. 4 legal transactions the institution may carry out any legal transactions required in order to fulfil its tasks under article 2, and in particular it may acquire and dispose of securities, other financial instruments and real estate.art. 5 liability the institution is liable for its obligations with its entire assets.section 3 organisation art. 6 management bodies the management bodies of the institution are:a.the board of directors;b.the executive board;c.the auditor.art. 7 board of directors 1 the board of directors is the supreme governing body.2 it comprises eleven qualified members, who must guarantee irreproachable business conduct. swiss employer and employee associations and the confederation must be appropriately represented.3 the federal council determines a profile of requirements for holding office on the board of directors.4 it appoints the members for a term of office of four years and names the chair and vice-chair. each member may be reappointed twice and removed at any time for good cause.5 the federal council determines the fee paid to the members of the board and their other contractual conditions. 6 the contract between the members of the board of directors and the institution is governed by public law. in addition, the provisions of the code of obligations6 apply by analogy.7 the members of the board of directors must perform their tasks and duties with all due diligence and safeguard the institution's interests in good faith. they are required to observe secrecy on official matters both during their term of office as members of the board of directors and after the termination of their mandate.8 they must disclose their interests to the federal council prior to their appointment and give immediate notice of any changes during their membership of the board. the board of directors provides information on such interests in the management report (art. 16 para. 1 let. b).6 sr 220art. 8 tasks of the board of directors 1 the board of directors has the following tasks:a.it issues the institution's organisational regulations and submits these to the federal department of home affairs (fdha) for approval. b.it issues the investment regulations and determines the investment strategy.c.it issues the institution's personnel ordinance and submits it to the federal council for approval.d.it takes organisational and contractual measures to safeguard the institution's interests and prevent conflicts of interest.e.it approves the institution's personnel budget.f.it decides on the establishment, amendment and termination of the employment relationship with the chief executive officer and the other members the executive board.g.it supervises the executive board.h.it ensures that the institution has suitable internal control and risk management systems.i.it ensures the solvency of the institution as an undertaking and of each social security fund.j.it determines the accounting policies based on the requirements laid down by the federal council in accordance with article 13 paragraph 3.k.it adopts the budget for the institution's operating and administrative expenses.l.it prepares and adopts the annual report in accordance with article 16, submits it to the federal council for approval and requests its own discharge.m.it publishes the annual report following approval by the federal council.n.it provides the general public with information on the investment performance achieved by the social security funds.o.it represents the institution as a contracting party as defined in article 32d paragraph 2 of the federal personnel act of 24 march 20007 (fpa).2 the board of directors may delegate the preparation and implementation of its decisions to individual committees and assign to them the related decision-making powers. it must ensure that appropriate reports are made to its members.7 sr 172.220.1art. 9 executive board 1 the executive board is the institution's operational management body. it is headed by a chief executive officer.2 the executive board has the following tasks in particular:a.it conducts the business.b.it prepares the business of the board of directors and of the committees.c.it prepares the budget for the institution's operating and administrative expenses.d.it reports to the board of directors regularly and in the case of special events immediately.e.it represents the institution externally.f.it decides on the establishment, amendment and termination of the employment relationships with the institution's personnel; article 8 paragraph 1 letter f is reserved.g.it performs all the tasks which are not assigned to another management body under this act, the organisational regulations or the specifications set by the board of directors.3 the organisational regulations regulate the details.4 the chief executive officer attends the meetings of the board of directors in an advisory capacity.art. 10 auditor 1 the federal council appoints the auditor at the request of the board of directors. the auditor is responsible for auditing the institution, including the annual financial statements of the oasi/ahv/avs, invi/iv/ai and lec/eo/apg. it examines the annual financial statements for asset management and confirms that internal control and risk management systems are in place; it also examines the information on personnel development disclosed in the management report (art. 16 para. 1 let. b).2 the provisions of company law on ordinary audits apply by analogy.3 the auditor provides the board of directors and the federal council with a comprehensive report on the results of its audit. 4 the institution must ensure that the contractual terms governing its business relationships with custodian banks provide the auditor with access to the relevant results of the external audit conducted in respect of such banks. provided it has been contractually arranged, the institution's auditor may instruct the custodian banks' auditor to conduct additional audits.section 4 personnel art. 11 employment terms 1 the executive board and other personnel are subject to the fpa8.2 the institution is an employer as defined in article 3 paragraph 2 fpa.3 the board of directors regulates in the institution's personnel ordinance in particular the salaries, the fringe benefits and the other contractual conditions. 8 sr 172.220.1art. 12 occupational pension scheme the executive board and other personnel are insured with publica in accordance with articles 32a-32m fpa9.9 sr 172.220.1section 5 accounts, administrative expenses, annual report and taxes art. 13 financial reporting 1 the financial statements present a true and fair view of the institution's financial position and performance.2 they comply with generally accepted accounting standards, and in particular the principles of materiality, completeness, comprehensibility, consistency and gross presentation.3 the federal council may issue regulations on financial reporting.4 the accounting polices derived from the accounting standards must be disclosed in the notes to the balance sheet.art. 14 accounting 1 the institution is responsible for keeping accounts for its asset management, including the related operating and administrative expenses. it assigns the financial result to each of the three social security funds on a monthly basis in proportion to their share in the relevant investments.2 the institution prepares aggregated financial statements; it does so on the basis of the annual financial statements for the oasi/ahv/avs, invi/iv/ai and lec/eo/apg prepared by the central compensation office in accordance with article 71 paragraph 1bis oasia/ahvg/lavs10.10 sr 831.10art. 15 operating and administrative expenses the institution's operating and administrative expenses are charged to the three social security funds in proportion to their total assets.art. 16 annual report 1 the annual report contains:a.the institution's annual financial statements;b.the institution's management report;c.the separate financial statements for the oasi/ahv/avs, invi/iv/ai and lec/eo/apg prepared by the central compensation office in accordance with article 71 paragraph 1bis oasia/ahvg/lavs11.2 the annual financial statements of the institution and the three social insurance schemes comprise the balance sheet, the income statement and the notes. the institution's annual financial statements provide information on the status and development of investments in particular.3 the institution's management report contains in particular information on risk management, personnel development and the interests of the members of the board of directors in accordance with article 7 paragraph 8.4 the board of directors completes the annual report at the end of the calendar year11 sr 831.10art. 17 taxes the institution is exempt from direct federal, cantonal and communal taxes and from cantonal and communal inheritance and gift taxes. the levying of capital gains tax on real estate that has no necessary and direct relationship with the administrative activities of the social security funds is reserved.section 6 supervision art. 18 1 the institution is subject to administrative supervision by the federal council. 2 the federal council exercises its supervision in particular by:a.appointing and removing the members of the board of directors, its chair and vice-chair;b.approving the institution's personnel ordinance;c.approving the annual report;d.discharging the board of directors.3 it may at any time inspect any of the institution's business documents and request information on its business operations.4 the fdha may have specific matters clarified by the auditor.5 the institution communicates with the federal council via the fdha.section 7 final provisions art. 19 establishment of the institution 1 the oasi/ahv/avs, invi/iv/ai and lec/eo/apg social security funds will be transferred into the institution and lose their legal personality. at the same time, the institution will acquire its own legal personality. the institution will take over the existing legal relationships and amend these where required.2 the federal council determines the date of transfer. it approves the opening balance sheet of the institution, makes all the decisions required for the transfer and takes any further measures required to this effect.3 the transfer of the three social security funds and the establishment of the institution are exempt from any direct or indirect federal, cantonal or communal taxes. entries in the land register, commercial register and any other public registers in connection with the carrying out of the transfer are exempt from taxes and fees.4 the provisions of the mergers act of 3 october 200312 do not apply to the establishment of the institution.12 sr 221.301art. 20 transfer of employment relationships 1 the employment relationships of the personnel of the current management office will be transferred to the institution on the date determined by the federal council and become subject to the legislation governing its personnel from that date.2 the institution will replace existing contracts with contracts issued in the name of the new employer within a reasonable time. no probationary periods may be included therein.3 there is no right to the continuation of any function, field of work, place of work or position within the organisational system. however, the personnel remain entitled to their current salary for a period of one year. the years of service completed for the oasi/ahv/avs, invi/iv/ai and lec/eo/apg social security funds before this act comes into force will be taken into account.4 appeals by the personnel that are pending on the date of transfer of the employment relationships will be judged according to the previous law.art. 21 competent employer 1 the institution is deemed to be the responsible employer for employees and beneficiaries of pensions:a.who were assigned to the management office under the previous law; andb.who began to draw an old age, survivors' or invalidity pension from publica under the occupational pension scheme before this act entered into force.2 the institution is also deemed to be the responsible employer where an invalidity pension is not drawn until after this act enters into force but where the incapacity to work, the cause of which subsequently led to the invalidity, occurred before this act entered into force.art. 22 debts owed by the invi/iv/ai social security fund to the oasi/ahv/avs social security fund 1 until the invi/iv/ai scheme is completely clear of debt, that portion of cash and cash equivalents and investments held by the iv/ai social security fund which exceeds 50 per cent of its annual expenditure at the end of the financial year will be credited to the oasi/ahv/avs social security fund.2 in derogation of article 78 invia/ivg/lai13, the confederation will bear the annual interest expense on the invi/iv/ai losses carried forward for the period from 1 january 2011 until 31 december 2017.3 from 1 january 2018, the board will set a market-based rate of interest for the debts owed by the invi/iv/ai social security fund to the oasi/ahv/avs social security fund.13 sr 831.20art. 23 repeal and amendment of other legislation the repeal and amendment of other legislation are regulated in the annex.art. 24 referendum and commencement 1 this act is subject to an optional referendum.2 the federal council determines the date on which this act comes into force.commencement date:14 1 january 2018 article 1 paragraphs 1-3 and 5, 2-5, 8 paragraph 1 letters l-n, 11, 12, 14, 16, 19 paragraph 1, 21 and annex number i, number ii 1 and 3-6: 1 january 2019.14 fcd of 22 nov. 2017.annex (art. 23)repeal and amendment of other legislation ithe federal act of 13 june 200815 on the reform of invalidity insurance is repealed.iithe enactments below are amended as follows:.1615 [as 2010 3835 3839]16 the amendments may be consulted under as 2017 7563.

910.124 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.eaer ordinance on the minimum requirements for control procedures of protected designations of origin and geographical indications(ordinance on the control of pdos and pgis)of 11 june 1999 (status as of 1 january 2017)the federal department of economic affairs, education and research (eaer)1,on the basis of article 18 paragraph 2 of the pdo/pgi ordinance of 28 may 19972,ordains:1 the name of this administrative unit was amended by art. 16 para. 3 of the publications ordinance of 17 nov. 2004 (as 2004 4937) on 1 jan. 2013. the amendment has been made throughout the text.2 sr 910.12art. 1 minimum requirements for control procedures the certification body must:a.3carry out an initial authorisation of all production, processing and refining undertakings;b.verify the flow of goods;c.control the correct use of the traceability marks;d.ensure that processing requirements are complied with;e.oversee final product testing.3 amended by no i of the eaer ordinance of 29 oct. 2014, in force since 1 jan. 2015 (as 2014 3907).art. 2 frequency of control procedures 1 the certification body shall control the structural requirements in the context of the initial authorisation procedure.42 control procedures relating to the flow of goods, traceability and processing requirements shall take place at least every two years for each processing and refining undertaking, or every four years in the case of summer pasture holdings. for production undertakings, such procedures shall be carried out on the basis of a statistically representative random sample.53 in the case of the protected geographical indications (pgis), testing of the final product shall be carried out once annually on the basis of a statistically representative sample of undertakings. in the case of protected designations of origin (pdos), these tests will take place at least once per year in every production, processing or refining undertaking which markets the final product. where an undertaking markets the production of several operators, testing of the final product should be performed on a random sample of lots of each operator.64 undertakings where irregularities are found are subject to retesting on a systematic basis.4 amended by no i of the eaer ordinance of 29 oct. 2014, in force since 1 jan. 2015 (as 2014 3907).5 amended by no i of the eaer ordinance of 29 oct. 2014, in force since 1 jan. 2015 (as 2014 3907).6 amended by no i of the eaer ordinance of 29 oct. 2014, in force since 1 jan. 2015 (as 2014 3907).art. 3 structural and process requirements7 the product specification includes the following requirements essential to the character of the product:a.requirements with regard to the technical installations (structural requirements); andb.requirements with regard to the production, processing and refining process (process requirements).7 amended by no i of the eaer ordinance of 29 oct. 2014, in force since 1 jan. 2015 (as 2014 3907).art. 4 traceability mark the traceability marking is an indelible mark which must be affixed to every individual product and which allows for the identification of the batch and the producer. where it is not suitable to affix the label to the product itself, the traceability mark may be placed on the packaging of the product which is ready for consumption.art. 58 final product testing 1 in the case of agricultural products and processed agricultural products, testing of the final product shall comprise physical and chemical testing, as well as an organoleptic test.2 the organoleptic test is to verify the product's conformity with the sensory description in the product specification.3 in the case of forestry products and processed forestry products, testing of the final product shall comprise testing of the physical and other characteristic properties.4 the responsibility for sampling is that of the certification body. the certification body is also responsible for organoleptic testing, which shall be conducted by the applicant group.8 amended by no i of the eaer ordinance of 16 sept. 2016, in force since 1 jan. 2017 (as 2016 3289).art. 6 reporting the certification body shall provide an annual report to the federal office for agriculture for each protected indication, containing the following information:a.the list of undertakings under review, categorized by production, processing and refining;b.the total amount of products marketed with the protected indication;c.the number and the type of corrective measures enacted and any suspension of certificates for each protected indication.art. 7 access to undertakings and documentation the certification body shall ensure that it receives:a.unrestricted access to the undertakings;b.access to any documents of use to it in the context of certification.art. 8 control manual 1 the certification body or the certification bodies shall clarify, in a control manual, the procedures under the present ordinance, together with the groups who have applied for registration of a pdo or a pgi.2 the control manual shall be an integral component of the quality assurance scheme of the certification body or the certification bodies.3 the latest version of the quality assurance scheme shall be deposited with the federal office for agriculture.art. 9 commencement this ordinance comes into force on 1 july 1999.

921.01english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinanceon forest(forest ordinance, foro)of 30 november 1992 (status as of 1 july 2021)the swiss federal council,on the basis of article 49 of the forest act of 4 october 19911 (fora), and article 29 of the environmental protection act of 7 october 19832,ordains:1 sr 921.02 sr 814.01chapter 1 definition of forest art. 1 definition of forest (art. 2 para. 4 fora)1 the cantons shall define the parameters according to which a wooded area is defined as forest, within the following ranges:a. area, including an appropriate forest margin: 200-800 m2;b. width, including an appropriate forest margin: 10-12 m;c. age of stands in newly colonised areas: 10-20 years.2 if the stand fulfils particularly important social or protective functions, it is defined as forest, irrespective of its area, its width or its age.art. 2 wooded pastures (art. 2 para. 2 fora)wooded pastures are areas consisting of a mosaic of wooded areas and open pastures and which fulfil both livestock husbandry and forestry purposes.art. 3 check dams and foreground (art. 2 para. 3 fora)1 check dams are structures that hinder the natural flow of water and create a backwater.2 the immediate foreground of a check dam is the terrain bordering the installation on the airside. it normally covers a 10-metre-wide strip.chapter 2 protection of the forest against intervention section 1 deforestation art. 4 definition (art. 4 and 12 fora)the following are not defined as deforestation:a. the use of forest land for forestry buildings and installations and for small structures and installations not used for forestry purposes;b. the allocation of forest to a protection zone in accordance with article 17 of the spatial planning act of 22 june 19793 (spa), if the protection objective is compatible with forest conservation.3 sr 700art. 54 deforestation application, publication and consultation 1 in the case of works for which the confederation is the competent authority, the deforestation application must be submitted to the lead federal authority, and in the case of works for which the canton is the competent authority, the deforestation application must be submitted to the competent authority under cantonal law.2 the authority shall publish the application and provide access to the files for consultation.3 the federal office for the environment5 (the foen6) shall issue guidelines on the contents of a deforestation application.4 amended by no ii 17 of the o of 2 feb. 2000 (coordination and simplification of decision-making procedures), in force since 1 march 2000 (as 2000 703).5 the designation of the administrative entity was amended according to art. 16 para. 3 of the publication ordinance of 17 nov. 2004 (as 2004 4937).6 name in accordance with no i 5 of the o of 28 jan. 2015 on the amendment of ordinance law on the environment, in particular with regard to the programme agreements for the programme period 2016-2019, in force since 1 jan. 2016 (as 2015 427). this change has been made throughout the text.art. 67 cooperation between the federal authority and the cantons 1 if the confederation is responsible for the deforestation permit, the cooperation between the foen and the cantons is subject to article 49 paragraph 2 fora. the cantons shall support the federal authorities in the clarification of the facts.2 included in the calculation of the deforestation area, based on which the obligation to hear the foen (art. 6 para. 2 fora) is determined, are all deforestation areas that:a. are included in the deforestation application;b. were deforested for the same works in the 15 years previous to the submission of the deforestation application, or for which deforestation is still allowed.7 amended by no ii 17 of the o of 2 feb. 2000 (coordination and simplification of decision-making procedures), in force since 1 march 2000 (as 2000 703).art. 7 deforestation decision 1 the deforestation decision covers the following:a. the areas in which deforestation is authorised or refused and the affected plots with specification of the coordinates;b. the nature and scope of the compensatory measures and the affected plots with specification of the coordinates;c. the deadlines for the use of the deforestation permit and for the fulfilment of the obligations associated with the deforestation, in particular those involving compensatory measures;d. the unresolved objections;e. any further conditions and requirements.2 the foen shall keep statistics on the deforestation projects authorised by the confederation and the cantons. the cantons shall make the necessary information available to the foen.88 inserted by no ii 17 of the o of 2 feb. 2000 (coordination and simplification of decision-making procedures), in force since 1 march 2000 (as 2000 703).art. 8 compensation in kind (art. 7 para. 1 fora)91 compensation in kind is made by creating an area of forest of the same size in a location offering qualitatively similar conditions to the deforested area.2 compensation in kind includes the acquisition of the land, the planting and all of the measures necessary for the long-term safeguarding of the compensatory area.3 areas in which forest is expanding and voluntarily afforested areas which have not yet become forest may be recognised as compensation in kind.9 amended by no i of the o of 14 june 2013, in force since 1 july 2013 (as 2013 1983).art. 8a10 areas with increasing forest area (art. 7 para. 2 let. a fora)the cantons shall designate areas with increasing forest area after consulting the foen. their boundaries shall be based on federal and cantonal surveys, in principle following topographical features and taking account of existing settlements and uses.10 inserted by no i of the o of 14 june 2013, in force since 1 july 2013 (as 2013 1983).art. 9 conservation of arable land and areas of ecological or landscape value (art. 7 para. 2 let. b fora)111 compensation in kind may be dispensed with in particular in the case of crop rotation areas.122 areas of particular ecological value are, in particular:a. biotopes in accordance with article 18 paragraph 1bis of the federal act of 1 july 196613 on the protection of nature and cultural heritage;b. areas designated as nature protection areas in accordance with article 17 spa14.3 areas of particular landscape value are, in particular:a. objects of national importance in accordance with the ordinance of 10 august 197715 on the federal inventory of landscapes and natural monuments of national importance;b. mire landscapes of outstanding beauty and national importance in accordance with article 24sexies paragraph 5 of the federal constitution of the swiss confederation16;c. areas designated as landscape protection zones in accordance with article 17 spa.11 amended by no i of the o of 14 june 2013, in force since 1 july 2013 (as 2013 1983).12 amended by no i of the o of 14 june 2013, in force since 1 july 2013 (as 2013 1983).13 sr 45114 sr 70015 [as 1977 1962, 1983 1942, 1996 3264, 1998 788, 2010 1593 annex no 2. as 2017 2815 art. 11]. see now: the o of 29 mrch 2017 (sr 451.11).16 [bs 1 3; as 1988 352]. the specified provision now corresponds to art. 78 para. 5 of the federal constitution of the swiss confederation of 18 april 1999 (sr 101).art. 9a17 dispensing with compensation for deforestation (art. 7 para. 3 let. b fora)compensation for deforestation may be dispensed with in the case of projects to guarantee flood protection and the rehabilitation of waters in particular in the case of areas that can no longer be stocked as forest.17 inserted by no i of the o of 14 june 2013, in force since 1 july 2013 (as 2013 1983).art. 1018 18 repealed by no i of the o of 14 june 2013, with effect from 1 july 2013 (as 2013 1983).art. 11 record in the land register and notification 1 at the request of the competent cantonal forest authority, a record must be made in the land register of the obligation to provide:19a. compensation in kind or measures for the benefit of nature and landscape conservation;b. retrospective compensation for deforestation in the event of a change of use in accordance with article 7 paragraph 4 fora.202 the cantons shall monitor all compensatory measures and notify the foen of the final approval of the works.19 amended by no i of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).20 amended by no i of the o of 14 june 2013, in force since 1 july 2013 (as 2013 1983).section 2 declaration as forest21 21 amended by no i of the o of 14 june 2013, in force since 1 july 2013 (as 2013 1983). art. 12 ruling on declaration as forest (art. 10 para. 1 fora)221 the ruling on declaration as forest records whether a stocked or unstocked area is a forest or not and specifies its coordinates.2 it specifies on a map the location and size of the forest and the location of the affected plots.22 inserted by no i of the o of 14 june 2013, in force since 1 july 2013 (as 2013 1983).art. 12a23 specification of static forest boundaries outside development zones (art. 10 para. 2 let. b fora)areas where the canton wants to prevent an increase in forest must be specified in the cantonal structure plan.23 inserted by no i of the o of 14 june 2013, in force since 1 july 2013 (as 2013 1983).section 3 motorised vehicular traffic (art. 15 para. 1 fora)art. 13 1 forest roads may be accessed by motorised vehicular traffic for the following purposes:a. for rescue and recovery purposes;b. for police controls;c. for military exercises;d. for the implementation of measures for the protection against natural events;e.24 for the maintenance of the network lines of the providers of telecommunications services.2 the rest of the forest may only be accessed by motorised vehicular traffic if such access is unavoidable for the fulfilment of a purpose in accordance with paragraph 1.3 events involving vehicular motorised traffic are prohibited on forest roads and in the rest of the forest.24 amended by no ii 61 of the o of 1 dec. 1997, in force since 1 jan. 1998 (as 1997 2779).section 4 buildings and installations in the forest 25 25 amended by no i of the o of 14 june 2013, in force since 1 july 2013 (as 2013 1983). art. 13a26 forest structures and installations (art. 2 para. 2 let. b and 11 para. 1 fora)1 forest structures and installations, such as forest maintenance depots, log stores, covered wood fuel stores and forest roads may be constructed or altered with official permission in accordance with article 22 spa27.282 a requirement for permission is that:a. the structures and installations facilitate regional forest management;b. a need is proven for the structures and installations, their location is suitable and their size is adapted to regional conditions; andc. there is no overriding public interest in refusing permission.3 other requirements under federal or cantonal law also apply.26 inserted by no i of the o of 14 june 2013, in force since 1 july 2013 (as 2013 1983).27 sr 70028 amended by no i of the o of 12 may 2021, in force since 1 july 2021 (as 2021 294).art. 14 consultation of the cantonal forest authority (art. 11 para. 1 and 16 fora)291 the granting of permission for the construction of forestry buildings or installations in the forest in accordance with article 22 spa30 is subject to a hearing of the competent cantonal forestry authority.2 exceptional permission for the construction of small structures and installations in the forest that are not used for forestry purposes in accordance with article 24 spa may only be granted in agreement with the competent cantonal forestry authority.29 inserted by no i of the o of 14 june 2013, in force since 1 july 2013 (as 2013 1983).30 sr 700chapter 3 protection against natural events art. 15 basic documentation 1 the cantons shall compile the basic documentation required for protection. they shall:a. keep inventories of buildings and installations that that are of relevance in providing protection against natural events (protective structure register);b. document events causing damage (event register) and analyse, if required, larger events causing damage;c. prepare hazard maps and emergency plans for potential events, and update these regularly.312 when compiling this basic documentation, they shall take into account the work carried out by specialist federal agencies and their technical guidelines.3 the cantons shall take account of this documentation in all their activities with a spatial impact, in particular structural and land-use planning.4 they shall make this documentation available to the foen on request and make then accessible to the general public in a suitable form.3231 amended by no i 5 of the o of 28 jan. 2015 on the amendment of ordinance law on the environment, in particular with regard to the programme agreements for the programme period 2016-2019, in force since 1 jan. 2016 (as 2015 427).32 inserted by no i 21 of the o of 7 nov. 2007 on the new system of financial equalisation and division of tasks between the confederation and the cantons (as 2007 5823). amended by annex 2 no 13 of the o of 21 may 2008 on geoinformation, in force since 1 july 2008 (as 2008 2809).art. 16 early warning services 1 where necessary for the protection of human life and significant material assets, the cantons shall set up early warning services. they shall ensure the development and operation of the related monitoring stations and information systems.2 when setting up and operating the early warning services, they shall take into account the work carried out by specialist federal agencies and their technical guidelines.3 they shall ensure that the data from the monitoring stations and information systems are made available to the foen on request, and are made accessible to the general public in a suitable form.3333 inserted by no i 21 of the o of 7 nov. 2007 on the new system of financial equalisation and division of tasks between the confederation and the cantons (as 2007 5823). amended by annex 2 no 13 of the o of 21 may 2008 on geoinformation, in force since 1 july 2008 (as 2008 2809).art. 17 securing of hazard areas (art. 19 fora)1 the securing of hazard areas includes:a. silvicultural measures;b. structural measures for the prevention of damage due to avalanches, as well as, in exceptional cases, the erection of installations for preventive avalanche release;c. accompanying measures in torrents channels which are linked to forest conservation (torrent control works in forests);d. landslide and gully control structures, the corresponding drainage works and erosion protection;e. rockfall and rock avalanche control structures, retention structures, as well as, in exceptional cases, the preventive release of material at risk of falling;f. the removal to a safe location of buildings and installations at risk.2 the works shall if possible be combined with biological engineering and silvicultural measures.3 the cantons shall ensure that planning is integrated; in particular, the planning shall balance the interests of forest management, nature and landscape protection, hydraulic engineering, agriculture and spatial planning.chapter 4 maintenance and use of the forest section 1 forest management art. 18 forestry planning (art. 20 para. 2 fora)1 the cantons shall issue regulations for the planning of forest management. these shall define, in particular:a. the types of plans and their content;b. the instances responsible for planning;c. the planning goals;d. how the planning data are acquired and used;e. the planning and control procedures;f. the regular reviewing of the plans.2 the forestry planning documents must describe, at least, the location conditions as well as the forest functions and their importance.3 in the case of interoperational planning, the cantons shall ensure that the population:a. is informed of the goals and progress of the planning;b. may be involved in a suitable manner;c. may inspect it.4 they shall take account of the spatial impact of forestry planning in their structural planning.3434 inserted by no i 5 of the o of 28 jan. 2015 on amendments to the ordinance law on the environment, in particular in relation to the programme agreements for the programme period 2016-2019, in force since 1 march 2015 (as 2015 427).art. 19 silvicultural measures (art. 20 fora)1 all maintenance interventions that contribute to the conservation or restoration of the stability and the quality of a stand are classified as silvicultural measures.2 measures carried out as part of young forest maintenance are:a.35 young growth maintenance, thicket maintenance and stem thinning in order to create resistant and adaptable stands suitable to the location;b. specific measures to maintain regrowth in selection forests, in other multi-layered forests, in coppices with standards and coppice forests as well as in multi-layered forest margins;c. protective measures against damage caused by game;d. the creation of paths in areas of difficult access.3 thinning and regeneration measures are:a. slash removal and the creation of new stands and the necessary accompanying measures;b. wood harvesting and transport.4 minimum maintenance measures for conserving the protective function of the forest are maintenance interventions that are restricted to ensuring the long-term stability of the stand; felled wood is used locally or left on site, as long as it does not pose a risk.35 amended by no i of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).art. 20 clearcutting (art. 22 fora)1 clearcutting is the complete or almost complete removal of a stand, which gives rise to ecological conditions similar to those on open lands in the cutting area or causes serious detrimental effects to it or to the nearby stands.2 clearcutting does not arise, if the old stand is cleared following sufficient and secured regeneration.section 2 forest reproductive material art. 21 production and use (art. 24 fora)1 the cantons shall guarantee the supply of appropriate suitable forest reproductive material.2 the competent cantonal forest authority shall select the forests stands, from which forest reproductive material may be obtained. it shall notify the seed stands to the foen.3 it shall control the commercial and industrial production of seeds and plant parts and issues certificates of origin.4 only forest reproductive material of certified origin may be used for forestry purposes.5 the foen shall advise the cantons about:a. the production, supply and use of forest reproductive material;b. the safeguarding of genetic diversity.6 it keeps a register of the seed stands and a register of the genetic reserves.art. 22 import and export (art. 24 fora)1 the import of forest reproductive material requires the authorisation of the foen.2 the authorisation is granted if:a. the forest reproductive material is appropriate for cultivation and its origin is confirmed by an official certificate; orb. the importer declares in writing that the reproductive material will be used exclusively outside of the forest.2bis the authorisation to import genetically modified forest reproductive material is regulated by the release ordinance of 10 september 200836; the terms of reference of the present ordinance are also applicable.373 the federal department of the environment, transport, energy and communications38 (detec39) shall enact regulations on the issuing of export documents for forest reproductive material.36 sr 814.91137 inserted by art. 51 no 3 of the plant protection ordinance of 28 feb. 2001 (as 2001 1191). amended by annex 5 no 16 of the release ordinance of 10 sept. 2008, in force since 1 oct. 2008 (as 2008 4377).38 the designation of the administrative entity was amended according to art. 16 para. 3 of the publications ordinance of 17 nov. 2004 (as 2004 4937).39 name in accordance with no i 5 of the o of 28 jan. 2015 on the amendment of ordinance law on the environment, in particular with regard to the programme agreements for the programme period 2016-2019, in force since 1 jan. 2016 (as 2015 427). this change has been made throughout the text.art. 23 business management (art. 24 fora)1 public and private seed extractories, tree nurseries, forest gardens and retailers must keep a record of the origin, processing, breeding and supply of forest reproductive material as well an inventory of such material.2 they shall inform the purchasers of forest reproductive material of its classification and origin in their quotations, on their goods and in their invoices.3 the foen shall control their business management. it may require the assistance of the cantons for this.art. 24 technical provisions 1 detec shall issue an ordinance on the implementation of the provisions of this section.2 it may allow, for scientific purposes, the import and use of forest reproductive material, the suitability and origin of which are not proven.section 3 use of environmentally hazardous substances art. 2540 the exceptional use of environmentally hazardous substances in the forest is governed by the ordinance on chemical risk reduction of 18 may 200541.40 amended by no ii 21 of the o of 18 may 2005 on the repeal and amendment of ordinances in connection with the commencement of the chemicals act, in force since 1 aug. 2005 (as 2005 2695).41 sr 814.81art. 26 and 2742 42 repealed by no ii 21 of the o of 18 may 2005 on the repeal and amendment of ordinances in connection with the commencement of the chemicals act, with effect from 1 aug. 2005 (as 2005 2695).section 4 prevention and remediation of forest damage art. 2843 principles (art. 26 fora)1 forest damage is damage that poses a considerable threat to the function of the forest and that is caused by: a. natural events such as storms, forest fires or drought; b. harmful organisms such as certain viruses, bacteria, larvae, insects, fungi or plants.2 particularly harmful organisms shall be monitored and controlled in accordance with the provisions of the plant health ordinance of 30 october 201844.4543 amended by no i of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).44 sr 916.2045 amended by annex 8 no 7 of the plant health ordinance of 31 oct. 2018, in force since 1 jan. 2020 (as 2018 4209).art. 2946 prevention and remediation of forest damage (art. 27 para. 1 fora)the cantons shall take measures to prevent and remediate forest damage, in particular:technical and silvicultural measures to prevent and combat fire;measures to reduce the physical load applied to the soil;measures to monitor and combat harmful organisms with the aim of eradicating or curbing them or restricting the damage they cause.46 amended by no i of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).art. 3047 coordination, information and advice (art. 26 para. 3 and 27a para. 2 fora)1 the foen shall establish the principles for the prevention and remediation of forest damage. it shall coordinate the cross-cantonal measures and where necessary shall itself establish such measures.2 the swiss federal institute for forest, snow and landscape research (wsl) has the following tasks:a. it organises, together with the cantonal forestry services, the collection of data of relevance to forest protection;b. it provides information about the occurrence of harmful organisms and other factors that may damage the forest;c. it advises the cantonal forestry services in matters of forest protection.47 amended by no i of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).section 5 damage caused by game (art. 27 para. 2 fora)art. 31 1 where game damage arises despite the regulation of game populations, a plan shall be developed for its prevention.2 the plan shall include forestry measures, hunting measures, measures to improve and protect habitats against disturbance, and a performance review.483 the plan is a component of the forestry planning.48 amended by no i of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).chapter 5 training and basic data49 49 amended by annex 2 no 13 of the o of 21 may 2008 on geoinformation, in force since 1 july 2008 (as 2008 2809). section 1 basic training and continuing education and training art. 3250 theoretical and practical basic and continuing education and training (art. 29 para. 1 and 2 fora)1 the foen shall ensure, together with the universities, the cantons and other organisations, institutions, and professional associations concerned, that the knowledge and skills acquired during education and training are maintained, and that forestry engineers are introduced to new theoretical and practical advances.2 the cantons shall offer sufficient places for practical continuing education and training and coordinate this offer with each other. practical continuing education and training shall in particular:a. focus on forest planning, forest management and forest conservation in the context of all forest functions;b. aim to improve management skills and administrative knowledge;c. be attested by a certificate detailing the acquired skills and knowledge.50 amended by no i of the o of 17 aug. 2016, in force since 1 jan. 2018 (as 2016 3215).art. 3351 forestry personnel (art. 29 para. 4 and 51 para. 2 fora)1 the cantons shall provide:a. the higher vocational training of forest wardens and operate the professional colleges required for this purpose;b. together with the responsible organisations, the working environment for the continuing professional education and training of forestry personnel.2 in accordance with articles 19 paragraph 1, 28 paragraph 2 and 29 paragraph 3 of the vocational and professional education and training act of 13 december 200252 (vpeta), the enactment or approval of regulations in the field of forestry education and training shall be subject to a hearing of the foen.51 amended by annex no ii 2 of the vocational and professional education and training ordinance of 19 nov. 2003, in force since 1 jan. 2004 (as 2003 5047).52 sr 412.10art. 3453 worker safety (art. 21a and 30 fora)1 the cantons shall work with agricultural and forestry organisations to organise courses to improve worker safety during wood harvesting for workers with no forestry training.2 federally recognised courses must provide basic skills in worker safety, in particular the correct and safe felling of trees, removal of branches, and the scoring and dragging of trees and tree trunks. such courses must run for at least 10 days in total.53 amended by no i of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).art. 35 coordination and documentation (art. 29 para. 1 fora)1 .542 the foen shall operate a central coordination and documentation agency for measures concerning forestry education and training.54 repealed by no i 7.4 of the o of 9 nov. 2011 (review of extra-parliamentary commissions), with effect from 1 jan. 2012 (as 2011 5227).section 2 . art. 36 and 3755 55 repealed by no i 7.4 of the o of 17 aug. 2016, with effect from 1 jan. 2018 (as 2016 3215).section 356 surveys 56 inserted by annex 2 no 13 of the o of 21 may 2008 on geoinformation, in force since 1 july 2008 (as 2008 2809). art. 37a57 (art. 33 and 34 fora)1 the foen is responsible for the collection of survey data on the forest.2 in cooperation with the wsl, it surveys:a. by means of the national forest inventory, the basic data relating to the locations, functions and condition of the forest;b. the long-term development processes in natural forest reserves.3 as part of its basic remit, the wsl shall conduct long-term research programmes to survey the pressure on the forest ecosystem.4 the foen shall inform the authorities and the general public about these surveys.57 amended by no i of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).section 458 timber production 58 inserted by no i of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215). art. 37b marketing and use of sustainably produced timber (art. 34a fora)1 the marketing and use of sustainably produced timber shall be promoted only in pre-competitive circumstances not relating to one particular company. 2 in particular, innovative research and development projects that promote sustainable forest management by improving data, opportunities for marketing and use, resource efficiency or public relations may be promoted.3 results and findings relating to the supported activities shall be made available to the foen on request. art. 37c use of timber in federal buildings and installations (art. 34b fora)1 in the planning, construction and operation of federal buildings and installations the use of timber and timber products shall be promoted. 2 the sustainability of timber and timber products shall be assessed in accordance with existing guidelines and recommendations such as those issued by the coordination coordination group for construction and property services.chapter 659 financial assistance (excluding investment credits) and compensatory payments 59 amended by no i 21 of the o of 7 nov. 2007 on the new system of financial equalisation and division of tasks between the confederation and the cantons, in force since 1 jan. 2008 (as 2007 5823).section 1 general provisions60 60 amended by no 1 5 of the o of 28 jan. 2015 on the amendment of ordinance law on the environment, in particular with regard to the programme agreements for the programme period 2016-2019, in force since 1 jan. 2016 (as 2015 427). (art. 35 fora)art. 38 general precondition for awarding federal aid (art. 35 para. 2 fora)financial assistance and compensatory payments are only provided by the confederation if:a. the measures comply with the forestry planning;b. the measures are necessary and appropriate;c. the measures satisfy the applicable technical, economic and ecological requirements;d. the other requirements of federal law are fulfilled;e. coordination with the public interests of other sectors is ensured;f. further maintenance is guaranteed.art. 38a61 attributable costs 1 for compensatory payments under articles 39 paragraph 1 and 2 and 40 paragraph 1 letter c, costs are attributable only if they are in fact incurred and are directly required for the proper fulfilment of the task for which a contribution is due. they include the costs of planning, acquisition of land and implementation, as well as marking costs.2 not attributable are in particular charges and taxes and costs that can be passed on to third parties who are significant beneficiaries or originators of damage.61 inserted by no 1 5 of the o of 28 jan. 2015 on the amendment of ordinance law on the environment, in particular with regard to the programme agreements for the programme period 2016-2019, in force since 1 jan. 2016 (as 2015 427).section 2 measures art. 3962 protection against natural events (art. 36 fora)1 compensatory payments for the measures and the compilation of basic documentation on natural events are normally allocated on a global basis. the level of the global compensatory payments is negotiated between the foen and the canton concerned and is based on:a. the hazard and damage potential;b. the scope and the quality of the measures and of their planning.2 compensatory payments may be awarded on a case by case basis, if the measures:a. have a supracantonal dimension;b. concern protected areas or objects listed in national inventories;c. require particularly complex or expert assessment due to the possible alternatives or for other reasons; ord. were unforeseeable.3 the contribution to the costs of the measures in accordance with paragraph 2 amounts to 35 to 45 per cent of the cost of the measures and is based on:a. the hazard and damage potential;b. the degree of implementation of a comprehensive risk assessment;c. the scope and the quality of the measures and of their planning.4 if a canton incurs considerable expenses due to exceptional protective measures, in particular following damage caused by bad weather, the contribution under paragraph 3 may be increased exceptionally to a maximum of 65 per cent of the cost of the measures.5 no compensatory payments are awarded for:a.63 measures required for the protection of buildings and installations which at the time of construction:1. were in already designated hazard zones or known hazard areas, and2. are not necessarily attached to that location;b. measures for the protection of tourist buildings and installations, such as cableways, ski lifts, ski runs or hiking trails, that are situated outside of the inhabited area.62 amended by no i 3 of the o of 2 feb. 2011 (development of programme agreements in the environment sector), in force since 1 march 2011 (as 2011 649).63 amended by no 1 5 of the o of 28 jan. 2015 on the amendment of ordinance law on the environment, in particular with regard to the programme agreements for the programme period 2016-2019, in force since 1 jan. 2016 (as 2015 427).art. 40 protective forest (art. 37 fora)1 the level of the global compensatory payments awarded for measures required to enable the protective forest to fulfil its protective function is based on:a. hazard and damage potential;b. the number of hectares of the protective forest to be maintained;c. the scope and the planning of the infrastructure required for the maintenance of the protective forest;d. the quality of the services provided.2 the amount is negotiated between the foen and the canton concerned.3 the contribution awarded by ruling to the costs of projects resulting from exceptional natural events shall not exceed 40 per cent of the costs and shall be in accordance with paragraph 1 letters a, c and d.6464 inserted by no i of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).art. 40a65 measures against forest damage outside the protective forest (art. 37a fora)1 the amount of global financial assistance for measures to prevent and mitigate forest damage outside the protective forest is determined by:a. the degree of threat to forest functions; b. the number of hectares over which measures are taken;c. the quality of the services.2 the foen and the cantons concerned shall negotiate the amount.3 financial assistance may be awarded in individual cases in which the measures were unforeseeable and particularly costly. the amount shall not exceed 40 per cent of the costs and is determined in accordance with paragraph 1 letters a and c.65 inserted by no i of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215). see also the transitional provisions to these amendments at the end of this text. art. 40b66 compensation of costs (art. 37b fora)1 compensation may be paid in cases of hardship if individuals are particularly badly effected and cannot be expected to meet the cost of the damage themselves.2 applications for compensation are to be submitted, with reasons given, once the damage has been ascertained but no later than one year after the measures have been put in place by the competent cantonal authorities.3 no compensation is paid for loss of yield or immaterial damage.4 the confederation shall reimburse the cantons between 35 and 50 per cent of the cost of compensation payments in accordance with the provision on global financial assistance in article 40a.66 inserted by no i of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).art. 41 biological diversity of the forest (art. 38 para. 1 fora)671 the level of global financial assistance for measures that contribute to the maintenance and improvement of the biological diversity of the forest is based on:the number of hectares of forest reserves that are to be designated and maintained;b.68 .c. the number of hectares of habitats to be maintained, in particular the forest margins, which provide habitat connectivity; d. the extent and quality of the measures for the promotion of animal and plant species, the conservation of which is a matter of priority for biological diversity;e.69 the number of hectares outside forest reserves to be designated as areas with a high proportion of old wood and deadwood or with sufficient trees demonstrating characteristics that are of particular value to biological diversity (biotope tree);f. the number of hectares of the forms of forest cultivation to be maintained, such as wooded pastures, coppices with standards and coppice forests and chestnut or walnut groves;g. the quality of the services provided.2 the amount is negotiated between the foen and the canton concerned.3 the financial assistance may only be allocated, if the protection of the ecological as listed under paragraph 1 letters a and c-f is guaranteed contractually or in any other suitable way.4 . 7067 amended by no 1 5 of the o of 17 aug. 2016, with effect from 1 jan. 2017 (as 2016 3215).68 repealed by no 1 5 of the o of 17 aug. 2016, with effect from 1 jan. 2017 (as 2016 3215).69 amended by no i of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).70 repealed by no 1 5 of the o of 17 aug. 2016, with effect from 1 jan. 2017 (as 2016 3215).art. 4271 71 repealed by no 1 5 of the o of 17 aug. 2016, with effect from 1 jan. 2017 (as 2016 3215).art. 43 forest management72 (art. 38a fora)1 the level of global financial assistance for measures improve the cost-effectiveness of forest management is determined:a.73 for cantonal planning bases: by the size of the forest area in the canton and the size of forest area included in the plan or an impact assessment;b.74 for the improvement of management conditions in forestry operations: by the scale and quality of the optimisation measures planned and implemented by the canton;c. for the storage of wood in cases of exceptional wood supply: by the volume of wood that the market is temporarily unable to absorb;d. by the quality of the services provided;e.75 for promoting the training of forest workers: by the number of days attended on courses run by federally certified course providers; f.76 for the practical training of forestry specialists at university level: by the number of training days attended; g.77 for young forest maintenance: by the number of hectares of young forest requiring maintenance;h.78 for adapting forest stands specifically to changing climatic conditions: by the number of hectares over which measures are taken; i.79 for obtaining forest reproductive material: by the infrastructure and level of mechanisation in seed extractories and the number of tree species necessary for maintaining genetic diversity in the seed harvesting plantations; j.80 for adapting or reconstituting public infrastructure facilities: by the number of hectares of forest served by them.2 the amount is negotiated between the foen and the canton concerned.3 global financial assistance for the improvement of the management conditions in forestry operations is only awarded if:a. the cooperation between or merging of enterprises is undertaken as a long-term measure;b. an economically significant volume of wood is harvested or marketed jointly; andc. business accounts are kept.4 global financial assistance for young forest maintenance and for adapting forest stands specifically to changing climatic conditions shall only be awarded if the measures are in accordance with near-natural silviculture methods.815 global financial assistance for obtaining forest reproductive material shall only be afforded if a construction project or operating concept including cost proposals and proof of funding has been approved by the canton.8272 amended by no 1 5 of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).73 amended by no i of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).74 amended by no 1 5 of the o of 28 jan. 2015 on the amendment of ordinance law on the environment, in particular with regard to the programme agreements for the programme period 2016-2019, in force since 1 jan. 2016 (as 2015 427).75 inserted by no 1 5 of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).76 inserted by no 1 5 of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).77 inserted by no 1 5 of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).78 inserted by no 1 5 of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).79 inserted by no 1 5 of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).80 inserted by no 1 5 of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215). see also the transitional provisions to these amendments at the end of this text.81 inserted by no 1 5 of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).82 inserted by no 1 5 of the o of 17 aug. 2016, in force since 1 jan. 2017 (as 2016 3215).art. 44 promotion of education and training (art. 39 fora)1 .832 the confederation shall award financial assistance in compensation for the occupation-specific costs arising from the on-site practical training of forestry personnel in the form of a flat-rate payment of 10 per cent of the training costs of the schools for forest wardens and of the courses.3 the confederation shall award financial assistance for the creation of teaching material for forestry personnel, on a case by case basis and amounting to a maximum of 50 per cent of the recognised costs.4 .8483 repealed by no 1 5 of the o of 17 aug. 2016, with effect from 1 jan. 2017 (as 2016 3215).84 repealed by no 1 5 of the o of 17 aug. 2016, with effect from 1 jan. 2017 (as 2016 3215).art. 45 research and development (art. 31 fora)1 the confederation may award financial assistance to research and development projects that it has not commissioned itself, on a case by case basis and amounting to a maximum of 50 per cent of the project costs.2 it may award financial assistance to organisations for the promotion and coordination of research and development, on a case by case basis and equal to at most the funding provided by third parties, provided it receives an adequate right of co-decision in these organisations.section 3 procedure for granting global compensatory payments or financial assistance art. 46 application 1 the canton shall submit the application for global compensatory payments or financial assistance to the foen.2 the application shall contain details of:a. the programme objectives to be achieved;b. the measures probably required to achieve the objectives and their implementation;c. the effectiveness of the measures.3 in the case of measures that affect more than one canton, the cantons shall ensure the coordination of the applications with the other cantons concerned.art. 47 programme agreement 1 the foen shall enter into a programme agreement with the competent cantonal authority.2 the subject matter of the programme agreement is in particular:a. the strategic programme objectives to be jointly achieved;b. the services to be provided by the canton;c. the contribution to be paid by the confederation;d. controlling.3 the programme agreement shall have a maximum term of four years.4 the foen shall issue guidelines on the procedure for programme agreements and on the information and documents required in connection with the subject matter of the programme agreement.art. 48 payment global compensatory payments or financial assistance are paid in instalments.art. 49 reporting and controlling 1 the canton shall provide the foen with a report each year on the use of the global subsidies.2 the foen shall control by random sample:a. the implementation of individual measures in accordance with the programme objectives;b. the use of the subsidies paid.art. 50 substandard fulfilment and non-intended use 1 the foen shall withhold the instalment payments during the programme in full or in part if the canton:a. fails to comply with its reporting obligation (art. 49 para. 1);b. culpably causes serious disruption to its own services.2 if it becomes apparent after the programme that the services provided are substandard, the foen shall require the canton to rectify the defects; it shall allow the canton an appropriate period within which to do this.3 if installations or equipment for which financial assistance or compensatory payments have been provided are used for a purpose other than that intended, the foen may require the canton to arrange for the non-intended use to be stopped or reversed within a reasonable period.4 if the defects are not rectified or the non-intended use is not stopped or reversed, the recovery of the payments made is governed by articles 28 and 29 of the subsidies act of 5 october 199085.85 sr 616.1section 4 procedure for granting compensatory payments or financial assistance in specific cases art. 51 applications 1 applications for compensatory payments or financial assistance in specific cases without the involvement of a canton must be submitted to the foen; all other applications must be submitted to the canton.2 the canton shall examine the applications that it receives and pass them on to the foen with a justified proposal, the cantonal authorisations already available and the cantonal decision on the subsidy.3 the foen shall issue guidelines on the information and documents required in connection with the application.art. 52 granting and payment of subsidies 1 the foen shall issue a ruling determining the amount of the compensatory payment or the financial assistance or shall enter into an agreement with the recipient of the subsidy.2 payment of subsidies shall be dependent on the progress made with the measures.art. 53 substandard fulfilment and non-intended use 1 if, despite receiving a warning, a recipient, whose application for compensatory payments or financial assistance has been approved, fails to carry out the measures or carries them in a substandard manner, the compensatory payments or financial assistance shall not be paid out or shall be reduced.2 if compensatory payments or financial assistance have been paid out and if, despite receiving a warning, the recipient fails to carry out the measures or carries them out in a substandard manner, the recovery of the payments made is governed by article 28 of the subsidies act of 5 october 199086.3 if installations or equipment for which compensatory payments or financial assistance have been paid out are not used for the intended purpose, the foen may require the canton to arrange for the non-intended use to be stopped or reversed within a reasonable period.4 if the non-intended use is not stopped or reversed, the recovery of the payments made is governed by articles 28 and 29 of the subsidies act of 5 october 1990.86 sr 616.1art. 54 reporting and controlling article 49 applies by analogy to reporting and controlling.art. 55-59 repealedchapter 7 investment credits art. 60 requirements 1 investment credits shall be granted if:a. the investment is necessary and suitable to protect against natural events or for the maintenance and use of the forest; andb. the investment is required due to the applicant's financial circumstances.2 the applicant must be able to support the total financial burden.3 the applicant must exhaust his or her own financial resources and claim any contributions available from third parties.4 investment credits may not be accumulated with credits granted under the federal act of 23 march 196287 on agricultural investment credits and business subsidies or the federal act of 28 june 197488 on investment subsidies for mountain regions.5 the cantons are not entitled to credits for their own investments.6 .8987 [as 1962 1273, 1972 2699, 1977 2249 no i 961, 1991 362 no ii 52 857 annex no 27, 1992 288 annex no 47 2104. as 1998 3033 annex let. f]88 [as 1975 392, 1980 1798, 1985 387, 1991 857 annex no 24, 1992 288 annex no 43. as 1997 2995 art. 25]. see now: the fa of 6 oct. 2006 on regional policy (sr 901.0).89 repealed by no i 21 of the o of 7 nov. 2007 on the new system of financial equalisation and division of tasks between the confederation and the cantons, with effect from 1 jan. 2008 (as 2007 5823).art. 61 federal credits 1 the foen shall grant the canton global loans to cover the payment of investment credits. the loans shall be interest free and repayable over 20 years.2 the canton shall notify the foen each year of its probable borrowing requirements for the coming year.3 the available funds are allocated according to demand.9090 amended by no i 21 of the o of 7 nov. 2007 on the new system of financial equalisation and division of tasks between the confederation and the cantons, in force since 1 jan. 2008 (as 2007 5823).art. 62 applications (art. 40 para. 3 fora)1 applications for investment credits must be submitted to the canton.2 the following documents must be enclosed with each application:a. the general operational plan;b. the operating accounts;c. a report on the applicant's financial circumstances.3 companies that are commercially contracted to maintain or use the forest must include the balance sheets and profit and loss accounts for the last two years in their application.art. 63 amount of credit and rate of interest (art. 40 para. 1 fora)1 investment credits shall be granted:a. as construction credits to cover up to 80 per cent of the construction costs;b.91 to fund the remaining costs of measures in accordance with the articles 39, 40 and 43;c. to cover up to 80 per cent the purchase costs of forestry vehicles, machines and devices;d. to cover up to 80 per cent the costs of creating forestry installations.2 investment credits are normally interest free. however, if the applicant can support the total financial burden, an appropriate rate of interest shall be charged.3 no loan shall be granted for less than 10,000 francs.91 amended by no i 21 of the o of 7 nov. 2007 on the new system of financial equalisation and division of tasks between the confederation and the cantons, in force since 1 jan. 2008 (as 2007 5823).art. 64 term, repayment, recovery (art. 40 fora)1 investment credits shall be repayable over a period of not exceeding 20 years.2 the repayment instalments are determined according to the nature of the measure and the financial circumstances of the borrower.3 repayment begins:a. for investments under article 63 paragraph 1 letters a and b, one year after completion of the project, but no more than five years after payment of the first instalment of the credit;b. for other investments, in the year following that in which the credit is paid.4 the borrower may repay all or part of the credit without notice at any time.5 .926 interest of 5 per cent shall be charged on arrears of credits or repayment instalments.92 repealed by no i 21 of the o of 7 nov. 2007 on the new system of financial equalisation and division of tasks between the confederation and the cantons, with effect from 1 jan. 2008 (as 2007 5823).chapter 8 final provisions section 1 implementation art. 65 implementation by the confederation (art. 49 fora)1 detec is authorised to independently carry out operations arising from the implementation of the fora.2 if the federal authorities apply other federal acts or agreements or decisions under international law which relate to the subject matter of this ordinance, they also implement this ordinance. cooperation between the foen and the cantons is governed by article 49 paragraph 2 fora; statutory duties of confidentiality are reserved.9393 inserted by no ii 17 of the o of 2 feb. 2000 (coordination and simplification of decision-making procedures), in force since 1 march 2000 (as 2000 703).art. 66 implementation by the cantons (art. 50 fora)1 the cantons shall issue the implementing provisions to the fora and to this ordinance within five years of the act coming into force.2 they shall inform the foen of any rulings and decisions on deforestation.9494 inserted by no ii 17 of the o of 2 feb. 2000 (coordination and simplification of decision-making procedures), in force since 1 march 2000 (as 2000 703).art. 66a95 geoinformation the foen shall determine the minimum geodata models and modelling for geobasis data in accordance with this ordinance for which it is designated the competent federal authority in annex 1 to the ordinance on geoinformation of 21 may 200896.95 inserted by annex 2 no 13 of the o of 21 may 2008 on geoinformation, in force since 1 july 2008 (as 2008 2809).96 sr 510.620section 2 repeal and amendment of current legislation art. 67 repeal of current legislation the following are repealed:a. the ordinance of 1 october 196597 on the federal supervision of the forest police;b. the ordinance of 23 may 197398 on the appointment of senior forestry officers;c. the ordinance of 28 november 198899 on extraordinary measures for the conservation of forest;d. articles 2-5 the ordinance of 16 october 1956100 on the forest plant protection;e. the federal council decree of 16 october 1956101 on the origin and use of forest reproductive material and forest plants;f. the ordinance of 22 june 1970102 on investment credits for the forestry sector in the mountain region.97 [as 1965 861, 1971 1192, 1977 2273 no i 18.1, 1985 670 no i 3 685 no i 6 2022]98 [as 1973 964, 1987 608 art. 16 para. 1 let. e]99 [as 1988 2057, 1990 874 no i, ii]100 [as 1956 1220, 1959 1626, 1977 2325 no i 19, 1986 1254 art. 70 no 3, 1987 2538, 1989 1124 art. 2 no 2, 1992 1749 no ii 4. as 1993 104 art. 42 let. a]101 [as 1956 1227, 1959 1628, 1975 402 no i 15, 1987 2540]102 [as 1970 765, 1978 1819]art. 68 amendment of current legislation .103103 the amendments can be consulted under as 1992 2538.section 3 commencement art. 69 1 this ordinance, with the exception of articles 60-64 and 67 letter f, comes into force on 1 january 1993.2 articles 60-64 and 67 letter f come into force on 1 january 1994.transitional provision to the amendment of 2 february 2000104 104 as 2000 703deforestation applications for works that are the responsibility of the cantons and which are pending on 1 january 2000 shall be governed by the previous law.transitional provision on the amendment of 17 august 2016105 105 as 2016 32151 instead of the criterion stated in article 40a paragraph 1, the amount of financial assistance awarded for measures to deal with forest damage outside the protective forest carried out before 31 december 2019 may be assessed according to the scope and quality of the measures.2 instead of the criteria stated in article 43 paragraph 1 letter j, the amount of financial assistance awarded for public infrastructure facilities adapted or reconstituted before 31 december 2024 may be assessed according to the scope and quality of the measures.106106 amended by no i 2 of the o of 17 april 2019 on amendments to ordinances to take account of changes to programme agreements in the environment field for the programme period 2020-2024, in force since 1 jan. 2020 (as 2019 1487).annex107 107 repealed by no i 21 of the o of 7 nov. 2007 on the new system of financial equalisation and division of tasks between the confederation and the cantons, with effect from 1 jan. 2008 (as 2007 5823).

935.41 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.federal act on private security services provided abroad(pssa)of 27 september 2013 (status as of 1 december 2021)the federal assembly of the swiss confederation,based on articles 54 paragraph 1, 95 paragraph 1 and 173 paragraph 2 of the federal constitution1, and having considered the federal council dispatch dated 23 january 20132,decrees:1 sr 1012 bbl 2013 1745section 1 general provisions art. 1 aim the aim of this act is to contribute to:a. safeguarding the internal and external security of switzerland;b. realising switzerland's foreign policy objectives;c. preserving swiss neutrality;d. guaranteeing compliance with international law and, in particular, of human rights and of international humanitarian law.art. 2 scope of application 1 this act applies to legal entities and business associations (companies) that engage in any of the following activities:a. provide, from switzerland, private security services abroad;b. provide services in switzerland in connection with private security services provided abroad;c. establish, base, operate, or manage a company in switzerland that provides private security services abroad or provides services in connection therewith in switzerland or abroad;d. exercise control from switzerland over a company that provides private security services abroad or provides services in connection therewith in switzerland or abroad.2 it applies to persons in the service of companies subject to the present act.3 the provisions of this act pertaining to companies also apply to natural persons exercising the activities designated in paragraphs 1 and 2.4 it also applies to federal authorities that contract with a company for the performance of protection tasks abroad.art. 3 exemptions from the scope of application 1 this act does not apply to companies that provide, from switzerland, in territories subject to the agreement of 21 june 19993, between the swiss confederation, of the one part, and the european community and its member states, of the other, on the free movement of persons or subject to the convention of 4 january 19604 establishing the european free trade association, any of the following private security services:a. the protection of persons;b. the guarding or surveillance of goods and properties;c. security services at events.2 it also does not apply to companies that:a. provide, in switzerland, a service in connection with a private security service under paragraph 1;b. establish, base, operate, or manage in switzerland a company that provides services under paragraph 1 or paragraph 2 letter a;c. exercise control, from switzerland, over a company that provides services under paragraph 1 or paragraph 2 letter a.3 sr 0.142.112.6814 sr 0.632.31art. 4 definitions in this act:a. private security service means, in particular, the following activities carried out by a private company:1. the protection of persons in complex environments,2. the guarding or surveillance of goods and properties in complex environments,3. security services at events,4. the checking, detention, or searching of persons, searching of premises or containers, and seizure of objects,5. guarding, caring for, and transporting prisoners; operating prison facilities; and assisting in operating camps for prisoners of war or civilian detainees,6. operational or logistical support for armed or security forces, insofar as such support is not provided as part of a direct participation in hostilities as set out in article 8,7. operating and maintaining weapons systems,8. advising or training members of armed or security forces,9. intelligence activities, espionage, and counterespionage;b. service in connection with a private security service means:1 recruiting or training personnel for private security services abroad,2. providing personnel, directly or as an intermediary, for a company that offers private security services abroad;c. direct participation in hostilities means:direct participation in hostilities abroad in the context of an armed conflict within the meaning of the geneva conventions5 and the protocols i and ii6.5 sr 0.518.12;0.518.23; 0.518.42; 0.518.516 sr 0.518.521; 0.518.522art. 5 control over a company 1 a company exercises control over another company if it:a. directly or indirectly holds a majority of the votes in the highest decision-making body thereof;b. directly or indirectly holds the right to appoint or remove a majority of the members of the highest executive or management body thereof; orc. pursuant to the articles of incorporation, foundation charter, a contractual agreement, or similar instrument, is able to exert a controlling influence thereon.2 business associations are considered to be controlled if:a. another company is a member with unlimited liability of that business association;b. the controlling company, as a general partner in the business association, contributes funds in an amount exceeding one third of the equity of the business association; orc. the controlling company furnishes the business association or the general partners thereof with reimbursable funds in an amount exceeding one half of the difference between the association's assets and its liabilities towards third parties.art. 6 subcontracting 1 where a company subcontracts the provision of a security service or of a service connected therewith to another company, it shall ensure that the other company performs that service in keeping with the constraints to which the subcontracting company is itself subject.2 the liability of the subcontracting company for harm caused by the other company is determined in accordance with the code of obligations7.7 sr 220art. 7 accession to the international code of conduct for private security service providers 1 companies subject to article 2 paragraphs 1, 3 and 4 must become signatories to the international code of conduct for private security providers, in the version dated 9 november 2010 (code of conduct)8.2 the federal department to which the competent authority is subordinate may determine that an amendment to the code of conduct applies to matters governed by this act, provided that such amendment is not contrary to the provisions of this act.8 the international code of conduct for private security service providers may be consulted at the following internet address: www.icoc psp.orgsection 2 prohibitions art. 8 direct participation in hostilities 1 it is prohibited:a. to recruit or train personnel in switzerland for the purpose of direct participation in hostilities abroad;b. to provide personnel, from switzerland, directly or as an intermediary, for the purpose of direct participation in hostilities abroad;c. to establish, base, operate, or manage, in switzerland, a company that recruits, trains, or provides personnel, directly or as an intermediary, for the purpose of direct participation in hostilities abroad;d. exercise control, from switzerland, over a company that recruits, trains, or provides personnel, directly or as an intermediary, for the purpose of direct participation in hostilities abroad.2 persons who are domiciled, or have their habitual place of residence, in switzerland and are in the service of a company that is subject to this act shall be prohibited from directly participating in hostilities abroad.art. 9 serious violations of human rights it is prohibited:a. to provide, from switzerland, private security services or services in connection therewith if it may be assumed that the recipients will use the services in connection with the commission of serious human rights violations;b. to establish, base, operate, or manage, in switzerland, a company that provides private security services, or services in connection therewith, if it may be assumed that the recipients will use the services in connection with the commission of serious violations of human rights;c. to exercise control, from switzerland, over a company that provides private security services, or services in connection therewith, if it may be assumed that the recipients will use the services in connection with the commission of serious human rights violations.section 3 procedure art. 10 declaration requirement 1 any company intending to carry out an activity under article 2 paragraph 1 shall declare to the competent authority, in particular, the following information:a. the nature, provider, and place of performance of the intended activity;b. such details on the principal and on the recipient of the service as are necessary for an evaluation of the situation;c. the personnel to be deployed for the intended activities, and the training they have received;d. an overview of the business sectors in which the company is active;e. proof of accession to the code of conduct9;f. the identity of all persons bearing responsibility for the company.2 for companies under article 2 paragraph 1 letter d, the declaration requirement applies both to the company's own exercise of control and to the activities of the controlled company.3 if any significant change in circumstances occurs subsequent to the declaration, the company shall notify the competent authority without delay. the competent authority shall inform the company forthwith as to whether it may continue to carry out the activity in question.9 the international code of conduct for private security service providers may be consulted at the following internet address: www.icoc psp.orgart. 11 requirement to refrain from activities 1 until such time as the company has received from the competent authority notification or a decision pursuant to articles 12-14, it shall refrain from carrying out the declared activities.2 where the competent authority initiates a review procedure pursuant to article 13, it may, by way of exception, release the company from its duty to refrain from activities for the duration of the procedure, if there is overriding public or private interest in doing so.art. 12 notification by the authority the competent authority shall notify the company within fourteen days of receipt of the declaration as to whether the declared activity gives cause for initiating a review procedure at that time.art. 13 review procedure 1 the competent authority shall initiate a review procedure where:a. there are indications to suggest that the declared activity could be in conflict with the aims set out in article 1;b. a significant change in the circumstances relating to a declared activity has occurred subsequent to notification pursuant to article 12;c. it becomes aware of the exercise of an activity that has not been declared;d. it becomes aware of a violation of swiss law or of international law.2 where the competent authority becomes aware of the exercise of an activity that has not been declared, it shall inform the company of the initiation of a review procedure, and shall allow the company an opportunity to submit within ten days a statement in that regard. article 11 paragraph 1 applies mutatis mutandis. 3 the competent authority shall consult with the authorities concerned. 4 it shall inform the company of the outcome of the review procedure within thirty days. this time limit may be extended as circumstances require.art. 14 prohibition by the competent authority 1 the competent authority shall prohibit in full or in part any activity that is contrary to the aims set out in article 1. in the case of the following activities, in particular, conformity with those aims is subject to thorough review:a. private security services provided to, persons or companies and to foreign institutions in crisis or conflict regions;b. private security services, or a service in connection therewith, that may be of service to institutions or persons in the commission of human rights violations;c. operational or logistical support for foreign armed or security forces;d. services in the domain of military expertise in connection with a private security service;e. private security services, or a service in connection therewith, that may be of service to terrorist groups or criminal organisations;f. the establishment, basing, operating, management, or control of a company that provides such services as set out under the foregoing letters a-e.2 the competent authority shall prohibit in full or in part the exercise of an activity by a company that:a. has in the past committed serious human rights violations and has not taken sufficient precautions to ensure that there is no recurrence thereof;b. deploys personnel who do not possess the required training for the intended activity;c. does not comply with the provisions of the code of conduct10.3 the competent authority shall prohibit a company from subcontracting the providing of a private security service, or a service in connection therewith, where the company that is to provide that service fails to comply with the constraints set out in article 6, paragraph 1.10 the international code of conduct for private security service providers may be consulted at the following internet address: www.icoc psp.orgart. 15 exceptional authorisation 1 where a manifest national interest clearly prevails, the federal council may by way of exception authorise an activity to which articles 8 and 9 do not apply, but which would be subject to prohibition pursuant to article 14.2 the competent authority shall submit the case to the federal council for a ruling.3 the federal council shall determine the necessary control measures.art. 16 coordination 1 where a matter falls within the scope of this act as well as within that of the war material act of 13 december 199611, the control of goods act of 13 december 199612, or the embargo act of 22 march 200213, the authorities concerned shall determine which authority coordinates the procedure.2 that authority shall ensure that the procedure is conducted in as simple a manner as possible, and shall make certain that the company is informed of all results of the procedure within the statutory time limits.11 sr 514.5112 sr 946.20213 sr 946.231art. 17 fees 1 the federal council shall regulate the charging of cost-covering fees for:a. the review procedure under article 13;b. prohibitions issued under article 14;c. control measures under article 19.2 for the rest, article 46a of the government and administration organisation act of 21 march 199714 applies.14 sr 172.010section 4 oversight art. 18 requirement to cooperate companies shall provide the competent authority with all the information required for the review of activities governed by this act, and shall submit to it all the necessary documents.art. 19 oversight powers of the authority 1 where a company attempts to influence the competent authority or fails to satisfy its requirement to cooperate, and where all efforts on the part of the competent authority to obtain the necessary information and documents remain fruitless, that authority may in the cases set out in article 13 paragraph 1 take the following oversight measures:a. unannounced on-site inspection of company premises;b. examination of relevant documents;c. seizure of material.2 the competent authority may to that end call on the assistance of other federal authorities as well as cantonal and communal police forces.art. 2015 15 repealed by annex no ii 2 of the fa of 18 dec. 2020 on the processing of personal data by the fdfa, with effect from 1 dec. 2021 (as 2021 650; bbl 2020 1349).section 5 sanctions art. 21 offences against statutory prohibitions 1 any person who, in contravention of article 8, carries out an activity in connection with direct participation in hostilities, or who directly participates in hostilities, is liable to a custodial sentence not exceeding three years or to a monetary penalty.2 any person who carries out an activity in contravention of article 9 shall be liable to a custodial sentence not exceeding three years or to a monetary penalty.3 this provision does not preclude the prosecution of the person concerned under the criminal code16 or to the military criminal code of 13 july 192717 for a more serious offence under those codes.16 sr 311.017 sr 321.0art. 22 offences against prohibitions by the competent authority any person who contravenes a prohibition issued by the competent authority pursuant to article 14 is liable to a custodial sentence not exceeding one year, or to a monetary penalty.art. 23 offences against the declaration requirement or the requirement to refrain from activities 1 any person who:a. violates article 10 by failing to declare an activity;b. carries out, in full or in part, an activity in breach of the requirement to refrain from activities under article 11 or article 39 paragraph 2,is liable to a custodial sentence not exceeding one year, or to a fine.2 where the act has been committed through negligence, a monetary penalty is imposed.art. 24 offences against the requirement to cooperate 1 any person who:a. refuses to furnish information, to allow the examination of documents, or to grant access to premises pursuant to article 18 or article 19, paragraph 1;b. makes false statements,shall be liable to a fine not exceeding 100,00 francs.2 where the act has been committed through negligence, a fine not exceeding 40,000 francs is imposed.3 attempts and complicity are also offences.4 the right to prosecute is limited to a period of five years.art. 25 offences within a business undertaking 1 article 6 of the federal act of 22 march 197418 on administrative criminal law (acla) applies to offences committed within a business undertaking.2 pursuant to article 7 of acla, an investigation to identify the offenders may be dispensed with and the business undertaking may be ordered to pay the fine instead in cases in which:a. the identification of the persons criminally liable under article 6 of acla necessitates investigative measures that would be disproportionate to the penalty incurred; andb. the penalty for the contraventions governed by this act does not exceed 20,000 francs.18 sr 313.0art. 26 dissolution and liquidation 1 where the activity of a legal entity, or of a general or limited partnership, contravenes a statutory or official prohibition, the competent authority may order the dissolution and liquidation of the legal entity or partnership concerned in accordance with the federal act of 11 april 188919 on debt enforcement and bankruptcy.2 where the business undertaking is a sole proprietorship, the competent authority may order the liquidation of the business assets and, as the case may be, deletion of the undertaking from the commercial register.3 the competent authority may confiscate any surplus resulting from the liquidation.19 sr 281.1art. 27 jurisdiction and requirement to report 1 offences under this act are subject to federal jurisdiction.2 the authorities competent for the implementation of this act are subject to a requirement to report any infringements of which they obtain knowledge in the course of carrying out their official activities to the office of the attorney general of switzerland.section 6 mutual administrative assistance art. 28 mutual administrative assistance within switzerland 1 the public authorities of the confederation and of the cantons shall provide the competent authority with the information and personal data required for the enforcement of this act.2 the competent authority shall disclose information and personal data to the following public authorities for the performance of their legal tasks:a. the federal and cantonal public authorities responsible for the enforcement of this act;b. the public authorities responsible for enforcing the war material act of 13 december 199620, the control of goods act of 13 december 199621, and the embargo act of 22 march 200222;c. the criminal authorities, insofar as the prosecution of felonies or misdemeanours is at issue;d. the federal and cantonal authorities responsible for maintaining internal security;e. the federal authorities responsible for foreign affairs and for maintaining external security;f. the cantonal authorities responsible for the licensing and oversight of private security services.20 sr 514.5121 sr 946.20222 sr 946.231art. 29 mutual administrative assistance between swiss and foreign authorities 1 the competent authority may request foreign authorities to provide information and personal data required for the enforcement of this act. to this end, it may disclose to them, in particular, information concerning:a. the nature, provider, principal, recipient, and place of performance of the activity;b. the sectors in which the company offering private security services abroad is active, and the identity of all persons who are responsible for the company.2 where the foreign state grants reciprocity, the competent authority may disclose to it the information set out in paragraph 1, subject to the assurance from the foreign authority that the data:a. will be processed only for aims in conformity with this act; andb. will be used in criminal proceedings only in accordance with the provisions on international mutual legal assistance.section 7 contracting of security companies by federal authorities art. 30 protection tasks 1 the confederation is authorised to contract with companies that provide private security services for the performance of the following protection tasks abroad:a. the protection of persons;b. the guarding or surveillance of goods and properties.2 the federal authority that contracts with a company (contracting authority) shall consult with the competent authority under article 38 paragraph 2 and with the federal department of defence, civil protection, and sport.art. 31 requirements with regard to the company 1 prior to contracting with a company, the contracting authority shall ascertain that the company in question meets the following requirements:a. it is able to provide the required guarantees concerning the recruitment, training, and oversight of its personnel;b. its good reputation and irreproachable conduct in business are attested to both by its adherence to the code of conduct23 and compliance with the provisions therein and, in particular, by:1. experience in the field,2. references, or3. membership of a professional association;c. it is solvent;d. it has an adequate internal control system which ensures that its personnel comply with established standards of conduct and that disciplinary measures are taken where misconduct occurs;e. it is authorised under the applicable law to carry out activities in the domain of private security;f. it has liability insurance coverage in an amount commensurate with the risk incurred.2 the contracting authority may, by way of exception, contract with a company that does not possess liability insurance coverage, where:a. purchasing such insurance would engender disproportionate costs to the company; andb. the liability risk and the amount of any compensatory damages to be borne by the confederation may be assessed as low.23 the international code of conduct for private security service providers may be consulted at the following internet address: www.icoc psp.orgart. 32 training of personnel 1 the contracting authority shall ascertain that the security personnel of the company have received adequate training, commensurate with the protection task assigned to them and in accordance with applicable international and national law.2 training shall cover, in particular, the following issues:a. respect for fundamental rights, personal privacy rights, and procedural law;b. the use of physical force and weapons when acting in self-defence or in situations of necessity;c. dealing with persons offering resistance or prepared to resort to violence;d. providing first aid;e. assessing health risks entailed in the use of force;f. combating corruption.3 the contracting authority may, by way of exception, contract with a company that does not fully meet the requirements set out in paragraphs 1 and 2, on condition that there is no other company that meets those requirements at the place at which the service is to be provided and that the protection task cannot otherwise be accomplished.4 in such a case, the maximum duration for which a contract may be concluded is six months. the contracting authority shall take measures to ensure that the company fulfils the requirements set out in paragraphs 1 and 2 within as short a time as possible. such measures shall be stipulated in the contract.art. 33 identification of personnel the contracting authority shall make certain that personnel are identifiable when acting in the exercise of their function.art. 34 arming of personnel 1 all personnel shall, as a general rule, be unarmed.2 where the situation abroad requires that any personnel, by way of exception, carry a weapon so as to be able to react in self-defence or in a situation of necessity, the contracting authority shall specify this in the contract.3 the contracting authority shall ascertain that the personnel are in possession of the permits required under the applicable law.4 the weapons legislation of the place at which the protection task is to be performed applies.art. 35 use of force and other police measures 1 where it is possible to accomplish a protection task only through the use of force or other police measures as defined in the use of force act of 20 march 200824, the federal council may grant permission to do so even in situations other than those of self-defence or of necessity.2 the federal council shall make certain that the personnel have received the appropriate training.3 the law at the place of deployment applies.24 sr 364art. 36 subcontracting of protection tasks the subcontracting of protection tasks is prohibited without the prior written consent of the contracting authority.section 8 reporting art. 37 1 the competent authority shall prepare a report on its activities, to be submitted to the federal council each year.2 the report shall be made public.section 9 final provisions art. 38 implementation provisions 1 the federal council shall enact provisions for the implementation of this act. in particular, it shall determine:a. the specifics of the declaration procedure (art. 10);b.25 the list of particularly sensitive personal data and the categories of data to be processed under article 28, as well as their retention periods;c. the required terms and conditions of contracts by a federal authority for the services of a company.2 it shall appoint the competent authority.25 amended by annex no ii 2 of the fa of 18 dec. 2020 on the processing of personal data by the fdfa, in force since 1 dec. 2021 (as 2021 650; bbl 2020 1349).art. 39 transitional provision 1 any activity subject to declaration under this act, and which is being carried out at the time of the act's entry into force, must be declared to the competent authority within three months of the commencement date of this act.2 where the competent authority initiates a review procedure, it shall inform the company as to whether it must provisionally refrain, in full or in part, from carrying out the declared activity.3 where the competent authority intends to prohibit an activity that is being carried out at the time of this act's entry into force, and which the company concerned plans to continue, the authority may grant the company a reasonable period of grace in order to achieve compliance with the statutory provisions.art. 40 referendum and commencement. 1 this act is subject to an optional referendum.2 the federal council shall determine the commencement date.commencement date: 1 september 20152626 fcd of 24 june 2015.

935.411 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinanceon private security servicesprovided abroad (opsa)of 24 june 2015 (status as of 1 january 2021)the swiss federal council,based on articles 17 and 38 of the federal act of 27 september 20131 on private security services provided abroad (pssa),ordains:1 sr 935.41section 1 general provisions art. 1 complex environment 1 a complex environment is any area:a.experiencing or recovering from unrest, or instability due to natural disaster or armed conflict in terms of the geneva conventions2 and additional protocols i and ii3;b.where the rule of law has been substantially undermined; andc.in which the capacity of the state authority to handle the situation is limited or non-existent.2 if the confederation contracts with a company for the performance of protection tasks in an area that is not a complex environment in terms of paragraph 1, the ordinance of 24 june 20154 on the use of private security companies applies.2 sr 0.518.12; 0.518.23; 0.518.42; 0.518.513 sr 0.518.521; 0.518.5224 sr 124art. 1a5 operational and logistical support for armed or security forces 1 operational support for armed or security forces comprises activities that a company carries out for the benefit of armed or security forces in connection with their core tasks as part of ongoing or planned operations.2 logistical support for armed or security forces comprise activities that a company carries out for the benefit of armed or security forces in close connection with their core tasks, in particular:a.servicing, repairing or upgrading war materiel pursuant to the war materiel act of 13 december 19966 (wma) or goods pursuant to the goods control act of 13 december 19967 (gca);b.converting goods into war materiel pursuant to the wma or into goods pursuant to the gca; c.constructing, operating or maintaining infrastructure;d.managing supplies;e.transporting, storing or handling war materiel pursuant to the wma or specific military goods pursuant to the gca;f.transporting members of armed or security forces.5 inserted by no i of the o of 11 nov. 2020, in force since 1 jan. 2021 (as 2020 5323).6 sr 514.517 sr 946.202art. 1b8 operating and servicing weapons systems 1 the operation of weapons systems comprises the use of war materiel pursuant to the wma9 with a view to armed or security forces conducting exercises.2 the servicing of weapons systems comprises the maintenance or repair of war materiel pursuant to the wma for the benefit of armed or security forces.8 inserted by no i of the o of 11 nov. 2020, in force since 1 jan. 2021 (as 2020 5323).9 sr 514.51art. 1c10 advising and training members of armed or security forces 1 advising members of armed or security forces comprises the provision of technical, tactical or strategic advice to members of armed or security forces in close connection with their core tasks.2 training members of armed or security forces comprises the technical, tactical or strategic instruction or training of members of armed or security forces in close connection with their core tasks.10 inserted by no i of the o of 11 nov. 2020, in force since 1 jan. 2021 (as 2020 5323).art. 2 accession to the international code of conduct for private security service providers companies are deemed to have acceded to the international code of conduct for private security service providers (the code of conduct) in its version of 9 november 2010 if they are members of the international code of conduct for private security service providers association (icoca)11.11 the international code of conduct for private security service providers may be consulted at the following internet address: www.icoc-psp.orgsection 2 procedures art. 3 competent authority the competent authority is the state secretariat of the federal department of foreign affairs (state secretariat fdfa)12.12 the name of the administrative unit was modified on 1 jan. 2021 in application of art. 20 para. 2 of the publications ordinance of 7 oct. 2015 (sr 170.512.1). this modification has been made throughout the text.art. 4 content of the declaration requirement the declaration requirement covers:a.with regard to the intended activity:1.the nature of the service under article 4 letters a and b pssa,2.the weapons and other means used to provide the private security service,3.the extent and duration of the operation and the number of persons deployed,4.the place where the activity is carried out,5.the special risks that the activity entails;b.with regard to the company:1.the company name, registered office and legal form as well as, if available, an extract from the commercial register,2.the objects, areas of business, areas of operation abroad and main categories of clients,3.proof of accession to the code of conduct,4.the name, first name, date of birth, nationality and certificate of residence of the members of the management and the supervisory bodies,5.the measures taken for the basic and advanced training of personnel,6.the internal control system for personnel;c.with regard to the persons who carry out management duties within the company or on its behalf or who are permitted to carry a weapon in the course of their activities for the company:1.the name, first name, date of birth, nationality and certificate of residence,2.confirmation of good character,3.the required authorisation under the relevant law for exporting, carrying and using weapons, weapons accessories and ammunition,4.basic and advanced training in the fields of fundamental rights and humanitarian international law,5.basic and advanced training in the use of weapons and aids as well as the use of force and other police measures.art. 5 requirement to report identity the company shall inform the state secretariat fdfa of the identity of the principal or the recipient of a service under article 4 letters a and b pssa if the person or entity concerned is:a.a foreign state or its institutions;b.an international organisation or its institutions;c.a group that regards itself as the government or as a state institution, or its institutions;d.an organised armed group or its units participating in an armed conflict in terms of the geneva conventions13 and the additional protocols i and ii14;e.a high representative of a foreign state or of an international organisation, a leader or a senior executive of a group under letters c and d, irrespective of whether the person concerns acts in the course of their duties or as a private individual.13 sr 0.518.12; 0.518.23; 0.518.42; 0.518.5114 sr 0.518.521; 0.518.522art. 6 declaration in the case of a private security service in standardised form where a company has declared a private security service under article 4 letter a number 1 or 2 pssa and intends to provide this service in standardised form to similar recipients subject to the same conditions, it shall report the conclusion of each new contract to the state secretariat fdfa and state that the service agreed therein will be provided in standardised form.art. 7 declaration when continuing the same activity where a company intends to continue to carry on an activity that it has declared in same manner, and if the information provided under article 4 is still correct, so the company shall confirm to the state secretariat fdfa that the intended activity corresponds to the reported activity.art. 8 accelerated procedure where a private security service under article 4 letter a sections 1-3 pssa must be provided in an emergency situation, the state secretariat fdfa shall notify the company if possible within two working days of receipt of the declaration of whether the review procedure will be initiated.art. 8a15 reporting obligation in connection with war materiel pursuant to the wma or goods pursuant to the gca 1 if a company exports war materiel pursuant to the wma16 or goods pursuant to the gca17 and if it subsequently carries out servicing, maintenance, or a repair in close connection therewith, the company is not obliged to report these activities provided the export would still be permitted at the time the activities are carried out.2 if a company war exports materiel pursuant to the wma or goods pursuant to the gca and if it subsequently provides advice or training in close connection therewith relating to the servicing, maintenance, repair, development, manufacture or use of the materiel, the company is not obliged to report these activities provided the export would still be permitted at the time the activities are carried out. 3 if a company transfers intellectual property including knowhow or rights thereto pursuant to the wma and if it subsequently provides advice or training in close connection therewith relating to servicing, maintenance, repair, development, manufacture or use, the company is not obliged to report these activities provided the transfer would still be permitted at the time the activities are carried out.4 this article does not apply if the activity constitutes operational support.15 inserted by no i of the o of 11 nov. 2020, in force since 1 jan. 2021 (as 2020 5323).16 sr 514.5117 sr 946.202art. 8b18 decision in the review procedure 1 the state secretariat fdfa shall decide on whether to prohibit the reported activity in agreement with the state secretariat for economic affairs (seco) and the responsible body at the federal department of defence, civil protection and sport (ddps) after consulting the federal intelligence service.2 if the state secretariat fdfa, seco and the responsible body at the ddps are unable to reach an agreement or if they conclude that the reported activity is of considerable importance to foreign or security policy, the federal department of foreign affairs (fdfa) shall submit the matter to the federal council for a decision.3 in cases of minor importance or in cases where there is a precedent for the decision, the authorities concerned may decide to dispense with joint consideration and authorise the state secretariat fdfa to decide on its own.18 inserted by no i of the o of 11 nov. 2020, in force since 1 jan. 2021 (as 2020 5323).art. 9 withdrawal or exclusion from the icoca 1 where a company withdraws from the icoca or if the icoca decides to exclude the company, the company shall immediately notify the state secretariat fdfa of this and provide the reasons.2 if the reasons for the company's withdrawal or exclusion from the icoca do not fundamentally preclude its renewed accession, the state secretariat fdfa shall request the company to take the measures required to join again within six months.3 where the company does not join the icoca again within the period specified in paragraph 2, the state secretariat fdfa shall prohibit all or part of its activities.art. 10 assessment of fees 1 the fee is assessed on the basis of the time worked.2 an hourly rate of 150-350 francs applies. the rate is based in particular on the seniority of the employee concerned.3 otherwise, the general fees ordinance of 8 september 200419 applies.19 sr 172.041.1section 3 controls art. 11 duty to keep records 1 the company is obliged to keep records of its activities. it must be able to provide the state secretariat fdfa with the following information and documents at any time:a.the identity and address of the principal, the provider and the recipient of the service;b.a copy of the contract concluded with the principal;c.the identity of the persons implementing the contract;d.details of the equipment used, in particular weapons;e.documentary evidence of performance of the contract.2 the members of management board shall retain the information and documents mentioned in paragraph 1 for ten years. this period does not end if the company ceases business operations.art. 12 processing of personal data 1 in order to fulfil its statutory duties, the state secretariat fdfa is authorised to process particularly sensitive personal data on administrative or criminal prosecutions and sanctions as well as other personal data provided it relates to the following persons:a.the members of the management board and the supervisory bodies;b.the company personnel;c.the company concerned;d.the principal and the recipient of the service within the limits set out in article 5.2 the following personal data may be processed:a.name, first name, date of birth, domicile and nationality of the person concerned;b.all personal data related to the company concerned;c.all information related to the company's business operations.3 the state secretariat fdfa is also authorised to process the following particularly sensitive personal data on administrative or criminal prosecutions and sanctions:a.name, first name, date of birth, domicile and nationality the person concerned;b.identity of the company concerned;c.the offence with which the person concerned is charged;d.details on the form of procedure;e.name of the authorities concerned;f.copy of the judgment and any other information connected with the judgment.4 personal data and particularly sensitive personal data shall be offered 15 years after its final processing to the federal archives for archiving (art. 21 of the federal act of 19 june 199220 on data protection).20 sr 235.1section 4 administrative assistance in switzerland art. 13 1 the state secretariat fdfa shall provide the authorities mentioned in article 28 pssa, ex officio or on request, with the following information and personal data:a.with regard to the intended activity:1.the type of service under article 4 letters a and b pssa,2.the identity of the principal or the recipient of the service within the limits set out in article 5,3.the location abroad where the activity is being carried out;b.with regard to the company:1.company name, registered office and legal form as well as, if available, an extract from the commercial register,2.objects, areas of business, areas of operation abroad and main categories of clients,3.name, first name, date of birth, nationality and certificate of residence for the members of the management board and the supervisory bodies.2 it shall also provide the authorities mentioned in article 28 paragraph 2 letters c and d pssa and the federal authorities responsible for safeguarding external security (art. 28 para. 2 let. e pssa), ex officio or on request, with the following particularly sensitive personal data:a.name, first name, date of birth, domicile and nationality of the person concerned;b.identity of the company concerned;c.the offence with which the person concerned is charged;d.details on the form of procedure;e.name of the authorities concerned;f.copy of the judgment and any other information connected with the judgment.section 5 use by federal authorities of private security companies for protection tasks abroad art. 14 content of the contract 1 the contract with the company shall require the company in particular to:a.provide information on progress with the performance of the contract if the contracting authority so requests;b.disclose the identity of the personnel deployed to the contracting authority;c.prepare a report for submission to the contracting authority;d.immediately replace any personnel who do not have the required skills or who adversely affect the performance of the contract;e.immediately report to the contracting authority any circumstances that could adversely affect the performance of the contract;f.immediately report to the contracting authority any incidents in which personnel have used force or police measures in accordance with article 35 pssa or have acted in self-defence or in a situation of necessity;g.immediately report to the contracting authority if the requirements for the company or for training are no longer being met.2 the contract shall also contain:a.the details required by articles 34 paragraph 2 and 35 pssa;b.provision for contractual penalties in the event of non-fulfilment.art. 15 model contract 1 the fdfa shall issue a model contract.212 the model contract shall be made accessible online.21 amended by no i of the o of 11 nov. 2020, in force since 1 jan. 2021 (as 2020 5323).art. 16 communication the contracting authority shall provide the state secretariat fdfa and the head of security of its department with a copy of the contract concluded with the company and inform the head of security of any problem related to the performance of the contract.art. 17 support from the fdfa in regions where there is no company that is a member of the icoca, the fdfa shall endeavour to ensure that companies joint the association.section 6 final provisions art. 18 transitional provision the contracting authority shall by 1 september 2018 amend existing contracts that do not meet the requirements of this ordinance.art. 19 commencement this ordinance comes into force on 1 september 2015.

935.62 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.federal acton patent attorneys(patent attorney act, pataa)of 20 march 2009 (status as of 1 january 2013)the federal assembly of the swiss confederation,on the basis of article 95 of the federal constitution1, and having considered the federal council dispatch of 7 december 20072,decrees:1 sr 1012 bbl 2008 407section 1: subject matter and scope of application art. 1 1 this act governs:a.the requirements for the use of the professional titles "patent attorney", "patentanwltin" or "patentanwalt", "conseil en brevets" and "consulente in brevetti";b.professional confidentiality applicable to patent attorneys;c.the protection of the professional titles "european patent attorney", "europische patentanwltin" or "europischer patentanwalt", "conseil en brevets europens" and "consulente in brevetti europei".2 it is applicable to persons who provide advice or representation in patent matters in switzerland using any of the professional titles mentioned in paragraph 1 letter a or c.3 the representation of parties in proceedings before the swiss federal institute of intellectual property (ipi) by natural and legal persons residing or having their principal place of business in the principality of liechtenstein is governed by article 8 of the patent treaty of 22 december 19783 between the swiss confederation and the principality of liechtenstein.3 sr 0.232.149.514section 2: protection of titles art. 2 patent attorney any person who uses the title "patent attorney", "patentanwltin" or "patentanwalt", "conseil en brevets" or "consulente in brevetti" must:a.possess a recognised higher education qualification in natural sciences or engineering (art. 4 and 5);b.have passed the swiss federal patent attorney examination or a recognised foreign patent attorney examination (art. 6 and 7);c.have completed practical training (art. 9);d.possess at least an address for service in switzerland; ande.be registered in the patent attorney register (art. 11 et seq.).art. 3 european patent attorney any person who uses the title "european patent attorney", "europische patentanwltin" or "europischer patentanwalt", "conseil en brevets europens" or "consulente in brevetti europei" must be registered in the list of professional representatives maintained by the european patent office.art. 4 recognised swiss higher education qualifications 1 natural sciences or engineering degrees (bachelor's, master's, diplom or lizenziat) issued by an accredited swiss higher education institution are considered to be recognised swiss higher education qualifications in terms of this act.2 the federal council shall regulate the accreditation of swiss higher education institutions.art. 5 recognition of foreign higher education qualifications 1 a foreign higher education qualification in natural sciences or engineering is recognised where its equivalence to a recognised swiss higher education qualification:a.is provided for in a treaty pertaining to mutual recognition with the respective state or supranational organisation; orb.is proven in an individual case.2 the federal council shall designate the competent bodies for such recognition. it shall designate a single body where possible.3 where the competent bodies do not recognise a foreign higher education qualification, they shall decide how the requirement of article 2 letter a may be fulfilled.art. 6 swiss federal patent attorney examination 1 the swiss federal patent attorney examination serves as proof of the specialised knowledge required for professional qualification.2 the federal council shall regulate:a.the admission requirements for the examination;b.the content of the examination;c.the examination procedure.3 it shall designate:a.the body competent for conducting the examination;b.the body competent for the supervision of the examination.art. 7 recognition of foreign patent attorney examinations 1 a foreign patent attorney examination is recognised where its equivalence to the swiss federal patent attorney examination:a.is provided for in a treaty pertaining to mutual recognition with the respective state or supranational organisation; or b.is proven in an individual case.2 the federal council shall designate the competent body for such recognition.3 where the competent body does not recognise a foreign patent attorney examination, it shall decide how the requirements of article 2 letter b may be fulfilled.art. 8 delegation of tasks to organisations and persons of public or private law 1 the federal council may entrust organisations and persons of public or private law with:a.conducting the swiss federal patent attorney examination;b.deciding on the recognition of foreign patent attorney examinations;c.issuing rulings concerning the passing of the swiss federal patent examination or the recognition of a foreign patent attorney examination.2 the organisations and persons mentioned in paragraph 1 may levy fees for the rulings and services rendered by them. their fee regulations are subject to approval by the federal council.3 an objection may be filed with the state secretariat for education, research and innovation4 to rulings issued by the organisations and persons mentioned in paragraph 1.4 term in accordance with no i 31 of the ordinance of 15 june 2012 (reorganisation of the departments), in force since 1 jan. 2013 (as 2012 3655).art. 9 practical training 1 practical training as defined in article 2 letter c must be completed under the supervision of a registered patent attorney (art. 11 et seq.) or a person with an equivalent professional qualification.2 the duration of practical training must amount to three years on a full-time basis for persons with a higher education qualification (master's, diplom or lizenziat degree) or a recognised equivalent qualification, and four years on a full-time basis for persons with a bachelor's degree or a recognised equivalent qualification. at least one year of the practical training must be related to switzerland.3 the federal council shall regulate the particulars, including:a.the objectives and content of the practical training;b.the requirements to be fulfilled by a supervisor who is not registered in the patent attorney register;c.the requirements with regard to how the practical training is related to switzerland in terms of territory and content.section 3: professional confidentiality art. 10 1 patent attorneys are obliged to maintain confidentiality concerning all secrets that are entrusted to them in their professional capacity or which come to their knowledge in the course of their professional activities, this obligation being unlimited in time.2 they must ensure that persons assisting them maintain professional confidentiality.section 4: patent attorney register art. 11 maintenance of the register the ipi shall maintain the patent attorney register. it may maintain the register in electronic form.art. 12 registration in the register 1 on application and on payment of a fee, the ipi shall register persons who fulfil the requirements of article 2 in the patent attorney register. it shall issue a certificate of registration.2 the person making the application must prove by way of suitable documentation that he or she fulfils the requirements of article 2.3 the federal council may authorise the ipi to regulate electronic communication in accordance with the general provisions on the administration of federal justice.4 the dossier and files may be maintained and stored in electronic form.art. 13 supervision 1 where the professional conduct of a patent attorney gives rise to complaints, the swiss federal department of justice and police (fdjp) may, after hearing the person concerned:a.admonish him or her;b.authorise the ipi to disqualify him or her temporarily or permanently from using the professional title.2 in assessing professional conduct within the meaning of paragraph 1, the patent attorney's entire business activities in switzerland and abroad shall be taken into consideration.3 the fdjp may order the publication of the admonition or the disqualification as well as the deletion of the registration from the patent attorney register.art. 14 register content 1 when registering patent attorneys in the patent attorney register, the ipi shall enter the following particulars:a.date of registration;b.surname, first name, date of birth and place of origin or citizenship;c.address for service or business address in switzerland; andd.name of employer, if applicable.2 patent attorneys must notify the ipi immediately of any changes to their registered particulars so that they may be registered in the patent attorney register.art. 15 public access to the register 1 any person may view the register and obtain information on its content.2 the ipi may make the content of the register available to third parties by way of electronic retrieval.section 5: criminal provisions art. 16 abuse of title 1 a fine shall be imposed on any person who, in his or her business documents, advertising of any kind, or other documents intended for use in business in switzerland:a.uses the title "patent attorney", "patentanwltin" or "patentanwalt", "conseil en brevets" or "consulente in brevetti" without being registered in the patent attorney register;b.uses the title "european patent attorney", "europische patentanwltin" or "europischer patentanwalt", "conseil en brevets europens" or "consulente in brevetti europei" or a title that may be confused with any of these titles without being registered in the list of professional representatives maintained by the european patent office.2 the use of a professional title in accordance with article 9 of the liechtenstein act of 9 december 19925 on patent attorneys for the representation of parties in proceedings before the ipi by natural and legal persons residing or having their principal place of business in the principality of liechtenstein is reserved.5 liechtenstein law gazette 1993 no. 43art. 17 criminal prosecution the prosecution of criminal offences is the responsibility of the cantons.section 6: final provisions art. 18 amendment of legislation the amendment of current legislation is regulated in the annex.art. 19 transitional provisions 1 a person shall be registered in the patent attorney register on application and on payment of a fee provided that, on commencement of this act, he or she has been working professionally as a patent attorney on a full-time basis in switzerland:a.for more than six years, possesses a higher education qualification in natural sciences or engineering from a swiss higher education institution or a foreign higher education qualification as defined in article 5 paragraph 1, and has an address for service in switzerland; orb.for more than three years, is registered in the list of professional representatives maintained by the european patent office and has an address for service in switzerland.2 application must be made within two years of commencement of this act.3 the applicant must prove, by means of suitable documentation, that he or she fulfils the requirements of paragraph 1 letter a or b.4 the ipi shall issue a certificate of registration. art. 20 referendum and commencement. 1 this act is subject to an optional referendum.2 the federal council shall determine the commencement date.commencement date: 1 july 201166 federal council decree of 11 may 2011annex (art. 18)amendment of current legislation the following enactments are amended as follows:.77 the amendments may be consulted under as 2011 2259.

935.621 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.patent attorney ordinance(patao)of 11 may 2011 (status as of 1 january 2013)the swiss federal council,based on article 6 paragraphs 2 and 3, article 7 paragraph 2, article 8 paragraph 1, article 9 paragraph 3 and article 12 paragraph 3 of the patent attorney act of 20 march 20091 (pataa),ordains:1 sr 935.62chapter 1: subject matter art. 1 this ordinance regulates:a.the requirements to be fulfilled by a higher education qualification in natural sciences or engineering (art. 2 let. a pataa);b.the swiss federal patent attorney examination and the recognition of foreign patent attorney examinations (art. 6-8 pataa);c.the requirements concerning practical training and the recognition of professional experience acquired abroad (art. 9 pataa);d.the patent attorney register (art. 11-15 pataa).chapter 2: higher education qualifications art. 2 1 a higher education qualification in natural sciences or engineering must be obtained by completing a full-time study course with a minimum duration of three years or a part-time study course of equivalent study duration. a minimum of 80 percent of the course hours required to obtain this qualification must be devoted to natural sciences or engineering subjects.2 the following subjects in particular are considered natural sciences or engineering subjects: civil engineering, biochemistry, biology, biotechnology, chemistry, electronics, electrical engineering, information technology, mechanical engineering, mathematics, medicine, pharmacy and physics.chapter 3: swiss federal patent attorney examination section 1: organisation of the examination art. 3 examination board 1 the federal council assigns to the joint association (examination board) of the association of swiss and european patent attorneys in private practice (vespa), the association of patent attorneys in swiss industry (vips) and the association of swiss patent and trademark attorneys (aspta) the following duties:a.administration of the swiss federal patent attorney examination.b.issuing guidelines for the patent attorney examination.c.appointment of examiners.d.deciding on the passing or failing of the examination.e.deciding on the recognition of foreign patent attorney examinations.f.establishing fee regulations and submitting them to the federal council for approval.g.maintenance of an office.2 the examination board is financed by the fees levied for its rulings and services and by contributions from its members.3 the duties of the examination board are performed by the examination committee.art. 4 examination committee 1 the examination committee consists of two representatives each of the vespa, vips and aspta patent attorney associations. they are elected by the executive board of the examination board.2 the examination committee is quorate when the chair or his or her deputy and at least three other members are present.3 the decisions of the examination committee are reached by a majority of the members present. the chair also has a vote; where a vote is tied, his or her vote or, where he or she is absent, the vote of his or her deputy, shall be decisive.4 the president of the federal patent court or a legal member of this court designated by the president shall attend the meetings of the examination committee as an observer in an advisory capacity. the examination committee may invite other persons without voting rights to the meetings.art. 5 examiners 1 patent attorneys registered in the patent attorney register and other experts with proven knowledge in the subject areas to be examined (art. 7), such as lecturers in higher education, attorneys and judges, shall be appointed by the examination committee as examiners.2 examiners may not simultaneously be members of the examination committee.3 examiners are appointed for a period of two years. they may be reappointed.art. 6 supervision 1 responsibility for the supervision of the swiss federal patent attorney examination lies with the state secretariat education, research and innovation (seri)2.2 seri approves the examination committee's guidelines for the patent attorney examination.2 the name of this administrative unit was amended in application of art. 16 para. 3 of the publications ordinance of 17 nov. 2004 (sr 170.512.1) on 1 jan. 2013. the amendment has been made throughout the text.section 2: content of the examination art. 7 examination of specialised knowledge in the swiss federal patent attorney examination, specialised knowledge is examined in the following areas:a.european and international patent law;b.swiss patent law;c.swiss procedural and organisational law relevant to industrial property rights;d.trade mark, design, copyright, competition and civil law to the extent required for working professionally as a patent attorney in switzerland.art. 8 parts of the examination 1 the swiss federal patent attorney examination consists of four parts. the candidate is free to decide on the order in which the parts of the examination are completed.2 parts 1 and 2 (art. 7 let. a) are conducted in accordance with the provisions of the administrative council of the european patent organisation (art. 134a para. 1 let. b of the european patent convention of 5 october 1973, revised on 29 november 20003) on the european qualifying examination for professional representatives before the european patent office. they cover the following:a.part 1: drafting of patent claims and the introductory part of a patent application (examination paper a);b.part 2: replying to an official communication in which prior art has been cited (examination paper b). 3 part 3 (art. 7 let. a-c) covers:a.swiss patent law including the special provisions pertaining to international procedures;b.the swiss provisions in the area of administrative, criminal and civil procedure as well as the organisation of authorities and court applicable to patent matters.4 part 4 (art. 7 let. d) covers trade mark, design, copyright, competition and civil law to the extent required for working professionally as a patent attorney in switzerland.3 sr 0.232.142.2section 3: examination procedure art. 9 conduct of the examination 1 parts 3 and 4 of the swiss federal patent attorney examination are held at least once a year. if less than four applications have been received, the examination committee may postpone the examination, whereby there may be no more than 25 months between two examination dates of any examination part. 2 the examination committee determines the application deadlines, the examination dates and the examination location and publishes these.3 neither part 3 nor part 4 of the examination may be split across more than one examination date.art. 10 admission 1 admission to the swiss federal patent attorney examination shall be granted to:a.any person who, on applying to take the examination, can provide proof of the requisite higher education qualification (art. 2) and of the requisite practical training (art. 27-30); andb.has paid the examination fee by the application deadline.2 any person who applies for admission to the examination must submit the following:a.the documents evidencing his or her higher education qualification;b.a certificate confirming the completion of practical training (art. 30).3 the examination committee may require a candidate, the candidate's institution of higher education or the candidate's supervisor (art. 28) to provide additional information or proof.4 the examination committee shall decide on admission to the examination by issuing a ruling.art. 11 examination language 1 the candidate may take the examination parts administered by the examination committee in german, french or italian.2 the candidate must indicate the examination language on applying to take the examination.art. 12 parts 1 and 2 of the examination 1 parts 1 and 2 must be completed within the framework of the european qualifying examination conducted by the european patent office.2 in exceptional circumstances, the examination committee may offer substitute examinations that are equivalent to examination papers a and b of the european qualifying examination.art. 13 preparation of examination content 1 the examination questions are prepared by at least two examiners. they establish the marking criteria.2 the examiners must submit the examination questions and the marking criteria to the examination committee for approval.3 the examination committee ensures the examination papers are translated into the respective languages for which applications have been received.art. 14 part 3 of the examination 1 part 3 of the examination is conducted in writing.2 at least one of the examiners who prepared this part of the examination must be present. he or she advises the candidate on the details pertaining to the conduct of the examination prior to commencement of the examination.3 this part of the examination shall have a duration of six hours.4 the candidate shall provide the answers to the examination in anonymised form. 5 the examiners entrusted with marking the examinations shall determine their assessment jointly.art. 15 part 4 of the examination 1 part 4 of the examination is conducted orally.2 two of the examiners who prepared this part of the examination must be present for part 4.3 this part of the examination shall have a duration of one hour. in justified cases, it may be extended to a maximum of 75 minutes.4 the examiners shall determine their assessment jointly.art. 16 presence of third parties at the examination 1 the swiss federal patent attorney examination is not public.2 the examination committee may grant persons with a proven justified interest to be present during the examination.3 the members of the examination committee and seri representatives are permitted to be present ex officio.art. 17 passing of parts 1 and 2 of the examination and resitting the substitute examination 1 parts 1 and 2 of the examination in accordance with article 12 paragraph 1 are deemed to have been passed when the person:a.has passed both papers a and b of the examination; orb.has passed the european qualifying examination in full.2 parts 1 and 2 of the substitute examination taken in accordance with article 12 paragraph 2 are deemed to have been passed if both parts of the examination have been passed individually.3 any person who twice fails one part of the substitute examination taken in accordance with article 12 paragraph 2 shall be excluded from any further examinations.art. 18 passing and resitting parts 3 and 4 of the examination 1 parts 3 and 4 of the examination are deemed to have been passed if both parts of the examination have been passed individually.2 any person who twice fails one of the examination parts shall be excluded from any further examinations.art. 19 withdrawal 1 candidates may withdraw their application up to 14 days prior to the commencement of the examination. the examination fee will only be refunded in this case.2 after this time, withdrawal is only possible where the candidate has a valid excuse. in particular, the following are deemed to be valid excuses:a.maternity;b.illness or accident;c.death of a closely related person;d.unforeseen military, civil defence or civilian service.3 notice of withdrawal must be given immediately in writing and the reasons therefor must be documented.4 candidates who do not withdraw from the examination in due time in accordance with paragraph 1 or who do not have a valid excuse are deemed not to have passed the relevant part of the examination.5 where a candidate withdraws, with a valid excuse, from an examination that has already commenced, the candidate must apply for the next examination date, or this part of the examination will be deemed not to have been passed.6 the candidate must resit the interrupted examination in full and pay the examination fee again.art. 20 examination results 1 the examination committee shall decide at a meeting on whether the examination parts have been passed. a representative of seri shall be invited to attend this meeting.2 the examination committee shall notify the candidate, within three months, in a written ruling of the result of the examination parts taken by him or her.3 the swiss federal patent attorney examination has been passed when all four examination parts in accordance with article 8 are deemed to have been passed. in this case, the examination committee issues confirmation in the form of a certificate.art. 21 retention of examination scripts 1 the examination committee shall ensure that all examination scripts are retained for a period of two years following notification of the examination results.2 where an objection is filed, the examination scripts must be retained until the decision on the objection has become legally binding.3 the candidate may request to view his or her examination scripts retained in accordance with paragraph 1 or 2.art. 22 sanctions 1 where it is established that the candidate obtained admission to the examination under false pretences by providing incorrect or incomplete information, the examination committee shall declare the passed examination parts to be invalid.2 where a candidate attempts to influence the examination result during an examination by dishonest means, the examiner shall report this to the examination committee. the examination committee shall decide whether, as a result, the respective examination part is deemed not to have been passed. where a candidate is caught attempting to cheat during an examination, he or she may complete the examination subject to reservation.section 4: recognition of foreign patent attorney examinations art. 23 general principles 1 the examination committee is responsible for the recognition of foreign patent attorney examinations.2 it decides by issuing a written ruling on the recognition of the foreign patent attorney examination and on the content and conduct of a qualifying examination.3 the agreement of 21 june 19994 between the swiss confederation and the european community and its member states on the free movement of persons applies to the recognition of foreign patent attorney examinations for the persons subject to this agreement.4 sr 0.142.112.681art. 24 application for recognition 1 any person who seeks to have a foreign patent attorney examination recognised must submit a written application to the examination committee. 2 the application must include documentation evidencing:a.that the applicant has taken a patent attorney examination; b.the specialised knowledge examined in the patent attorney examination. art. 25 qualifying examination 1 where the examination committee does not recognise the foreign patent attorney examination or recognises it only in part, the applicant may take a qualifying examination.2 any person who can, at the time of application, provide proof of a higher education qualification (art. 2) and practical training (art. 27-30), shall be admitted to the qualifying examination.3 the examination committee may require the applicant to submit documentation on the nature and duration of the professional experience acquired by him or her.art. 26 content and conduct of the qualifying examination 1 the qualifying examination covers the specialised knowledge which forms the subject matter of the swiss federal patent attorney examination and which has not already been examined in the course of education in the country in which the patent attorney examination was taken.2 in determining the content of the qualifying examination, the applicant's relevant professional experience may be taken into consideration.3 the examination committee shall decide on a case by case basis on the form, conduct and marking of the qualifying examination.4 the provisions pertaining to the examination language (art. 11), withdrawal (art. 19) and sanctions (art. 22) apply by analogy to the qualifying examination.5 the examination committee shall notify the applicant in a written ruling of the result of the qualifying examination taken by him or her within three months.6 any person who twice fails the qualifying examination or parts of it shall be excluded from further examinations.chapter 4: practical training art. 27 objective and content 1 practical training allows the candidate to obtain, under supervision, practical experience that enables him or her to work independently as a patent attorney under the pataa.2 within the scope of obtaining the requisite practical training, the candidate shall, in particular:a.acquire specialised knowledge in accordance with article 7 and apply it in practice;b.become familiar with the authorities competent for patent matters in switzerland;c.learn to draft patent applications on the basis of documentation provided by a client and represent the client in grant procedures;d.become familiar with the formalities and time limits for the procedure of the grant of a patent in switzerland.art. 28 supervisor the following persons may supervise practical training:a.any person who is registered in the patent attorney register as a patent attorney;b.any person who has worked professionally as a patent attorney in switzerland for at least ten years on a full-time basis without being registered in the swiss patent attorney register;c.any person who has worked professionally as a patent attorney abroad for at least six years on a full-time basis as a regulated profession under the laws of the country of origin; ord.any person who is registered in the list of professional representatives maintained by the european patent office and has worked professionally as a patent attorney in switzerland for at least one year on a full-time basis.art. 29 territorial requirements 1 a minimum of twelve months of the practical training must be completed on a full-time basis under a supervisor with a place of business in switzerland.2 supervised professional work as a patent attorney in a foreign country will be recognised when it was completed on a full-time basis for at least eighteen months and where, as a result, the candidate:a.acquired the specialised knowledge in accordance with article 7 and applied it in practice;b.became familiar with the authorities competent for patent matters in switzerland; andc.became familiar with the formalities and time limits for the procedure of the grant of a patent in switzerland. art. 30 proof of practical training 1 on completion of the candidate's practical training, the supervisor must certify the following in writing:a.the duration of practical training;b.the level of employment in relation to a full-time equivalent;c.the place of employment;d.the activities performed.2 in cases of practical training in accordance with article 29 paragraph 2, the supervisor must also indicate in writing the extent to which the candidate achieved the training objectives in accordance with article 29 paragraph 2 by means of the performed activities.chapter 5: patent attorney register art. 31 application for registration in the patent attorney register 1 any person who wishes to be registered in the patent attorney register must submit the following to the swiss federal institute of intellectual property (ipi):a.the information in accordance with article 14 paragraph 1 letters b, c and, if applicable, letter d pataa; andb.the following documents:1.the certificate confirming that the swiss federal patent attorney examination has been passed, or2.the examination committee's decision on the recognition of the foreign patent attorney examination and, if applicable, the examination committee's decision that the qualifying examination in accordance with article 23 paragraph 2 and article 26 paragraph 5 has been passed, or proof that the requirements in terms of article 23 paragraph 3 are fulfilled.2 the application for registration will not be deemed to have been made unless the registration fee has been paid within the time limit set by the ipi.3 where the documents submitted are incomplete or where there is doubt as to their correctness, the ipi may request that additional information or proof be provided.4 where the applicant does not fulfil the requirements for registration in the register, the ipi shall reject the application. the registration fee shall not be refunded.art. 32 modification and deletion of particulars in the register 1 the ipi shall modify or delete particulars in the register on application by the registered person or ex officio.2 it shall modify or delete particulars ex officio when the information required for registration has changed, in particular, when the registered person no longer has an address for service in switzerland or the registered person's address for service in switzerland has changed.3 where the ipi modifies or deletes particulars ex officio, it shall notify the registered person of the intended amendment or deletion and set a time limit to respond. if the registered person does not comply with the time limit to respond, the ipi shall modify or delete the corresponding particulars.4 the ipi may delete particulars ex officio without invitation to respond where:a.the swiss federal department of justice and police orders the deletion;b.the examination committee subsequently declares an examination to be invalid;c.the registered person is deceased.art. 33 application for re-entry in the register 1 where a person whose registration has been deleted wishes to be re-entered in the register, and where the requirements for registration are fulfilled, submission of the certificate in accordance with article 12 paragraph 1 pataa shall suffice. 2 the registration fee must be paid in full for re-entry in the register.art. 34 dossier 1 the dossier shall be retained for a period of five years following deletion of a registration in the register or for a period of five years following rejection of an application for registration.2 the following persons may view the dossier:a.the person registered in the register;b.third parties who can prove a justified interest.art. 35 electronic communication 1 the ipi may permit electronic communication.2 it shall establish the technical details and publish them in a suitable manner.chapter 6: final provisions section 1: transitional provisions art. 36 higher education qualifications natural sciences or engineering degrees (bachelor's, master's, diplom or lizenziat) obtained at higher education institutions as defined in article 3 of the university funding act of 8 october 19995 are recognised as swiss higher education qualifications in accordance with article 4 pataa even if the higher education institution was not accredited at the time the qualification was awarded.5 sr 414.20art. 37 registration in the patent attorney register in accordance with article 19 pataa 1 any person who wishes to be registered in the patent attorney register in accordance with article 19 pataa must submit the following to the ipi:a.for applications in accordance with article 19 paragraph 1 letter a pataa, proof of working professionally as a patent attorney in switzerland and of a higher education qualification;b.for applications in accordance with article 19 paragraph 1 letter b pataa, proof of working professionally as a patent attorney in switzerland and proof of registration in the list of professional representatives before the european patent office.2 the application will not be deemed to have been made unless the registration fee has been paid within the time limit set by the ipi.3 where the documents submitted are incomplete or where there is doubt as to their correctness, the ipi may require that additional information or proof be provided.4 where the applicant does not fulfil the requirements for registration in the register, the ipi will reject the application. the registration fee will not be refunded.art. 38 use of the professional title during the transitional period persons who fulfil the requirements for registration in the patent attorney register in accordance with article 19 paragraph 1 pataa may use the professional titles "patent attorney", "patentanwltin" or "patentanwalt", "conseil en brevets" or "consulente in brevetti" during the time period for submitting their application in accordance with article 19 paragraph 2 pataa, even if they have not yet been registered in the patent attorney register.section 2: commencement art. 39 this ordinance comes into force on 1 july 2011.

935.91 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.federal acton mountain guides and organisers of other high-risk activitiesof 17 december 2010 (status as of 1 january 2014)the federal assembly of the swiss confederation,on the basis of articles 63 paragraph 1, 95 and 97 of the federal constitution1,and having considered the report of the national council legal affairs committee dated 27 march 20092,and the federal council report dated 26 august 20093,decrees:1 sr 1012 bbl 2009 60133 bbl 2009 6051section 1: general provisions art. 1 scope of application 1 this act applies to commercially offered high-risk activities in mountainous or rocky terrain and in or around streams or rivers where:a.there is a risk of slipping or falling or an increased risk due to rising water levels, falling rock or ice, or avalanches; andb.the activities require special knowledge or special safety precautions.2 the following activities are governed by this act:a.the activities of mountain guides;b.the activities of snow sports instructors that do not fall within the responsibility of ski lift or cableway operators;c.canyoning;d.river rafting and white water rafting;e.bungee jumping.3 the federal council may make further comparable high-risk activities subject to this act; in doing so, it must familiarise itself with the objective risks that may be expected when carrying out the activities concerned.art. 2 duties of care 1 any person who offers an activity that is subject to this act must take the measures that experience indicates are required, that are possible according to the state of the art and that are appropriate in the given conditions, so that the lives and health of the participants are not endangered.2 he or she must in particular:a.alert clients to the specific dangers that may be related to carrying out the activity concerned;b.assess whether the clients have the capacity to carry out the activity concerned;c.ensure that equipment is free of defects and installations are in a good condition;d.assess the suitability of the weather and snow conditions;e.ensure that staff are adequately qualified;f.ensure that a sufficient number of support staff are available according to the degree of difficulty and the danger;g.show consideration for the environment and in particular the habitats of flora and fauna.section 2: licensing art. 3 licensing requirement any person offering an activity subject to this act requires a licence.art. 4 licence for mountain guides 1 mountain guides are granted a licence if they:a.hold a federal professional education and training diploma as a mountain guide under article 43 of the vocational and professional training act of 13 december 20024 or have been awarded an equivalent swiss or foreign professional qualification; and b.guarantee that they will comply with the obligations under this act.2 the federal council regulates:a.the recognition of swiss or foreign professional qualifications;b.which activities under article 1 paragraph 2 letters c-e mountain guides may offer as individuals.4 sr 412.10art. 5 licence for snow sports instructors 1 snow sports instructors are granted a licence to guide clients in areas that do not fall within the responsibility of ski lift or cableway operators if they:a.hold a federal professional education and training diploma as a snow sports instructor under article 43 of the vocational and professional training act of 13 december 20025 or have been awarded an equivalent swiss or foreign professional qualification; andb.guarantee that they will comply with the obligations under this act.2 the federal council regulates the recognition of swiss or foreign professional qualifications.5 sr 412.10art. 6 licence for businesses offering activities under article 1 paragraph 2 letters c-e 1 businesses that offer activities under article 1 paragraph 2 letters c-e are granted a licence if they:a.are certified for the conduct of the activities concerned; andb.guarantee compliance with the obligations under this act.2 the federal council regulates the minimum requirements for certification.art. 7 granting and renewing the licence 1 the cantonal authority at the place of residence or registered office of the applicant grants the licence.2 licences are renewed in a simplified procedure.3 licences for mountain guides and for snow sports instructors are renewed if the holder meets the requirements under articles 4 and 5 and can provide proof of appropriate continuing education and training.4 the federal council issues the implementing provisions on granting and renewing licences, and in particular on granting and renewing licences for persons staying, resident or with registered office abroad.art. 8 effect of the licence 1 a licence from a cantonal authority is valid for the entire territory of switzerland.2 a licence for a mountain guide or for a snow sports instructor is personal and non-assignable.3 the foregoing provisions are subject to cantonal jurisdiction over stationary installations for carrying out activities governed by this act.art. 9 term of the licence 1 a licence for a mountain guide or a snow sports instructor is valid for four years.2 a licence for a business that offers activities under article 1 paragraph 2 letters c-e is valid for two years.3 licences for persons staying, resident or with registered office abroad may be made valid for a shorter term.art. 10 withdrawal of the licence the cantonal authority shall withdraw the licence if the holder no longer fulfils the requirements for being granting the licence.art. 11 fees 1 the cantons charge fees for granting, renewing and withdrawing the licence.2 the federal council regulates the level of the fees.art. 12 information the cantonal authority must provide third parties with information on whether a person holds a licence without proof of a legitimate interest being required.section 3: insurance and duty to provide information art. 13 1 any person holding a licence under this act must obtain professional indemnity insurance for the licensed activities according to the nature and extent of the risks related to his or her work or must provide equivalent financial security, and must inform his or her clients about his or her insurance cover.2 the federal council regulates the minimum amount to be insured and the requirements for equivalent security.section 4: cantonal restrictions on access to specific areas art. 14 the cantons may prohibit access to specific areas, in particular if this is required for nature or water protection reasons.section 5: criminal provisions art. 15 contraventions 1 any person who wilfully:a.provides incomplete, incorrect or misleading information in order to obtain a licence;b.works as a mountain guide or snow sports instructor without a licence or offers activities under article 1 paragraph 2 letters c-e,is liable to a fine not exceeding 10,000 francs.2 if the offender acts through negligence, he or she is liable to a fine not exceeding 5000 francs.art. 16 prosecution prosecution is the responsibility of the cantons.section 6: support for private legal entities art. 17 the confederation may establish or provide financial support to or hold participations in private legal entities. such entities must have the object of improving the safety of the activities governed by this act by introducing safety concepts and safety inspections.section 7: final provisions art. 18 implementation 1 the cantons implement this act, unless the confederation is declared responsible.2 the federal council issues the implementing provisions.art. 19 transitional provisions 1 cantonal licences for mountain guides and snow sports instructors that have been issued in accordance with previous cantonal regulations remain valid until their expiry date or for two years following the commencement of this act, whichever is sooner.2 persons working as mountain guides or as snow sports instructors on the commencement of this act who do not hold a cantonal licence must apply for a licence in their canton of residence within six months of the commencement of this act.3 the federal council regulates when businesses offering activities under article 1 paragraph 2 letters c-e that are already operating on the commencement of this act must fulfil the requirements hereof.art. 20 referendum and commencement 1 this act is subject to an optional referendum.2 the federal council determines the commencement date.commencement date: 1 january 201466 federal council decree of 30 nov. 2012

935.911english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinance on mountain guides and organisers of other high-risk activities(high-risk activities ordinance)of 30 january 2019 (status as of 7 april 2020)the swiss federal council,on the basis of articles 1 paragraph 3, 4 paragraph 2, 5 paragraph 2, 6 paragraph 2,7 paragraph 4, 11 paragraph 2, 13 paragraph 2, 18 paragraph 2 and 19 paragraph 3 of the federal act of 17 december 20101 on mountain guides and organisers of other high-risk activities (the act), ordains:1 sr 935.91chapter 1 general provisions art. 1 additional activities to which the act applies the act applies to the following activities in addition to those named in article 1 paragraph 2 thereof:a.the activities of aspiring mountain guides;b.the activities of climbing instructors;c.2the activities of mountain leaders.2 the correction of 7 april 2020 concerns the italian text only (as 2020 1191).art. 2 commercial activity 1 a person who earns a primary or secondary income by carrying on activities defined in article 3 paragraph 1 on the territory of the swiss confederation is considered to be carrying on a commercial activity. 2 a person who carries on activities defined in article 3 paragraph 1 of this ordinance exclusively under the supervision and responsibility of not-for-profit organisations whose internal structures and requirements guarantee the safety of the participants is not considered to be carrying on a commercial activity.chapter 2 licensing section 1 activities for which a licence is required art. 3 1 a licence is required in order to offer the following activities:a.mountaineering;b.alpine hiking from difficulty level t4 in accordance with annex 2 number 1;c.touring with skis, snowboards and similar snow sports equipment;d.snowshoe tours from difficulty level wt3 in accordance with annex 2 number 3, with the exception of snowshoe tours on signposted, open winter hiking trails or snowshoe routes;e.off-piste skiing from difficulty level ws in accordance with annex 2 number 2;f.use of vie ferrate;g.climbing frozen waterfalls and steep ice climbing;h.multi-pitch rock climbing;i.canyoning;j.river-rafting on flowing water from difficulty level whitewater iii in accordance with annex 3 with a raft as defined in article 2 paragraph 1 letter a number 12 of the inland navigation ordinance of 8 november 19783;k.whitewater sports on flowing water from difficulty level whitewater iii in accordance with annex 3 with a boat or other sports equipment such as a canoe, kayak, riverboard (hydrospeed), funyak or tube; l.bungee jumping, with the exception of activities performed by exhibitors who are licensed in accordance with article 25 paragraph 2 of the ordinance of 4 september 20024 on itinerant trade.2 off-piste skiing is considered to be downhill skiing using snow sports equipment in locations accessible by mountain railways but not within the area of responsibility of ski lift or cableway operators.3 canyoning is defined as entering or travelling in streambeds or riverbeds with limited escape options for which swimming or climbing techniques are required.4 bungee jumping is considered to be jumping from heights in a free fall while attached to an elastic cord, or a pendulum jump.3 sr 747.201.14 sr 943.11section 2 licensing art. 4 mountain guides 1 licensed mountain guides are authorised to guide clients within the scope of the activities defined in article 3 paragraph 1 letters a-h.2 the following are considered to be equivalent to a federal professional education and training diploma as a mountain guide (federal pet diploma):a.licences issued under previous laws in accordance with annex 4 number 1, if the holder can demonstrate that he or she has pursued the activity regularly and has completed sufficient further training; b.foreign certificates of competence which are recognised by the state secretariat for education, research and innovation (seri) as equivalent;c.5a diploma as an international mountain guide recognised by the international federation of mountain guide associations (ifmga).3 licensed mountain guides are authorised to conduct canyoning if the guide has completed additional training with the swiss mountain guide association (sbv) or holds a diploma recognised by the ifmga.6 5 correction of 15 oct. 2019 (as 2019 3159).6 correction of 15 oct. 2019 (as 2019 3159).art. 5 aspiring mountain guides 1 licensed aspiring mountain guides are authorised to guide clients within the scope of activities defined in article 3 paragraph 1 letters a-h if they do so under the direct or indirect supervision of and in joint responsibility with a mountain guide licensed in accordance with article 4.2 aspiring mountain guides are granted a licence if they:a.have passed the aspirant course of the swiss mountain guide association, an aspirant course recognised by the ifmga, or a foreign aspirant course recognised by the federal office of sport (fospo) as equivalent;b.guarantee that they will comply with their obligations under the act and this ordinance.3 licensed aspiring mountain guides are authorised to guide canyoning if the aspirant has completed additional training with the swiss mountain guide association or holds a diploma recognised by the ifmga and conducts the activity under the direct or indirect supervision of and in joint responsibility with a mountain guide licensed in accordance with article 4 paragraph 3.7 7 correction of 15 oct. 2019 (as 2019 3159).art. 6 climbing instructors 1 licensed climbing instructors are authorised to accompany clients within the scope of the activities defined in article 3 paragraph 1 letter h on condition that a safe ascent or descent:a.does not require the use of short roping;b.does not require crossing glaciers; andc.does not require the use of technical aids such as ice axes or crampons.2 climbing instructors are granted a licence if they:a.are a climbing instructor with federal pet diploma as defined in article 43 of the vocational and professional education and training act of 13 december 20028 (vpeta) or have earned a foreign certificate of competence recognised by seri as equivalent;b.guarantee that they will comply with their obligations under the act and this ordinance.3 licences issued under previous laws in accordance with annex 4 section 2 are considered to be equivalent to a climbing instructor with federal pet diploma if the holder can demonstrate that he or she has pursued the activity regularly and has completed sufficient further training.4 licensed climbing instructors are also authorised to accompany clients within the scope of the activities defined in article 3 paragraph 1 letter f on condition that the climbing instructor has completed additional training provided by or recognised by the swiss rock guides association or the swiss mountain guide association which covers the areas of safety and risk management when using vie ferrate. 5 trainee climbing instructors may conduct these activities under the direct supervision and responsibility of a person licensed for the activities defined in article 3 paragraph 1 letter h if this is necessary for their further training. 8 sr 412.10art. 7 snow sports instructors 1 licensed snow sports instructors are authorised to accompany clients within the scope of the activities defined in article 3 paragraph 1 letters c-e on the following conditions:a.the tour corresponds at a maximum to the following difficulty levels:1.ski tours: ws as defined in annex 2 section 2,2.snowshoe tours: wt3 as defined in annex 2 section 3,3.off-piste skiing: s as defined in annex 2 section 2, provided there is no risk of falling;b.no glaciers are crossed;c.apart from snow sports equipment, skins, ski crampons and snowshoes, no other technical aids such as ice axes, crampons or ropes have to be used in order to ensure the safety of the clients.2 the following are considered to be equivalent to a snow sports instructor with federal pet diploma:a.licences issued under previous laws in accordance with annex 4 section 3, if the holder can demonstrate that he or she has pursued the activity regularly and has completed sufficient further training;b.swiss certificates of competence recognised by fospo as equivalent;c.foreign certificates of competence recognised by seri as equivalent.3 trainee snow sports instructors may conduct these activities under the direct supervision and responsibility of a person licensed for the activities defined in article 3 paragraph 1 letters c-e if this is necessary for their further training.art. 8 mountain leaders 1 licensed mountain leaders are authorised to accompany clients within the scope of the activities defined in article 3 paragraph 1 letter d on the following conditions:a.the tour corresponds at a maximum to difficulty level wt3 in accordance with annex 2 section 3;b.no glaciers are crossed;c.apart from snowshoes, no technical aids such as ice axes, crampons or ropes have to be used in order to ensure the safety of the clients.2 the licence shall be granted if the mountain leader:a.is a mountain leader with federal pet diploma as defined in article 43 vpeta9;b.guarantees that he or she will comply with the obligations under the act and this ordinance.3 the following are considered to be equivalent to a mountain leader with federal pet diploma as defined in article 43 vpeta:a.foreign certificates of competence recognised by seri as equivalent;b.an international mountain leader (iml) qualification recognised by the union of international mountain leader associations (uimla).4 licensed mountain leaders are also authorised to accompany clients within the scope of the activities defined in article 3 paragraph 1 letter b on the following conditions:a.the alpine hike corresponds at a maximum to difficulty level t4 in accordance with annex 2 section 1; b.the mountain leader has completed additional training provided by or recognised by the berufsverband schweizer wanderleiter (association of swiss mountain leaders) or the swiss mountain guide association (sbv) which covers the areas of safety and risk management when undertaking alpine hikes up to level t4;c.the provisions of paragraph 1 letters b and c are fulfilled.5 trainee mountain leaders may conduct these activities under the direct supervision and responsibility of a person licensed for the activities defined in article 3 paragraph 1 letter d if this is necessary for their further training.9 sr 412.10art. 9 whitewater sports guides 1 licensed whitewater sports guides are authorised to accompany clients within the scope of the activities defined in article 3 paragraph 1 letter k.2 the licence shall be granted if the whitewater sports guide:a.is a canoeing instructor with federal pet diploma as defined in article 43 vpeta10 or has earned a foreign certificate of competence recognised by seri as equivalent;b.guarantees that he or she will comply with the obligations under the act and this ordinance.3 trainee whitewater sports guides may conduct these activities under the direct supervision and responsibility of a person licensed for the activities defined in article 3 paragraph 1 letter k if this is necessary for their further training.10 sr 412.10art. 10 businesses under article 6 of the act under article 6 of the act, businesses are authorised to accompany clients within the scope of the activities defined in article 3 paragraph 1 for which the business is certified.section 3 certification art. 11 certification body certification of businesses providing the activities defined in article 3 paragraph 1 must be undertaken by a certification body recognised by the federal department of defence, civil protection and sport (ddps).art. 12 recognition of certification bodies by the ddps 1 the ddps recognises certification bodies if they:a.certify in accordance with standard en iso/iec 17021-1:201511;b.use iso standards 21101:2014 adventure tourism - safety management systems - requirements12 and 21103:2014 adventure tourism - information for participants13 and the associated technical report iso/tr 21102:2013 adventure tourism - leaders - personnel competence14 for their safety management system;c.only use auditors who can demonstrate specialist knowledge of the activities defined in article 3 paragraph 1;d.ensure that the practical implementation of safety standards is monitored on the spot.2 recognition is valid for a maximum of five years. on application it may be extended for a maximum of five years at a time, following a reassessment of the requirements for recognition.3 recognised certification bodies are required to notify the ddps, immediately and without being asked, of any material changes relating to their recognition.4 if there are indications that a recognised certification body no longer meets the requirements for recognition, the ddps will conduct the necessary investigations. 5 the ddps may suspend or withdraw recognition with immediate effect if the requirements for recognition are no longer met. in minor cases, the ddps may impose restrictions or attach conditions to recognition until the deficiencies have been remedied.11 the standard may be viewed free of charge and obtained for a fee from the swiss association for standardisation, sulzerallee 70, 8404 winterthur; www.snv.ch.12 the standards may be viewed free of charge and obtained for a fee from the swiss association for standardisation, sulzerallee 70, 8404 winterthur; www.snv.ch.13 the standard may be viewed free of charge and obtained for a fee from the swiss association for standardisation, sulzerallee 70, 8404 winterthur; www.snv.ch.14 the technical report may be viewed free of charge or obtained for a fee from the swiss association for standardisation, sulzerallee 70, 8404 winterthur; www.snv.ch.art. 13 certification requirements 1 the minimum certification requirements as defined in article 6 paragraph 1 letter a of the act are met if:a.the safety management system of the business is based on the standards defined in article 12 paragraph 1 letter b;b.the business takes the necessary steps to achieve the protection objective defined in paragraph 2, using the risk analysis templates in annex 5;c.activities defined in article 3 paragraph 1 are implemented only by leaders and assistants who hold a recognised certificate of competence as defined in article 15.2 the protection objective for the conduct of activities as defined in article 3 paragraph 1 is fewer than five deaths per 10 million hours of activity.3 the federal department of defence, civil protection and sport (ddps) shall amend annex 5 whenever the risk analysis templates are revised.art. 14 recognition of certification obtained abroad 1 fospo recognises certification obtained abroad provided that the requirements defined in article 13 are met.2 before reaching a decision, it shall obtain an expert opinion on the institution in accordance with article 16 paragraph 1.3 it may suspend or withdraw recognition with immediate effect if the requirements for recognition are no longer met. in minor cases, fospo may impose restrictions or attach conditions to recognition until the deficiencies have been remedied.art. 15 recognition of certificates of competence for leaders and assistants 1 fospo recognises swiss and foreign certificates of competence for leaders and assistants (art. 13 para. 1 letter c) provided that the certificates were issued in compliance with the following requirements:a.the person has passed an examination and provided evidence of sufficient practical experience before the start of the examination.b.the examination was both theoretical and practical in nature and covered knowledge and skills relevant to safety.c.the examination lasted for at least one working day.d.the examination was conducted by at least two specialists, of whom at least one was neither the employer nor the person who provided training.e.the qualifications meet the requirements of a reputable switzerland-wide industry association, or a government body.2 before reaching a decision, fospo shall obtain an expert opinion on the institution in accordance with article 16 paragraph 1.3 the granting of recognition is published on the internet.4 fospo may suspend or withdraw recognition with immediate effect if the requirements for recognition are no longer met. in minor cases, fospo may impose restrictions or attach conditions to recognition until the deficiencies have been remedied.art. 16 safety plans and safety checks 1 fospo shall designate an appropriate institution which draws up and develops safety plans and safety checks, especially in the area of risk analysis templates, evaluating qualifications, evaluating foreign certification and providing resources for the certification process.2 it may conclude a service agreement with the institution, setting out the objectives of the collaboration, the services to be provided, the reporting and controlling specifications, and compensation.section 4 compulsory registration for persons from the eu and efta states art. 17 nationals of a member state of the european union (eu) or the european free trade association (efta) who did not obtain their professional qualification in switzerland and who wish to work in switzerland on a self-employed basis or as a posted worker for the purpose of providing a service must, before commencing their professional activities in switzerland, fulfil a compulsory registration requirement in accordance with legislation governing the compulsory registration and verification of professional qualifications for service providers in regulated professions.section 5 procedure art. 18 granting a licence 1 the applicant for the licence must submit the application in writing to the cantonal authorities of the applicant's place of residence or registered office. if the person is resident or has a registered office abroad, the application must be submitted to the cantonal authorities at the primary place of business.2 the application must contain the information and documents set out in annex 1.3 cantons may require that their own application form be used.4 the authority shall review the application and the accompanying documents within 10 days of submission. if the application is deficient or incomplete, the authority shall reject it and set a deadline for its correction or completion. if this deadline is not met, the application is considered to be withdrawn.5 the authority shall decide on the application within 10 days of the point in time at which the application is available in a complete and correct form.6 article 8 paragraph 2 and article 9 paragraph 1 of the ordinance also apply by analogy to aspirant mountain guides, rock climbing instructors, hiking guides and whitewater sports guides. 7 in all other respects the procedure is governed by cantonal procedural law.art. 19 renewing a licence 1 in order to renew a licence, holders of an individual licence for activities defined in article 3 paragraph 1 letters a-h and k must:a.prove that since the granting or last renewal of the licence, they have participated in further training of at least two days' duration offered or recognised by one of the professional organisations on the subject of safety and risk management and covering topics referred to in article 2 of the act;b.have professional indemnity insurance in accordance with article 13 of the act. 2 in order to have their licences renewed in accordance with article 6 of the act, businesses must:a.prove they have valid certification; if the certification expires during the three-year certification cycle in accordance with the standard en iso/iec 17021-1:201515, the licence is extended to the end of the certification cycle free of charge, on presentation of a successful monitoring audit;b.have professional indemnity insurance in accordance with article 13 of the act.3 in all other respects article 18 applies to the procedure.15 the standard may be viewed free of charge and obtained for a fee from the swiss association for standardisation, sulzerallee 70, 8404 winterthur; www.snv.ch.art. 20 reporting of changes licence holders are obliged to inform the competent cantonal authority within 30 days of the following changes:a.changes to the information in annex 1;b.non-extension/non-renewal of certification;c.changes in conjunction with the holder's professional indemnity insurance in accordance with article 13 of the act and article 24. art. 21 list of licences 1 a list of the licences awarded under articles 4-10 is published on the internet by the federal office of sport (fospo).2 this list contains the following data:a.last name and first name or company name of the licence holder;b.postal address;c.type of licence;d.date of expiry of licence;e.website of licence holder if the holder has made this information available voluntarily.3 data is entered in this list by the responsible cantonal authority.4 fospo and the responsible cantonal authority may edit the data.5 the data may be used only for the purpose foreseen in article 12 of the act.art. 22 measures in the event of a failure to observe provisions 1 the cantonal authority responsible for granting the licence shall take the necessary measures if it determines that the provisions of the act or this ordinance are not being observed, i.e. if:a.the conditions for granting the licence are no longer met;b.the licence holder no longer has professional indemnity insurance;c.the duty to provide information has been violated.2 if it is expected that the deficiency can be remedied, the authority shall set an appropriate deadline for remedying it. this deadline may be extended in justifiable cases.3 if there is no prospect of remedying the deficiency and it would be irresponsible to continue to offer the activity, the authority shall prohibit the licence holder from offering the activity and shall withdraw the licence.4 cantonal law enforcement authorities which determine that the provisions of the act or this ordinance have not been observed are required to report this to the cantonal authority responsible for the licence.art. 23 fees 1 the following fees are charged:a.for granting and renewing a licence: maximum chf 100;b.for withdrawing a licence: maximum chf 200.2 if the review of documents or the withdrawal of a licence necessitates an extraordinary amount of work, a fee of up to chf 100 per hour shall be charged. every half hour commenced is charged as a full half hour.3 expenses, in particular the costs of expert opinions, and fees charged by seri for the recognition of foreign qualifications shall be calculated separately and invoiced in addition to the basic fee schedule.4 in all other respects, the provisions of the general fees ordinance of 8 september 200416 apply.16 sr 172.041.1chapter 3 insurance and duty to provide information art. 24 compulsory insurance 1 the minimum cover provided by the licence holder's professional indemnity insurance as outlined in article 13 of the act must amount to chf 5 million annually.2 the following security is considered to be equivalent to professional indemnity insurance:a.a surety or bank guarantee declaration for the sum of chf 5 million;b.a blocked bank account holding chf 5 million.3 the insurance company or bank must be licensed by or registered with the responsible supervisory authority.4 article 13 of the act also applies to aspirant mountain guides, rock climbing instructors, mountain leaders and whitewater sports guides. art. 25 duty to provide information persons who hold licences under the act must inform their clients of their insurance cover or the equivalent surety or guarantee:a.in their contracts and their general terms and conditions;b.in booking confirmations and on tickets;c.on their websites or in their online information.chapter 4 cantonal variant inventory art. 26 cantons may list tours and downhill ski runs on their territory in an inventory which describes the training necessary for offering the respective tour or downhill ski run.chapter 5 applicability of criminal provisions of the act art. 27 article 15 of the act also applies to aspirant mountain guides, rock climbing instructors, mountain leaders and whitewater sports guides. chapter 6 final provisions art. 28 revocation of another decree the high-risk activities ordinance of 30 november 201217 is revoked.17 [as 2013 447, 2014 2767]art. 29 transitional provisions 1 licences issued under previous laws remain valid until the expiry of their period of validity.2 providers who are certified in accordance with article 6 of the act at the time when the ordinance comes into force may apply for a licence under the previous law until the end of the certification cycle. 3 certificates of competence obtained under previous laws and entered by the safety in adventures foundation on the list of training courses of 30 november 201818 meet the requirements of article 13 paragraph 1 letter c.18 the list of training courses (in german, french and italian only) may be viewed free of charge at: www.baspo.admin.ch > aktuell > themen (dossiers) > gesetz ber risikoaktivitten > merkbltter und links.art. 30 commencement this ordinance comes into force on 1 may 2019.annex 119 19 the correction of 7 april 2020 concerns the italian text only (as 2020 1191).(art. 18 para. 2 and 20 letter a)information and documents required in the licence procedure 1. information and documents required of natural persons 1 the application must contain the following information:a.last name, first name(s);b.date of birth;c.home town, or in the case of foreigners: place of birth;d.residential and business addresses.2 the application must be accompanied by the following documents:a.copy of the permanent residence permit, residence permit or current travel document, together with a visa where applicable;b.an extract from the commercial register which is no older than two months if the person has an entry in the commercial register; in the case of persons resident abroad, a certificate of registration in the corresponding foreign register should be submitted;c.for mountain guides, climbing instructors, snow sports instructors, mountain leaders and whitewater sports guides: a copy of the professional diploma or proof of training recognised as equivalent; d.for aspiring mountain guides: a copy of the diploma or certificate from the swiss mountain guide association aspirant course, an ifmga aspirant course or a foreign aspirant course recognised as equivalent by fospo;e.for mountain guides and aspiring mountain guides who are applying for a canyoning licence under article 4 paragraph 3 and article 5 paragraph 3: a copy of the certificate of additional training recognised by the swiss mountain guide association or the ifmga;f.for climbing instructors who are applying for a licence for the use of vie ferrate under article 6 paragraph 4: a copy of the certificate of additional training issued by or recognised by the swiss rock guides association;g.for mountain leaders who are applying for a licence for alpine hikes under article 8 paragraph 4: a copy of the certificate of additional training recognised by the berufsverband schweizer wanderleiter (association of swiss mountain leaders).2. information and documents required of private legal entities and sole proprietorships 1 the application must contain the following information:a.name;b.headquarters and registered office of any branches in switzerland;c.business address;d.name of responsible person.2 the application must be accompanied by the following documents:a.in the case of private legal entities with a registered office in switzerland: an extract from the commercial register which is not older than two months;b.in the case of private legal entities with a registered office abroad: a certificate of registration in the corresponding foreign register;c.valid certification in accordance with article 13.annex 2 (art. 3 para. 1 letters b-e, 7 para. 1 letter a, 8 para. 1 letter a and 4 letter a)difficulty levels for ski tours and snowshoe tours, off-piste skiing and alpine hiking the difficulty levels in the following scales20 apply with respect to this ordinance: 1.swiss alpine club (sac) alpine tour and hiking scale of 5 september 2012;2.swiss alpine club (sac) ski tour scale of september 2012;3.swiss alpine club (sac) snowshoe tour scale of september 2012.20 the scales may be viewed free of charge on the fospo website (in german, french and italian only) at: www.baspo.admin.ch > aktuell > themen (dossiers) > gesetz ber risikoaktivitten > merkbltter und links.annex 3 (art. 3 para. 1 letters j and k)whitewater difficulty levels whitewater i: easy viewclearwaterregular currents, regular waves, small swellsriverbedno serious obstacleswhitewater ii: moderately difficult viewpassage clearwaterirregular currents, irregular waves, mid-sized swells, weak breaking waves, eddies and reversalsriverbedsimple obstacles in the current, small dropswhitewater iii: difficult viewpassage easy to recognisewaterhigh, irregular waves, larger swells, breaking waves, eddies and reversalsriverbedsingle exposed boulders, drops, other obstacles in currentwhitewater iv: very difficult viewpassage not obviously recognisable; scouting is generally necessarywaterhigh, long-lasting swells, strong breaking waves, eddies and reversalsriverbedcurrent obstructed by offset boulders, higher drops with backflowwhitewater v: extremely difficult viewscouting is absolutely essentialwaterextreme swells, extreme breaking waves, eddies and reversalsriverbedextreme obstructions, high drops with difficult approaches or exitswhitewater vi: practically impassable generally not passable, possibly passable at specific water levelsannex 4 (art. 4 para. 2 letter a, 6 para. 3 and 7 para. 2 letter a)licences issued under previous laws 1. mountain guides 1.graubnden mountain guide licence acquired before 26 november 2000;2.bern mountain guide licence acquired before 1 january 2001;3.valais mountain guide licence acquired before 1 january 2001.2. climbing instructors swiss mountain guide association climbing instructor diploma acquired before 31 december 2011.3. snow sports instructors 1.graubnden ski instructor licence acquired before 26 november 2000;2.graubnden snowboard instructor licence acquired before 26 november 2000;3.graubnden cross-country ski instructor licence acquired before 26 november 2000;4.bern ski instructor licence acquired before 1 july 1999;5.valais ski instructor diploma acquired before 31 december 2003;6.vaud ski instructor licence acquired before 25 september 1996.annex 5 (art. 13 para. 1 letter b)risk analysis templates 1. in relation to certification, reference should be made to the following risk analysis templates of the institution as defined in article 1621 (available in german and french only): a.mountaineering, dated 31 august 2018;b.canyoning, dated 31 august 2018;c.river rafting, dated 31 august 2018;d.whitewater sports , dated 31 august 2018;e.bungee jumping, dated 31 august 2018.2. certification may be based on a different risk analysis, provided that an equivalent standard of safety is guaranteed.21 the risk analysis templates may be viewed (in german and french only) free of charge at: www.baspo.admin.ch > aktuell > themen (dossiers) > gesetz ber risikoaktivitten > merkbltter und links.

941.10english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.federal act on currency and payment instruments(cpia)of 22 december 1999 (status as of 1 january 2020)the federal assembly of the swiss confederation,based on articles 99, 122 paragraph 1 and 123 paragraph 1 of the federal constitution1, and having considered the dispatch of the federal council of 26 may 19992,decrees:1 sr 1012 bbl 1999 7258section 1 currency and legal tender art. 1 currency unit the swiss currency unit is the swiss franc. it is divided into 100 centimes.art. 2 legal tender the following payment instruments are considered to be legal tender:a.the coins issued by the confederation;b.the banknotes issued by the swiss national bank;c.swiss franc sight deposits at the swiss national bank.art. 3 obligation to accept 1 everyone is obliged to accept up to 100 swiss regular issue coins in payment. regular issue coins, commemorative coins and bullion coins are accepted at nominal value without restriction by the swiss national bank and the public cash offices of the confederation.2 everyone must accept swiss banknotes in payment without restriction.3 swiss franc sight deposits at the swiss national bank must be accepted in payment without restriction by any person holding an account there.section 2 coinage system art. 4 regular issue coinage 1 the confederation may operate a federal mint.2 the confederation shall mint and issue regular issue coins in order to meet demand for payment transactions.3 the federal council shall decide which regular issue coins are to be minted, put into circulation or withdrawn from circulation.4 the federal council shall decide on the design and the features of regular issue coins. it shall determine the denominations in agreement with the swiss national bank.5 the federal council shall regulate in an ordinance the exchange of coins by public cash offices of the confederation and the elimination of damaged, worn and counterfeit coins.33 amended by no i of the fa of 21 june 2019 (time limit for exchanging banknotes), in force since 1 jan. 2020 (as 2019 3769; bbl 2018 1097).art. 4a4 commercial services 1 the federal mint may provide commercial services to third parties provided these services:a.are closely connected with its main tasks;b.do not impede fulfilment of the main tasks; andc.do not require any significant additional material or human resources.2 commercial services shall be provided on the basis of a cost and performance accounting system at cost-covering prices as a minimum. the department responsible may authorise exceptions for certain services where there is no private sector competition.4 inserted by annex no 5 of the fa of 19 june 2015 (optimisation of the new accounting model), in force since 1 jan. 2016 (as 2015 4009; bbl 2014 9329).art. 5 provision of coinage 1 the national bank shall provide the required quantities of regular issue coins for payment transactions and shall take back without restriction the coins no longer needed against reimbursement of the nominal value.2 in order to guarantee the supply of cash, the national bank may issue regulations on the manner, place and time for the receipt and delivery of coins.3 destroyed, lost and counterfeit coins shall not be replaced.art. 6 commemorative coins and bullion coins 1 for numismatic requirements and investment purposes, the confederation may mint special quality regular issue coins, as well as commemorative coins and bullion coins. these coins may be issued above nominal value.2 the responsible government department5 shall decide on the nominal values, designs and features of commemorative coins and bullion coins. it shall also decide what commemorative coins and bullion coins are to be minted, issued and taken out of circulation.5 currently the federal department of finance.section 3 bank note system art. 7 issue of banknotes 1 the national bank shall issue banknotes commensurate with the demand for payment transactions. it shall determine their denominations and design.2 it shall take back without restriction the banknotes no longer needed against reimbursement of the nominal value.3 the national bank shall withdraw worn and damaged banknotes from circulation.4 in order to ensure cash distribution, the national bank may issue regulations on the manner, place and time for the receipt and delivery of banknotes.art. 8 replacement of banknotes 1 the national bank shall provide compensation for a damaged note, provided that its series and number are recognisable and the holder presents a part that is larger than half or proves that the missing part of the note has been destroyed. 2 the national bank shall not provide any compensation for destroyed, lost or counterfeit notes. art. 9 recall 1 the national bank may recall note denominations, types and series.2 the public cash offices of the confederation shall accept the recalled notes in payment at their nominal value for a period of six months following the first notice of recall.3 notwithstanding paragraph 4 and subject to article 8, the national bank is required to exchange at nominal value recalled notes that were issued from 1976 as part of the sixth banknote series or as a subsequent series.64 the equivalent value of recalled notes that are not returned for exchange shall be allocated after 25 years from the first notice of the recall as follows:a.one fifth of 90 per cent of the equivalent value shall go to the swiss fund for aid in cases of uninsurable damage by natural forces and of the remaining four fifths of the 90 per cent of equivalent value, one third goes to the confederation and two thirds to the cantons;b.10 per cent of the equivalent value shall be retained by the national bank in order to meet the exchange obligation under paragraph 3.76 amended by no i of the fa of 21 june 2019 (time limit for exchanging banknotes), in force since 1 jan. 2020 (as 2019 3769; bbl 2018 1097).7 amended by no i of the fa of 21 june 2019 (time limit for exchanging banknotes), in force since 1 jan. 2020 (as 2019 3769; bbl 2018 1097).section 4 sight deposits at the swiss national bank art. 10 in accordance with the national bank act (nba) of 23 december 19538, the national bank shall specify the conditions under which institutions offering payment transaction services may maintain swiss franc sight deposits.8 [as 1954 599, 1979 983, 1993 399, 1997 2252, 1998 2847 annex no 7, 2000 1144 annex no 4, 2004 297 no i 6. as 2004 1985 annex no i 2]. see now the fa of 3 oct. 2003 (sr 951.11).section 5 criminal provisions art. 11 1 any person who issues or puts into circulation coins or banknotes denominated in swiss francs in contravention of the provisions contained in article 99 of the federal constitution and in this act shall be liable to a custodial sentence of up to three years or to a monetary penalty.92 offences shall be subject to federal jurisdiction/.9 amended by art. 333 of the criminal code (sr 311.0) in the wording of the fa of 13 dec. 2002, in force since 1 jan. 2007 (as 2006 3459; bbl 1999 1979).section 6 referendum and commencement art. 12 1 this act is subject to an optional referendum.2 the federal council shall specify the commencement date.commencement date: 1 may 20001010 fcd of 12 april 2000.annex repeal and amendment of current legislation 1. the federal act of 18 december 197011 on the coinage system is repealed.2.-4. .1211 [as 1971 360, 1997 2755]12 the amendments may be consulted under as 2000 1144.

941.31english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.federal act on the control of the trade in precious metals and precious metal articles (precious metals control act, pmca)1of 20 june 1933 (status as of 1 january 2022) 1 amended by art. 75 no 2 of the trademark protection act of 28 aug. 1992, in force since 1 april 1993 (as 1993 274; bbl 1991 i 1).the federal assembly of the swiss confederation,based on articles 31bis paragraph 2, 31sexies and 34ter letter gof the federal constitution2,3and having examined the federal council dispatch dated 8 june 19314decrees:2 [bs 1 3; as 1981 1244]3 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).4 bbl 1931 i 888asection 1 definitions precious metal, precious metal articles and multi-metal articles art. 15 1 precious metals under this act are gold, silver, platinum and palladium.2 melt products are ingots, slabs, bars and granules produced by melting or recasting precious metal or melt material.3 melt material means:precious metals obtained through the extraction of raw materials or refining;waste products from the processing of precious metals or alloys thereof which are usable for reclaiming precious metal;material containing precious metal which is usable for reclaiming precious metal.4 precious metal articles are articles wholly comprised of precious metals with a legal standard of fineness, or articles made of precious metals with a legal standard of fineness in combination with a non metallic material. this does not include coins made of precious metals.5 multi-metal articles are articles made of a combination of precious metal with a legal standard of fineness and base metals.5 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).plated articles. imitations art. 26 1 plated articles are articles for which a layer of precious metal is fixed or plated to a substrate of another material.2 the minimum requirements for precious metal layers are set out in annex 1 hereto. the federal council shall specify the error tolerance and may adjust the provisions in the annex in line with international developments.3 imitations are:articles made of precious metals that are below the minimum legal standard of fineness or do not satisfy the other material conditions for precious metal articles;articles that qualify as multi-metal articles or plated articles but which are not marked as such or do not satisfy the material conditions for these categories of articles.6 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).section 2 fineness legal standards of fineness7 7 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).art. 3 1 fineness refers to the purity of precious metal contained in a unit of weight of a metal alloy, measured in parts per thousand.2 the legal standards of fineness for precious metal articles and multi-metal articles are set out in annex 2 hereto. the federal council may adjust these provisions in line with international developments.88 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).art. 49 9 repealed by no i of the fa of 17 june 1994, with effect from 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).error tolerance art. 5 the federal council10 shall define the extent to which and the circumstances in which error tolerances may be allowed for deviations from the standard of fineness.10 expression in accordance with no ii of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033). this amendment has been made throughout the text.section 3 trade in finished articles marking of goods; accuracy art. 611 where the act or the ordinance prescribes or authorises marks on goods, these must refer to the composition of the article. it is prohibited to apply a mark that is likely to be misleading to precious metal articles, multi-metal articles, plated articles or imitations or to items likely to be confused with these.11 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).precious metal articles; fineness mark art. 712 1 precious metal articles may only be placed on the market with a legal fineness mark.2 all parts of a precious metal article must at least meet the specified fineness. the central office for precious metals control (central office) may make exceptions on technical grounds.3 in addition to the fineness mark, articles of platinum or palladium must also bear a reference to the type of precious metal used.12 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).multi-metal articles; marking and appearance art. 7a13 1 multi-metal articles may be traded as such provided that they are marked accordingly and satisfy the material conditions.2 the actual composition must be clear from the mark. the precious metal parts must be clearly marked with the legal fineness in parts per thousand, the other metal parts with the type of metal used.3 the different metals must be visible from the exterior and differ in colour. multi-metal articles must not have the appearance of plated articles.13 inserted by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).plated articles and imitations; marking art. 814 1 plated articles may be traded as such provided that they are marked accordingly and satisfy the material conditions.2 plated articles must bear quality marks which must not leave any doubt as to their plated nature.3 imitations with precious metal coatings may be marked as gilded, silvered, platinised or palladised articles.4 plated articles and imitations must not bear any fineness marks.14 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).other marks and exceptions art. 8a15 1 the federal council may prescribe or authorise other marks for precious metal articles, multi-metal articles, plated articles and imitations.2 the federal council may provide for exceptions to the legally prescribed marks for special, i.e. technical and medical, purposes.3 the central office may issue more specific provisions on the type and form of the prescribed and authorised marks.15 inserted by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).material requirements; more specific provisions art. 8b16 1 the federal council shall issue detailed provisions on the requirements for precious metal articles, multi-metal articles and plated articles.2 it may authorise the central office to specify the technical details.16 inserted by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).responsibility mark a. obligation art. 9 1 in addition to the prescribed marks, precious metal articles, multi-metal articles and plated articles must also bear a responsibility mark.172 manufacturers who do not themselves produce the articles that they use may have their trademark stamped as a responsibility mark on the articles manufactured for them. articles 10 to 12 apply in the case of these marks.3 for watch-cases, members of manufacturer associations may use a collective responsibility mark with a serial number.184 an indication of the standard of fineness may not be applied unless a responsibility mark is applied at the same time.17 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).18 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).b. composition art. 1019 1 the responsibility mark is a symbol which in itself identifies the owner of the mark. it may consist of letters, figures, words, graphic representations or artistic forms, individually or in combination. the mark should not be likely to be confused with previously registered marks or with the official hallmarks.2 the imprint of the responsibility mark on the article must be clear and indelible.19 amended by art. 75 no 2 of the trademark protection act of 28 aug. 1992, in force since 1 april 1993 (as 1993 274; bbl 1991 i 1).c. application for registration art. 11 1 the responsibility mark must be submitted in writing to the central office20 for registration. the application must include the owner's place of residence and registered office and a precise description of the type of business as well as the evidence needed to prove the mark's compliance with legal requirements.2 an owner of a mark who is not listed in the swiss commercial register or is not resident in switzerland may be asked to provide collateral. this collateral serves as a guarantee for all claims under this act.3 the registration fee is payable on submission of the application.20 expression in accordance with no ii of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033). this amendment has been made throughout the text.d. registration art. 12 1 the central office shall maintain a register of all responsibility marks that fulfil the legal requirements. the applicant shall be notified of the registration decision by registered letter, which, in the case of refusal, contains information on the right of appeal against the decision.1bis registration applies for a period of 20 years from the date of registration. before expiry of this period, it may be extended for a further 20 years at a time on payment of the relevant fee.212 if, subsequently, the legal requirements for registration of a responsibility mark no longer apply, or if the registration period expires before an application for extension is submitted, the responsibility mark shall be deleted from the register.22 a mark may also be deleted from the register if the owner uses it in contravention of this act. deletion shall be ordered by the central office and the owner of the mark shall be notified by registered letter, which contains information on the right of appeal.3 .2321 inserted by art. 75 no 2 of the trademark protection act 28 aug. 1992, in force since 1 april 1993 (as 1993 274; bbl 1991 i 1).22 amended by art. 75 no 2 of the trademark protection act 28 aug. 1992, in force since 1 april 1993 (as 1993 274; bbl 1991 i 1).23 repealed by annex no 135 of the administrative court act of 17 june 2005, with effect from 1 jan. 2007 (as 2006 2197; bbl 2001 4202).controlling and hallmarking a. precondition art. 1324 1 watch-cases made of precious metal are subject to an official control before being placed on the market. the control must be applied for by the manufacturer or the party who places the watch-case on the market.2 for all other precious metal articles and for multi-metal articles, the owner of the articles may apply for an official control.24 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).b. purpose art. 14 the official control covers the accuracy and the permissibility of the marks stamped on the articles.c. officials hallmarks art. 1525 1 the accuracy of the fineness and responsibility marks stamped on the precious metal articles and multi-metal articles is certified by stamping the official hallmark.2 hallmarks bear the unique identification of the assay office conducting the official control.25 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).d. procedure art. 16 the official control is applied for by written application to the relevant assay office. only articles bearing a legal fineness mark and the responsibility mark may be controlled. the official control is certified by the official hallmark.e. objection art. 17 1 if the article submitted for controlling does not satisfy the legal minimum fineness or if the fineness mark stamped on the article does not match the actual fineness, the assay office shall refuse to grant its official hallmark and shall notify the central office, which shall order a second opinion.2 depending on the outcome of the second opinion, the central office shall either authorise the official hallmarking or it shall have the articles seized and shall file a criminal complaint.3 if the objection is justified but no offence appears to have been committed, the central office shall take the steps necessary for the further processing of the articles in question, which may not be placed on the market in switzerland. the costs thereby incurred are borne by the party submitting the article for controlling. the central office may order the destruction of the articles.f. fees. right of retention. appeal art. 18 1 for all articles submitted for an official control, a fee (control or hallmark fee) must be paid irrespective of the outcome of the control.2 for collection of the fees and expenses to be paid, a right of retention applies to the goods submitted for official control. in the event of dispute, claims are ruled upon by the central office. .2626 sentence repealed by annex no 135 of the administrative court act of 17 june 2005, with effect from 1 jan. 2007 (as 2006 2197; bbl 2001 4202).g. enforcement provisions art. 19 the federal council shall regulate the details of the procedure to be followed by the assay offices, the shape and composition of the official hallmarks, the means of notification of the official hallmark in switzerland and abroad, the running of the controls and the amount of the fees, which must not be of fiscal character.import art. 20 1 articles manufactured abroad and governed by this act may only be placed on the domestic market if they comply with the provisions of this act. the requirement for the official controlling of the watch-cases mentioned in article 13 paragraph 1 is extended to imported finished watches with such cases.272 the federal council may provide for exceptions for special articles.283 the articles governed by this act may be subject to comprehensive or random testing on import. if such testing reveals a that an offence has been committed, the article must be seized and forwarded to the central office so that it may file a criminal complaint. if the article does not meet the statutory requirements but no offence has been committed, it shall be returned across the border.294 watch-cases and watches subject to mandatory official controlling must be forwarded by the customs office conducting the import assessment to the appropriate assay office.305 in the case of travel samples which are imported by sales representatives in observance of the federal act of 1 october 192531 on customs and commercial treaties but which do not remain in switzerland, the provisions may be relaxed if a reciprocity agreement exists with the country of origin.27 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).28 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).29 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).30 amended by annex no 19 of the customs act of 18 march 2005, in force since 1 may 2007 (as 2007 1411; bbl 2004 567).31 [bs 6 465; as 1956 587, 1959 1343 art. 11 no iii, 1973 644, 1974 1857 annex no 7, 1980 1793 no i 1, 1992 1670 no iii, 1994 1634 no i 3, 1995 1816, 1996 3371 annex 2 no 2, 1997 2465 annex no 13, 2000 1300 art. 92 1891 no vi 6, 2002 248 no i 1 art. 41, 2004 4763 annex no ii 1, 2006 2197 annex no 50. as 2007 1411 art. 131 para.1]. see now: customs act of 18 march 2005 (sr 631.0).export art. 2132 1 precious metal articles, multi-metal articles, plated articles and imitations intended for export must bear the prescribed marks; in addition, watch-cases made of precious metal must also bear the prescribed official hallmark.2 however, domestic manufacturers may, of their own accord, provide such articles with marks that are customary or prescribed in the destination country.3 the federal council shall determine the requirements to be observed and the symbols used that the assay offices are permitted to use to confirm a standard of fineness as prescribed by the destination country. the federal council may define relaxed provisions for watch-cases that are verifiably exported directly to countries which stipulate mandatory controlling of watch-cases.32 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).transit art. 22 1 goods in direct transit may undergo an official control. article 20 paragraph 3 applies correspondingly.332 however, the provisions of this act apply to those articles that do not enter the domestic market and remain under customs supervision, but which are forwarded abroad with swiss transport papers duty unpaid.3 for the removal of articles from customs or bonded warehouses, art. 20, 21 and 22 paragraph 2 apply correspondingly.3433 amended by art. 75 no 2 of the trademark protection act of 28 aug. 1992, in force since 1 april 1993 (as 1993 274; bbl 1991 i 1).34 amended by annex no 19 of the customs act of 18 march 2005, in force since 1 may 2007 (as 2007 1411; bbl 2004 567).reporting of suspicious articles art. 22a35 if the central office suspects that imported, exported or transit articles unjustifiably bear or imitate a responsibility mark, maker's or assayer's mark that is not their own or that the provisions for the protection of intellectual property are violated in any other way, it shall notify the aggrieved party. the articles may be retained.35 inserted by art. 75 no 2 of the trademark protection act of 28 aug. 1992 (as 1993 274; bbl 1991 i 1). amended by annex no 6 of the fa of 22 june 2007, in force since 1 july 2008 (as 2008 2551; bbl 2006 1).hawking ban art. 2336 the hawking of articles subject to this act is prohibited. this ban also applies to the taking of orders by retail sales representatives.36 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).section 4 manufacture of melt products37 37 amended by no i 5 of the fa of 21 dec. 2007 on the abolition and simplification of licensing procedures, in force since 1 june 2008 (as 2008 2265; bbl 2007 315). manufacture of melt products 1. melter's licence art. 2438 authorisation is required for the commercial manufacture of melt products.38 amended by no i 5 of the fa of 21 dec. 2007 on the abolition and simplification of licensing procedures, in force since 1 june 2008 (as 2008 2265; bbl 2007 315).a. requirements art. 2539 1 individuals, commercial enterprises and cooperatives established under the code of obligations40 as well as comparable foreign enterprises may apply for a melter's licence.412 individuals must be entered in the swiss commercial register and have their place of residence in switzerland. they must be of good standing and offer proof of irreproachable business operations.3 commercial enterprises and cooperatives as well as swiss branches of foreign enterprises must be entered in the swiss commercial register. the persons entrusted with the administration and business management of the enterprises companies and cooperatives must be of good standing and offer proof of irreproachable business operations.39 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).40 sr 22041 amended by no i 5 of the fa of 21 dec. 2007 on the abolition and simplification of licensing procedures, in force since 1 june 2008 (as 2008 2265; bbl 2007 315).b. granting. renewal. withdrawal art. 26 1 the melter's licence shall on application be granted by the central office for a period of four years. on expiry of this period, the licence may be renewed provided that the applicant satisfies the statutory requirements.422 if a licence holder no longer satisfies any one of these requirements or has repeatedly violated the obligations assumed, the licence shall be automatically withdrawn by the issuing authority on a temporary or permanent basis.3 notice of the granting or withdrawal of a melter's licence shall be given in the swiss official gazette of commerce.434 .4442 amended by no i 5 of the fa of 21 dec. 2007 on the abolition and simplification of licensing procedures, in force since 1 june 2008 (as 2008 2265; bbl 2007 315).43 amended by no i 5 of the fa of 21 dec. 2007 on the abolition and simplification of licensing procedures, in force since 1 june 2008 (as 2008 2265; bbl 2007 315).44 repealed by annex no 135 of the administrative court act of 17 june 2005, with effect from 1 jan. 2007 (as 2006 2197; bbl 2001 4202).art. 2745 45 repealed by no i 5 of the fa of 21 dec. 2007 on the abolition and simplification of licensing procedures, with effect from 1 june 2008 (as 2008 2265; bbl 2007 315).2. . art. 2846 46 repealed by no i 5 of the fa of 21 dec. 2007 on the abolition and simplification of licensing procedures, with effect from 1 june 2008 (as 2008 2265; bbl 2007 315).art. 2947 47 repealed by no i of the fa of 17 june 1994, with effect from 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).a. . art. 3048 48 repealed by no i 5 of the fa of 21 dec. 2007 on the abolition and simplification of licensing procedures, with effect from 1 june 2008 (as 2008 2265; bbl 2007 315).b. obligations of the licence holder. marking art. 31 1 each melt product must be inscribed with the licence holder's mark. the die used for the mark must be deposited with the central office and may not be changed without the approval of this body. notice of the deposit of the die must be published in the swiss official gazette of commerce.2 the federal council shall specify the obligations of the holder of a melter's licence.determination of the fineness of melt products a. competence. purpose art. 32 1 only assay offices or trade assayers may determine the fineness of melt products.2 the control must determine the actual fineness of the melt product.b. procedure art. 33 1 the controlling agency shall first establish that a mark has been stamped in accordance with article 31. if not, the melt product shall be seized and the party requesting the determination reported. the case shall at the same time be referred to the central office, which shall ask the applicant to provide proof of origin of the melt product. if such proof cannot be furnished, or if there is any indication that an offence has been committed, the central office shall file a criminal complaint.2 if the melt product has been stamped, the control shall be conducted. once determined, the melt product is stamped with the mark of the assay office or trade assayer; the actual fineness must be specified at the same time.approval procedure. fees art. 34 1 the federal council shall regulate the details of the procedure for granting, renewing and withdrawing melter's licences and for fineness determinations. it may also issue regulations on the recognition of foreign official fineness determinations.492 the federal council shall regulate the fees to be paid for the official duties set out in paragraph 1. article 18 paragraph 2 applies correspondingly.49 amended by no i 5 of the fa of 21 dec. 2007 on the abolition and simplification of licensing procedures, in force since 1 june 2008 (as 2008 2265; bbl 2007 315).section 5 organisation central office a. reporting line art. 35 1 the central office is affiliated to the federal department of finance50 for the implementation of this act. it may be incorporated into an existing administrative unit within the department.2 the federal council shall regulate the organisation of the central office.50 name in accordance with art. 1 of the unpublished fcd of 23 april 1980 on the adaptation of federal law enactments to the new names of the departments and offices. this amendment has been made throughout the text.b. duties art. 36 1 the central office shall supervise the trade in precious metals and precious metal articles.2 in particular, it shall deal with the registration of responsibility marks and supervise the official controlling and hallmarking of precious metal articles. it is responsible for granting melter's licences and for supervising the determination of the fineness of melt products.51 it shall supervise the administration of the assay offices and the trade assayers. it shall issue the diplomas for sworn assayers52 and the assayer licence as trade assayers.51 version of second sentence in accordance with no i 5 of the fa of 21 dec. 2007 on the abolition and simplification of licensing procedures, with effect from 1 june 2008 (as 2008 2265; bbl 2007 315).52 expression in accordance with no ii of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033). this amendment has been made throughout the text.assay offices a. establishment, dissolution art. 37 1 the assay offices for precious metal articles shall be established by the cantons or by the communes or business associations authorised to do so by the cantons. establishment requires the approval of the federal department of finance. it may also order the dissolution of an assay office if its facilities and management do not comply with the existing regulations or if there is no further need for its existence. the cost of establishing and operating an assay office shall be borne by the authorities or associations authorised to establish it. these shall receive the fees charged by the assay office.2 in agreement with the appropriate cantonal government, the department may establish federal assay offices if this is necessary in the country's economic interests. in this case, the participating business sectors may be called on to contribute to the costs of establishment and any operating deficit of the assay offices. these assay offices report directly to the central office. the fees they receive flow into the federal budget.3 the organisation, fees, accounting and operations of all assay offices are regulated by the federal council.b. duties art. 38 1 the assay offices deal with the official controlling and hallmarking of precious metal articles. they may also determine the fineness of melt products. assay offices may be assigned a limited geographical area in which to operate. they are authorised to control the precious metal articles and melt products made in that area. the central office may make exceptions under certain circumstances. the assay offices are prohibited from trading in melt material and melt products or performing any melting on behalf of third parties. under certain circumstances, however, the federal department of finance may authorise them to carry out such melting.2 the assay offices shall support the central office in its supervision of enforcement of this act. in particular, they shall report to it all offences that come to their attention and take the necessary measures to establish the facts by themselves or as instructed by the central office or the police authorities.3 officers of the assay offices are bound to secrecy concerning all observations made in the course of their work or which, by virtue of their nature, are confidential.4 for losses incurred through incorrect execution of the duties entrusted to the assay offices, the confederation shall be liable in the case of federal assay offices, and the canton in all other cases, to the extent that the bodies at fault cannot bear the costs themselves.official sworn assayers a. diploma art. 39 1 officers of the assay offices responsible for controlling the precious metal articles and multi-metal articles to be officially hallmarked and for determination of the fineness of melt products must hold a federal diploma as sworn assayers.53 this shall be issued by the central office on their passing the diploma examination. the assayer thus qualified shall swear an oath or make solemn promise before the central office to faithfully discharge the official duties of the profession.2 the requirements for the acquisition of the federal diploma are determined by the federal council.53 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).b. obligations. responsibility art. 40 1 it is the duty of sworn assayers to comply with the provisions of this act, the implementing provisions and the directives of the central office and avoid anything that could encourage others to commit an offence. specifically, they may only perform fineness tests on melt products when the statutory requirements therefor have been met in each case and must immediately report all offences and administrative infringements under this act that come to their attention. article 38 paragraph 3 applies correspondingly.2 the central office shall supervise the work done by the sworn assayers. it may withdraw the diploma in the event of serious violations of the duties incumbent upon the holder of an assayer diploma or on account of proven incompetence. .543 sworn assayers are liable for all losses or damage caused by the incorrect or negligent execution of their work. article 38 paragraph 4 also applies.54 sentenced repealed by annex no 135 of the administrative court act of 17 june 2005, with effect from 1 jan. 2007 (as 2006 2197; bbl 2001 4202).trade assayers a. operating licence. duties art. 41 trade assayers must hold an assayer licence as trade assayer issued by the central office. this licence shall only be granted to assayers who hold a federal assayer's diploma, are resident in switzerland and are of good character. trade assayers are permitted to acquire a melter's licence.55 trade assayers shall swear an oath or make a solemn promise before the central office to faithfully discharge the official duties of their profession. they are authorised to ascertain the fineness of melt products and receive by way of remuneration the fees provided for in the implementing ordinance. they are not authorised to perform the official assaying and hallmarking of precious metal articles.55 version of the third sentence in accordance with no i 5 of the fa of 21 dec. 2007 on the removal and simplification of licensing procedures, in force since 1 june 2008 (as 2008 2265; bbl 2007 315).b. obligations. responsibility art. 42 1 it is the duty of trade assayers to keep a proper account of the determinations of fineness that they perform and all sums received in return. for the purposes of official investigations, the central office and the police authorities may inspect the books and enquire about specific entries. the bookkeeping rules shall be drawn up by the federal council.2 article 40 applies correspondingly. the withdrawal of an assayer's diploma means the withdrawal of the assayer licence as trade assayer.additional authorisation for trading in banking precious metals art. 42bis 56 1 trade assayers who themselves or through a group company trade on a commercial basis in banking precious metals require authorisation from and are subject to supervision of a financial market supervisory authority in accordance with article 61 paragraphs 1, 2 and 4 of the financial institutions act of 15 june 201857 (finia).2 if a company trades in banking precious metals of a trade assayer belonging to its group company, it also requires authorisation in accordance with paragraph 1.3 the provisions on the authorisation conditions for portfolio managers as defined in article 17 paragraph 1 of the finia apply by analogy. 56 inserted by annex no ii 11 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).57 sr 954.1section 6 appeals art. 4358 1 orders issued by the assay offices and by trade assayers may be contested by way of appeal to the central office.2 and 3 .5958 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).59 repealed by annex no 135 of the administrative court act of 17 june 2005, with effect from 1 jan. 2007 (as 2006 2197; bbl 2001 4202).section 7 criminal provisions60 60 as of 1 jan. 2007, the penalties and the prescriptive periods are to be interpreted and converted in accordance with art. 333 para. 2 to 6 of the swiss criminal code (sr 311.0) in the version of the fa of 13 dec. 2002 (as 2006 3459). 1. offences61 61 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).a. fraud62 62 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).art. 44 1 any person who submits articles for hallmarking or, for the purpose of sale, makes, commissions or imports, supplies or offers to supply articles under a mark that is liable to be misleading or that is prohibited under this act, being articles that do not meet the prescribed standard of fineness as precious metal articles or articles not meeting the provisions of this act, as multi-metal, plated or imitations, any person who stamps on precious metal articles or multi-metal articles a mark purporting to represent a higher fineness than actually exists, shall, if acting with intent, be liable to a term of imprisonment or to a fine not exceeding chf 100,000.632 if the offender acts professionally, he or she shall be liable to a term of imprisonment of at least one month.3 if the offender acts through negligence, he or she shall be liable to a fine not exceeding chf 50,000.64 excusable errors committed in the course of the manufacturing process are not classified as negligence.63 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).64 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).b. counterfeiting and falsification of stamps art. 4565 1 any person who counterfeits or falsifies swiss, foreign or international stamps (hallmarks or symbols), any person who uses such marks,any person who produces, procures or supplies to third parties devices for counterfeiting or falsification of such marks, shall, if acting with intent, be liable to a term of imprisonment or to a fine not exceeding chf 100,000.2 if the offender acts through negligence, he or she shall be liable to a fine not exceeding chf 50,000.3 article 246 of the swiss criminal code66 does not apply.65 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).66 sr 311.0c. improper use of stamps art. 4667 1 any person who intentionally makes improper use of official swiss, foreign or international stamps shall be liable to a term of imprisonment or to a fine not exceeding chf 100,000.2 if offender acts through negligence, he or she shall be liable to a fine not exceeding chf 50,000.67 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).d. stamp requirements, violation; misuse of marks and symbols; alteration of hallmarks art. 4768 1 any person who places on the market precious metal articles without a fineness mark or without a responsibility mark, melt products without a fineness mark or without a melter's or assayer's mark, or watch-cases without a hallmark,any person who issues or places on the market articles as multi-metal articles or plated articles without the required mark or without a responsibility mark,any person who, without authorisation, imitates or uses a responsibility mark or a melter's or assayer's mark that is not their own,any person who places on the market precious metal articles or melt products on which the fineness mark or the imprint of a hallmark has been altered or removed,shall, if acting with intent, be liable to a term of imprisonment or to a fine not exceeding chf 100,000.2 if the offender acts through negligence, he or she shall be liable to a fine not exceeding chf 50,000.68 amended by no i of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).e. acts without a licence art. 4869 any person who performs acts requiring one of the aforementioned permits without holding a melter's licence or an assayer licence as trade assayer shall be liable to a fine.69 amended by no i 5 of the fa of 21 dec. 2007 on the abolition and simplification of licensing procedures, in force since 1 june 2008 (as 2008 2265; bbl 2007 315).f. offences70 in hawking and in the acquisition of melt material 70 expression in accordance with no ii of the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033). this amendment has been made throughout the text.art. 49 any person who contravenes the hawking ban in articles 23 and 28,any person who violates the provisions on the acquisition of melt material for their own use,shall be liable to a fine .71.71 amounts deleted by art. 75 no 2 of the trademark protection act of 28 aug. 1992 (as 1993 274; bbl 1991 i 1).g. unauthorised reproduction of articles art. 50 1 officers of the central office or an assay office who make or commission a reproduction of an article submitted to the office shall be liable to a fine .72.2 article 40 paragraph 2 is reserved.72 amounts deleted by art. 75 no 2 of the trademark protection act of 28 aug. 1992 (as 1993 274; bbl 1991 i 1).2. offences in the course of business of legal entities and corporations art. 51 if offences are committed in the course of business of a legal entity or of a general or limited partnership, the criminal provisions apply to those persons who have or should have acted as governing officers, partners or employees. however, the legal entity or corporation is jointly and severally liable together with the convicted individuals for the payment of any fines imposed or costs awarded.3. confiscation art. 52 1 stamping devices used in violation of this act shall be forfeited.2 in the event of a conviction for fraud in terms of article 44, the court may order the confiscation of the articles involved in the commission of the offence. the articles in question must be destroyed. subject to the provisions of the federal act of 19 march 200473 on the division of forfeited assets, the proceeds from the sale of the metal shall be forfeited to the confederation.7473 sr 312.474 amended by annex no 5 of the fa of 19 march 2004 on the division of forfeited assets, in force since 1 aug. 2004 (as 2004 3503; bbl 2002 441).4. federal criminal law, application art. 53 unless otherwise stipulated in this act, the general provisions of the federal act of 4 february 185375 on federal criminal law apply.75 [as iii 404, vi 312 art. 5, 19 253, 28 129 art. 227 para.1 no 6; bs 3 303 art. 342 para. 2 no 3, 4 766 art. 61, 7 754 art. 69 no 4 867 art. 48. sr 3 203 art. 398 para.2 let. a]. today: the general provisions of the swiss criminal code (art. 334 scc - sr 311.0).5. criminal proceedings art. 54 1 and 2 .763 the central office and the assay offices must report any offences that come to their attention to the competent prosecuting authority. .7776 repealed (art. 342 para. 1 federal criminal justice act - bs 3 303; bbl 1929 ii 575). today: the criminal procedure code of 5 oct. 2007 (sr 312.0).77 second sentence repealed by annex 1 no ii 32 of the criminal procedure ordinance of 5 oct. 2007, with effect from 1 jan. 2011 (as 2010 1881; bbl 2006 1085).6. administrative offences a. criminal liability art. 5578 any person who, with intent or negligence, contravenes a provision of this act or of an implementing ordinance or of a general directive issued on the basis of such provisions or an individual order directed at him or her that makes reference to the penalty under this article shall be liable to a fine not exceeding chf 2000.78 amended by no 20 of the annex to the administrative criminal law act, in force since 1 jan. 1975 (as 1974 1857; bbl 1971 i 993).b. applicable law and prosecuting authority art. 5679 1 the general provisions of the federal act of 22 march 197480 on administrative criminal law (art. 2-13) apply.2 offences within the meaning of article 55 shall be prosecuted and judged by the central office in accordance with the federal act of 22 march 1974 on administrative criminal law. the assay offices are obliged to report to the central office any administrative offences that come to their attention. the sworn assayers and trade assayers are subject to the same obligation.79 amended by no 20 of the annex to administrative criminal law act, in force since 1 jan. 1975 (as 1974 1857; bbl 1971 i 993).80 sr 313.0section 8 transitional and final provisions art. 57 transitional provisions 1 domestic articles that are already manufactured at the time of this act coming into force and which satisfy the previously applicable provisions but not the provisions of this act may be submitted to an assay office within one year for the application of a transitional stamp. this transitional stamp shall entitles the owner of the article to sell it for a further three years. more precise provisions in this respect shall be drawn up by the federal council.2 .8181 repealed by no i 5 of the fa of 21 dec. 2007 on the abolition and simplification of licensing procedures, with effect from 1 june 2008 (as 2008 2265; bbl 2007 315).repeal of existing enactments art. 58 1 on commencement of this act, all previous enactments that are contradictory to the provisions hereof are repealed.2 in particular, the federal act of 23 december 188082 on the assaying and guarantee of the fineness of gold and silver articles and the supplementary act of 21 december 188683 as well as the federal act of 17 june 188684 on the trade in gold and silver waste products are repealed.82 [as 5 363, 10 45]83 [as 10 45]84 [as 9 266]commencement and execution art. 59 1 the federal council shall determine the date of commencement of this act.2 it shall issues the regulations required for the execution hereof.commencement date: 1 july 19348585 fcd of 8 may 1934 (as 50 345).final provision to the amendment of 17 june 199486 86 as 1995 3102; bbl 1993 ii 1033articles that were manufactured before the commencement of the amendment of 17 june 1994 and which satisfy the previous but not the new provisions may be placed on the market on a commercial basis for a maximum of one year after commencement of this amendment.final provision to the amendment of 15 june 201887 87 as 2018 5247, 2019 4631; bbl 2015 8901. amended by annex 1 no 3 of the fa of 19 march 2021, in force since 1 jan. 2022 (as 2021 656; bbl 2019 5451).1 trade assayers and group companies that, at the time of entry into force of the amendment of 15 june 2018, have a licence from finma in accordance with article 14 of the amla88 in the version of 1 january 200989 must appoint an audit firm licensed by the federal audit oversight authority in accordance with article 9a of the federal act of 16 december 200590 on the licensing and oversight of auditors to conduct an audit in accordance with article 24 of the finmasa91.2 trade assayers and group companies that, at the time of entry into force of the amendment of 15 june 2018, are affiliated to a recognised self-regulatory organisation in accordance with article 24 of the amla shall remain subject to its supervision.88 sr 955.089 as 2008 520790 sr 221.30291 sr 956.1annex 192 92 inserted by the fa of 17 june 1994 (as 1995 3102; bbl 1993 ii 1033). revised in accordance with no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2217).(art. 2 para. 2)minimum requirements of precious metals layers for plated articles 1. thickness: - platings of gold, platinum and palladium: 5 micrometers- platings of silver: 10 micrometers- gold-capped (coiffe or) watch-cases and additional parts: 200 micrometers2. fineness: - gold: 585 parts per thousand- platinum: 850 parts per thousand- palladium: 500 parts per thousand- silver: 800 parts per thousandannex 293 93 inserted by the fa of 17 june 1994, in force since 1 aug. 1995 (as 1995 3102; bbl 1993 ii 1033).(art. 3 para. 2)legal standards of fineness for precious metals articles and multi-metal articles 1. the legal standards of fineness are: - for gold:999 parts per thousand916 parts per thousand750 parts per thousand585 parts per thousand375 parts per thousand- for silver:999 parts per thousand925 parts per thousand800 parts per thousand- for platinum:999 parts per thousand950 parts per thousand900 parts per thousand850 parts per thousand- for palladium:999 parts per thousand950 parts per thousand500 parts per thousand2. for medals, the following standards of fineness also apply: - for gold:minimum999 parts per thousand986 parts per thousand900 parts per thousand- for silver:minimum999 parts per thousand958 parts per thousand900 parts per thousand835 parts per thousand- for platinum:minimum999 parts per thousand- for palladium:minimum999 parts per thousand

941.311english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinanceon the control of trade in precious metals and articles of precious metals(precious metals control ordinance, pmco)1of 8 may 1934 (status as of 1 september 2021)1 amended by no i of the o of 17 feb. 1993, in force since 1 april 1993 (as 1993 984).the swiss federal council,based on article 59 of the federal act of 20 june 19332 on the control of the trade in precious metals and precious metal articles (hereinafter the act),decrees:2 sr 941.31section 1 organisation of official bodies i. federal council art. 1 the federal council is the supreme body in all matters concerning the control of trade in precious metals and precious metal articles. specifically, its duties are to:a. appoint the officers of the federal central office for precious metals control (hereinafter the central office) in accordance with article 4 of the public officials regulations i of 24 october 19303;b. approve the reports of the federal department of finance4;c. issue directives to the federal department of finance, where the latter does not make orders independently under the act;d.5 .e.6 .3 [bs 1 610; as 1948 367, 1949 i 133 832, ii 1730. as 1952 659 art. 76 para. 2]. see today: the federal personnel act of 24 march 2000 (sr 172.220.1).4 name in accordance with art. 1 of the unpublished fcd of 23 april 1980 on the adaptation of federal legislation to the new names of the departments and offices. this amendment has been made throughout the text.5 let. d concerned the now repealed para. 1 and 2 of art. 54 of the act.6 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).ii. department of finance art. 2 the federal department of finance is responsible for the direct business management. specifically, its duties are to:a. appraise, submit motions for the attention of the federal council and to execute the decrees of the federal council;b. supervise the administration of the central office;c. report to the federal council;d. decide on the establishment of federal assay offices and determine the contribution fee paid by the business sectors involved towards the establishment and operating costs (art. 6);e. approve the establishment of assay offices by cantons, communal authorities or associations (art. 7);f. decide on the dissolution of cantonal and federal assay offices (art. 9);g. receive the reports of the central office and issue the required directives to this body (art. 4 let. a);h. approve the settlement of fees flowing into the federal coffers (art. 4 let. n);i. select the officers of the central office in accordance with article 4 of the public officials regulations i of 24 october 19307.7 [bs 1 610; as 1948 367, 1949 i 133 832, ii 1730. as 1952 659 art. 76 para 2]. see today: the federal personnel act of 24 march 2000 (sr 172.220.1).iii. central office 1 .organisation art. 3 the central office is affiliated to the directorate general of customs. .88 second sentence repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).2. duties art. 4 the central office is responsible for all business matters involved in supervising the trade in precious metals and precious metal articles. specifically, its duties are to:9a. submit motions and report to the federal department of finance and execute the instructions of the department;b.10 supervise the management of the assay offices and of sworn trade assayers (art. 18, 19, 33 and 34); approve the budgets and annual accounts of the assay offices (art. 19 para. 3);c.11 register the responsibility marks (art. 69-75);d.12 supervise the official controlling and hallmarking of precious metal articles and multi-metal articles (art. 81-123);e.13 arrange and supervise the diploma examination for sworn assayers and also issue and withdraw diplomas (art. 22 and 25);f. issue and withdraw assayer licences as trade assayers (art. 29 and 34);g.14 issue and withdraw melter's licences (art. 165, 166a and 166);h. supervise the determinations of the fineness of melt products (art. 173-178);i.15 register and store documents sent by the assay offices, by sworn trade assayers and by holders of melter's licences as well as other correspondence;k.16 procure new official stamps/hallmarks and destroy those which have become unusable17 (art. 113 and 114);l.18 supervise the domestic market (art. 15 para. 2);m.19 rule on appeals against orders of assay offices and trade assayers;n.20 keep accounts for the fees flowing into the federal coffers.9 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).10 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).11 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).12 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).13 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).14 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).15 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).16 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).17 the terms stamp and hallmark have the same meaning here.18 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).19 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).20 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).art. 521 21 repealed by no 1 of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).iv. assay offices 1. organisation a. establishment aa. federal assay offices art. 6 1 federal assay offices shall be established if and when necessary in the country's economic interests, particularly where a cantonal assay office does not exist. a federal assay office may be established for an area covering several cantons, or parts of various cantons may be included in its sphere of operation. establishment is effected by a decision of the federal department of finance.2 before establishment, opinions must be sought from the relevant cantonal governments and the business associations involved, which shall also receive precise details of the financial requirements that are made of them in the event of establishment. the department may request payment of collateral to secure these financial requirements.3 the department shall determine the organisation of the federal assay offices. the officers and sworn assayers22 are employees of the customs administration and are subject to its official regulations.22 expression in accordance with no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113). this amendment has been made throughout the text.bb. cantonal assay offices art. 7 1 cantonal assay offices are those established by a canton or by the communes or business associations authorised by a canton to do so. where a canton authorises a commune or a business association to establish an assay office, it has the duty to supervise the general management thereof. the central office is solely authorised to supervise the technical activities of the assay office and to issue technical directives concerning implementation of the act and its ordinances.2 prior to the establishment of an assay office, a draft of the office's organisational by-laws must be presented to the federal department of finance by way of the cantonal government. if the assay office is not established by the canton itself, details must be given on the procurement of the working capital required. the canton shall appoint a supervisory board for each assay office. a representative of the central office must sit on each supervisory board.3 the assay office may not commence operations until its establishment has been approved by the federal department of finance.4 the set-up and operating expenses of cantonal assay offices are borne by the establishing canton, communes or associations. the canton shall be liable for any deficit in operating expenses that may occur if the commune or association that set up the assay office is not in a position to cover it.b. staff of assay offices art. 8 1 the number and position of officers working at federal assay offices shall be determined by the federal department of finance. specifically, the latter shall appoint the senior staff, in response to the proposal of the directorate general of customs, and appoint the official sworn assayers.2 cantonal assay offices must have a sufficient number of officers to ensure the prompt execution of the functions of the office. the central office shall determine the required number of sworn assayers.3 the sworn assayers working at the assay offices, whose duty is to conduct the official assaying and hallmarking of precious metal articles and ascertain the fineness of melt products, must hold a federal diploma as a sworn assayer.4 officers of cantonal assay offices are selected as prescribed by the cantons, communes or associations. such selection requires the approval of the federal department of finance.5 the determination of the remuneration of officers of the cantonal assay offices is subject to approval by the federal department of finance, as are the rules drawn up by the cantons, communes or associations on the sureties to be paid by the agencies of the assay offices they establish.c. dissolution of assay offices art. 923 1 the relevant cantonal government or the business associations concerned must be notified of the intention to close an assay office. in the case of a cantonal assay office, sufficient notice must be given before dissolution.2 where a cantonal assay office is to be closed because the facilities and management no longer meet existing requirements, the canton, or the communes or business associations concerned, must be given sufficient time to remedy the situation.23 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).art. 10-1324 24 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).2. duties a. content art. 14 1 the assay offices must perform their duties in accordance with the statutory provisions and the directives that they receive from the central office.2 they shall take charge of the official controlling and hallmarking of precious metal articles (art. 13-17 of the act) and determination of the fineness of melt material and melt products submitted by private customers (art. 32 of the act). melting on behalf of third parties is only permitted with the special authorisation of the federal department of finance.3 in particular cases, the central office may entrust the assay office with the performance of tests and analyses with regard to violations of the law.4 if the assay office becomes aware of an offence or violation of its own accord, it must draw up the provisional findings required and then submit the file to the central office. the latter shall decide on any further measures to be taken.b. determination of scope of authority art. 1525 1 the central office shall assign the federal and cantonal assay offices a specific geographical scope of operation. in the case of cantonal assay offices, the scope of operation shall, as a rule, not extend beyond the boundary of the canton in question.2 the assay offices verify in the place of domicile of manufacturers, suppliers and dealers in their scope whether the articles governed by the act satisfy its conditions.25 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).3. operations art. 16 1 the assay offices shall be assigned suitable premises for their offices and laboratories. they shall also be provided with the required equipment, tools, materials and technical documentation. the central office shall issue the directives required in this respect.2 the official stamps given to the assay offices must always be kept under lock and key, and it must be ensured that they are used only by persons authorised to do so.3 the hours during which the offices of the assay offices are open shall be determined in agreement with the central office and publicised.4 the working hours of the officers of cantonal assay offices shall be regulated by directive of the federal department of finance.4. official stamps art. 17 1 the central office shall provide the assay offices with the official stamps required for the hallmarking of precious metal articles (art. 113 and 114).2 article 30 applies to the appearance of the stamps to confirm the fineness on melt products.5. controls a. controls and books art. 18 1 the assay office shall maintain a business log, which continuously records the arrival of articles to be processed, the processing itself and the return of the articles. each job is given a control number.2 .263 the assay office must keep accounts of its income and expenditures.4 the official registers, books and forms to be used by the assay offices are drawn up by the central office and sold to the assay offices at cost price.26 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).b. verification art. 19 1 the assay offices shall provide the central office with a monthly and quarterly summary of the checks they have conducted and their books, using the official form.2 the central office shall conduct regular checks of the assay offices' facilities, controls and books.3 cantonal assay offices must submit, before 1 december of each year, a budget for the income and expenses expected for the following year and the procurement of working capital, using the official form (three copies) by way of the appropriate cantonal authority. the budget must be presented to the central office for approval. observations made by the central office shall be brought to the attention of the relevant cantonal authority, which shall take charge of remedying the deficiencies identified.v. officially sworn assayers 1. assayer's diploma27 27 expression in accordance with no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113). this amendment has been made throughout the text.a. content art. 20 1 only holders of the federal diploma may be hired as officially sworn assayers with an assay office.2 the assayer's diploma shall be issued by the central office to candidates who pass the federal assayer's diploma examination28, provided that they meet the personal requirements.28 expression in accordance with no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113). this amendment has been made throughout the text.b. personal requirements art. 2129 1 candidates for the federal assayer's diploma must be at least 20 years old and be of good standing. good standing is to be proven by means of an extract from the swiss register of criminal convictions.302 the candidate must have undergone a corresponding training programme with a federal or cantonal assay office or trade assayer and must also have attended the centralised courses at the central office.31 3 the federal department of finance shall regulate the entry conditions for the training programme and issue directives on the content and duration of the training and of the central courses as well as on the examination requirements.4 the central office shall determine the curriculum and the programmes for the central courses and the examinations.29 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).30 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).31 amended by no i of the o of 6 nov. 2019 on fees for precious metal control, in force from 1 jan. 2020 (as 2019 3771).c. examination aa. examination board art. 22 1 the federal assayer's diploma examination is administered by a board of three members. this board comprises a senior employee of the central office as its chairman, an expert in the field and a sworn assayer.32 the latter two members of the board are appointed by the federal council for a term of three years33.2 the examination board meets when convened by its chairman.3 .3432 second sentence amended by art. 17 of the o of 6 nov. 2019 on fees for precious metal control, in force from 1 jan. 2020 (as 2019 3771).33 today: four years (art. 8g para. 1; sr 172.31)34 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).bb. examination process art. 2335 1 the federal assayer's diploma examinations are conducted as required on the order of the central office.2 an application to take the examination must be made in writing to the central office. the application fee must be paid at the same time. if the entry conditions are met, the central office shall invite the candidate to take the examination.35 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).cc. results of the examination art. 24 1 the examination board shall decide on the results after completion of the examination and shall notify the central office and the candidate thereof.2 candidates who have not passed the examination may apply to take it again. after three failed examinations, no further attempts may be made.d. swearing in and awarding of the diploma art. 25 1 based on the recommendation of the examination board, the central office shall issue the federal assayer's diploma and swear in the candidate, who shall swear an oath or make a solemn promise to faithfully discharge the official duties of the profession.2 .3636 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).2. duties of the profession art. 26 1 the official sworn assayers must perform their duties in accordance with the legal provisions, the associated implementing provisions and the specific instructions for the job.2 in particular, they may only conduct determinations of the fineness of melt products if the applicable conditions are met in each specific case.3 they are bound to secrecy concerning all observations made in the course of their work or which are confidential in nature.4 they must immediately notify the head of the assay office of any offences against the provisions of the act that may come to their attention in the course of their work.art. 2737 37 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).vi. trade assayers 1. definition of their work38 38 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).art. 28 1 trade assayers are authorised to conduct determinations of the fineness of melt material and melt products on behalf of third parties.392 they are not permitted to conduct official controlling or hallmarking of precious metal articles.403 for the acquisition of a melter's licence, the provisions of articles 165-165c apply.4139 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).40 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).41 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).2. operating licence art. 2942 1 an assayer licence from the central office is required to operate as a trade assayer. a company may be issued with an assayer licence as a trade assayer if it employs at least one sworn assayer.2 the assayer licence as trade assayer must be applied for in writing from the central office.3 if the requirements are met, the central office shall issue the assayer licence and give notice of this in the swiss official gazette of commerce.4 the central office shall maintain a register of the holders of such licences and shall periodically publish its content.42 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).3. marking art. 30 1 the trade assayer must have a mark which he strikes on the melt products assayed by him (art. 173-176).2 the mark shall comprise the holder's name, in full or abbreviated form, framed and accompanied by the word assayer. if the trade assayer also holds a melter's licence (art. 30 para. 1 of the act), he may register a combined assayer/melter's mark.433 for the registration of an assayer's or assayer/melter's mark, the same provisions apply as for the registration of a responsibility mark as set out in section 4.444 notice of the approved mark shall be given in the swiss official gazette of commerce at the same time as the operating licence.43 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).44 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).4. duties of the profession art. 31 1 in conducting determinations of the fineness, the trade assayer must comply with the provisions of the act and the ordinance and the specific directives issued by the central office.2 if the trade assayer becomes aware of any offences against the act in the course of his work, he must immediately bring this to the attention of the central office. if he suspects that a different offence has been committed, he must file a criminal complaint with the competent police or judicial authority.5. . art. 3245 45 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).6. registration art. 3346 1 trade assayers must register the documents and the accounts, results and observations concerning their fineness tests.2 these documents must be securely archived for a period of ten years.46 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).7. responsibility and supervision art. 34 1 the trade assayer shall be liable for all losses or damage resulting from incorrect or negligent performance of his work. the confederation shall not be held liable in any case. claims for damages must be filed with the competent civil courts.2 in cases of serious breaches of the duties incumbent on the trade assayer or of proven incompetence, the central office may withdraw an operating licence that it has previously issued. before doing so, it must grant the trade assayer in question an opportunity to make a formal response; this must be submitted in writing with the necessary evidence. notice of withdrawal shall be given in writing and shall specify the reasons therefor. .47 once final, notice of the withdrawal of an operating licence shall be given in the swiss official gazette of commerce.3 the central office must inspect trade assayers' business premises, work, register and accounts maintenance and storage of articles.4847 fourth sentence repealed by no iv 82 of the o of 22 aug. 2007 on the formal adjustment of federal law, with effect from 1 jan. 2008 (as 2007 4477).48 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).section 249 definitions of provisions on article categories and fineness50 49 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).50 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).alloys and fineness art. 35 1 a metal alloy within the meaning of article 3 paragraph 1 of the act is a solid combination of a precious metal with other metals. products made of homogeneous mixtures of precious metals with other substances and products manufactured using other methods such as electroforming or powder metallurgy are classified as alloys.2 objects that have a precious-metal or precious-metal-alloy layer produced by electrolysis which is sufficiently thick and resistant to be self-supporting when separated from the substrate are classified as precious metal articles made by electroforming.3 for articles made by electroforming, the fineness of the melted object must at least correspond to the applied fineness mark.waste products art. 35a51 waste products from the processing of precious metals or their alloys within the meaning of article 1 paragraph 3 letter b of the act are defined as:a. filings, turnings, cuttings, polishing waste, waste from silvering, gilding, platinisation and palladisation, ashes, refuse, unprocessed and pre-processed pieces no longer in use, waste from ingots, slabs, wire, rondelles, etc., waste from plating manufacture;b. precious metal waste stemming from dental technology;c. precious metal waste and scrap from all other trades and industries.51 inserted by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).solders art. 36 1 in principle, solders must consist of the same metal and an alloy of the same fineness as the article itself.2 the central office may permit the use of solders of an alloy with a lower fineness or of another material where this is necessary for technical reasons (art. 7 para. 2 of the act).3 in the case of solders under paragraph 2, a tolerance not exceeding ten parts per thousand is permitted on the fully melted object.filled-in objects art. 37 1 precious metal articles and precious metal parts of multi-metal articles must not contain inside any metals or substances that differ from the precious metal of the main mass.2 the central office may provide for exceptions for technical reasons (art. 7 para. 2 of the act).watch-cases art. 38 watch-cases within the meaning of the act are defined as all surroundings of watch mechanisms. the central office shall decide whether and which types of surroundings of watch mechanisms must be classified as watch-cases within the meaning of the act.coins, medals art. 39 1 coins are defined as pieces of metal that have been issued as a means of payment by the entity authorised to mint coins or on its behalf and whose weight, fineness and nominal value are specified by law.2 coins that are out of circulation are classified as coins.3 medals within the meaning of annex 2 to the act are metal collector pieces that resemble coins but have no market value. small bars designed to be used as jewellery items are classified as medals if they have been manufactured by assayers/melters recognised by the central office.mixed articles art. 40 mixed articles are articles that have been manufactured from different precious metals with a legal standard of fineness.multi-metal articles art. 41 the central office shall regulate the technical details concerning the requirements for multi-metal articles.mechanisms and other components art. 42 precious metal articles may have mechanisms and other components made of other materials if this is necessary for technical reasons. the central office shall specify the details.plated articles art. 43 1 with plated articles, the precious metal layer must be applied by a mechanical, electroplating, chemical or physical method at least on the surface that determines the article's appearance or function.2 the precious metal layer must be of the thickness prescribed in annex 1 to the act over the entire surface in accordance with paragraph 1, with the exception of those points that cannot be touched by a sphere measuring 5 mm in diameter.3 a coiffe or within the meaning of annex 1 to the act is a gold cap at least 200 microns thick that is inseparably attached to watch-cases and additional parts, specifically watch straps.4 the permissible minimum tolerance for the thickness of the precious metal layer is 20 percent.5 the mean fineness of the precious metal coating must not fall below the minimum fineness in accordance with annex 1 to the act.6 the central office shall determine the test and measurement method to be used.surface coatings and colour combinations art. 44 the central office issues the required provisions on:a. the permissible surface coatings for precious metal articles, multi-metal articles and plated articles;b. the colour combinations of metal alloys in the case of mixed articles and multi-metal articles.section 352 fineness marks, other marks and stamps 52 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113). exceptions art. 45 1 the following items need not be marked:a. precious metal articles for scientific or technical use or for medical or dentistry purposes;b. articles that are over 50 years old;c. musical instruments;d. works of art destined for public collections.2 any quality indications on the articles mentioned in paragraph 1 or on the associated advertising material must match the actual composition of the articles.precious metal articles art. 46 1 precious metal articles must bear the legal standard of fineness in parts per thousand, struck in arabic numerals.2 the fineness mark must be applied in a visible, legible and indelible manner and measure at least 0.5 mm in height.3 if an article comprises parts made of different alloys of the same precious metal, the fineness mark must refer to the lowest standard of fineness used. an exception is made for medals and small bars mounted on a stand made of a lower-quality alloy; in this case, a fineness mark is applied to each part correspondingly.4 additional marks, particularly the number of carats in the case of gold alloys or the term sterling for silver articles with a standard of fineness of 0.925, are permissible provided that they correspond to the actual composition of the articles.5 fineness marks on platinum and palladium articles must also show the complete or abbreviated name of the metal in question, such as pt or pd.6 fully gilded or gold-plated silver articles must be marked as silver.mixed articles art. 47 1 if the precious metals of a mixed article can be distinguished by their colour, the fineness marks must be applied to each precious metal.2 if, for technical or aesthetic reasons, the mark cannot be struck on one part, it may be applied to the other part.3 if the precious metals cannot be distinguished by their colour, only the fineness mark for the lowest-value precious metal may be applied. the order in which precious metals are valued is from silver to palladium, and then from gold to platinum.4 the central office shall regulate the details.multi-metal articles art. 48 1 for multi-metal articles, the parts made of precious metal and the parts made of non-precious metal must be marked separately:a. with the fineness mark and the responsibility mark on the precious metal parts;b. with the type of metal or the word metal on the parts made of base metal.2 if, for technical or aesthetic reasons, one part cannot be marked, the mark can be applied to the other part.3 the central office shall regulate the details.plated articles art. 4953 1 plated articles may be marked as follows:a. with the word plaqu, together with the type of production, the following letters being used:1. l for laminated coating,3. g for electrolytic plating; andb. with a responsibility mark.2 the mark under paragraph 2 may be supplemented by the name of the coating metal, the thickness of the layer in micrometres and the word microns in full or abbreviated form.3 the marks may be struck on an unplated part if, for technical or aesthetic reasons, they cannot be applied on the plated part.4 gold plated watch-cases and accessory parts may be also marked as follows: a. with two letters that indicate the type of plating, the following letters being used:1. gr for laminated coating,2. gp for all other types of coating,3. gc for gold capped or coiffe or;b. with digits that specify the thickness of the plating in micrometres; andc. with a responsibility mark.5 the central office shall issue directives on the permissibility of other marks or the marking of partially plated articles.53 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).prohibited marks on plated articles and imitations art. 50 1 for plated articles and imitations, the following marks are prohibited:a. fineness marks;b. marks providing information on the proportion or the weight of the precious metal used;c. marks together with the name of precious metals or other information likely to be misleading as to the actual value or the actual composition of the article.2 for imitations, information on the layer thickness is also prohibited.tableware and cutlery art. 51 tableware and cutlery may be marked with the silver content. the central office shall issue the relevant regulations.supplies and semi-finished products art. 5254 1 loose components (supplies) and incomplete articles or parts (semi-finished products) may be given a fineness mark and a responsibility mark. the person who assembles or completes the product is responsible for ensuring that the mark corresponds to the composition of the articles.2 semi-finished products are products destined for the manufacture of articles such as slabs, wires, tubes, profile sections and pre-processed pieces in a legal standard of fineness.54 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).art. 53-57 repealedsection 455 responsibility mark 55 amended by no i of the o of 17 feb. 1993, in force since 1 april 1993 (as 1993 984). responsibility art. 5856 1 in applying the responsibility mark or having such a mark applied, the owner of the mark becomes responsible for the correctness of the marks on the objects.2 the assayer/melter's mark provided for in article 30 is permitted as a responsibility mark.3 the assay offices may apply their mark, as per no. 2 of the annex, to articles instead of a responsibility mark if:a. the articles were made by private individuals who do not have their own responsibility marks;b. the articles do not have any responsibility marks, are destined for sale by public auction, and have been submitted by official institutions such as pawn brokers, lost property offices or debt collection offices.4 these marks may also be used for the correction of contested articles in the supervision of the domestic market.56 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).distinctiveness art. 59 1 the mark must differ from other responsibility marks already registered:a. in the combination of letters or digits;b. in the type or form of lettering;c. by adding, removing or modifying the surrounding shapes;d. in the graphical representation.2 the difference must be detectable at a magnification of 2.5x.collective responsibility mark art. 60 1 for watch-cases, several manufacturers may use a collective responsibility mark.2 they must set out the use of the collective responsibility mark in a regulatory document.3 the regulatory document must be approved by the central office.form of the collective responsibility mark art. 61 1 the collective responsibility mark shall consist of a specific identifying symbol.2 each manufacturer shall use a personal control number.3 in the mark itself, the symbol must surround the number.origin of the right to the mark art. 62 the right to the mark originates on entry in the register.priority art. 63 the right to the mark belongs to the person who was first to submit the reproduction of the responsibility mark to the central office.grounds for rejection art. 64 the following may not be registered as responsibility marks:a. symbols that do not meet the requirements set out in the act or in the ordinance;b. symbols that do not sufficiently differ from other symbols already registered;c. symbols that are in the public domain;d. symbols that offend against public order, common decency, federal law or state treaties;e. misleading symbols;f. official swiss, foreign or international assay marks or hallmarks.application for registration art. 65 1 to apply for registration of a mark, the following documents must be submitted to the central office:a. the registration application;b. a reproduction of the mark.2 for the application, the official forms for this purpose must be used.registration application art. 66 1 the registration application for individual marks shall comprise:a. the applicant's first and last names or company name;b. the place of registration and residence;c. the type of business;d. the date and the signature of the applicant or a representative.2 the registration application for collective responsibility marks shall comprise:a. the regulatory document;b. the list of the individual manufacturers with the first and last names or company name, personal control number and place of registration and residence;c. the date and the signature of the applicant or a representative.3 the registration application must be accompanied by:a. a extract from the commercial register less than one year old or, if the applicant is not entered in the commercial register, a proof of residence certificate less than one year old;b. a power of attorney if the applicant is represented by another party.reproduction of the mark art. 67 the registration application must be accompanied by:a. 10 black and white reproducible images of the mark, whereby the length of the mark image in each direction must be no less than 15 mm and no more than 30 mm;b. a small metal sheet with several imprints of the mark.examination of the application art. 68 1 the central office shall check to ensure that the application meets the requirements for registration.2 if there is an error in the application, the central office shall grant a deadline for rectification of the fault.3 if the error is not rectified by the given deadline, the central office shall either issue a further deadline or reject the application.registration art. 69 1 the central office shall enter the responsibility mark into the register if:there are no grounds for objection;the documents submitted are complete and correct;the registration fee has been paid.2 the central office shall issues the owner of the mark with a registration certificate. this serves as a certificate to use the responsibility mark.extension of registration art. 70 1 the registration period may be extended for a further 20 years in return for payment of a fee before expiry of the current period of validity.2 the central office shall send the owner of the mark or his representative a written reminder in advance that the period of validity is about to expire.obligation to notify and automatic instigation of an investigation art. 71 1 the owner of the mark must notify the central office of any changes concerning entries in the register.2 if the central office learns that a change has not been reported, it shall set the owner of the mark a deadline for reporting the change. if the deadline passes without a result, the central office shall conduct the necessary investigations ex officio.modifications and deletions art. 72 1 the central office shall enter modifications and delete entries in the register.2 the central office shall grant the owner of the mark an opportunity to make a formal statement before modifying entries in the register on the basis of investigations automatically instigated.3 changes made to the register are subject to a fee.register of responsibility marks art. 73 1 the central office maintains a register of the responsibility marks.2 this register shall contain the following information:the owner's first and last names or company name as well as their place of registration and residence;the type of business;the control number;the reproduction of the mark;the submission date;the registration date;modifications and deletions.3 the register of responsibility marks shall be open to the public.4 the assay offices shall keep a copy of the register.archiving of files art. 74 1 the central office shall maintain a dossier with all documents concerning the marks.2 it keeps the files from applications for a period of five years following deletion of the entry.3 it keeps the files from applications not resulting in registration for a period of five years.publication art. 75 1 notice shall be given of each registered responsibility mark in the swiss official gazette of commerce.2 the notice shall include the control number, a reproduction of the mark, the owner's details and the date of registration.3 in the case of collective responsibility marks, the numbers of the individual participants shall also be published.4 modifications and deletions shall also be published.art. 76-80 repealedsection 5 official controlling and hallmarking i. purpose of the official assay art. 81 1 the official control serves to ascertain whether precious metal articles and multi-metal articles have the legal standards of fineness and meet the other material requirements and whether they bear the prescribed marks and stamps.572 if the legal requirements have been met, this is certified by stamping the official hallmark.57 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).ii. the official assay 1. mandatory art. 82 1 watch-cases made of precious metal may not be placed on the market before undergoing official controlling and hallmarking.58 this provision also applies to watch-cases that are destined for export and have a standard of fineness required under the legislation of the destination country.2 watch-cases are deemed to be placed on the market as soon as they have left the manufacturing plant of the case manufacturer.3 in accordance with article 13 paragraph 1 of the act, the case manufacturer must apply for the official control to the assay office of its business area.4 for watch-cases in an unworked or finished condition that are to be sent directly to states that require the mandatory controlling of watch-cases, the official hallmarking may be dispensed with, subject to the provisions of article 138. based on the foreign statutory provisions, the central office shall stipulate the cases in which the aforesaid precondition applies and bring this to the attention of interested parties with appropriate presentation of guidelines with periodic updates. these guidelines shall also be forwarded to the customs offices responsible for export clearance.5958 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).59 amended by annex 4 number 62 of the customs ordinance of 1 nov. 2006, in force since 1 may 2007 (as 2007 1469).2. hallmarking of multi-metal articles art. 8360 only those multi-metal articles bearing a fineness mark and a responsibility mark on their precious metal parts may be given the official hallmark.60 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).iii. control procedure 1. introduction a. request art. 8461 the request for official hallmarking shall include a precise list of the articles submitted.61 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).b. enclosure of the article art. 85 1 the article to be controlled, in a clean condition, shall be enclosed with the request.2 if the consignment contains articles of different types, these must be arranged for testing by type and by fineness.3 watch-cases must be presented open for official hallmarking.624 the articles must be presented in full for official hallmarking. if only parts of an article are officially hallmarked, the applicant shall sign to accept liability that the finished objects meet the statutory requirements.635 if possible, the articles are presented in a manufacturing stage at which the risks of damage are kept to a minimum. they must be sufficiently along the manufacturing process that no changes may be made to either the stamped hallmark or the article itself in the finishing stages.6462 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).63 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).64 inserted by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).art. 8665 65 repealed by no 1 of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).2. formal verification art. 8766 1 the assay office shall check to ensure that the articles presented correspond to the details in the application and their marking complies with the provisions.2 if so, the request is registered.3 if the articles do not correspond to the details of the request or if they are not correctly marked, the assay office shall refuse to carry out the official hallmarking.66 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).art. 88-9067 67 repealed by no 1 of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).3. material verification a. . art. 9168 1 the determination of the fineness covers all parts of the article.2 the central office shall decide on the testing methods to be used.68 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).art. 9269 69 repealed by no 1 of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).b. method of sampling art. 9370 for the analytical sample, the required amount of material is either scraped or cut from the articles. the sample is taken from clean material, without any surface coating, solder, residue or any other substances.70 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).art. 9471 71 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).c. return of material72 72 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).art. 95 1 the cornets and the beads remaining in the pan as well as all other waste products from the sampling process must be returned with the tested articles.2 where the samples have been taken correctly, no compensation shall be payable for any loss in weight.d. touchstone testing73 73 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).art. 96 1 objects with fragile ornamentation, jewellery work, enamel or decorations for which the removal of a sufficient amount of metal for analytical testing is not advisable may be tested using a touchstone.2 watch-cases and other precious metal articles for which touchstone testing does not produce a conclusive result shall undergo analytical testing.e. certified material art. 9774 1 a written agreement may be made with the manufacturer on the conformity assessment of certified material.2 the central office shall issue directives on the general conditions for agreements.75 74 repealed by no i of the o of 19 june 1995 (as 1995 3113). amended by art. 21 of the o of 17 aug. 2005 on fees for precious metal control (as 2005 4317).75 inserted by art. 17 of the o of 6 nov. 2019 on fees for precious metal control, in force from 1 jan. 2020 (as 2019 3771).iv. objection procedure 1. principle art. 98 1 if the article submitted for verification does not satisfy the statutory minimum fineness or if the fineness mark stamped on the article does not match the actual fineness, the official hallmarking shall be deferred and an objection raised. the same shall apply where an objection is raised to a responsibility mark.2 the applicant shall receive provisional notification of this measure.3 if the objection concerns only individual pieces of the articles submitted, official hallmarking shall proceed for the remaining pieces.2. report to central office art. 9976 1 the assay office shall send the central office a report on the reason for and extent of the objection.2 the central office shall determine the circumstances in which the assay office must also send it the contested articles.76 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).3. procedure of the central office in the case of an objection to the fineness a. ordering of a second opinion art. 100 1 the central office shall order the verification of the articles submitted to it in a second opinion (art. 17 para. 1 of the act).2 the second-opinion test shall be conducted by the agencies of the central office or, exceptionally, by another assay office.7777 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).b. type of verification art. 10178 1 for the second opinion, article 93 and 95 are applicable.2 the central office shall decide on the methods of analysis to be used.78 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).c. article found to comply art. 102 1 if the second opinion determines that the article is of the legally prescribed fineness or that the mark affixed to the article corresponds to the legal fineness of the article, the central office shall order its hallmarking.2 the article shall be returned to the assay office, which must proceed with the hallmarking without any further testing.3 .7979 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).d. confirmation of an offence art. 103 1 if the objection by the assay office turns out to be justified and if an offence has been committed in accordance with article 44 of the act, the central office shall seize the article and file a criminal complaint.2 the applicant shall be notified of these measures in writing.e. justification of the objection without an offence being committed aa. procedure art. 104 1 if there is no indication that an offence has been committed, despite the objection to the article being justified, the central office shall order the refusal of the official hallmarking. at the same time, it shall arrange for the necessary measures to be taken to prevent the disputed articles from being placed on the market.2 the applicant shall be notified of these orders and arrangements in writing.bb. safeguarding measures art. 105 1 as a rule, the contested articles must be made unusable. if the objection concerns only individual parts, only these are made unusable.2 the objects that have been made unusable are returned to the applicant.803 this provision has effect subject to the provision on the responsibility of the officers and sworn assayers in the case of unjustified destruction of articles.80 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).4. procedure of the central office in the case of an objection to the responsibility mark art. 106 1 if an objection is raised to the responsibility mark, the central office shall conduct an investigation.2 if the objection is found to be justified and if an offence has been committed in accordance with article 47 of the act, the article shall be seized and a criminal complaint filed.3 if it cannot be assumed that an offence has been committed, despite the objection to the responsibility mark, the central office shall impose a fixed penalty on the applicant and order him to affix the correct responsibility mark. the article shall be returned to the applicant unstamped for this purpose.5. expenses art. 10781 1 in the case of a justified objection, the applicant must pay the testing fee and expenses incurred.2 the central office's testing fees and expenses shall be collected by the assay office along with its own charges.81 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).v. stamping 1. procedure art. 108 1 if the result of the control does not raise any objection, or if any such objection is found to be unjustified by the second opinion, the assay office must proceed with the hallmarking.2 this is performed by stamping the official hallmark in accordance with the following provisions.3 if the article's size or shape poses difficulties for affixing the hallmark, the assay office must seek further instructions from the central office.2. hallmark a. type art. 10982 1 the appearance and size of the official hallmarks are specified in number 1 of the annex.2 the assay offices' distinctive symbols are specified in number 3 of the annex.82 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).art. 110-11283 83 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).b. delivery of the official hallmark84 84 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).art. 113 1 the official hallmarks shall be procured by the central office and delivered to the assay offices. the cantonal assay offices shall pay the cost price.852 the original hallmarks and dies used to apply the hallmark shall be stored under lock and key by the central office.3 the central office shall conduct a manufacturing check and verifies the hallmarks given to each assay office.85 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).c. storage of the hallmarks at the assay office and replacement art. 11486 1 the assay offices shall store the hallmarks in a safe place under lock and key.2 damaged hallmarks must be returned to the central office for destruction. the central office shall provide a replacement. hallmarks that no longer produce a perfect imprint may be withdrawn.86 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).d. periodic inspection of the hallmarks at the assay offices art. 115 1 the central office must arrange for an inventory and inspection of the assay offices' hallmarks to be carried out periodically. the manner in which the hallmarks are stored and used shall also be inspected.2 .8787 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).art. 11688 88 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).3. application of the hallmarks onto objects art. 11789 1 the assay office shall affix the official hallmark as close as possible to the fineness mark and the responsibility mark.2 at least one official hallmark must be visible on the exterior of the stamped object. the central office may designate the position at which the official hallmark has to be applied.3 if, for a watch-case, all marks are applied on the inside, at least a fineness mark must be visible on the exterior.89 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).4. agreement art. 117a90 1 a written agreement may be made with the manufacturer whereby the latter may have the hallmark affixed at its place of business with its own infrastructure by itself or its own staff.2 the hallmarking shall be carried out under the supervision of the assay office.3 the central office shall issue directives on the general conditions for agreements.91 90 inserted by art. 21 of the o of 17 aug. 2005 on fees for precious metal control (as 2005 4317).91 inserted by art. 17 of the o of 6 nov. 2019 on fees for precious metal control, in force from 1 jan. 2020 (as 2019 3771).vi. procedure for returning the article art. 11892 after hallmarking, the assay office shall return the article to the applicant in return for payment of the fees and expenses.92 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).art. 119-12093 93 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).vii. renewal of hallmarks 1. when replacing individual parts of the hallmarked article art. 12194 1 if individual parts of the article on which the assay office has applied its mark are subsequently to be replaced, an application must be made for a new controlling and hallmarking procedure.2 the replaced pieces must be presented to the assay office for removal of the hallmark.3 to renew the hallmark, the fee charged is half of the fee for a new stamp. if pieces are replaced as a result of a manufacturing error, and evidence to this effect exists, the hallmark shall be applied free of charge.4 the central office shall regulate the hallmarking of unmachined parts of precious metal articles and multi-metal articles and the procedure for subsequent submission of additional parts or finished articles for official hallmarking.94 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).2. replacement of a damaged hallmark art. 122 1 if stamped hallmarks are removed or damaged in the finishing and polishing process, a new hallmark must be obtained from the same assay office that applied the original one.2 if the new pieces to be hallmarked can be proven to correspond to those that were previously stamped, the new hallmark shall be applied without any further testing of the article. if this cannot be proven, the article shall be controlled once again.3 the provisions of article 84-120 apply correspondingly.4 no fee shall be charged for a new hallmark if the article is not controlled.viii. retention of documents art. 12395 the assay office shall retain all documents concerning the official controlling and hallmarking for a period of five years. these shall be given the control number of the job in question.95 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).art. 124-12596 96 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).section 6 import, export and transit i. import 1. permissibility art. 12697 1 precious metal articles, multi-metal articles, plated articles and imitations manufactured abroad may be placed on the market in switzerland only if they comply with the provisions of the act.2 watch-cases of precious metals and finished watches with such cases may not be placed on the market in switzerland until they have been officially controlled and hallmarked.3 this provision has effect subject to the following state treaties:convention of 15 november 197298 on the control and marking of articles of precious metals;agreement of 14 february 197299 between the swiss confederation and the republic of austria on the reciprocal recognition of official hallmarks on watch-cases of precious metals;exchange of letters of 30 october 1935100 between switzerland and spain on the hallmarking of precious metals;d.101 agreement of 19 june 2018102 between the swiss federal council and the government of the republic of france on the reciprocal recognition of official hallmarks on precious metal and multi-metal articles;agreement of 15 january 1970103 between the swiss confederation and the republic of italy on the reciprocal recognition of stamps on precious metal articles;f.104 agreement of 14 december 2011105 between the swiss federal council and the government of the russian federation on the reciprocal recognition of official hallmarks on watch industry products made of precious metals.97 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).98 sr 0.941.3199 sr 0.941.316.3100 sr 0.941.333.2101 amended by no i of the o of 18 april 2018, in force since 1 sept. 2021 (as 2021 472).102 sr 0.941.334.91103 sr 0.941.345.4104 inserted by no i of the o of 2 nov. 2011, in force since 2 aug. 2013 (as 2013 2345).105 sr 0.941.366.5art. 127106 106 repealed by no 1 of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).2. exceptions art. 128107 even if they do not meet the provisions of the act, the following articles are permitted for import:articles for the diplomatic corps;personal property transferred when moving residence and acquired by inheritance;personal effects;gifts, souvenirs, etc., addressed to private individuals by private individuals or sent on behalf of private individuals;e.108 articles imported as part of the tourist trade, destined exclusively for the personal use of the importer or as a gift;f. awards obtained abroad;g. staff loyalty gifts from firms.107 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).108 amended by annex 4 no 62 of the customs ordinance of 1 nov. 2006, in force since 1 may 2007 (as 2007 1469).3. procedure a. clearance offices art. 129109 the directorate general of customs shall decide on the customs offices through which articles governed by the act may be imported.109 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).b. import declaration art. 130110 1 articles governed by the act must be declared on import and reported to the relevant assay office.2 watch-cases and watches requiring official hallmarking must be presented to the relevant assay office, together with a hallmark request.110 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).c. clearance art. 131111 1 the assay offices may conduct the necessary analytical tests when controlling articles on import. articles 43 paragraph 6 and 91-96 are applicable.2 if an offence is established in the course of such testing, the article shall be seized and forwarded to the central office for the filing of a criminal complaint.3 if the articles do not comply with the provisions but no offence has been committed, they shall be returned on payment of the expenses incurred in the objection procedure.4 articles that comply with the provisions shall be released immediately and free of charge for forwarding to the recipient.111 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).art. 132-133112 112 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).4. temporary import art. 134113 samples of articles imported temporarily within the meaning of article 20 paragraph 5 of the act are not required to comply with the legal provisions. a deposit may be payable as collateral to ensure that they are subsequently exported or brought into order.113 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).ii. export 1. marking the article art. 135114 1 articles destined for export may only be given the marks that are prescribed or customary in the destination country if their composition actually matches such marks.2 to confirm fineness marks that comply with the provisions of the destination country (art. 21 para. 3 of the act), the official hallmark as per number 1 of the annex is used.114 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).2. procedure a. customs offices art. 136115 the directorate general of customs shall decide which customs offices are to be used for exporting the articles governed by the act.115 amended by annex 4 no 62 of the customs ordinance of 1 nov. 2006, in force since 1 may 2007 (as 2007 1469).b. export declaration art. 137116 the articles governed by the act must be declared on export and reported to the relevant assay office.116 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).c. export of unstamped watch-cases art. 138117 1 watch-cases that are sent abroad temporarily in accordance with article 82 paragraph 4 for assaying and hallmarking are cleared with a free-pass certificate.2 a deposit may be payable as collateral to ensure that the articles are re-imported.117 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).d. clearance art. 139118 article 131 applies to the export control of articles governed by the act.118 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).iii. transit 1. applicability of the legal provisions concerning import art. 140 1 .1192 articles imported from abroad that are not placed on the open market in switzerland and have been held under customs supervision, but which are to be forwarded unassessed to another country with swiss transport papers, may only be released for export if they meet the applicable requirements (art. 126-128) for import into switzerland (art. 22 para. 2 of the act).1203 to determine their existence, the procedure provided for in art. 129-132 applies correspondingly.119 repealed by no i of the o of 17 feb. 1993, with effect from 1 apr. 1995 (as 1993 984).120 amended by annex 4 no 62 of the customs ordinance of 1 nov. 2006, in force since 1 may 2007 (as 2007 1469).2. treatment of articles in storage art. 141 1 if articles imported from abroad are stored in a open customs warehouse or in a bonded warehouse, the fineness marks, responsibility marks and stamps required for export in accordance with article 6-9 of the act may be applied, or an official assaying and hallmarking be arranged, while in storage.1212 the provisions of art. 129-132 apply correspondingly.121 amended by annex 4 no 62 of the customs ordinance of 1 nov. 2006, in force since 1 may 2007 (as 2007 1469).section 7 . art. 142-144122 122 repealed by no i of the o of 26 may 2010, with effect from 1 july 2010 (as 2010 2219).art. 144a and 144b123 123 inserted by no i of the o of 19 june 1995 (as 1995 3113). repealed by no i of the o of 26 may, with effect from 1 july 2010 (as 2010 2219).art. 145 and 146124 124 repealed by no i of the o of 26 may 2010, with effect from 1 july 2010 (as 2010 2219).art. 147125 125 repealed no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).art. 148-152126 126 repealed by no i of the o of 26 may 2010, with effect from 1 july 2010 (as 2010 2219).art. 153127 127 repealed no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).art. 154-161128 128 repealed by no i of the o of 26 may 2010, with effect from 1 july 2010 (as 2010 2219).art. 162-163129 129 repealed no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).section 8 manufacture of melt products i. definition of commercial activity art. 164130 1 the manufacture of melt products for the purpose of reselling or on behalf of third parties in return for payment is deemed commercial.2 the manufacture of melt products for one's own use is not deemed commercial.130 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).ii. melter's licence 1. application art. 165131 a melter's licence must be applied for in writing from the central office.131 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).2. personal requirement art. 165a132 good standing in accordance with article 25 paragraphs 2 and 3 of the act must be proven by means of an extract from the swiss register of criminal convictions.132 inserted by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).3. supporting documents art. 165b133 1 individuals must enclose the following with their applications:a. an attestation of place of residence, issued by the communal authorities;b. an extract from their entry in the swiss commercial register;c. an extract from the swiss register of criminal convictions; andd. an attestation from the relevant communal or cantonal authorities showing that the facilities and premises being used for precious metal melting comply with environmental and fire-prevention regulations.2 commercial enterprises and cooperatives as well as the swiss branches of foreign companies must enclose the following with their applications:a. an extract from their entry in the swiss commercial register;b. an extract from the swiss register of criminal convictions for the members of management and for those persons in charge of transactions with melt material and melt products; andc. an attestation from the relevant communal or cantonal authorities showing that the facilities and premises being used for precious metal melting comply with environmental and fire-prevention regulations.133 inserted by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).4. decision on the application art. 165c134 1 the central office shall ensure that the conditions for issuing a melter's licence are met. it may call on assay offices to conduct investigations in this respect.2 if the conditions are met, the central office shall issue the melter's licence.134 inserted by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).5. renewal of the licence art. 166135 for the renewal of the licence, the central office may request the same supporting documents as for granting the licence.135 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).6. withdrawal of the licence art. 166a136 1 if any one of the requirements for issuing a melter's licence, as set out in article 25 of the act, is no longer met, or if the holder has repeatedly breached his obligations under articles 168-168c, the central office shall withdraw the melter's licence.2 the assay offices are obliged to immediately report any such facts to the central office, together with any documentary evidence they may have (certificates, witness statements, etc.).3 the central office shall notify the licence holder in writing of the reasons for withdrawal and fix a reasonable deadline for submitting a written formal response.4 once this has been received, it shall order the required inspection measures and make its decision, which it shall forward to the licence holder in writing.136 inserted by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).7. publication art. 166b137 in the notice of the granting or withdrawal of a melter's licence in the swiss official gazette of commerce, specific mention must be made of the name of the licence holder and, in the case of commercial enterprises and cooperatives, details of the management bodies and business premises.137 inserted by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).art. 167138 138 repealed by no i of the o of 26 may 2010, with effect from 1 july 2010 (as 2010 2219).iii. compliance with the licence 1. general obligations art. 168139 1 in carrying out its business activities, the holder of a melter's licence must strictly follow the provisions of the act, the associated implementing provisions and the special directives of the central office and do all in its power to avoid anything that could encourage an offence by third parties.2 the holder is obliged to refer to the fact that it holds a melter's licence on company nameplates, letterheads, in newspaper advertisements and on the internet.139 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).2. acceptance of melt material art. 168a140 1 the holder of a melter's licence is permitted to accept melt material only from persons who can prove their lawful acquisition.2 the licence holder must verify the customer's identity by means of valid documentation such as a passport or identity card.3 if there is any doubt concerning the origin of the goods or if the offer originates from unknown parties, it is the licence holder's duty to clarify in detail the origin of the melt material.4 in relation to the requirement of the holder of a melter's licence to report any offences against cantonal criminal laws that come to his attention, the provisions of the cantonal laws apply. any offences against federal provisions that come to its attention must be reported to the central office or to the relevant assay office or the nearest customs office. in addition, the provisions of the anti-money laundering act of 10 october 1997141 apply.5 if there is any suspicion that the articles on offer have been unlawfully acquired, the relevant police authorities must be informed immediately and their instructions obtained.140 inserted by no i of the o of 19 june 1995 (as 1995 3113). amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).141 sr 955.03. organisational measures art. 168b142 1 the licence holder shall take the necessary organisational measures in its firm to prevent the melting of melt material of unlawful origin. it shall oversee the performance of controls and ensure the existence of appropriate internal supervision and appropriate staff training.2 if, in application of article 168a paragraph 3, there is an obligation to clarify the origin of the article in more detail, the article shall be stored in an unaltered state by the licence holder until the case has been clarified.3 the documents on business transactions in melt material and melt products must be stored for a period of ten years.142 inserted by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).iv. bookkeeping art. 168c143 1 the holder of a melter's licence must keep records of his purchases of melt material and melt products.2 the bookkeeping must include at least the following details:the customer's name and address;the proof of identification prescribed in article 168a paragraph 2;the goods acceptance date;a precise description of the article, if necessary its composition, and its marking in the case of melt products;the weight at the time of acceptance;the weight after melting;completion of the transaction.3 the provisions set out in article 33 also apply in the case of trade assayers who hold a melter's licence.4 the above provisions do not affect the obligation to keep commercial accounts as stipulated in the code of obligations144.143 inserted by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).144 sr 220v. supervision art. 168d145 1 the central office shall maintain a register of the holders of melter's licences and periodically publish the content of this.2 the central office shall oversee the operations of holders of melter's licences. it may delegate this task to assay offices.3 the supervisory bodies must be permitted to inspect the business documents, commercial accounts and goods storage.145 inserted by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).vi. melter's mark146 146 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).art. 169147 1 the melter's mark comprises the holder's name, in full or abbreviated form, framed and accompanied by the word melter. if the melter also holds an assayer licence, he can apply for a combined assayer/melter's mark.2 for the application of the melter's mark, the same provisions apply as for the application of a responsibility mark as set out in section 4. the melter's mark is valid for the same length of time as the melter's licence.3 the application to register a melter's mark must be submitted at the same time as the application for the melter's licence. the applicant may apply to register two or more melter's marks.147 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).art. 170148 148 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).vii. individual melter's licence 1. licence149 149 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).art. 171150 1 manufacturers who themselves melt down their manufacturing waste for sale must hold an individual melter's licence. they may not perform melting for third parties.2 melt products destined for assaying or for sale which originate from holders of an individual melter's licence must be stamped with the individual melter's mark.150 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).2. individual melter's mark151 151 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).art. 172152 1 the individual melter's mark may not contain the word melter.2 the image of the individual melter's mark may correspond to that of the responsibility mark. the mark image applied to the melt products must measure at least 5 mm on its shortest side.3 for the registration of the individual melter's mark, the same provisions apply as for the registration of a responsibility mark as set out in section 4.4 the individual melter's mark is valid for a period of 20 years; for holders of a responsibility mark, its validity is limited for the same period as the corresponding responsibility mark.152 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).viii. determination of the fineness of melt products153 153 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).1. requirement art. 173 1 melt products destined for resale must be tested for their fineness and, as proof thereof, bear the stamp of an assay office (number 4 of the annex) or a sworn trade assayer.1542 the holder of the melter's licence may only apply the fineness mark himself if he also holds an assayer licence as trade assayer.154 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).2 means of testing art. 174 1 the purpose of such testing is to determine the actual fineness of the melt product (art. 32 para. 2 of the act).1552 for the manner in which the test is conducted, articles 91, 93 and 95 apply correspondingly.1563 the fineness determined must be stated in parts per thousand and fractions thereof.4 the fineness determined is stamped on each tested piece provided that the dimensions of the piece permit this. the mark of the assay office or of the trade assayer must also be applied.155 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).156 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).3. test method a. test of origin art. 175157 1 when melt products are submitted to an assay office or a trade assayer for testing, the articles must be immediately recorded in the business control or accounting system. the person submitting the article is given a receipt.2 the assayer checks whether the melt products are marked as set out in articles 169 and 171. if this is not the case, or if there is any reason to assume that the melt product has been acquired unlawfully, the test is postponed. the case must be reported to the central office together with a report and any more specific details. the central office shall conduct the necessary investigations and instigates criminal proceedings (art. 181) if necessary.3 if there is any suspicion that the articles submitted for testing have been unlawfully acquired, the relevant police authorities must be informed immediately and further instructions obtained.157 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).b. determination of the fineness and return art. 176 1 if the origin of the article does not raise any objection, or if, after examination, the central office declares an objection to be unfounded, the determination of the fineness shall be carried out.2 the assaying and stamping shall be carried out in accordance with article 174.3 .158158 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).c. second opinion art. 177159 1 if the owner of the melt product does not agree with the stamped fineness mark, he may request a second opinion from the central office.2 the second-opinion test is carried out in accordance with articles 100 and 101.3 if the second opinion reveals that the fineness mark stamped on the melt material is incorrect, the central office shall return the article to the office that conducted the original determination of the fineness with an order to make the corresponding change.4 if the determination of the fineness turns out to be correct, the person submitting the article shall be informed and receive the article against payment of the relevant fees.5 if the fineness mark has to be corrected, the office that applied it bears the costs of the second opinion.159 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).4. recognition of foreign determinations of the fineness art. 178160 1 determinations of the fineness made abroad on melt products are only recognised in switzerland if they have been made by recognised assayer/melters or if the melt products constitute banking precious metals.2 banking precious metals are:ingots and granules of gold with a minimum fineness of 995 parts per thousand;ingots and granules of silver with a minimum fineness of 999 parts per thousand;ingots and sponges of platinum or palladium with a minimum fineness of 999.5 parts per thousand.3 ingots must comply with standard practice on the international precious metal market in terms of shape, size, weight and marks. they must have at least a fineness mark and the stamp of a recognised assayer/melter.4 gold and silver granules and platinum and palladium sponges require packaging that is sealed by a recognised assayer/melter.5 the central office shall publish the list of recognised foreign assayer/melters.160 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).section 9 criminal proceedings i. filing a criminal complaint in the case of an offence 1. by holders of melter's licences and trade assayers161 161 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).art. 179 1 holders of melter's licences and sworn trade assayers are obliged to report to the nearest assay office any offence against the provisions of the act that comes to their attention.1622 their report must contain as much detail as possible and refer to any evidence that may exist. they are given printed forms for the reporting of offences.3 any offences against other criminal laws must be reported to the competent cantonal police and judicial authorities.162 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).2. by assay offices and customs offices163 163 amended by annex 4 no 62 of the customs ordinance of 1 nov. 2006, in force since 1 mai 2007 (as 2007 1469).art. 180 1 the assay offices are obliged to report to the central office any offence against the provisions of the act that comes to their attention. article 179 applies correspondingly.2 complaints filed by holders of a melter's licence and by sworn trade assayers are verified by the assay office, supplemented as far as possible, and forwarded to the central office.1643 the obligation to report offences within the meaning of paragraph 1 also applies to customs offices.165164 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).165 amended by annex 4 no 62 of the customs ordinance of 1 nov. 2006, in force since 1 may 2007 (as 2007 1469).ii. determining and investigating offences art. 181 1 if the central office receives a report of an offence against the provisions of the act, it shall take the necessary investigative measures. if these find that an offence has been committed in accordance with the act, the central office shall file a criminal complaint with the competent prosecuting authority.2 the central office shall proceed similarly if it is made aware of offences against other criminal laws.art. 182166 166 repealed by the o of 25 nov. 1974, with effect from 1 jan. 1975 (as 1974 1984).section 10 appeals i. requirements art. 183 1 .1672 an appeal is not permissible against the decisions of assay offices and trade assayers that also hold melter's licences in relation to melting carried out for third parties or the actions of holders of a melter's licence. disputes in such cases shall be settled by the competent civil courts by way of civil proceedings.168167 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).168 amended by no i of the o of 26 may 2010, in force since 1 july 2010 (as 2010 2219).ii. . art. 184-185169 169 repealed by no i of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).section 11 fees170 170 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113). i. fees art. 186171 1 the central office and the assay offices shall charge fees for their services and orders.2 the trade assayers charge fees for conducting fineness tests.3 the fees are based on the ordinance of 17 august 2005172 on fees for precious metal controls.1734 the cantonal assay offices and trade assayers shall keep the fees they charge.171 amended by no i of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).172 [as 2005 4317, 2010 2219 ii. as 2019 3771 art. 16]. now the o of 6 nov. 2010 (sr 941.319).173 amended by art. 21 of the o of 17 aug. 2005 on fees for precious metal controls (as 2005 4317).art. 187-189174 174 repealed by no 1 of the o of 19 june 1995, with effect from 1 aug. 1995 (as 1995 3113).ii. commencement and repeal of previous provisions art. 190 1 this ordinance comes into force on 1 july 1934.2 at this point, all enactments in contradiction hereto shall be repealed, specifically the following decrees and regulations:implementing ordinance of 15 november 1892175 on the control and guarantee of the fineness of gold and silver articles;federal council decree of 25 november 1892176 on the organisation and powers of the federal office for gold and silver articles;federal council decree of 8 june 1896177 on the stamping of watch-cases destined for russia;federal council decree of 23 october 1906178 on the control of gold watch-cases with a fineness of 14 carats destined for austria-hungary;federal council decree of 10 february 1914179 on the control of platinum articles;federal council decree of 8 september 1916180 on the implementation of article 1 of the federal act on the control and guarantee of the fineness of gold and silver articles;federal council decree of 2 february 1917181 on the mandatory control of platinum articles;federal council decree of 16 june 1917182 on the control of gold, silver and platinum articles presented for import;federal council decree of 2 july 1918183 on fees for assaying and controlling gold, silver and platinum articles;federal council decree of 31 march 1924184 on the optional hallmarking of gold watch-cases below the legal standard of fineness;federal council decree of 15 february 1929185 on fees for stamping gold, silver and platinum articles manufactured abroad presented for import;federal council decree of 2 july 1929186 on gold-plated or doubl articles;federal council decree of 29 november 1932187 on gold-plated or doubl watch-cases;implementing ordinance of 29 october 1886188 to the federal act of 17 june 1886 on the trade in gold and silver waste and scrap;federal council decree of 13 march 1916189 on the trade in gold, silver and platinum waste and scrap.175 [as 13 146, 15 462, 24 11 184]176 [as 13 174]177 [as 15 462]178 [as 22 639]179 [as 30 56]180 [as 32 333]181 [as 33 35]182 [as 33 378]183 [as 34 713]184 [as 40 101]185 [as 45 38]186 [as 45 321]187 [as 48 712]188 [as 9 291, 37 19]189 [as 32 85]final provision of 19 june 1995190 190 as 1995 3113precious metal articles that satisfy the new conditions but are still stamped with the old official hallmark may continue to be placed on the market.annex i191 191 repealed by art. 22 of the o of 4 nov. 1981 on fees for precious metal controls, with effect from 1 jan. 1982 (as 1981 1806).annex ii192 192 amended by no ii of the o of 19 june 1995, in force since 1 aug. 1995 (as 1995 3113).official hallmarks, assay offices mark, distinctive symbols of the assay offices, assayer's mark of the assay offices number 1 official national hallmark (guarantee stamp)number 2 assay office marknumber 3 distinctive symbols of the assay officesnumber 4 assayer's mark of the assay officesnumber 1image of the official national hallmark (guarantee stamp) (art. 109 para. 1)large hallmark:dimensions:height: 1.6 mmwidth: 2 mmsmall hallmark:dimensions:height: 0.8 mmwidth: 1 mmnote:the official national hallmark (head of a st. bernard dog) bears the distinctive symbol of the assay office, which is positioned at the spot marked with an x.number 2image of the assay offices mark (art. 58 para. 3)dimensions:side length: 0.8 mmnote:the mark bears the distinctive symbol of the assay office, which is positioned at the spot marked with an x.number 3distinctive symbols of the assay offices (art. 109 para. 2)central office and biel/bienne bbasel chiasso tgeneva and geneva airport gla chaux-de-fonds clausanne vle locle lle noiremont jneuchtel nromanshorn rschaffhausen szurich and zurich airport znumber 4image of the assayer's mark of the assay offices (art. 173)examples:federal assay offices:cantonal assay offices:

941.319 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinanceon the fees for precious metal control(pmc-feeo)of 6 november 2019 (status as of 21 january 2020)the swiss federal council,based on article 18 paragraph 1, 19, 34 paragraph 2 and 37 paragraph 3 of the federal act of 20 june 19331 on the control of the trade in precious metals and precious metal articles (precious metals control act, pmca) and article 46a of the government and administration organisation act of 21 march 19972,ordains:1 sr 941.312 sr 172.010section 1 general provisions art. 1 subject matter this ordinance governs the fees for precious metal analysis, namely:a.fees for the services and decisions of the central office for precious metals control, the federal assay offices and the cantonal assay offices;b.fees for assays of fineness carried out by trade assayers in accordance with article 41 of the precious metals control act;c. fees for services provided by the central office.art. 2 fees liability anyone who requests a service or decision in accordance with article 1 letter a must pay a fee.art. 3 applicability of the general fees ordinance unless otherwise stipulated in this ordinance, the provisions of the general fees ordinance of 8 september 20043 apply.3 sr 172.041.1art. 4 fees 1 the fees are calculated in accordance with the rates specified in the annex.2 for services and decisions for which no rate is specified in the annex, the fee is based on time spent (art. 14).3 fees are periodically adjusted to the services actually performed and to technological developments.section 2 official analysis and hallmarking art. 5 principles the fees for the official swiss hallmarking of watch-cases and other precious metal articles and mixed metal articles comprise:a.the fee for conformity testing;b.the hallmarking fee.art. 6 fee for conformity testing 1 for conformity testing of watch-cases and other precious metal articles and mixed metal articles, the fees specified in the annex apply.2 for objects comprised of a combination of several precious metals, the rates for each individual metal are added together.3 certified material means precious metals and precious metal alloys whose fineness before production is confirmed with a conformity certificate that is issued or recognised by one of the bodies under article 1 letter a.art. 7 hallmarking fees 1 for applying the hallmark on precious metal and mixed metal watch-cases or other articles, the fees specified in the annex apply.2 a single mark is:a.the official swiss hallmark; orb.the international hallmark in accordance with the convention of 15 november 19724 on the control and marking of articles of precious metals.3 a double mark is the combined swiss/international hallmark. the double mark is applied as a single unit. the fee for a double mark is charged even if individual marks are applied separately and by the manufacturer itself.4 sr 0.941.31art. 8 acceptance fee 1 if a series of fewer than ten objects is submitted for official hallmarking, an acceptance fee as specified in the annex will be charged.2 the acceptance fee is not charged if the official hallmarks are applied by the applicant itself. art 9 official hallmarking agreements 1 for the conclusion of an agreement in accordance with article 97 paragraph 2 and article 117a paragraph 3 of the ordinance on the control of the trade in precious metals and precious metal articles of 8 may 19345 (pmco), the fees specified in the annex apply:a.for creating the dossier and reviewing the application;b.for the audits carried out during the term of the agreement in accordance with article 97 of the pmco or for its renewal;c.for the additional audit in the case of a request for an agreement in accordance with article 117a of the pmco.2 the fees specified in paragraph 1 are payable before the conclusion or renewal of the agreement.3 the fee for onsite supervision based on article 117a paragraph 2 of the pmco is based on time spent (art. 14).4 the central office charges an annual fee for the accreditation of suppliers and testing laboratories for certified material in accordance with the annex. 5 sr 941.311section 3 fees for fineness assays art. 10 assay of the fineness of samples 1 a sample is defined as an object, a piece or any type of specimen taken from the same material which does not correspond to a parcel or a melted product.2 for assaying the fineness of samples, the fees specified in the annex apply.3 the fee covers the number of analyses necessary to assay the fineness of the sample.4 reduced-scope fineness assays include analyses for conformity with the legal standard of fineness on a single analysed metal.5 the fee for assaying the fineness is doubled in the case of arbitration analysis.6 for assays of fineness that cannot be carried out using standardised testing methods, the fees are based on time spent.art. 11 assay of the fineness of melted products 1 for assaying the fineness of melted products, the fees specified in the annex apply.2 for the assay and marking of each melted product, an additional fee is charged as specified in the annex.art. 12 fees for conversion into analysable form for the conversion into analysable form of material, solutions, salts and other materials which, due to their composition, require prior chemical and physical digestion, further fees as specified in the annex are charged in addition to the fees set out in articles 10 and 11.section 4 other flat-rate fees art. 13 1 other flat-rate fees apply for:a.licences; b.registrations of responsibility marks; c.awarding of diplomas;d.ongoing supervision of trade assayers, melters and the cantonal assay offices;e.courses for precious metal assayers from industry or the cantonal assay offices;f.conformity testing of new coatings and materials.2 the fees are calculated in accordance with the rates specified in the annex.section 5 hourly fees art. 14 1 for services, in particular expert opinions and decisions, for which no rate is specified in the annex, a fee of chf 90 to 135 per hour is charged.2 the exact fee within the range given in paragraph 1 is determined on the basis of the expertise required.3 hours may be divided into quarters of an hour. each fraction of a quarter of an hour is counted as one full quarter of an hour.section 6 compensation for services provided by the central office art. 15 1 the cantonal assay offices pay an annual fee to the central office.2 this consists of a fixed sum and a variable amount depending on the gross turnover generated by the fees charged in accordance with articles 5 to 9.3 the compensation is governed by an administrative service level agreement.section 7 final provisions art. 16 repeal of existing legislation the ordinance of 17 august 20056 on the fees for precious metal control is repealed.6 [as 2005 4317, 2010 2219 n. ii]art. 17 amendment of existing legislation .77 the modifications may be consulted under as 2019 3771. art. 18 commencement this ordinance comes into force on 1 january 2020.annex8 8 the correction of 21 jan. 2020 concerns the italian text only (as 2020 253).1. conformity testing (art. 6), per object made of gold, silver, platinum or palladium: chf1.1 made of certified material1.301.2 made of uncertified material1.902. hallmarking (art. 7) feeper single markper double markmechanical chflaserchfmechanical chflaserchf2.1 by the assay office1.003.001.303.802.2 by the manufacturer0.800.801.101.103. acceptance fee (art. 8) chffee for series of less than ten objects20.004. official hallmarking agreements (art. 9 paras. 1 and 4) chf4.1 non-recurring fee for creating a dossier 500.004.2 additional fee for conducting an audit2000.004.3 non-recurring fee for additional audits in accordance with article 117a of the pmco 250.004.4 annual fee for accreditation of suppliers and testing laboratories for certified material2000.005. assay of fineness of objects or samples (art. 10) goldchfsilverchfplatinumchfpalladiumchf5.1 fee for reduced-scope fineness assay 80.0055.00170.00170.005.2 fee for fineness assay105.0080.00210.00210.006. assay of fineness of melted products (art. 11) goldchfsilverchfplatinumchfpalladiumchf6.1 fee for fineness assay105.0080.00210.00210.00chf6.2 fee for assay and marking of a melted product50.007. conversion into analysable form (art. 12) fee per parcel sampledchf7.1 fee for pre-ground material that is to be broken down by lead (or other metal) melting300.007.2 fee for clean solutions and salts100.007.3 fee for contaminated solutions and salts normally destined for refining or recovery300.007.4 fee for breaking down materials not listed in this table120.008. other flat-rate fees (art. 13) chf8.1 issue or renewal of a melter's licence with a melter's mark1000.008.2 non-recurring fee for issue of an additional melter's mark 200.008.3 issue or renewal of individual melter's licence with individual melter's mark 200.008.4 non-recurring fee for issue of a trade assayer's licence1500.008.5 registration or renewal of an individual responsibility mark 800.008.6 registration or renewal of a collective responsibility mark:1.per mark and 800.002.per participant 200.008.7 modifications and cancellations of licences and marks in accordance with sections 8.1 to 8.6 -.-8.8 exam registration fee for the federal diploma for sworn assayers 150.008.9 issue of the federal diploma for sworn assayers 600.008.10 annual fees for ongoing supervision:1trade assayers, includes activities as a melter if applicable5000.002melters1000.003cantonal assay offices5000.008.11 course fees for assayers from industry or a cantonal assay office, per person and day 500.008.12 conformity testing of new coatings and materials is charged according to time spent.

944.0 english is not an official language of the swiss confederation. this translation is provided for information purposes only, has no legal force and may not be relied on in legal proceedings.federal act on information for consumers (consumer information act, consumia)of 5 october 1990 (status as of 1 january 2013)the federal assembly of the swiss confederation,on the basis of article 31sexies paragraph 1 of the federal constitution1,2 and having considered the federal council dispatch dated 7 may 19863,decrees:1 [bs 1 3; as 1981 1244]. the said provision is now art. 97 of the cst. of 18 april 1999 (sr 101).2 amended by annex no ii 10 of the therapeutic products act of 15 dec. 2000, in force since 1 jan. 2002 (as 2001 2790; bbl 1999 3453).3 bbl 1986 ii 354section 1 purpose art. 1 this act has the aim of encouraging the provision of objective information to consumers by means of:a. regulations on declarations relating to goods and services;b. financial assistance to consumer organisations.section 2 declarations relating to goods and services art. 2 principles 1 where it is in consumers' interests, the following shall be declared in a form that enables a comparison to be made:a. the essential characteristics of the goods offered for sale or use;b. the essential content of services designated by the federal council.2 any person who places such goods on the market or offers such services is required to make a declaration.3 foreign declarations must be recognised if they enable a comparison to be made with swiss declarations.4 trade and manufacturing secrecy shall be preserved.5 labelling obligations in accordance with other federal provisions are reserved.46 declarations shall be made in the official languages of the confederation.4 amended by annex no ii 10 of the therapeutic products act of 15 dec. 2000, in force since 1 jan. 2002 (as 2001 2790; bbl 1999 3453).art. 3 agreements under private law the business and consumer organisations concerned shall agree which goods must be declared. they shall also agree on the requirements for the form and content of the declarations related to these goods and the services designated by the federal council. in doing so, they shall take account of international standards and the principle of non-discrimination.art. 4 federal council ordinances the federal council may after consulting the business and consumer organisations concerned regulate the declaration procedure by ordinance if:a. no agreement has been reached within a reasonable time; orb. an agreement is not being fulfilled satisfactorily.section 3 financial assistance to consumer organisations art. 5 principles 1 the confederation may grant financial assistance to consumer organisations whose activities are of nationwide importance and which, in accordance with their articles of association, are devoted exclusively to consumer protection. the financial assistance may not exceed 50 per cent of the eligible costs, within the limits of the approved credits, of:a. providing objective and accurate information on printed or in electronic media;b. conducting comparison tests on the essential and clearly ascertainable characteristics of goods and on the essential content of services;c. negotiating agreements on declarations.2 the confederation may also grant financial assistance under paragraph 1 letter a to other organisations whose activities are of national importance and which, in accordance with their articles of association, are devoted to consumer protection.art. 6 financial assistance for conducting comparison tests 1 the confederation shall grant financial assistance for conducting comparison tests only if the consumer organisation in all its testing activities:a. bases its selection of the test subjects and the conduct of the tests on the consumers' need for information;b. conducts the tests in accordance with scientific principles;c. ensures that the tests are conducted in a technically competent, professional and impartial manner;d. grants the suppliers concerned a right of reply.2 the competent federal authority shall ensure the coordination of the test activities of consumer organisations seeking financial assistance.art. 7 independence in conducting tests any organisation that receives financial assistance for conducting comparison tests in accordance with article 5 paragraph 1 letter b must be sufficiently independent to guarantee the objective conduct of the tests.section 4 obligation to provide information art. 8 1 organisations that claim financial assistance must provide the competent administrative unit with all the required information and permit the inspection of documents.2 the business and consumer organisations concerned and the suppliers of goods and services must provide the competent administrative unit with all the information required to implement the federal council regulations on declarations relating to goods and services (art. 4).section 5 federal commission for consumer affairs art. 9 1 the federal council shall establish a federal commission for consumer affairs in which consumers, businesses and academia are represented.2 the commission shall advise the federal council and the departments on matters affecting consumers.3 the commission shall promote the resolution of consumer issues in a spirit of partnership.section 6 procedures and criminal provisions art. 10 legal remedies legal remedies are governed by the provisions on the administration of federal justice.art. 11 offences 1 any person who wilfully commits any of the following acts shall be liable to a fine:a. failure to comply with a federal council regulation on declarations relating to goods and services (art. 4), where such failure carries a criminal penalty;b. failure to comply with the obligation to provide information under article 8 paragraph 2.2 if the offender acts through negligence, the fine shall not exceed 2000 francs.3 in particularly minor cases, no penalty need be imposed.art. 12 relationship with the federal act on administrative criminal law 1 the federal act of 22 march 19745 on administrative criminal law applies to the prosecution and adjudication of the offences.2 the administrative unit responsible for prosecution and judgment is the federal department of economic affairs, education and research6.5 sr 313.06 term in accordance with no i 34 of the o of 15 june 2012 (restructuring of the departments), in force since 1 jan. 2013 (as 2012 3655).section 7 final provisions art. 13 implementation 1 the federal council shall implement this act. it shall issue the implementing provisions.2 it may consult the business and consumer organisations concerned on the implementation of the regulations.art. 14 referendum and commencement 1 this act is subject to an optional referendum.2 the federal council shall determine the commencement date.commencement date: 1 may 19927 7 fcd of 1 april 1992.

944.021.1 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.eaer ordinance on the declaration for timber and timber productsof 7 june 2010 (status as of 1 january 2017)the federal department of economic affairs education and research (eaer1),based on articles 1 paragraph 2 and 2 paragraph 2 the ordinance of 4 june 20102 on the declaration for timber and timber products,ordains:1 the name of this administrative unit was amended in application of art. 16 para. 3 of the publications ordinance of 17 nov. 2004 (as 2004 4937) on 1 jan. 2013. the amendment has been made throughout the text.2 sr 944.021art. 1 timber and timber products subject to declaration the duty to declare applies to timber and timber products specified in the annex.art. 2 reference system for the declaration of timber species the reference system for the declaration of the timber species comprises:a.the commercial timber list of the swiss timber trade centre3; andb.standard sn en 13556:20034.3 the list may be inspected under: www.konsum.admin.ch.4 the text of this standard may be obtained from the swiss information centre for technical rules (switec), brglistrasse 29, 8400 winterthur; www.snv.chart. 3 commencement this ordinance comes into force on 1 october 2010.annex5 5 revised in accordance with no i of the eaer ordinance of 2 dec. 2011 (as 2011 6267) and of 18 oct. 2016, in force since 1 jan. 2017 (as 2016 3853).(art. 1)timber and timber products subject to declaration customs tariff numberproduct designation4401 without 4401.3100 4401.3900 and 4401.4000fuel wood, in logs, in billets, in twigs, in faggots or in similar forms; wood in chips or particles4402wood charcoal (including shell or nut charcoal), whether or not agglomerated4403wood in the rough, whether or not stripped of bark or sapwood, or roughly cut at two or four sides4404hoopwood, split poles, piles, pickets and stakes of wood, pointed but not sawn lengthwise, wooden sticks, roughly trimmed but not turned, bent or otherwise worked, suitable for the manufacture of walking sticks, umbrellas, tool handles and the like, chipwood, woodstrips, woodbands and the like4406railway or tramway sleepers of wood, and the like4407wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or end-jointed, of a thickness exceeding 6mm. 4409wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, v-jointed, beaded, moulded, rounded or the like) along any of its edges, ends or faces, whether or not planed, sanded or end-jointed4414wooden frames for paintings, photographs , mirrors or similar objects, made of solid wood4416casks, barrels, vats, tubs and other coopers' products and parts thereof, made of solid wood4418.5000shingles and shakes4418.6000posts and beams made of solid wood9401.6900seats with main components made of solid wood9403.3000 9403.4000 9403.5000 9403.6000other furniture with main components made of solid wood

944.3english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.federal acton package travelof 18 june 1993 (status as of 20 august 2021)the federal assembly of the swiss confederation,based on articles 31sexies and 64 of the federal constitution1,and having considered the federal council dispatch of 24 february 19932,decrees:1 sr 1012 bbl 1993 i 805section 1 definitions art. 1 package travel 1 package travel means the pre-arranged combination of not fewer than two of the following when sold or offered for sale at an inclusive price and when the service covers a period of more than twenty-four hours or includes overnight accommodation:a. transport;b. accommodation;c. other tourist services not ancillary to transport or accommodation and accounting for a significant proportion of the package.2 this act also applies if various components of the same package have been billed separately.art. 2 organiser, retailer and consumer 1 organiser3 means any person who, other than occasionally, organises packages and sells or offers them for sale, whether directly or through a retailer.2 retailer4 means any person who sells or offers for sale the package put together by the organiser.3 consumer5 means:a. any person who takes or agrees to take a package;b. any person on whose behalf or for whose benefit a package has been purchased or an agreement to purchase has been entered into;c. any person to whom the booking relating to a package tour has been transferred in accordance with article 17.3 footnote relevant to german version only.4 footnote relevant to german version only.5 footnote relevant to german version only.section 2 brochures art. 3 the organiser or retailer who publishes a brochure is bound by the particulars contained therein; these particulars may only be changed thereafter:a. by mutual agreement of the parties to the contract;b. if the brochure has expressly made reference to the possibility of modification, and provided that such modifications have been clearly communicated to the consumer prior to the conclusion of the contract.section 3 information for the consumer art. 4 before conclusion of the contract 1 the organiser or the retailer must communicate all the terms and conditions of the contract to the consumer in writing before the contract is concluded.2 the terms of the contract may also be brought to the consumer's attention in another appropriate form, provided that they are confirmed to him in writing before the contract is concluded. the obligation to confirm in writing does not apply if compliance would prevent the conclusion of the contract.3 where it is relevant for the package, the organiser or the retailer shall provide the consumer, in writing or any other appropriate form, with general information on:a. passport and visa requirements applicable to nationals of the states of the ec and the efta, and in particular on the periods for obtaining them;b. health formalities required for the journey and the stay.4 nationals of any other states are entitled to such information according to paragraph 3 letter a above, if they request the same immediately.art. 5 before the start of the journey the organiser or retailer shall provide the consumer, in writing or any other appropriate form, with the following information in good time before the start of the journey:a. the times and places of intermediate stops and transport connections;b. the seat to be occupied by the traveller;c. the name, address and telephone number of the organiser's or retailer's local representative or, failing that, of local agencies on whose assistance a consumer in difficulty could call; where even no such agencies exist, the consumer must in any case be provided with an emergency telephone number or any other information that will enable him to contact the organiser or the retailer;d. in the case of journeys or stays abroad by minors, information enabling direct contact to be established with the child or the person responsible at the child's place of stay;e. information on the optional conclusion of an insurance policy to cover the cost of cancellation by the consumer or the cost of assistance, including repatriation, in the event of accident or illness.section 4 content of the contract art. 6 1 irrespective of the kind of services agreed, the following elements must be included in the contract:a. the name and address of the organiser, and, where applicable, the retailer;b. the date, time and location of the beginning and the end of the travel arrangement;c. the special requirements of the consumer that have been accepted by the organiser or the retailer;d. whether a minimum number of persons is required for the package to take place and, if so, the latest date for informing the consumer of cancellation;e. the price of the package as well as the payment schedule and method of payment;f. periods within which the consumer must make any complaint concerning failure to perform or improper performance of the contract;g. the name and address of the insurer, where appropriate.2 depending on the particular package agreed on, the following elements must be included in the contract as well:a. the travel destination and, where periods of stay are involved, the relevant periods with dates; b. the itinerary;c. the means, characteristics and categories of transport to be used;d. the number of meals included in the total price agreed for the package;e. the location, the tourist category or degree of comfort of the accommodation as well as its main features and its compliance with the rules of the host state concerned;f. the visits, excursions or other services which are included in the total price agreed for the package;g. the requirements for a price revision under article 7;h. details of any dues, taxes or fees chargeable for certain services, such as landing, embarkation or disembarkation fees at ports and airports, and tourist taxes, where such costs are not included in the package.section 5 price increases art. 7 the price laid down in the contract may only be increased where:a. the contract expressly provides for that possibility and states precisely how the revised price is to be calculated;b. it takes place at least three weeks prior to the departure date; andc. it is based solely on an increase in transportation costs, including the cost of fuel, on an increase in dues chargeable for certain services, such as landing taxes or embarkation or disembarkation fees at ports and airports, or on modifications to the exchange rates applied to the particular package.section 6 significant changes to the contract art. 8 definition 1 any significant change of an essential contract term by the organiser before the start of the journey is considered an essential change to the contract itself.2 a price increase exceeding ten percent is considered an essential change to the contract.art. 9 obligation to inform the organiser shall notify the consumer as quickly as possible of any essential change to the contract as well as its effects on the total package price.art. 10 consumer rights 1 the consumer may accept an essential change to the contract or withdraw from the contract without penalty.2 he must give notice of his withdrawal from the contract to the organiser or the retailer as soon as possible.3 if the consumer withdraws from the contract he or she is entitled to either:a. take a substitute package of equivalent or higher quality where the organiser or retailer is able to offer him such a substitute;b. take a substitute package of lower quality as well as the refund of the difference in price; orc. be repaid all sums paid by him under the contract in the quickest possible manner.4 a claim for damages due to non-performance of the contract remains reserved.section 7 cancellation of the package art. 11 1 where, for whatever cause not imputable to the consumer, the organiser cancels the package before the agreed date of departure, the consumer is entitled to the rights under article 10.2 the consumer is not, however, entitled to claim for damages for non-performance of the contract:a. if the cancellation is on the grounds that the number of persons enrolled for the package is less than the minimum number required and the consumer is informed of the cancellation, in writing, within the period indicated in the contract; orb. if the cancellation is due to force majeure. overbooking is not considered a case of force majeure.section 8 non-performance and improper performance of the contract art. 12 complaints 1 the consumer must communicate any failure in the performance of the contract which he or she perceives on the spot to the supplier of the services concerned and to the organiser or the retailer in writing or any other appropriate form at the earliest opportunity.2 in cases of complaint, the organiser, the retailer or his local representative must make prompt efforts to find appropriate solutions.art. 13 alternative arrangements 1 where, after departure, a significant proportion of the services contracted for is not provided or the organiser perceives that it will be unable to procure a significant proportion of the services to be provided, the organiser shall:a. make suitable alternative arrangements for the continuation of the package;b. compensate the consumer for the loss suffered; the quantum of damages corresponds to the difference between the services offered and those supplied.2 if it is impossible to make such arrangements or these are not accepted by the consumer for good reasons, the organiser must provide the consumer with equivalent transport back to the place of departure, or to another return-point to which the consumer has agreed.6 in addition, the organiser must compensate the consumer for the loss suffered therefrom.3 the measures under this article do not justify any extra charge to the consumer.6 the correction of the federal drafting committee of 20 august 2021 concerns the italian text only (ru 2021 496).art. 14 liability; principle 1 the organiser or the retailer party to the contract is liable to the consumer for the proper performance of the obligations arising from the contract, irrespective of whether such obligations must be performed by that organiser or retailer himself or by other suppliers of services.2 the organiser and the retailer have a right of recourse against other suppliers of services.3 in the matter of damages arising from the non-performance or improper performance of the contract, the limits of compensation provided for in international conventions remain reserved.art. 15 exceptions 1 the organiser or the retailer are not liable to the consumer where the non-performance or improper performance of the contract is due to:a. failures attributable to the consumer;b. unforeseeable or unavoidable failures attributable to a third party unconnected with the provision of the services contracted for;c. a case of force majeure or an event which the organiser, the retailer or the supplier of services, even with all due care, could not foresee or forestall.2 in the cases referred to in paragraph 1 letter b, the organiser or the retailer party to the contract is required to give prompt assistance to a consumer in difficulty.art. 16 limitation and exclusion of liability 1 any limitation of liability by means of a contractual clause for personal injury arising from the non-performance or improper performance of the contract is excluded.2 in the matter of other damages, liability may be reduced to double the amount of the total price of the package by means of a contractual clause, save for damages caused wilfully or through gross negligence.section 9 assignment of the booking art. 17 1 where the consumer is prevented from proceeding with the package, he or she may assign his or her booking to a person who satisfies all the conditions applicable to the package, provided that he or she has first given the organiser or the retailer reasonable notice of his or her intention before departure.2 this person and the consumer shall be jointly and severally liable to the organiser or the retailer party to the contract for payment of the price and for any additional costs arising from such transfer.section 10 security art. 18 1 the organiser or the retailer party to the contract shall provide security for the refund of money paid over and for the repatriation of the consumer in the event of their insolvency or bankruptcy.2 on request, the organiser or the retailer must provide evidence of the security to the consumer. if it fails to do so, the consumer may withdraw from the contract.3 the withdrawal must be communicated to the organiser or the retailer in writing before the departure date.section 11 mandatory law art. 19 any deviation from this act to the disadvantage of the consumer is prohibited unless explicitly provided for therein.section 12 referendum and commencement art. 20 1 this act is subject to an optional referendum.2 the federal council determines the date on which this act comes into force.commencement date: 1 july 199477 fcd of 30 nov. 1993.

946.15 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinanceon the organisation of the national contact pointfor the oecd guidelines for multinational enterprises and on its advisory board(ncpo-oecd)of 1 may 2013 (status as of 1 june 2013)the swiss federal council,on the basis of articles 55, 57 and 57c paragraph 2 of the government and administration organisation act of 21 march 19971,ordains:1 sr 172.010section 1 national contact point for the oecd guidelines for multinational enterprises art. 1 tasks 1 the national contact point for the oecd2 guidelines for multinational enterprises (ncp) promotes in terms of clause i.11 of the oecd guidelines of 25 may 20113 for multinational enterprises (oecd guidelines) the implementation of the guidelines by international enterprises that have their registered office or a permanent establishment in switzerland.2 it has the following tasks in particular:a.it promotes awareness and the dissemination of the oecd guidelines.b.it accepts submissions raising specific instances regarding possible violations by companies of the oecd guidelines and mediates between the parties.c.it responds to enquiries about the oecd guidelines.2 organisation for economic co-operation and development3 oecd declaration of 25 may 2011; www.oecd.org > topics > industry and entrepreneurship > guidelines for multinational enterprises; a german translation is available in the report of 11 january 2012 on foreign economic policy 2011, bbl 2012 827, here 938.art. 2 responsibility the state secretariat for economic affairs (seco) runs the ncp.art. 3 submissions raising specific instances 1 submissions raising specific instances regarding possible violations of the oecd guidelines may be raised by individual persons or groups.2 they must be submitted in writing.art. 4 procedure for dealing with submissions raising specific instances 1 the ncp shall issue instructions on dealing with submissions raising specific instances, taking account of the procedural guidance of the oecd guidelines.2 the ncp shall set up a working group within the federal administration to deal with a submission raising a specific instance. the working group shall include representatives of the offices of the federal administration that are affected by the specific instance.section 2 federal advisory board to the national contact point for the oecd guidelines for multinational enterprises art. 5 status the federal advisory board to the national contact point for the oecd guidelines for multinational enterprises (ncp advisory board) is a standing administrative committee as defined in article 8a paragraph 2 of the government and the administration organisation ordinance of 25 november 19984 (gaoo).4 sr 172.010.1art. 6 tasks 1 the ncp advisory board advises the ncp on its strategic orientation and on the application of the oecd guidelines and the ncp procedural instructions.2 it shall encourage a dialogue between interest groups and contribute to the effective implementation of the oecd guidelines.art. 7 composition and appointment 1 the ncp advisory board has 14 members. it shall comprise:a.the director of seco and three further members of the federal administration;b.two representatives each from employers' federations, trade unions, trade associations, non-governmental organisations and academia.2 the ncp advisory board shall be jointly chaired by the director of seco and one additional member of the ncp advisory board in accordance with paragraph 1 letter b.3 the federal council shall appoint the members of the ncp advisory board and its joint-chairpersons on the proposal of the federal department of economic affairs, education and research (eaer).art. 8 meetings 1 the ncp advisory board meets twice a year. if required, further meetings shall be held.2 the meetings are convened by the joint-chairpersons.3 the ncp advisory board may invite ncp staff and additional specialists from within and outside the federal administration to attend the meetings.art. 9 non-public nature and provision of information 1 the discussions of the ncp advisory board are not held in public.2 the ncp advisory board shall publish a brief statement on its discussions following each meeting. it shall report on its activities in the ncp annual report.art. 10 remuneration and department responsible for costs 1 the remuneration paid to the members of the ncp advisory board is governed by the gaoo5.2 the costs of the ncp advisory board are borne by the eaer.5 sr 172.010.1art. 11 secretariat the seco runs the secretariat to the ncp advisory board.section 3 final provisions art. 12 amendment of current legislation. .66 the amendment may be consulted under as 2013 1313.art. 13 commencement this ordinance comes into force on 1 june 2013.

950.1english is not an official language of the swiss confederation. this translation is provided for information purposes only, has no legal force and may not be relied on in legal proceedings.federal act on financial services(financial services act, finsa)of 15 june 2018 (status as of 1 august 2021)the federal assembly of the swiss confederation,based on articles 95, 97, 98 and 122 paragraph 1 of the federal constitution1,and having considered the federal council dispatch of 4 november 20152,decrees:1 sr 1012 bbl 2015 8901title 1 general provisions art. 1 purpose and subject matter 1 this act seeks to protect the clients of financial service providers and to establish comparable conditions for the provision of financial services by financial service providers, and thus contributes to enhancing the reputation and competitiveness of switzerland's financial centre.2 to this end, it establishes the requirements for honesty, diligence and transparency in the provision of financial services and governs the offering of financial instruments. art. 2 scope of application 1 this act applies to all of the following, irrespective of their legal form:a. financial service providers;b. client advisers; c. producers and providers of financial instruments.2 this act does not apply to:a. the swiss national bank;b. the bank for international settlements;c. occupational pension schemes and other institutions whose purpose is to serve occupational pensions (occupational pension schemes), as well as employer-sponsored foundations (employer-sponsored welfare funds); employers who manage the assets of their occupational pension schemes; employer and employee associations which manage the assets of their association schemes; d. the following, provided their activities are subject to the insurance supervision act of 17 december 20043 (isa): 1. insurance companies,2. insurance intermediaries,3. ombudsman's offices;e. public insurance institutions in accordance with article 67 paragraph 1 of the federal act of 25 june 19824 on occupational old age, survivors' and invalidity pension provision.3 sr 961.014 sr 831.40art. 3 definitions for the purposes of this act:a. financial instruments are: 1. equity securities:- securities in the form of shares including share-like securities allowing for participation or voting rights, such as participation certificates and dividend rights certificates- securities which, on conversion or exercise of the rights evidenced by them, enable the acquisition of equity securities, as set forth above, as soon as they have been registered for conversion,2. debt instruments: securities not classified as equity securities,3. units in collective investment schemes in accordance with articles 7 and 119 of the collective investment schemes act of 23 june 20065 (cisa), 4. structured products, i.e. capital-protected products, capped return products and certificates,5.6 derivatives in accordance with article 2 letter c of the financial market infrastructure act of 19 june 20157 (finmia), 6. deposits whose redemption value or interest is risk- or price-dependent, excluding those whose interest is linked to an interest rate index,7. bonds: units in an overall loan subject to uniform conditions;b.8 securities are standardised certificated and uncertificated securities, in particular uncertificated securities in accordance with article 973c of the code of obligations (co)9 and ledger-based securities in accordance with article 973d of the co, as well as derivatives and intermediated securities, which are suitable for mass trading; c. financial services are any of the following activities carried out for clients: 1. acquisition or disposal of financial instruments, 2. receipt and transmission of orders in relation to financial instruments, 3. administration of financial instruments (portfolio management), 4. provision of personal recommendations on transactions with financial instruments (investment advice), 5. granting of loans to finance transactions with financial instruments; d. financial service providers are persons who provide financial services on a commercial basis in switzerland or for clients in switzerland, with the criterion of a commercial basis being satisfied if there is an independent economic activity pursued on a permanent, for-profit basis;e. client advisers are natural persons who perform financial services on behalf of a financial service provider or in their own capacity as financial service providers; f. issuers are persons who issue or intend to issue securities;g. an offer is any invitation to acquire a financial instrument that contains sufficient information on the terms of the offer and the financial instrument itself;h. a public offer is an offer to the public; i. producers are persons who produce a financial instrument or modify an existing financial instrument, including its risk and return profile or the costs associated with investing in the financial instrument.5 sr 951.316 amended by no i 4 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).7 sr 958.18 amended by no i 4 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).9 sr 220art. 4 client segmentation 1 financial service providers shall assign the persons for whom they provide financial services to one of the following segments: a. retail clients;b. professional clients;c. institutional clients.2 retail clients are clients who are not professional clients.3 professional clients10 are: a. financial intermediaries as defined in the banking act of 8 november 193411 (banka), the financial institutions act of 15 june 201812 (finia) and the cisa13; b. insurance companies as defined in the isa14; c. foreign clients subject to prudential supervision as the persons listed under a and b above; d. central banks; e. public entities with professional treasury operations; f. occupational pension schemes with professional treasury operations and other occupational pension institutions providing professional treasury operations;g. companies with professional treasury operations;h. large companies;i. private investment structures with professional treasury operations created for high-net-worth retail clients.4 institutional clients15 are professional clients as defined in paragraph 3 letters a to d as well as national and supranational public entities with professional treasury operations. 5 a large company is a company which exceeds two of the following parameters:balance sheet total of chf 20 million;turnover of chf 40 million;equity of chf 2 million. 6 companies of a group that receive a financial service from another company from the same group are not deemed to be clients.7 financial service providers may refrain from client segmentation if they treat all clients as retail clients.10 as professional clients are primarily legal entities, they are referred to herein as it.11 sr 952.012 sr 954.113 sr 951.3114 sr 961.0115 as institutional clients are primarily legal entities, they are referred to as it.art. 5 opting out and opting in 1 high-net-worth retail clients and private investment structures created for them may declare that they wish to be treated as professional clients (opting out). 2 any person who can credibly declare that they satisfy the criteria under a and b below will be deemed high-net-worth within the meaning of paragraph 1:a. on the basis of training, education and professional experience or on the basis of comparable experience in the financial sector, they possess the necessary knowledge to understand the risks associated with the investments and have at their disposal assets of at least chf 500,000; orb. they have at their disposal assets of at least chf 2 million.3 professional clients within the meaning of article 4 paragraph 3 letters f and g may declare that they wish to be treated as institutional clients.4 swiss and foreign collective investment schemes and their management companies which are not already deemed to be institutional clients within the meaning of article 4 paragraph 3 letter a or c in conjunction with article 4 paragraph 4 may declare that they wish to be treated as institutional clients.5 professional clients who are not institutional clients within the meaning of article 4 paragraph 4 may declare that they wish to be treated as retail clients (opting in). 6 institutional clients may declare that they wish to be treated only as professional clients.7 before providing any financial services, financial service providers shall inform those of their clients who are not classified as retail clients of the possibility of opting in.8 the declarations in paragraphs 1 to 6 must be made in writing or in another form demonstrable via text.title 2 requirements for the provision of financial services chapter 1 required knowledge art. 6 client advisers must have sufficient knowledge of the code of conduct set out in this act and the necessary expertise required to perform their activities.chapter 2 code of conduct section 1 principle art. 7 1 financial service providers must comply with the supervisory duties set out under this title when providing financial services.2 the specific provisions of other pieces of legislation are reserved.section 2 duty to provide information art. 8 content and form of information 1 financial service providers shall inform their clients of the following: a. their name and address;b. their field of activity and supervisory status; c. the possibility of initiating mediation proceedings before a recognised ombudsman in accordance with title 5; andd. the general risks associated with financial instruments.2 they shall also provide information on:a. the financial service personally recommended and the associated risks and costs; b. the business affiliations with third parties in connection with the financial service offered; c. the market offer taken into account when selecting the financial instruments.3 where financial instruments are personally recommended, financial service providers shall also make the key information document available to the retail client insofar as such a document must be produced for the financial instrument recommended (articles 58 and 59). in the case of a compound financial instrument, a key information document shall be made available for said instrument only. 4 no key information document need be made available if the service is provided exclusively in the execution or transmission of client orders, unless a key information document has already been produced for the financial instrument. 5 when personally recommending financial instruments for which a prospectus is required (articles 35 to 37), financial service providers shall make this prospectus available to their retail client free of charge upon request.6 advertising must be indicated as such.art. 9 timing and form of information 1 financial service providers shall inform their clients before the signing of the contract or provision of the service.2 financial service providers shall make the key information document available free of charge to their retail clients before the signing or conclusion of the contract. where consultation takes place without the client being physically present, the key information document may be made available after conclusion of the transaction if the client so consents. financial service providers shall document said consent.3 the information may be made available to clients in standardised form on paper or electronically.section 3 appropriateness and suitability of financial services art. 10 duty to review financial service providers that provide investment advice or portfolio management services shall perform an appropriateness or suitability review.art. 11 assessment of appropriateness a financial service provider that provides investment advice for individual transactions without taking account of the entire client portfolio must enquire about its clients' knowledge and experience and must check whether financial instruments are appropriate for its clients before recommending them.art. 12 assessment of suitability a financial service provider that provides investment advice taking account of the client portfolio or portfolio management must enquire about its clients' financial situation and investment objectives as well as their knowledge and experience. this knowledge and experience relates to the financial service and not to the individual transactions. art. 13 exemption from the duty to review 1 where solely executing or transmitting client orders, financial service providers are not obliged to perform an appropriateness or suitability assessment. 2 they shall notify the clients before providing the service described in paragraph 1 that an appropriateness or suitability assessment will not be performed.3 in the case of professional clients, they may assume that these clients have the required level of knowledge and experience and can financially bear the investment risks associated with the financial service.art. 14 non-assessable or lacking appropriateness or suitability 1 if the information received by the financial service provider is insufficient for assessing the appropriateness or suitability of a financial instrument, it shall inform the client before providing the service that it cannot perform this assessment.2 if the financial service provider is of the opinion that a financial instrument is not appropriate or suitable for its clients, it shall advise them against it before providing it. 3 a lack of knowledge and experience may be compensated for by providing clients with information.section 4 documentation and rendering of account art. 15 documentation 1 financial service providers shall document in an appropriate manner:a. the financial services agreed with clients and the information collected about them;b. the notification described in article 13 paragraph 2 or the fact that they advised the clients in accordance with article 14 against availing of the service;c. the financial services provided for clients.2 when providing investment advice, they shall also document clients' needs and the grounds for each recommendation leading to the acquisition or disposal of a financial instrument.art. 16 rendering of account 1 if so requested, financial service providers shall provide their clients with a copy of the documentation mentioned in article 15 or shall make it accessible to them in another appropriate manner.2 moreover, at the clients' request, they shall render account of:a. the financial services agreed and provided;b. the composition, valuation and development of the portfolio; c. the costs associated with the financial services.3 the federal council shall regulate the minimum content of the information specified in paragraph 2. section 5 transparency and care in client orders art. 17 handling of client orders 1 financial service providers shall uphold the principles of good faith and equal treatment when handling client orders. 2 the federal council shall regulate how the principles under paragraph 1 are to be upheld, specifically regarding the procedures and systems for processing client orders.art. 18 best execution of client orders 1 financial service providers shall ensure in the execution of their clients' orders that the best possible outcome is achieved in terms of cost, timing and quality. 2 regarding cost, they shall consider not only the price of the financial instrument but also the expenses incurred in the execution of the order and the compensation from third parties mentioned in article 26 paragraph 3. 3 if they employ staff to execute client orders, financial service providers shall issue internal directives on the execution of client orders which are commensurate with the number of such staff members and the structure of operations.art. 19 use of clients' financial instruments 1 financial service providers may borrow financial instruments from clients' portfolios as a counterparty or act as an agent for such transactions only if the clients have given their prior and express consent to these transactions in writing or in another form demonstrable via text in an agreement that is separate from the general terms and conditions. 2 the clients' consent is valid only if: a. they have been clearly informed of the risks associated with such transactions; b. they are entitled to equalisation payments for the proceeds due from the financial instruments borrowed; and c. they are compensated for the financial instruments borrowed. 3 short selling with the financial instruments of retail clients is not permitted.section 6 institutional and professional clients art. 20 1 the provisions of this chapter do not apply to transactions involving institutional clients. 2 professional clients may expressly release financial service providers from applying the code of conduct set out in articles 8, 9, 15 and 16.chapter 3 organisation section 1 organisational measures art. 21 appropriate organisation financial service providers shall ensure that they fulfil their duties under this act through internal regulations and an appropriate organisation of operations.art. 22 staff 1 financial service providers shall ensure that their staff possess the necessary skills, knowledge and experience to perform their work.2 financial service providers not subject to supervision in accordance with article 3 of the financial market supervision act of 22 june 200716 (finmasa) must also ensure that only persons listed in the register of advisers (article 29) act as client advisers for them.16 sr 956.1art. 23 involvement of third parties 1 financial service providers may appoint third parties for the provision of financial services. 2 they shall appoint only persons who possess the necessary skills, knowledge and experience for their work and have the required authorisations and register entries for this activity, and shall carefully instruct and supervise the appointed persons. art. 24 chain of providers 1 financial service providers that mandate another financial service provider to provide a financial service for clients remain liable for the completeness and accuracy of the client information and for fulfilling the duties set out in articles 8 to 16.2 if the mandated financial service provider has reasonable grounds to suspect that the client information is incorrect or that the duties under articles 8 to 16 were not fulfilled by the mandating financial service provider, it shall provide its service only after it has ensured the completeness and accuracy of the information and compliance with the code of conduct.section 2 conflicts of interest art. 25 organisational precautions 1 financial service providers shall take appropriate organisational measures to prevent conflicts of interest that could arise through the provision of financial services or any disadvantages for clients as a result of conflicts of interest. 2 if disadvantages for clients cannot be excluded, this possibility must be disclosed to them.3 the federal council shall regulate the details in this respect; in particular, it shall designate forms of conduct that are always impermissible on account of conflicts of interest.art. 26 compensation from third parties 1 financial service providers may accept compensation from third parties in association with the provision of financial services only if they: a. have expressly informed the clients of such compensation in advance and the latter relinquish such compensation; orb. pass the compensation on to the clients in full. 2 the information for the clients must contain the type and scope of the compensation and must be given to them before provision of the financial service or conclusion of the contract. if the amount cannot be determined in advance, the financial service provider shall inform its clients of the calculation parameters and the ranges. if so requested, the financial service providers shall disclose the amounts effectively received.3 compensation is defined as payments from third parties accruing to the financial service provider in association with the provision of a financial service, such as brokerage fees, commissions, discounts or other financial benefits.art. 27 staff transactions 1 financial service providers shall take measures to prevent staff from misusing for own-account transactions any information made available to them only by virtue of their function.2 they shall issue an internal directive on the required monitoring measures.chapter 4 register of advisers art. 28 duty to register 1 client advisers of swiss financial service providers not subject to supervision in accordance with article 3 finmasa17 as well as client advisers of foreign financial service providers may carry out their activity in switzerland only if they are entered in a register of advisers. 2 the federal council may exempt prudentially supervised client advisers of foreign financial service providers from the duty to register if the services they provide in switzerland are exclusively for professional or institutional clients within the meaning of article 4.3 it may make the exception under paragraph 2 dependent on a reciprocal right being granted.17 sr 956.1art. 29 registration conditions 1 client advisers are entered in the register of advisers if they prove that they:a. satisfy the requirements set out in article 6;b. have taken out professional indemnity insurance or that equivalent collateral exists; and c.18 are themselves affiliated to an ombudsman (art. 74) in their capacity as a financial service provider, or that the financial service provider for which they work is affiliated to an ombudsman, where a duty to affiliate exists (art. 77).2 client advisers shall not be entered in the register of advisers if they: have been convicted of criminal offences in accordance with articles 89 to 92 of this act or article 86 isa19 or of property offences under articles 137 to 172ter of the swiss criminal code20; orb. have been prohibited from performing the registrable activity in accordance with article 33a finmasa21 or from practising a profession in accordance with article 33 finmasa.3 if client advisers are employed as staff by a financial service provider, the condition set out in paragraph 1 letter b may be fulfilled by the latter.18 amended by no i 4 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 feb. 2021 (as 2021 33; bbl 2020 233).19 sr 961.0120 sr 311.021 sr 956.1art. 30 contents the register of advisers shall contain at least the following details on client advisers:a. surname and forenames;b. name or company name and address of the financial service provider for which they work;c. function and position of the client adviser within the organisation;d. fields of activity;e. basic training and continuing professional development completed;f. ombudsman's office to which they themselves in their capacity as financial service providers or the financial service provider for which they work are affiliated;g. date of the register entry.art. 31 registration body 1 the registration body shall keep the register of advisers. it requires a licence from the swiss financial market supervisory authority (finma). 2 finma may grant a licence to two or more registration bodies provided this is objectively justified.3 the registration body must be organised so as to guarantee the independent fulfilment of its tasks.4 the registration body and the persons responsible for its management must provide the guarantee of irreproachable business conduct. furthermore, the persons responsible for its management must enjoy a good reputation and have the specialist qualifications required for their function.5 if the registration body no longer fulfils the requirements under this act, finma shall order the measures necessary to remedy the deficiencies. if, within a reasonable period, the registration body fails to remedy the deficiencies preventing it from fulfilling its tasks, finma shall withdraw its licence to register client advisers.6 if a private body is not available as a registration body, the federal council shall designate a body for this task.art. 32 keeping of the register and notification duty 1 the registration body shall decide which advisers are registered and deregistered as advisers and shall issue the necessary rulings. 2 registered client advisers and the financial service provider for which they work must notify the registration body of all changes in the facts underlying their registration.3 the competent supervisory authorities shall notify the registration body if they: a. prohibit any registered client advisers from performing an activity or practising a profession as defined in article 29 paragraph 2 letter b;b. learn of a criminal conviction against registered client advisers in accordance with article 29 paragraph 2 letter a. 4 if the registration body learns that a client adviser no longer meets a condition for registration, it shall deregister that client adviser.5 the contents of the register of advisers shall be public and may be consulted online.art. 33 fees 1 the registration body shall charge fees to cover the expenses incurred in its rulings and services. 2 the federal council shall regulate the details. this regulation is based on article 46a of the government and administration organisation act of 21 march 199722.22 sr 172.010art. 34 procedure the procedure for registration entries is based on the administrative procedure act of 20 december 196823.23 sr 172.021title 3 offering of financial instruments chapter 1 prospectus for securities section 1 general art. 35 duty to publish a prospectus 1 any person in switzerland who makes a public offer for the acquisition of securities or any person who seeks the admission of securities to trading on a trading venue in accordance with article 26 letter a of the finmia24 must first publish a prospectus.25 1bis articles 35 to 57 and 64 to 69 apply by analogy to the admission of dlt securities in accordance with article 2 letter bbis of the finmia to trading on a dlt trading facility in accordance with article 73a of the finmia.26 2 if the issuer of the securities does not participate in the public offer, it is not obliged to cooperate with the preparation of the prospectus.24 sr 958.125 amended by no i 4 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).26 inserted by no i 4 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).art. 36 exemptions by type of offer 1 a prospectus does not need to be published if the public offer:a. is addressed solely at investors classified as professional clients;b. is addressed at fewer than 500 investors;c. is addressed at investors acquiring securities to the value of at least chf 100,000;d. has a minimum denomination per unit of chf 100,000;e. does not exceed a total value of chf 8 million over a 12-month period.2 each public offer for the resale of securities that were previously the subject of an offer in accordance with paragraph 1 is regarded as a separate offer.3 in the absence of indications to the contrary, the offeror may, for the purposes of this provision, assume that professional and institutional clients have not declared that they wish to be treated as retail clients.4 a financial service provider need not publish a prospectus for securities offered publicly at a later stage:as long as a valid prospectus exists; and b. if the issuer or the persons who have assumed responsibility for the prospectus have consented to its use.5 taking account of recognised international standards and legal developments abroad, the federal council may adjust the number of investors and the amounts specified under paragraph 1 letters b to e.art. 37 exemptions by type of securities 1 a prospectus need not be published if the following types of securities are offered publicly:equity securities issued outside the scope of a capital increase in exchange for previously issued equity securities of the same class; b. equity securities issued or delivered on the conversion or exchange of financial instruments of the same issuer or corporate group; c. equity securities issued or delivered following the exercise of a right linked to financial instruments of the same issuer or corporate group;d. securities offered for exchange in connection with a takeover, provided that information exists that is equivalent in terms of content to a prospectus; e. securities offered or allocated in connection with a merger, division, conversion or transfer of assets, provided that information that is equivalent in terms of content to a prospectus exists;f. equity securities that are distributed as dividends to holders of equity securities of the same class, provided that information exists on the number and type of equity securities and on the reasons for and details of the offer;g. securities that employers or affiliated companies offer or allocate to current or former members of the board of directors or management board or their employees;h. securities issued by or with an unlimited and irrevocable guarantee from the confederation or cantons, from an international or supranational public entity, from the swiss national bank or from foreign central banks;i. securities issued by non-profit institutions for raising funds for non-commercial purposes;j. medium-term notes;k. securities with a term of less than one year (money market instruments);l. derivatives that are not offered in the form of an issue.2 taking account of recognised international standards and legal developments abroad, the federal council may provide for exemptions from the duty to publish a prospectus for further types of publicly issued securities.art. 38 exemptions for admission to trading 1 a prospectus need not be published if the following types of securities are admitted to trading:a. equity securities that over a period of 12 months account for less than 20% of the number of equity securities of the same category already admitted to trading on the same trading venue;b. equity securities issued upon the conversion or exchange of financial instruments or following the exercise of rights linked to financial instruments, provided they are equity securities of the same category as those already admitted to trading;c. securities admitted to trading on a foreign trading venue whose regulation, supervision and transparency are acknowledged as being appropriate by the domestic trading venue or whose transparency for investors is ensured in another manner;d. securities for which admission is sought for a trading segment open exclusively to professional clients trading for their own account or for the account solely of professional clients.2 exemptions from the duty to publish a prospectus in accordance with articles 36 and 37 also apply by analogy to admission to trading.art. 39 information beyond the scope of the duty to publish a prospectus in the absence of a duty to publish a prospectus, offerors or issuers shall treat investors alike when sending them essential information on a public offer. section 2 requirements art. 40 contents 1 the prospectus shall contain the essential information for the investor's decision on:a. the issuer and the guarantor and security provider, specifically: 1. the board of directors, management board, auditors and other governing bodies,2. the most recent semi-annual or annual accounts or, where these are not yet available, information on assets and liabilities,3. the business situation,4. the main prospects, risks and litigation;b. the securities to be offered publicly or admitted to trading on a trading venue, specifically the associated rights, obligations and risks for investors;c. the offer, specifically the type of placement and the estimated net proceeds of the issue.2 the information shall be provided in one of the official languages of the swiss confederation or in english.3 the prospectus shall also contain a clearly understandable summary of the essential information.4 if the final issue price and the issue volume cannot be stated in the prospectus, it must then indicate the maximum issue price and the criteria and conditions used to determine the issue volume. the information on the final issue price and on the issue volume shall be filed with and published by the reviewing body.5 in the case of offers for which an exception in accordance with article 51 paragraph 2 is requested, the prospectus shall mention that this has not yet been reviewed.art. 41 exemptions 1 the reviewing body may provide that information need not be included in the prospectus if:disclosure would be seriously detrimental to the issuer and omission would not mislead investors with regard to facts and circumstances that are essential to an informed assessment of the quality of the issuer and the characteristics of the securities;b. the information in question is only of minor importance and has no bearing on the assessment of the business situation and the main prospects, risks and litigation of the issuer or of the guarantor and security provider; orc. the information concerns securities traded on a trading venue, and the issuer's periodic reporting over the preceding three years complied with the applicable financial reporting requirements.2 the reviewing body may to a limited degree provide for further exemptions insofar as the interests of investors remain protected.art. 42 inclusion by reference the prospectus may contain references to previously or simultaneously published documents in all sections apart from the summary.art. 43 summary 1 the summary should facilitate a comparison with similar securities. 2 the summary must clearly state that: a. it is regarded as an introduction to the prospectus; b. the investment decision must be based not on the summary but on the information contained in the entire prospectus;c. liability for the summary is limited to cases where the information contained therein is misleading, inaccurate or inconsistent when read together with the other parts of the prospectus.art. 44 structure 1 the prospectus may consist of a stand-alone document or several individual documents. 2 if it consists of two or more individual documents, it may be broken down into:a. a registration document with information about the issuer;b. a securities note with information on the securities to be offered publicly or admitted to trading on a trading venue;c. the summary.art. 45 base prospectus 1 for debt instruments issued in an offer programme or issued in a continuous or repeated manner by banks in accordance with the banka27 or securities firms in accordance with the finia28, the prospectus may be drafted in the form of a base prospectus. 2 the base prospectus shall contain all the information available at the time of publication on the issuer, the guarantor and security provider and the securities, but not the final terms.3 the final terms shall be included at least in a version with indicative information at the time of the public offer. at the end of the subscription period, they shall be published in a definitive version and filed with the reviewing body.4 approval of the final terms is not necessary.27 sr 952.028 sr 954.1art. 46 supplementary provisions taking account of the specific characteristics of the issuers and securities, the federal council shall issue supplementary provisions on:a. the format of the prospectus and the base prospectus, the summary, the final terms and the supplements;b. the content of the summary;c. the minimum information to be contained in the prospectus;d. the documents to which reference may be made.section 3 relaxation of requirements art. 47 1 the federal council may grant a relaxation of the duty to publish a prospectus and supplements to issuers that have not exceeded two of the following volumes in the preceding financial year:a. balance sheet total of chf 20 million;b. turnover of chf 40 million;c. 250 ftes on average for the year.2 it may also grant a relaxation of the requirements particularly to: a. issuers with low market capitalisation on a trading venue;b. issues of subscription rights;c. issuers that regularly offer securities publicly or whose securities are admitted to trading on a foreign trading venue whose regulation, supervision and transparency are acknowledged as being appropriate by a domestic trading venue.3 it shall grant a relaxation of the requirements uniformly and, in particular, with respect to:a. the type of securities issued;b. the issue volume; c. the market environment;d. the investors' specific requirements for transparent information;e. the business activities and the size of the issuers.section 4 collective investment schemes art. 48 open-ended collective investment schemes 1 for open-ended collective investment schemes as defined in title 2 of the cisa29, the fund management company (article 32 finia30) and the investment company with variable capital (sicav) (article 13 paragraph 2 letter b cisa) shall produce a prospectus.2 the prospectus shall include the fund regulations in cases where interested persons are not notified as to where such regulations may be separately obtained prior to an agreement being concluded or prior to subscription. 3 the federal council shall determine which information must be set out in the prospectus apart from the fund regulations.4 the prospectus and its amendments shall be submitted to finma without delay.29 sr 951.3130 sr 954.1art. 49 closed-ended collective investment schemes 1 a limited partnership for collective investment under article 98 cisa31 shall produce a prospectus.2 specifically, this shall contain the information contained in the partnership agreement in accordance with article 102 paragraph 1 letter h cisa. 3 for the prospectus of an investment company with fixed capital (sicaf) in accordance with article 110 cisa, article 48 applies by analogy. 31 sr 951.31art. 50 exemptions finma may exempt collective investment schemes under the cisa32 from all or some of the provisions of this chapter provided that they are open only to qualified investors in accordance with article 10 paragraphs 3 and 3ter cisa and the protective purpose of the law is not thereby affected.32 sr 951.31section 5 review of the prospectus art. 51 duty 1 the prospectus must be submitted to the reviewing body prior to publication. the reviewing body shall check that it is complete, coherent and understandable.2 the federal council may designate securities whose prospectus must be reviewed only after publication if a bank in accordance with the banka33 or a securities firm in accordance with the finia34 confirms that the most important information on the issuers and the securities is known at the time of publication.3 prospectuses for collective investment schemes do not have to be reviewed; the foregoing does not apply to the approval requirement for the documentation of foreign collective investment schemes under article 15 paragraph 1 letter e and article 120 cisa35.33 sr 952.034 sr 954.135 sr 951.31art. 52 reviewing body 1 the reviewing body requires a licence from finma. finma may grant a licence to two or more reviewing bodies provided this is objectively justified.2 the reviewing body must be organised so as to guarantee the independent fulfilment of its tasks.3 the reviewing body and the persons responsible for its management must provide the guarantee of irreproachable business conduct. furthermore, the persons responsible for its management must enjoy a good reputation and have the specialist qualifications required for their function.4 if the reviewing body no longer fulfils the requirements under this act, finma shall order the measures necessary to remedy the deficiencies. if, within a reasonable period, the reviewing body fails to remedy the deficiencies preventing it from fulfilling its tasks, finma shall withdraw its licence. 5 if a private body is not available as a reviewing body, the federal council shall designate a body for this task.art. 53 procedure and deadlines 1 the procedure followed by the reviewing body is based on the administrative procedure act of 20 december 196836.2 the reviewing body shall check prospectuses as soon as they are received.3 if it ascertains that a prospectus does not meet the statutory requirements, within ten calendar days from the time of receipt it shall notify the submitter of the prospectus accordingly, with reasons, and ask the latter to make the improvements necessary. 4 within ten calendar days of receiving the rectified prospectus the reviewing body shall decide on whether to approve it. 5 this period is 20 calendar days for new issuers.6 if the reviewing body fails to issue its decision within the time frames set out in paragraphs 4 and 5, this shall not constitute approval of the prospectus.36 sr 172.021art. 54 foreign prospectuses 1 the reviewing body may approve a prospectus produced under foreign legislation if:it was produced in accordance with international standards established by international organisations of securities regulators; andb. the duty to inform, including with regard to providing financial information, is equivalent to the requirements set out in this act; audited individual financial statements are not required.2 it may provide that prospectuses approved in certain jurisdictions are considered approved in switzerland too. 3 it shall publish a list of countries whose prospectus approval is recognised in switzerland.art. 55 validity 1 prospectuses shall be valid for 12 months after approval for public offers or admission to trading on a trading venue of securities of the same category and the same issuer.2 prospectuses for debt instruments issued by a bank in accordance with the banka37 or a securities firm in accordance with the finia38 in an offer programme shall be valid until none of the debt instruments in question is issued in a continuous or repeated manner any more.37 sr 952.038 sr 954.1art. 56 supplements 1 a supplement to the prospectus must be produced if any new facts arise or are established between the time of approval of the prospectus and final completion of a public offer or opening of trading on a trading venue which could have a significant influence on the assessment of securities. 2 the supplement must be reported to the reviewing body immediately upon occurrence or establishment of the new fact. 3 the reviewing body shall decide whether to approve the supplement within a maximum of seven calendar days. thereafter, the supplement shall be published immediately. the information contained in the supplement must be added to the summaries. 4 the reviewing body shall maintain a list of facts which by their nature are not subject to approval. supplements on such facts have to be published at the same time as they are reported to the reviewing body.5 if a new fact in accordance with paragraph 1 arises during a public offer, the offer period shall end no sooner than two days after publication of the supplement. investors may withdraw their subscriptions or acquisition pledges up to the end of the subscription or offer period.art. 57 fees 1 the reviewing body shall charge fees to cover the expenses incurred in its rulings and services. 2 the federal council shall regulate the fees. this regulation is based on article 46a of the government and administration organisation act of 21 march 199739.39 sr 172.010chapter 2 key information document for financial instruments art. 58 duty 1 where a financial instrument is offered to retail clients, the producer must first produce a key information document. 2 it is not required to prepare a key information document for financial instruments which may be acquired for retail clients solely within the scope of a portfolio management agreement.3 the federal council may designate qualified third parties to whom the preparation of the key information document may be assigned. the producer shall remain liable for the completeness and accuracy of the details in the key information document, as well as for compliance with the duties set out in chapters 2 to 4 (articles 58 to 68).4 if financial instruments are offered to retail clients on the basis of indicative details, at least a draft version of the key information document with the relevant indicative information is to be prepared.art. 59 exemptions 1 persons who offer securities in the form of shares, including share-like securities allowing for participation rights, such as participation certificates, dividend rights certificates and non-derivative debt instruments, are not obliged to prepare a key information document.2 documents prepared in accordance with foreign legislation that are equivalent to the key information document may be used instead of a key information document.art. 60 contents 1 the key information document shall contain the information essential for investors to make a well-founded investment decision and a comparison of different financial instruments.2 in particular, the information shall include:a. the name of the financial instrument and the identity of the producer;b. the type and characteristics of the financial instrument;c. the risk/return profile of the financial instrument, specifying the maximum loss the investor could incur on the invested capital;d. the costs of the financial instrument;e. the minimum holding period and the tradability of the financial instrument;f. information on the authorisations and approvals associated with the financial instrument.art. 61 requirements 1 the key information document must be easy to understand.2 it is a stand-alone document that must be clearly distinguishable from advertising materials.art. 62 changes 1 the producer shall regularly check the information contained in the key information document and revise it in the event of material changes.2 the checking and revision of the information contained in the key information document may be assigned to qualified third parties. the producer shall remain liable for the completeness and accuracy of the details in the key information document, as well as for compliance with the duties set out in chapters 2 to 4 (articles 58 to 68).art. 63 supplementary provisions the federal council shall issue supplementary provisions on the key information document. it shall regulate in particular:a. its content;b. its scope, language and layout; c. details on how it is to be made available;d. the equivalence of foreign documents with the key information document in accordance with article 59 paragraph 2.chapter 3 publication art. 64 prospectus for securities 1 the offeror of securities or the person requesting their admission to trading must:a. file the prospectus with the reviewing body after it has been approved;b. publish the prospectus no later than the beginning of the public offer or admission of the securities in question to trading. 2 if a class of equity securities of an issuer is being admitted to trading on a trading venue for the first time, the prospectus must be made available at least six working days before the end of the offer. 3 the prospectus may be published:a. in one or more newspapers with a distribution corresponding to the issue or in the swiss official gazette of commerce;b. through free-of-charge distribution in printed form at the issuer's registered office or from the office involved in the issue; c. in electronic form on the website of the issuer, the guarantor and security provider, the trading venue or the office involved in the issue; or d. in electronic form on the website of the reviewing body. 4 if the prospectus is published electronically, a paper version must also be made available free of charge upon request.5 the reviewing body shall place the approved prospectuses on a list and make this list available for 12 months. 6 if the prospectus is prepared in two or more individual documents or if it is incorporated by reference, the information and documents constituting the prospectus may be published separately. the individual documents shall be made available to the investors free of charge. each individual document must indicate where to obtain the other individual documents that, together with said document, constitute the complete prospectus. 7 the text and format of the prospectus and supplements that are published or made available to the public must at all times correspond to the version filed with the reviewing body.art. 65 prospectus for collective investment schemes 1 the prospectus for a collective investment scheme must be published no later than the beginning of the public offer.2 for publication, article 64 paragraphs 3, 4 and 6 apply by analogy.art. 66 key information document 1 if a financial instrument for which a key information document has to be prepared is offered publicly, the key information document must be published no later than the beginning of the public offer.2 article 64 paragraphs 3 and 4 apply by analogy.art. 67 changes to the rights associated with securities 1 the issuer shall announce changes to the rights associated with securities sufficiently early to ensure that investors can exercise their rights.2 the content and scope of the publication shall otherwise be based on the issuing conditions. article 64 paragraphs 3 and 4 apply by analogy.3 special statutory provisions remain reserved.chapter 4 advertising art. 68 1 advertising for financial instruments must be clearly indicated as such. 2 advertising must mention the prospectus and the key information document for the financial instrument in question, as well as where these can be obtained. 3 advertising and other information on financial instruments intended for investors must correspond to the details given in the prospectus and the key information document. chapter 5 liability art. 69 1 any person who fails to exercise due care and thereby furnishes information that is inaccurate, misleading or in violation of statutory requirements in prospectuses, key information documents or similar communications is liable to the acquirer of a financial instrument for the resultant losses. 2 with regard to information in summaries, liability is limited to cases where such information is misleading, inaccurate or inconsistent when read together with the other parts of the prospectus.3 with regard to false or misleading information on main prospects, liability is limited to cases where such information was provided or distributed against better knowledge or without reference to the uncertainty regarding future developments.chapter 6 offering of structured products and creation of in-house funds art. 70 structured products 1 structured products may be offered in or from switzerland to retail clients with whom there is no permanent portfolio management or investment advice relationship only if these are issued, guaranteed or secured in an equivalent manner by:a. a bank as defined in the banka40;b. an insurance company as defined in the isa41;c. a securities firm as defined in the finia42;d. a foreign institution that is subject to equivalent prudential supervision.2 the issuing of structured products to retail clients by special purpose entities is permitted if: a. these products are offered by: 1. financial intermediaries as defined in the banka, the finia and the cisa43,2. insurance companies as defined in the isa,3. a foreign institution that is subject to equivalent supervision, andb. collateral corresponding to the requirements under paragraph 1 is guaranteed.3 the federal council shall regulate the requirements for such collateral.40 sr 952.041 sr 961.0142 sr 954.143 sr 951.31art. 71 in-house funds 1 in-house funds of a contractual nature for the purpose of collectively managing the assets of existing clients may be created by banks as defined in the banka44 and securities firms in accordance with the finia45 only if said banks and securities firms meet the following conditions:a. they manage clients' participation in the in-house funds exclusively on the basis of a permanent portfolio management or investment advice relationship;b. they do not issue any unit certificates for this;c. they do not offer participation to the public and they undertake no advertising for this.2 a key information document in accordance with articles 58 to 63 must be prepared for in-house funds. 3 the creation and dissolution of in-house funds must be notified to the auditors appointed under the relevant supervisory law. 4 in the event of bankruptcy of the bank or securities firm, assets and rights that form part of in-house funds shall be segregated in favour of the investors.44 sr 952.045 sr 954.1title 4 provision of documents art. 72 entitlement 1 clients are entitled at all times to receive a copy of their file and all other documents concerning them that the financial service provider has prepared within the context of their business relationship. 2 with the client's consent, documents may be provided in electronic form.art. 73 procedure 1 any person who wishes to assert their right must submit a corresponding request in writing or in another form demonstrable via text. 2 the financial service provider shall provide the client with a copy of the documents in question free of charge within 30 days after receipt of such request.3 if it fails to comply with such a request, the client may apply to the court. 4 a refusal by the financial service provider to supply the requested documents may be taken into account by the competent court in any subsequent legal dispute when deciding on procedural costs. title 5 ombudsman's offices chapter 1 mediation art. 74 principle disputes regarding legal claims between the client and the financial service provider should be settled by an ombudsman in mediation proceedings if possible.art. 75 procedure 1 the proceedings before the ombudsman must be straightforward, fair, quick, impartial and inexpensive or free of charge for the client.2 the proceedings are confidential. the statements made by the parties within the framework of mediation proceedings and the correspondence between a party and the ombudsman may not be used in other proceedings. 3 the parties are not entitled to view the ombudsman's correspondence with the other party.4 a mediation request is permissible at any time if:a. it was submitted in accordance with the ombudsman's rules of procedure or using the form provided by the ombudsman;b. the client credibly proves that they previously informed the financial service provider of their point of view and attempted to reach an agreement;c. it is not obviously vexatious, and mediation proceedings have not already been conducted in the same matter; andd. the case is not being or has not been dealt with by a conciliation authority or by a court, court of arbitration or administrative authority.5 the proceedings are conducted in the official language of the swiss confederation chosen by the client unless the parties make alternative arrangements that comply with the ombudsman's rules of procedure.6 the ombudsman shall freely assess the cases submitted to him and is not subject to any directives.7 the ombudsman shall take the appropriate measures for mediation unless there appears to be no prospect of success from the outset.8 if an agreement is not reached or there appears to be no prospect of such, the ombudsman may give the parties his own factual and legal assessment of the dispute based on the information available and include it in the notification of conclusion of proceedings.art. 76 interdependence with conciliation proceedings and other proceedings 1 filing a mediation request with an ombudsman does not rule out civil action and does not prevent such from being initiated.2 after bringing proceedings before an ombudsman, the plaintiff may unilaterally waive conciliation proceedings under the civil procedure code46.3 the ombudsman shall terminate proceedings once a conciliation authority, a court, a court of arbitration or an administrative authority begins dealing with the case.46 sr 272chapter 2 duties of financial service providers art. 7747 duty to affiliate financial service providers that do not provide financial services exclusively to institutional or professional clients in accordance with article 4 paragraphs 3 and 4 must affiliate to an ombudsman at the latest on commencing their activity.47 amended by no i 4 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 feb. 2021 (as 2021 33; bbl 2020 233).art. 78 duty to participate 1 financial service providers that are affected by a mediation request to an ombudsman for dispute resolution must participate in the proceedings. 2 they must respond promptly to summonses, requests for comments, and any enquiries from ombudsman's offices.art. 79 duty to provide information 1 financial service providers shall inform their clients about the possibility of mediation proceedings through an ombudsman:a. on entering into a business relationship in accordance with the duty to provide information under article 8 paragraph 1 letter c;b. in the event of the rejection of a legal claim asserted by a client; andc. at any time upon request.2 the information shall be given in an appropriate form and contain the name and address of the ombudsman's office to which the financial service provider is affiliated.art. 80 financial participation financial service providers shall make financial contributions to the ombudsman's office to which they are affiliated. based on the volume of work caused, the contributions are in accordance with the ombudsman office's schedule of contributions and costs.chapter 3 admission and exclusion art. 81 admission an ombudsman's office is obliged to admit a financial service provider if it fulfils the admission conditions. art. 82 exclusion financial service providers that repeatedly fail to comply with the duties in accordance with articles 78 to 80 shall be excluded by the ombudsman's office.art. 83 duty to inform the ombudsman's office shall inform the supervisory authorities as well as the registration body about the financial service providers it has admitted, those refused admission and those excluded. chapter 4 recognition and publication art. 84 recognition 1 ombudsman's offices must be recognised by the federal department of finance (fdf).2 organisations meeting the following conditions shall be recognised as ombudsman's offices:a. they and the persons charged by them with mediation are organisationally and financially independent, perform their task impartially, transparently and efficiently, and do not accept directives;b. they ensure that the persons charged by them with mediation have the necessary specialist skills; c. they have organisational regulations that ensure the proper functioning of the ombudsman's office and specify the admission conditions;d. they have procedural rules governing the procedure under article 75;e. they have a schedule of contributions and costs in accordance with article 80.3 the fdf shall publish a list of ombudsman's offices.4 if individual financial service providers have no possibility of being affiliated to an ombudsman's office, the fdf may require an ombudsman's office to admit these financial service providers. where two or more financial service providers have no appropriate ombudsman's office available to them, the federal council may create such an office.art. 85 review of recognition 1 changes which concern the fulfilment of the conditions for recognition laid down in article 84 must be submitted to the fdf for approval.2 if an ombudsman's office no longer fulfils the conditions for recognition, the fdf shall set an appropriate period for rectification.3 if the necessary rectifications are not made within this period, the fdf shall withdraw its recognition.art. 86 reporting ombudsman's offices shall publish an activity report annually.title 6 supervision and exchange of information art. 87 supervision 1 the competent supervisory authority shall monitor the compliance of financial service providers under its supervision with the requirements for the provision of financial services and the offering of financial instruments. 2 within the scope of the supervisory instruments available to it, it may issue orders to prevent or remedy breaches of the requirements. 3 contentious civil matters between different financial service providers or between financial service providers and clients are settled by the competent court or court of arbitration. art. 88 exchange of information finma, the supervisory organisation, the registration body, the reviewing body, the ombudsman's office and the fdf may exchange information not in the public domain which they require to fulfil their tasks.title 7 criminal provisions art. 89 violation of the code of conduct a fine not exceeding chf 100,000 shall be imposed on any person who wilfully:a. provides false information or withholds material facts when complying with the duties to provide information under article 8;b. seriously violates the duties to assess appropriateness and suitability under articles 10 to 14; c. violates the provisions on the disclosure of compensation paid by third parties under article 26.art. 90 violation of the regulations on prospectuses and key information documents 1 a fine not exceeding chf 500,000 shall be imposed on any person who wilfully:a. provides false information or withholds material facts in the prospectus or key information document in accordance with title 3;b. fails to publish the prospectus or the key information document under title 3 by the beginning of the public offer at the latest.2 a fine not exceeding chf 100,000 shall be imposed on any person who wilfully fails to make the key information document available prior to subscription or conclusion of the contract.art. 91 unauthorised offering of financial instruments a fine not exceeding chf 500,000 shall be imposed on any person who wilfully:a. offers retail clients structured products without complying with the conditions set out in article 70;b. creates an in-house fund without complying with the conditions set out in article 71.art. 92 exemptions articles 89 to 91 do not apply to persons and entities subject to supervision in accordance with article 3 finmasa48 and to persons working for them.48 sr 956.1title 8 final provisions art. 93 implementing provisions the federal council shall issue the implementing provisions.art. 94 amendment of other legislation the amendment of other legislative instruments is set out in the annex.art. 95 transitional provisions 1 the federal council may make provision for a transitional period for fulfilment of the requirements set out in article 6.2 the client advisers in accordance with article 28 must report to the registration body for entry in the register within six months of this act coming into force.3 financial service providers must be affiliated to an ombudsman's office in accordance with article 74 within six months of this act coming into force.4 the provisions of title 3 of this act will come into force two years after this act comes into force:a. in the case of securities for which a public offer was made or a request was made for admission to trading on a trading venue before entry into force;b. in the case of financial instruments that were offered to retail clients before entry into force.5 the federal council may extend the time frame under paragraph 4 for securities if this is warranted by a delay in the reviewing body commencing operations.art. 96 referendum and commencement 1 this act is subject to an optional referendum.2 the federal council shall determine the commencement date.3 this act shall only come into force with the finia49.commencement date: 1 january 20205049 sr 954.150 o of 6 nov. 2019 on the final commencement of the financial institutions act (as 2019 4631).annex (art. 94)amendment of other legislative instruments the legislative instruments below are amended as follows:.5151 the amendments may be consulted under as 2019 4417.

951.11english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.federal act on the swiss national bank(national bank act, nba)of 3 october 2003 (status as of 1 august 2021)the federal assembly of the swiss confederation,based on articles 99, 100 and 123 of the federal constitution1,and having examined the dispatch of the federal council dated 26 june 20022,resolves:1 sr 1012 bbl 2002 6097chapter 1 general provisions art. 1 legal status and name 1 the central bank of the swiss confederation is a joint-stock company incorporated by special act.2 it shall bear the names:schweizerische nationalbankbanque nationale suissebanca nazionale svizzerabanca naziunala svizraswiss national bank.art. 2 subsidiary application of the code of obligations unless otherwise provided by this act, the provisions of the code of obligations (co)3 relating to joint-stock companies apply.3 sr 220art. 3 head offices, branches, agencies and representative offices 1 the national bank shall have its head offices in berne and zurich.2 to the extent required by the country's supply of money, the national bank shall maintain branches and agencies.3 it may set up representative offices for observing the economy and for maintaining relations in the regions.art. 4 exclusive right to issue banknotes the national bank shall have the exclusive right to issue swiss banknotes.art. 5 tasks 1 the national bank shall pursue a monetary policy serving the interests of the country as a whole. it shall ensure price stability. in so doing, it shall take due account of economic developments.2 within this framework, it shall have the following tasks:a. it shall provide the swiss franc money market with liquidity.b. it shall ensure the supply and distribution of cash.c. it shall facilitate and secure the operation of cashless payment systems.d. it shall manage the currency reserves.e. it shall contribute to the stability of the financial system.3 it shall participate in international monetary cooperation. for this purpose, it shall work jointly with the federal council in accordance with the relevant federal legislation.4 it shall provide banking services to the confederation. in so doing, it shall act on behalf of the competent federal authorities.art. 6 independence in fulfilling its monetary tasks according to article 5 paragraphs 1 and 2, the national bank and the members of the bank's bodies shall not be permitted to seek or accept instructions either from the federal council or from the federal assembly or any other body.art. 7 accountability and information 1 the national bank shall regularly discuss with the federal council the economic situation, monetary policy and topical issues of federal economic policy. the federal council and the national bank shall inform each other of their intentions before taking decisions of major importance for economic and monetary policy. the national bank's annual report and annual accounts shall be submitted to the federal council for approval before being approved by the general meeting of shareholders.2 the national bank shall render account of the fulfilment of its tasks pursuant to article 5 to the federal assembly annually in the form of a report. it shall regularly report on the economic situation as well as its monetary policy to the competent committees of the federal assembly.3 it shall regularly inform the public about its monetary policy and shall announce its monetary policy intentions.4 it shall publish its annual report. furthermore, it shall publish quarterly reports on the development of the real economy and the monetary situation; it shall also publish data relevant to monetary policy on a weekly basis.art. 8 exemption from taxation 1 the national bank shall be exempt from direct federal taxes.2 the national bank shall not be subject to taxation by the cantons. cantonal and communal fees shall remain reserved.chapter 2 scope of business art. 9 transactions with financial market participants 1 in performing its monetary tasks pursuant to article 5 paragraphs 1 and 2, the national bank may:a. maintain interest-bearing and non-interest-bearing accounts for banks and other financial market participants, and take assets into custody;b. open accounts with banks and other financial market participants;c. buy and sell, in the financial markets, swiss franc or foreign currency denominated receivables and securities as well as precious metals and claims on precious metals (spot or forward) or enter into lending operations therewith;d. issue and repurchase interest-bearing bonds of its own (spot and forward) as well as create derivatives on receivables, securities and precious metals according to letter c;e. enter into credit transactions with banks and other financial market participants on condition that sufficient collateral is provided for the loans;f. hold and manage the assets designated in this article.2 it shall lay down the general terms and conditions for transactions in accordance with paragraph 1.art. 10 transactions with other central banks and international organisations the national bank may enter into relations with foreign central banks and international organisations and effect with them any form of banking transaction, including raising and granting credits in swiss francs, foreign currencies and international payment instruments.art. 11 transactions on behalf of the confederation 1 the national bank may provide banking services to the confederation. these shall be provided for an adequate consideration. however, the services shall be provided free of charge if they facilitate the implementation of monetary policy. the details shall be laid down in agreements concluded between the respective federal offices and the national bank.2 the national bank may not grant the confederation loans or overdraft facilities; nor shall it be permitted to buy government bonds from new issues. it may permit intraday account overdrafts against sufficient collateral.art. 12 participations and membership rights to the extent necessary for performing its tasks, the national bank may participate in the capital of companies and other legal entities and acquire membership rights in such companies and entities.art. 13 transactions for its own operation in addition to transactions related to its statutory tasks, the national bank may enter into transactions serving its own operation as well as effecting banking transactions for its staff and its pension fund.chapter 3 monetary policy powers section 1 statistics art. 14 collection of statistical data 1 for the purpose of fulfilling its statutory tasks and observing developments in the financial markets, the national bank shall collect the necessary statistical data.2 in collecting statistical data, it shall cooperate with the competent federal offices, in particular with the swiss federal statistical office and the swiss financial market supervisory authority (finma), the competent authorities of foreign countries and with international organisations.44 amended by annex no 13 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).art. 15 duty to provide information 1 banks, financial market infrastructures, financial institutions as defined in article 2 paragraph 1 of the financial institutions act of 15 june 20185, and authorised parties in accordance with article 13 paragraph 2 of the collective investment schemes act of 23 june 20066 must provide the national bank with statistical data relating to their activities.72 to the extent necessary for an analysis of financial market developments, for an overview of payment transactions, for drawing up the balance of payments or for statistics on foreign assets, the national bank may collect statistical data on the business activities from other natural persons or legal entities, including entities for the issuing of payment instruments or for the processing, clearing and settlement of payment transactions, insurance companies, occupational pension institutions and investment and holding companies.83 the national bank shall lay down in an ordinance what data are to be provided and with what frequency; furthermore, it shall lay down the organisation and procedure after having consulted the reporting institutions.5 sr 954.16 sr 951.317 amended by annex no ii 12 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).8 amended by annex no 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 16 confidentiality 1 the national bank must maintain confidentiality with respect to the data collected.2 it shall publish the data collected in the form of statistics. for purposes of confidentiality, the data shall be aggregated.3 the national bank may communicate the data collected in aggregated form to the authorities and organisations listed in article 14 paragraph 2.4 the national bank may exchange the data collected with the competent supervisory authorities of the swiss financial market.5 in other respects, the federal act of 19 june 19929 on data protection applies.9 sr 235.1section 1a10 stability of the financial system 10 inserted by annex no 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483). art. 16a 1 financial market participants are obliged, upon request, to provide all necessary information and surrender any documents to the national bank which the latter requires to fulfil its task in accordance with article 5 paragraph 2 letter e. in particular, they must provide information on their:a. assessment of market developments and identification of relevant risk factors;b. exposure to risk factors to be determined by the national bank;c. resilience to disruptions affecting the stability of the financial system.2 the national bank shall inform finma about its intention to request information and documents. it shall refrain from procuring information and documents if the information is already available elsewhere or can easily be obtained, namely from finma.3 it shall inform the affected financial market participants about:a. the purpose of the procurement of the information;b. the type and scope of the information and documents requested;c. the envisaged use of the information and documents.4 it shall inform finma about the outcome of its information procurement.section 2 minimum reserves art. 17 purpose and scope of application 1 in order to facilitate the smooth functioning of the money market, the banks shall hold minimum reserves.2 the national bank may issue an ordinance to subject issuers of electronic money and other issuers of payment instruments to the minimum reserve requirement if their activities threaten to substantially interfere with the implementation of monetary policy.art. 18 features 1 the national bank shall fix the rate for minimum reserves which the banks must hold on average for a specific period of time. minimum reserves shall consist of swiss franc denominated coins, banknotes and sight deposit accounts which the banks hold with the national bank.2 the rate for minimum reserves shall not exceed four percent of the banks' short-term liabilities denominated in swiss francs. short-term liabilities are deemed to be sight liabilities and liabilities with a residual maturity not exceeding three months as well as liabilities arising from customer deposits that are repayable on demand (excluding tied-up pension fund monies). to the extent permitted by the purpose of this act, individual categories of liabilities can be partially or fully exempt from the reserve requirement.113 the national bank shall apply the provisions on minimum reserves mutatis mutandis to banking groups with collective liquidity management. it may request groups of banks to hold minimum reserves on a consolidated basis.4 the banks shall regularly provide evidence to the national bank that they are holding the required level of minimum reserves.5 the national bank shall lay down the details in an ordinance after having consulted the competent supervisory authority for the swiss financial market.11 amended by annex no 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).section 312 oversight of systemically important financial market infrastructures 12 amended by annex no 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 19 principle 1 in order to protect the stability of the financial system, the national bank shall oversee systemically important central counterparties, central securities depositories, payment systems and dlt trading facilities in accordance with article 22 (systemically important financial market infrastructures) of the financial market infrastructure act of 19 june 201513 (finmia).142 the oversight shall also extend to systemically important financial market infrastructures domiciled abroad if these:a. have substantial parts of their operation or leading participants in switzerland; orb. clear or settle significant transaction volumes in swiss francs.13 sr 958.114 amended by no i 5 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).art. 20 modalities and instruments 1 central counterparties, central securities depositories, payment systems and dlt trading facilities in accordance with article 73a finmia15 shall provide the national bank, upon request, with all of the information and documents it requires to identify risks for the stability of the financial system at an early stage and to assess systemic importance.162 systemically important financial market infrastructures and their audit firms must give the national bank all of the information and documents it requires to fulfil its tasks. moreover, they must immediately notify the national bank of all incidents that are of substantial importance for oversight.3 in the case of systemically important financial market infrastructures, the national bank may carry out audits directly or have them conducted by audit firms mandated by financial market infrastructures in accordance with article 84 finmia17.4 if an audit firm is appointed, the financial market infrastructure must provide it with all of the information it requires to fulfil its tasks.5 the national bank shall set out the details in an ordinance.15 sr 958.116 amended by no i 5 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).17 sr 958.1art. 21 cooperation with foreign authorities for the purpose of overseeing systemically important financial market infrastructures, the national bank may:a. cooperate with foreign supervisory or oversight authorities and request information from them;b. transmit non-public information regarding systemically important financial market infrastructures to foreign supervisory or oversight authorities, provided that these authorities:1. use such information exclusively for directly supervising or overseeing such financial market infrastructures or their participants, and2. are bound by official or professional secrecy.section 4 review and sanctions art. 22 review of compliance with the duties to provide information and to hold minimum reserves 1 the national bank shall require the audit firms and the competent supervisory organisations to examine compliance with the duty to provide information and, in the case of banks, the duty to hold minimum reserves and shall report their findings to the national bank. if the audit firms and the competent supervisory organisations ascertain any violation, in particular if incorrect information has been provided or if the duty to hold minimum reserves has been breached, they shall notify the national bank and the competent supervisory authority.182 the national bank may itself review, or may have audit firms or supervisory organisations review, whether the duty to provide information and the duty to hold minimum reserves have been duly observed. should any violation of these provisions be ascertained, the party required to provide information or to hold minimum reserves shall bear the costs of the review.193 the national bank shall file a complaint with the federal department of finance (the department) if the duty to provide information or the duty to hold minimum reserves has been breached, or if a review ordered or carried out by the national bank has been obstructed.18 amended by annex no ii 12 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).19 amended by annex no ii 12 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 23 administrative sanctions 1 any bank that fails to hold the required amount of minimum reserves must pay the national bank interest on the shortfall for the period during which the required minimum reserve ratio has not been observed. the national bank shall set the relevant interest rate, which may be up to five percentage points above the money market rate for interbank credits for the same period.2 if the national bank notices that a systemically important financial market infrastructure does not comply with the special requirements in accordance with article 23 finmia20, it shall bring this to the attention of finma as well as the other competent swiss or foreign supervisory or oversight authorities. it shall observe the conditions set out in article 21 letter b of this act in doing so.213 furthermore, the national bank may:a. refuse to open a sight deposit account for the financial market infrastructure, or terminate an existing sight deposit account;b. in the event of a refusal to comply with an enforceable order, publish this order in the swiss official gazette of commerce (schweizerisches handelsamtsblatt) or bring it to the attention of the public in any other manner, provided such measure has been preceded by a warning.2220 sr 958.121 amended by annex no 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).22 inserted by annex no. 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 24 criminal provisions 1 any person who wilfully:a. fails to provide the national bank with the information or the evidence required under chapter 3 of this act, or fails to comply with formal requirements, or provides incomplete or inaccurate information or evidence;b. prevents a review ordered or carried out by the national bank;shall be liable to a fine not exceeding 200,000 swiss francs.232 if the offending party acts through negligence, the penalty shall be a fine not exceeding 100,000 swiss francs.3 the department shall prosecute and adjudicate such offences in accordance with the provisions of the federal act of 22 march 197424 on administrative criminal law.3bis the ascertainment of the criminally liable persons may be dispensed with and instead the business operation may be ordered to pay the fine (art. 7 of the administrative criminal law act of 22 march 1974) where:a. the ascertainment of the persons who are criminally liable under article 6 of the administrative criminal law act of 22 march 1974 requires investigative measures that are disproportionate in comparison with the penalty incurred; andb. a fine of a maximum of chf 50,000 is under consideration for the violations of the criminal provisions of this act or the financial market acts in accordance with article 1 of financial market supervision act of 22 june 200725.264 the right to prosecute offences is subject to a seven-year prescriptive period.2723 amended by annex no 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).24 sr 313.025 sr 956.126 inserted by annex no 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).27 amended by annex no 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).chapter 4 company law provisions section 1 structure of the joint-stock company art. 25 share capital, shares 1 the share capital of the national bank amounts to 25 million swiss francs. it is divided into 100,000 registered shares with a nominal value of 250 swiss francs each. the shares are fully paid up.2 in lieu of individual shares the national bank may issue certificates covering several shares. in addition, it may dispense with the printing and the delivery of share certificates. the bank council shall regulate the details.art. 26 share register, limitation of transferability 1 the national bank shall recognise as shareholders only persons who are listed in the share register. the bank council shall regulate the details of the registration.2 a shareholder's registration is limited to a maximum of 100 shares. this limitation shall not apply to swiss public-law corporations and institutions or to cantonal banks pursuant to article 3a of the federal act of 8 november 193428 on banks and savings banks.3 registration shall be refused if the transferee, contrary to a request by the national bank, does not explicitly declare that he or she has purchased and is holding the shares in his or her own name and for his or her own account.28 sr 952.0art. 2729 listing rules if the shares of the national bank are listed on a swiss stock exchange, the competent bodies shall take account of the special nature of the national bank when applying the listing rules, in particular the provisions on the content and the frequency of financial reporting and those on ad hoc publicity.29 amended by annex no 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 28 notifications the invitation to the general meeting of shareholders and notifications to shareholders shall be communicated by letter to the addresses listed in the share register and by a one-off publication in the swiss official gazette of commerce.section 2 determination and distribution of profits art. 2930 annual accounts the annual accounts of the national bank, consisting of the income statement, the balance sheet and the notes to the accounts, shall generally be drawn up in accordance with the provisions of title thirty-two of the co31 on commercial accounting and financial reporting. derogations may be made from the provisions of the co to the extent required by the special nature of the national bank. in particular, the national bank does not have to prepare a cash flow statement.30 amended by annex no 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).31 sr 220art. 30 determination of profits 1 the national bank shall set up provisions permitting it to maintain the currency reserves at a level necessary for monetary policy. in so doing, it shall take into account the development of the swiss economy.2 the remaining earnings are deemed to be distributable profit.art. 31 distribution of profits 1 a dividend not exceeding six percent of the share capital shall be paid from the net profit.2 one-third of any net profit remaining after the distribution of a dividend shall accrue to the confederation and two-thirds to the cantons. the department and the national bank shall, for a specified period of time, agree on the amount of the annual profit distribution with the aim of smoothing these distributions in the medium term. the cantons shall be informed in advance.3 the net profit accruing to the cantons shall be distributed in proportion to their resident population. the federal council shall regulate the details after having consulted the cantons.3232 amended by no ii 33 of the federal act of 6 oct. 2006 on the new system of financial equalisation and division of tasks between the confederation and the cantons (nfe), in force since 1 jan. 2008 (as 2007 5779 5817; bbl 2005 6029).art. 32 liquidation 1 the swiss national bank as a joint-stock company may be liquidated by means of a federal act. this act shall also regulate the liquidation procedure.2 in the event of the liquidation of the national bank, the shareholders shall receive in cash the nominal value of their shares as well as reasonable interest for the period of time since the decision to liquidate the national bank became effective. the shareholders shall not have any additional rights to the assets of the national bank. any remaining assets shall become the property of the new central bank.chapter 5 organisation section 1 corporate bodies art. 33 the corporate bodies of the national bank shall be the general meeting of shareholders, the bank council, the governing board and the audit board.section 2 general meeting of shareholders art. 34 schedule 1 the ordinary shareholders' meeting shall take place every year no later than at the end of june.2 extraordinary shareholders' meetings shall be held whenever the bank council so decides or at the request of the audit board, or if shareholders jointly representing at least ten percent of the share capital submit a written request stating the agenda and their proposals.art. 35 invitation, agenda 1 the president of the bank council shall convene the shareholders' meeting in writing no later than 20 days before the day of assembly.2 the invitation shall state the items on the agenda as well as the bank council's proposals. agenda items with proposals submitted by shareholders shall also be announced. shareholder proposals must be signed by at least 20 shareholders and must be submitted to the president in writing in due time before the invitation is sent out.3 no decisions shall be passed with respect to proposals on agenda items which have not been announced in the invitation.art. 36 powers the shareholders' meeting shall have the following powers:a. it shall elect five members of the bank council.b. it shall elect the audit board.c. it shall approve the annual report and the annual accounts.d. it shall decide on the allocation of the net profit.e. it shall decide on the discharge of the bank council.f. it may make proposals concerning amendments to this act or the liquidation of the national bank to the federal council for submission to the federal assembly.art. 37 participation 1 any shareholder listed in the share register shall be eligible to attend the shareholders' meeting.2 any shareholder may authorise another shareholder in writing to represent him or her at the shareholders' meeting.art. 38 resolutions 1 the shareholders' meeting shall pass its resolutions and perform elections by an absolute majority of the voting stock present. in case of a tie, the chairperson shall have the casting vote.2 balloting shall be open. it shall be secret if the chairperson so orders or at the request of at least 20 shareholders present.section 3 bank council art. 39 election and term of office 1 the bank council shall consist of eleven members. the federal council shall elect six members, the shareholders' meeting five.2 the federal council shall appoint the president and the vice president.3 the term of office shall be four years.4 the members of the bank council shall be eligible for re-election. the full term of office of a member shall not exceed twelve years.art. 40 requirements 1 to be eligible for election as members of the bank council, persons must have swiss citizenship, an impeccable reputation and a recognised knowledge of the fields of banking and financial services, business administration, economic policy, or an academic field. they need not be shareholders.2 the different parts of the country and language regions shall be adequately represented in the bank council.art. 41 resignation, removal from office and election of a substitute 1 members of the bank council may resign at any time by giving three months' notice. the resignation shall be submitted to the president of the bank council.2 the members elected by the federal council shall be replaced as soon as possible; the members elected by the shareholders' meeting shall be replaced at the next shareholders' meeting. the new members shall be elected for the remainder of the term.3 the federal council may remove from office any member elected by it if said member no longer fulfils the requirements for exercising the office or has committed a grave offence. the federal council shall elect a substitute according to paragraph 2.art. 42 tasks 1 the bank council shall oversee and control the conduct of business by the national bank, notably regarding compliance with the act, regulations and directives.2 in particular, it shall perform the following tasks:a. it shall lay down the internal organisation of the national bank; notably, it shall issue the organisation regulations and submit these to the federal council for approval.b. it shall decide on the opening or closing of branches, agencies and representative offices.c. it may set up advisory councils at the bank offices for observing the economic situation in the regions.d. it shall approve the level of provisions.e. it shall oversee the investment of assets and risk management. f. it shall approve the annual report and the annual accounts for submission to the federal council and the shareholders' meeting.g. it shall prepare the shareholders' meeting and implement its resolutions.h. it shall draw up the proposals for the election of the members of the governing board and their deputies and may submit petitions for the removal of any such elected persons to the federal council.i. it shall appoint the members of the management at the head offices, branches and representative offices; they shall be employed on the basis of private-law employment contracts.j. it shall lay down the remuneration of its members and the salaries of the members of the governing board in a set of regulations. article 6a paragraphs 1-6 of the federal personnel act of 24 march 200033 shall apply mutatis mutandis.k. it shall lay down the principles for the salaries of staff members in salary regulations.l. it shall lay down the rules on the legally binding authority to sign on behalf of the national bank in a set of regulations.3 the bank council shall pass decisions in all matters not allocated to another body by statute or the organisation regulations.33 sr 172.220.1section 4 governing board art. 43 election and term of office 1 the governing board shall consist of three members, to whom deputies shall be assigned.2 the members of the governing board and their deputies shall be appointed by the federal council on the recommendation of the bank council. their term of office shall be six years. re-election is possible.3 the federal council shall designate the chairperson and the vice-chairperson of the governing board.art. 44 requirements 1 persons with an impeccable reputation and a recognised knowledge of monetary, banking and financial issues can be elected as members of the governing board. they must, moreover, hold swiss citizenship and be resident in switzerland.2 they may not exercise any other business activity nor hold a federal or cantonal office. the bank council may authorise exceptions in cases where a mandate is in the bank's interest.3 the requirements contained in this article shall also apply to the deputies of the members of the governing board.art. 45 removal from office and election of a substitute 1 a member of the governing board or a deputy can be removed from office by the federal council following a proposal by the bank council during his or her term of office if said person no longer fulfils the requirements for exercising this office or has committed a grave offence.2 in such a case, the federal council shall elect a substitute according to article 43. the substitute member shall be elected for the remainder of the current term.art. 46 tasks 1 the governing board is the supreme management and executive body. it shall represent the national bank vis--vis the public and fulfil the accountability obligation pursuant to article 7.2 in particular, it shall perform the following tasks:a. it shall take conceptional and operational monetary policy decisions.b. it shall decide on the composition of the required currency reserves including the proportion of gold.c. it shall decide on the investment of assets.d. it shall exercise the monetary policy powers according to chapter 3.e. it shall perform the tasks relating to international monetary cooperation.f. it shall decide on the salaries of the staff at the head offices, branches and representative offices; staff are hired on the basis of private-law employment contracts.g. it shall confer authority to sign and limited commitment authority on employees.3 the allocation of the tasks shall be determined by the organisation regulations.section 5 audit board art. 47 election and requirements 1 the shareholders' meeting shall elect the audit board. it may consist of one or more natural persons or legal entities. the auditors shall be elected for a term of one year. re-election is possible.2 the auditors must meet special professional requirements pursuant to article 727b co34, and they must be independent of the bank council, the governing board and the controlling shareholders.34 sr 220art. 48 tasks 1 the audit board shall examine whether the bookkeeping and the annual accounts as well as the proposal for the allocation of the net profit comply with the statutory requirements.2 the audit board shall be entitled to inspect at any time all aspects of the national bank's business. the bank shall hold all the usual documents at its disposal and provide any information necessary for fulfilling the auditing obligation.section 6 secrecy, processing of personal data, exchange of information and liability35 35 amended by art. 28 no 3 of the covid-19 credit guarantees act of 18 dec. 2020, in force from 19 dec. 2020 to 31 dec. 2032 (as 2020 5831; bbl 2020 8477 8819).art. 49 secrecy 1 the members of the bank bodies, the employees and the agents of the national bank shall be bound by official and professional secrecy.2 official and professional secrecy must be kept even after a person has ceased to be a member of a bank body or an employee of the bank.3 any person who violates official or professional secrecy shall be liable to a custodial sentence not exceeding three years or a fine.364 any person who discloses a secret with the written consent of his or her superior shall not be liable to prosecution.36 amended by annex no 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 49a37 processing of personal data in order to fulfil its statutory tasks, the national bank may process personal data, including sensitive personal data.37 inserted by art. 28 no 3 of the covid-19 credit guarantees act of 18 dec. 2020, in force from 19 dec. 2020 to 31 dec. 2032 (as 2020 5831; bbl 2020 8477 8819).art. 5038 cooperation with domestic authorities 1 the national bank is authorised to provide the competent swiss financial market supervisory authorities with non-public information which they need to fulfil their tasks.2 it may also exchange non-public information on certain financial market participants with the department if this helps maintain the stability of the financial system.38 amended by annex no 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 50a39 cooperation with foreign central banks 1 the national bank may cooperate with foreign central banks and the bank for international settlements (bis) in order to perform its tasks in accordance with article 5.2 it may transmit non-public information on certain financial market participants to foreign central banks and the bis only if:a. this information is used exclusively to fulfil tasks that correspond to those of the national bank;b. confidentiality is ensured.39 inserted by annex no 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 50b40 cooperation with international organisations and bodies 1 in order to fulfil its tasks in accordance with article 5, the national bank may participate in multilateral initiatives of international organisations and bodies which give rise to the exchange of information.2 in the case of multilateral initiatives which have far-reaching implications for the swiss financial centre, participation in the exchange of information shall take place in agreement with the department.3 when participating, the national bank may transmit non-public information to international organisations and bodies only if confidentiality is ensured.4 the national bank shall agree the precise intended use and any further dissemination with the international organisations and bodies. paragraph 3 remains reserved.40 inserted by annex no 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 51 liability 1 liability of the national bank, its bodies and employees shall be governed by the federal act of 14 march 195841 on the liability of the federal government, the members of its authorities and its public officials.2 to the extent that the national bank, its bodies and employees act in a private-law capacity, liability shall be governed by private law.41 sr 170.32chapter 6 procedure and legal remedies art. 52 orders 1 the national bank shall issue its decisions pursuant to articles 15, 16a, 18, 20, 22 and 23 of this act, article 8 of the banking act of 8 november 193442 and articles 23 and 25 finmia43 in the form of an order.442 final and conclusive orders on the payment of sums of money shall be equivalent to court judgments enforceable in terms of article 80 of the federal act of 11 april 188945 on debt collection and bankruptcy.42 sr 952.043 sr 958.144 amended by annex no 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).45 sr 281.1art. 5346 legal remedies47 1 the contesting of national bank orders is governed by the provisions on the administration of federal justice.481bis the national bank is entitled to appeal to the federal supreme court.492 an action may be brought before the federal supreme court in the event of disputes between the confederation and the cantons regarding the agreement on the distribution of profits pursuant to article 31.46 amended by annex no 142 of the administrative court act of 17 june 2005, in force since 1 jan. 2007 (as 2006 2197 1069; bbl 2001 4202).47 amended by annex no 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).48 amended by annex no 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).49 inserted by annex no 8 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 54 jurisdiction of the civil courts private-law disputes between the national bank and third parties are subject to the jurisdiction of the civil courts.chapter 7 final provisions section 1 repeal and amendment of existing legislation art. 55 the existing legislation that is repealed or amended is listed in the annex.section 2 transitional provisions art. 56 and 5750 50 repealed by annex no 8 of the financial market infrastructure act of 19 june 2015, with effect from 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 58 .51 1 claims entered in the federal debt register at the time of its abolition shall be converted into bonds of the respective issue by the swiss national bank, and shall be held in safekeeping free of charge for the last registered creditor.2 claims which are converted into bonds when this act comes into force shall be entered in the balance sheet in accordance with the act heretofore in effect. the bonds may be entered in the balance sheet by the last registered creditor at cost price. if the acquisition cost is higher than the redemption value, the difference must be written off at least in annual amounts distributed equally over the entire term. if the acquisition cost is lower, the difference may be settled in even annual payments at the most.51 repealed by annex no 8 of the financial market infrastructure act of 19 june 2015, with effect from 1 jan. 2016 (as 2015 5339; bbl 2014 7483).section 3 referendum and commencement art. 59 1 this act is subject to the optional referendum.2 the federal council shall decide on the commencement date.commencement date:52 annex no ii 5 article 4: 1 january 2005all other provisions: 1 may 200452 fcd of 24 march 2004.annex (art.55)repeal and amendment of existing legislation ithe following enactments are repealed:1. federal act of 21 september 193953 on the federal debt register2. national bank act of 23 december 1953543. decree of the federal parliament of 26 june 193055 on the participation of the swiss national bank in the bank for international settlements4. decree of the federal parliament of 28 november 199656 on the renewal of the swiss national bank's note-issuing privilegeiithe enactments below are amended as follows:.5753 [bs 6 10]54 [as 1954 599, 1979 983, 1993 399, 1997 2252, 1998 2847 annex no 7, 2000 1144 annex no 4]55 [bs 6 100]56 [bbl 1997 i 821]57 the amendments may be consulted under as 2004 1985.

951.131english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinanceto the federal act on the swiss national bank(national bank ordinance, nbo)of 18 march 2004 (status as of 1 january 2021)the swiss national bank (snb),based on articles 15 paragraph 3, 17 paragraph 2, 18 paragraph 5, 20 paragraph 31 and 23 paragraph 1 of the federal act on the swiss national bank of 3 october 20032 (nba),ordains:1 since 1 jan. 2016: art. 20 para. 5.2 sr 951.11 chapter 1 common provisions art. 1 objective this ordinance governs:a. the conduct of statistical surveys by the national bank;b. the obligation of the banks to hold minimum reserves;c.3 the oversight of systemically important financial market infrastructures.3 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).art. 2 definitions 1 in this ordinance:a. bank means any person or company in possession of a licence pursuant to article 3 of the federal act on banks and savings banks of 8 november 19344;b.5 securities firm means any company pursuant to article 41 of the financial institutions act of 15 june 20186;c.7 fund management company means any company pursuant to article 32 of the financial institutions act;d.8 representative of a foreign collective investment scheme means any person or company pursuant to article 123 of the collective investment schemes act of 23 june 20069;e.10 insurance company means any institution pursuant to article 2 of the federal act of 17 december 200411 on the oversight of insurance companies;f. occupational pension scheme means any pension scheme that is inscribed, pursuant to article 48 of the federal act of 25 june 198212 on occupational old age, survivors and invalidity insurance, in the occupational pensions register held by the supervisory authority;g. investment and holding company means any legal entity, company or public law institution, whose principal object is the ongoing administration of participations, and which meets the requirements laid down in the annex to this ordinance;h.13 systemically important financial market infrastructure means a payment system, a central securities depository or a central counterparty pursuant to article 22 paragraph 1 of the financial market infrastructure act of 19 june 201514 (finmia);i.15 payment system means an entity pursuant to article 81 finmia;j.16 .k.17 central securities depository means an entity pursuant to article 61 paragraph 1 finmia;l.18 central counterparty means an entity pursuant to article 48 finmia;m.19 operator means a central securities depository as well as any person or company operating a payment system or central counterparty;n.20 indirect participant means any person pursuant to article 2 letter e finmia;o.21 operational risk means the risk that, as a result of inadequate or failed internal procedures or systems, human error or external events, the functioning of the financial market infrastructure is impaired or financial losses are incurred;p.22 general business risk means the risk that the operator of a financial market infrastructure will incur losses that are not directly linked to the default of a participant or to other credit and liquidity risks. general business risk also includes the risk of financial losses arising from operational or strategic risks; q.23 capital means common equity tier 1 (cet1) capital pursuant to articles 21-26 of the capital adequacy ordinance of 1 june 201224;r.25 net liquidity means readily available assets, minus short-term liabilities;s.26 extreme but plausible market conditions are determined on the basis of the largest price fluctuations which have been observed over the last 30 years, or which are considered possible in the future.2 the national bank shall define further terms in the annex to this ordinance and in the reporting forms.3 the definitions used in the regulations of the swiss financial market supervisory authority (finma) on bank accounting27 shall also apply.284 sr 952.05 amended by no i of the snb o of 31 oct. 2019, in force since 1 jan. 2020 (as 2019 3909).6 sr 954.17 amended by no i of the snb o of 31 oct. 2019, in force since 1 jan. 2020 (as 2019 3909).8 amended by no i of the snb o of 31 oct. 2019, in force since 1 jan. 2020 (as 2019 3909).9 sr 951.3110 amended by no i of the snb o of 10 june 2013, in force since 1 july 2013 (as 2013 1987).11 sr 961.0112 sr 831.4013 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).14 sr 958.115 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).16 repealed by no i of the snb o of 26 nov. 2015, with effect from 1 jan. 2016 (as 2015 5307).17 inserted by no i of the snb o of 10 june 2013 (as 2013 1987). amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).18 inserted by no i of the snb o of 10 june 2013 (as 2013 1987). amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).19 inserted by no i of the snb o of 10 june 2013 (as 2013 1987). amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).20 inserted by no i of the snb o of 10 june 2013 (as 2013 1987). amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).21 inserted by no i of the snb o of 10 june 2013, in force since 1 july 2013 (as 2013 1987).22 inserted by no i of the snb o of 10 june 2013, in force since 1 july 2013 (as 2013 1987).23 inserted by no i of the snb o of 10 june 2013 (as 2013 1987). amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).24 sr 952.0325 inserted by no i of the snb o of 10 june 2013, in force since 1 july 2013 (as 2013 1987).26 inserted by no i of the snb o of 10 june 2013, in force since 1 july 2013 (as 2013 1987).27 finma accounting o of 31 oct. 2019 (sr 952.024.1), as well as finma circular 2020/1 'accounting - banks' of 31 oct. 2019.28 amended by no i of the snb o of 2 july 2020, in force since 1 jan. 2021 (as 2020 4627).chapter 2 statistical surveys section 1 scope of application art. 3 subject the swiss national bank conducts the required statistical surveys:a. to fulfil its monetary policy tasks;b.29 to fulfil its oversight tasks with respect to systemically important financial market infrastructures;c. within the context of its contribution to the stability of the swiss financial system;d. on behalf of international organisations of which switzerland is a member;e. for drawing up the balance of payments and the statistics on the international investment position.29 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).art. 4 principles of data collection 1 the national bank shall limit the number and type of surveys to what is strictly necessary. in particular, it shall ensure that the burden on the institutions obliged to provide information for the collection of statistical data is kept to a minimum.2 it shall conduct a survey among all institutions obliged to provide information (full sample survey) if the data that can be gained by conducting a survey among a part of these institutions (partial sample survey) are not representative or pertinent.3 it shall not collect statistical data in cases where it can draw on existing, sufficiently pertinent, statistics or if it can procure data of a comparable quality by other means within the available time.4 it can totally or partially release certain groups of institutions required to provide statistical information from their obligation.art. 5 statistical surveys 1 the annex to this ordinance lays down the following for each survey:a. name of survey;b. coverage;c. whether it is to be conducted as a partial sample survey or a full sample survey;d. reporting institutions;e. whether, in the case of an institution divided into several organisationally independent units, the survey covers the domestic office (including domestic branches), the entire parent company (including foreign branches) or the entire group (including branches and subsidiaries in switzerland and abroad);f. the intervals at which it is conducted (frequency);g. the deadline for submitting the data (submission deadline); andh. any other procedures.2 if, in order to fulfil a statutory task, the national bank urgently requires the data of a particular survey, it shall fix, for a limited period of time, a submission deadline and frequency deviating from the annex for such survey.3 .3030 repealed by no i of the snb o of 10 june 2013, with effect from 1 july 2013 (as 2013 1987).art. 6 supplementary surveys 1 if, in order to fulfil a statutory task, the national bank urgently requires additional data, it shall conduct supplementary surveys or, within the context of existing surveys, solicit data not provided for in the annex to this ordinance. the supplementary surveys must be limited to what is strictly necessary in terms of content and time.2 the national bank advises the respective reporting institutions of:a. the coverage;b. the purpose and the procedure of the survey;c. the envisaged use of the data;d. the envisaged data protection measures.3 at the request of a reporting institution, the national bank issues an order on the obligation to provide information and the coverage and extent according to article 52 nba.art. 7 consultation of the reporting institutions the national bank shall give the reporting institutions and their associations an opportunity to express an opinion before amending this ordinance with a view to:a. determining or changing the organisation and the procedure of a survey;b. introducing a new survey or significantly extending an existing survey.section 2 conduct of surveys art. 8 participation of the reporting institutions 1 the reporting institutions are invited by the national bank to participate in the survey.2 they are required to provide the information truthfully, within the deadline, free of charge and in the prescribed form.art. 9 calling in third persons 1 if the national bank calls in third persons to conduct surveys, these shall, in particular, be contractually obliged as follows:a. to use the data supplied to them or collected by them in the course of their mandate solely for the exercise of this mandate;b. not to combine the survey conducted on behalf of the national bank with any other surveys;c. after completion of the mandate, to return all the data to the national bank and to delete electronically saved data.2 any exception from these obligations shall require the written permission of the national bank.3 third persons must provide evidence of the fact that they have taken the necessary technical and organisational measures for the processing of these data according to the ordinance of 14 june 199331 on the federal act on data protection.31 sr 235.11art. 10 form of reporting 1 the national bank issues technical instructions on the form of reporting.2 in particular, it specifies which data are to be provided entirely or partially in electronic form.art. 11 confidentiality and data protection 1 all institutions entrusted with conducting surveys shall be obliged to treat the collected data confidentially. they shall take all due care that the data collected are stored in a safe place.2 the information provided by the reporting institutions is stored in accordance with the federal act on archiving of 26 june 199832.32 sr 152.1chapter 3 minimum reserves art. 12 scope of application 1 solely banks are obliged to hold minimum reserves. 2 bank groups with collective liquidity management shall fulfil the minimum reserve requirement at group level.art. 13 eligible assets the following swiss franc denominated assets of the banks are eligible as minimum reserves:a. coins in circulation (excluding commemorative coins and bullion coins)100 percentb. banknotes100 percentc. sight deposits at the national bank100 percentart. 1433 relevant liabilities 1 the following swiss franc denominated liabilities of the banks count towards the calculation of the minimum reserves:a. liabilities arising from money market instruments which cannot be attributed to either banks or customers, and which mature within three months;b. liabilities vis--vis banks payable on sight or maturing within three months;c. 20 percent of liabilities arising from customer time deposits (excluding tied pension fund monies);d. liabilities arising from customer deposits payable on sight or maturing within three months (including call money);e. liabilities arising from medium-term bank-issued notes maturing within three months;f.34 .1bis liabilities vis--vis banks which are themselves subject to minimum reserve requirements based on articles 17 and 18 nba are not counted in the calculation.2 .353 the terms used in paragraph 1 letters a-e refer to finma's accounting regulations36.374 liabilities towards the national bank are not counted in the calculation of the minimum reserves.3833 amended by no i of the snb o of 7 may 2014, in force since 1 jan. 2015 (as 2014 3023).34 repealed by no i of the snb o of 31 oct. 2019, with effect from 1 jan. 2020 (as 2019 3909).35 repealed by no i of the snb o of 31 oct. 2019, with effect from 1 jan. 2020 (as 2019 3909).36 finma accounting o of 31 oct. ober 2019 (sr 952.024.1), as well as finma circular 2020/1 'accounting - banks' of 31 oct. 2019.37 inserted by no i of the snb o of 2 july 2020, in force since 1 jan. 2021 (as 2020 4627).38 inserted by no i of the snb o of 2 july 2020, in force since 1 jan. 2021 (as 2020 4627).art. 15 level of minimum reserve and fulfilment of minimum reserve requirement 1 the required minimum reserve amounts to 2.5 percent of the average of the liabilities at the end of the three months preceding the reporting period.2 the minimum reserve requirement must be fulfilled, on an average of the respective reporting period, from the 20th of one month until the 19th of the following month.3 the average according to paragraph 2 will be calculated based on the relation between total daily assets available at the close of business according to article 13, on the one hand, and the number of calendar days in the reporting period, on the other hand. for saturdays, sundays and public holidays, the assets of the last preceding business day are to be entered.art. 16 accountability by the end of the month of the terminated reporting period, the banks shall report to the national bank whether the minimum reserve obligation has been fulfilled. the national bank shall determine the form and manner of reporting in guidelines.art. 17 interest obligation 1 if a bank fails to fulfil the minimum reserve requirement for a reporting period that has ended, it shall pay interest on the shortfall to the national bank for the number of days of the respective reporting period. the interest rate shall exceed by four percentage points the overnight rate for swiss franc deposits payable on average in the respective reporting period. the saron (fixing at close of trading) serves as the basis. in the event of non-fulfilment, an amount of at least chf 500 is payable.392 the national bank shall order the bank to pay the interest amount by the end of the second month following the end of the reporting period. should the bank disagree with the payment of interest it may, within 30 days, demand the issuance of a contestable order pursuant to the terms of article 52 nba.39 amended by no i of the snb o of 3 sept. 2009, in force since 1 jan. 2010 (as 2009 6373).chapter 4 oversight of systemically important financial market infrastructures40 40 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).section 141 determination of systemically important financial market infrastructures and business processes 41 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).art. 18 disclosure obligation 1 the disclosure obligation specified in article 20 paragraph 1 nba applies to:a. payment systems which settle payments in excess of chf 25 billion (gross) per financial year;b. central securities depositories;c. central counterparties.2 the disclosure obligation already applies prior to the payment system, central securities depository or central counterparty starting operations; however, it applies to payment systems only if it is to be expected that the value of payments stated in paragraph 1 letter a will be attained in the first year after the system starts operations.art. 19 procedure 1 the national bank shall issue an order designating systemically important financial market infrastructures and their systemically important business processes pursuant to article 22 finmia42.2 the national bank shall request from the operator the necessary information and documentation, and set the deadline and the format for their submission.3 before designating a financial market infrastructure as systemically important and determining its systemically important business processes, the national bank shall provide the operator with the opportunity to express an opinion. if the operator is a financial market infrastructure subject to authorisation in accordance with article 4 finmia, the national bank shall consult finma.42 sr 958.1art. 20 criteria for systemically important financial market infrastructures in determining whether a payment system, central securities depository or central counterparty is important for the stability of the swiss financial system in accordance with article 22 paragraph 1 finmia43, the national bank shall, in particular, take the following factors into account:a. the transactions that are cleared or settled through the financial market infrastructure, and in particular whether they are foreign exchange, money market, capital market or derivatives transactions, or are transactions that serve to implement monetary policy;b. the transaction volumes and amounts cleared or settled through the financial market infrastructure;c. the currencies in which transactions are cleared or settled through the financial market infrastructure;d. the number, nominal value and currency of issue of the financial instruments held in central custody or under management by the financial market infrastructure;e. the participants of the financial market infrastructure;f. the financial market infrastructure's links with other financial market infrastructures;g. the possibility of the financial market infrastructure's participants switching at short notice to another financial market infrastructure or to an alternative clearing and settlement arrangement in order to clear and settle transactions, and the associated risks;h. the credit and liquidity risks associated with the operation of the financial market infrastructure.43 sr 958.1art. 20a and 21 repealedsection 244 special requirements for systemically important financial market infrastructures45 44 amended by no i of the snb o of 10 june 2013, in force since 1 july 2013 (as 2013 1987).45 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).art. 21a46 applicability of special requirements 1 for systemically important financial market infrastructures which are not subject to finma authorisation and supervision pursuant to article 4 finmia47, the following special requirements shall apply. 2 for systemically important financial market infrastructures which are subject to finma authorisation and supervision pursuant to article 4 finmia, the requirements specified in article 23, article 24 paragraphs 4 to 6, article 24a, article 25c, article 27 paragraphs 1 and 2, articles 28-28d, article 29, article 30 paragraphs 1 and 3, articles 32-32c, and article 34, as well as section 3, with the exception of article 36 paragraph 1 letter h, shall apply.46 inserted by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).47 sr 958.1art. 22 governance and organisation 1 the operator shall have appropriate corporate governance rules and procedures in place. these include, in particular:a. an organisational structure and framework which define the tasks, responsibilities, powers and reporting duties of the board of directors, the senior management and the internal audit function;b. a risk management framework for the identification, measurement, management and monitoring of risk;c. a system of internal controls which, inter alia, ensures compliance with statutory, regulatory and internal company rules and regulations (compliance function).2 the operator shall have mechanisms in place that allow participants' needs with regard to services provided by the financial market infrastructure to be surveyed.3 and 4 .4848 repealed by no i of the snb o of 26 nov. 2015, with effect from 1 jan. 2016 (as 2015 5307).art. 22a board of directors, senior management and internal audit 1 the members of the board of directors and senior management shall have an impeccable reputation and shall possess the experience and skills to perform their mandate. the board of directors shall have its performance regularly assessed.2 the board of directors shall also contain non-executive directors.3 the board of directors shall specify the basic risk management principles. it shall approve the plans specified in article 26 and article 31 paragraph 4, as well as the business continuity strategy and plans specified in article 32b paragraph 4.4 the internal audit function shall be independent of the senior management and shall report to the board of directors or one of its committees. it shall be equipped with sufficient resources and shall have unlimited right of review as well as unrestricted access to all documentation, data carriers and information processing systems.5 .4949 repealed by no i of the snb o of 26 nov. 2015, with effect from 1 jan. 2016 (as 2015 5307).art. 22b documentation and retention 1 the operator shall keep records on the main services provided and activities performed and shall retain all records for a period of ten years.2 and 3 .5050 repealed by no i of the snb o of 26 nov. 2015, with effect from 1 jan. 2016 (as 2015 5307).art. 23 contractual framework 1 the contractual framework of the financial market infrastructure shall define, in particular:a. the participation requirements as well as the criteria for the suspension and exclusion of a participant;b. the rights and obligations of the operator and the participants;c. the rules and procedures for the operation of the financial market infrastructure;d. the rules and procedures in the event of a participant's default;e. the reciprocal rights and obligations arising from links with other financial market infrastructures;f. the obligations regarding the delivery of physical instruments or commodities.2 the operator shall regularly review the effectiveness and enforceability of the contractual framework in all relevant jurisdictions and shall take the necessary measures to limit any legal risks.art. 23a transparency 1 the operator shall publicly disclose key aspects of all information relating to the financial market infrastructure on a regular basis, in particular:a. the design and operation of the financial market infrastructure;b. the operator's organisational structure;c. the rights and obligations of the participants;d. the participation requirements as well as the criteria for the suspension and exclusion of a participant;e. the rules and procedures in the event of a participant's default;f.51 .g. the aggregate transaction volumes and amounts;h.52 .i. the prices and fees charged by the financial market infrastructure for the services it offers, including its conditions for discounts.2 the operator shall publish information in accordance with the standards set by the relevant international bodies.51 repealed by no i of the snb o of 26 nov. 2015, with effect from 1 jan. 2016 (as 2015 5307).52 repealed by no i of the snb o of 26 nov. 2015, with effect from 1 jan. 2016 (as 2015 5307).art. 24 access and exclusion 1 the operator shall grant non-discriminatory and open access to its services.2 the operator may restrict access provided that this increases the safety or efficiency of the financial market infrastructure, and that such an effect cannot be brought about by any other means. in particular, the operator may make participation conditional upon fulfilment of operational, technical, financial and legal requirements.3 if an operator restricts access for reasons of efficiency, the national bank shall consult the competition commission as part of its assessment.4 the operator shall monitor compliance with the participation requirements on an ongoing basis.5 the operator shall define the criteria and procedure for the suspension and exclusion of participants that no longer fulfil the participation requirements.6 the operator shall immediately notify the participant of its suspension or exclusion.art. 24a default of a participant 1 the operator shall have appropriate rules and procedures for managing the default of a participant and for minimising credit and liquidity risks for the financial market infrastructure and its participants. these rules and procedures shall enable the operator to meet its obligations when due.2 in particular, the rules and procedures shall define:a. the sequence in which the operator uses collateral and other financial resources to cover losses (default waterfall);b. how the operator allocates losses that are not covered by collateral and other financial resources;c. how the operator deals with liquidity shortfalls;d. how the operator replenishes collateral and other financial resources that were deployed to cover losses or to bridge liquidity shortfalls following the default of a participant.3 the operator shall review and test these rules and procedures at least annually.art. 24b53 53 repealed by no i of the snb o of 26 nov. 2015, with effect from 1 jan. 2016 (as 2015 5307).art. 25 means of payment 1 where possible and practicable, the financial market infrastructure shall settle payments by transferring sight deposits at a central bank.2 alternatively, the financial market infrastructure shall use a means of payment with no or only low credit and liquidity risks. the operator shall minimise and monitor these risks on an ongoing basis.art. 25a finality 1 the rules of the financial market infrastructure shall determine the point in time after which:a. a participant's payment order is unconditional and irrevocable;b. a payment is settled.542 the financial market infrastructure shall settle payments and securities transfers in real time, but at the latest by the end of the value day.54 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).art. 25b55 exchange-of-value settlement the operator of a financial market infrastructure shall enable the participants to eliminate their principal risk by ensuring that for transactions involving the settlement of two linked obligations, the settlement of one obligation occurs if and only if the settlement of the other obligation is guaranteed.55 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).art. 25c56 central securities depositories 1 a central securities depository shall have appropriate rules, procedures and controls for minimising the risks associated with the safekeeping and transfer of securities.2 a central securities depository shall enable its participants to hold the securities in an immobilised or dematerialised form by recording them in a securities account.56 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).art. 26 recovery and orderly wind-down of systemically important business processes 1 the operator shall identify scenarios that might jeopardise its viability as a going concern, and shall prepare a plan to ensure:a. the recovery or orderly wind-down of systemically important business processes in the event of impending insolvency or other scenarios jeopardising its viability as a going concern;b. the orderly wind-down of systemically important business processes in the event of a voluntary cessation of business.2 the plan shall, in particular, describe the measures to be taken by the operator as well as the resources required to implement these measures. the plan shall take into account the length of time required for the participants to connect to an alternative financial market infrastructure.art. 27 risk management principles 1 the operator shall have a concept for the integrated identification, measurement, management and monitoring of key risks, especially legal, credit, liquidity, business and operational risks.572 in defining the procedures and tools to manage credit and liquidity risks, the operator shall take into account their impact on the participants and the financial system. in particular, it shall aim to prevent procyclical effects.3 the operator shall provide tools and incentives for the participants to continuously manage and contain the risks arising for themselves or for the financial market infrastructure.57 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).art. 28 management of credit risk 1 the operator shall identify, measure, manage and monitor its credit risk through the use of appropriate procedures and tools.2 the operator shall have sufficient collateral, as specified in article 28a, to cover current and potential credit exposures to each participant with a high level of confidence. it shall regularly assess compliance with this requirement.art. 28a collateral 1 to cover risk exposures, the operator shall only accept liquid collateral with low credit and market risks.2 the operator shall value collateral prudently. it shall apply haircuts which are also appropriate under extreme but plausible market conditions and validate them regularly.3 the operator shall avoid concentration risk in the collateral. in order to diversify the collateral, it shall define concentration limits and monitor compliance with these limits. the operator shall also ensure that no participants post collateral whose value will be substantially reduced in the event of their default.584 the operator shall ensure that it can access the collateral in a timely manner. this applies, in particular, to collateral which is:a. held in custody abroad;b. issued by foreign issuers; orc. denominated in foreign currency.58 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).art. 28b financial resources and default waterfall of central counterparties 1 a central counterparty shall limit its credit exposure to its participants by collecting collateral as specified in article 28a in the form of initial margin, variation margin and default fund contributions.2 a central counterparty shall mark the participants' collateral and positions to market, and shall collect margin (initial and variation margin) at least once daily when predefined thresholds are exceeded. in addition, it shall have the authority and capability to make intraday margin calls.3 the margin and the default fund contributions shall cover current and potential credit exposures under a wide range of scenarios. these scenarios shall include, but not be limited to, the default of the participant or group of participants as well as the default of the two participants or two groups of participants against which a central counterparty has the largest potential credit exposure under extreme but plausible market conditions. a group of participants consists of all participants affiliated to the same parent company.4 in order to cover any losses from a participant's default, a central counterparty shall use collateral and capital in the following sequence:a. margin of the defaulting participant;b. default fund contributions of the defaulting participant;c. dedicated capital of the central counterparty, which needs to be substantial relative to the central counterparty's total capital;d. default fund contributions of the non-defaulting participants.art. 28c calculating a central counterparty's margin 1 the initial margin of a participant shall cover the potential credit exposure arising from its default for a central counterparty due to expected price movements over an appropriate time horizon with a confidence level of at least 99%. the confidence level for over-the-counter derivatives must be at least 99.5% unless they show the same risk characteristics as exchange-traded derivatives.592 the appropriate time horizon pursuant to paragraph 1 corresponds to the period from the last variation margin payment up to the expected close-out or hedging of positions in the event of a participant's default. this horizon shall be at least two business days. for over-the-counter derivatives, the horizon shall be at least five business days, unless they show the same risk characteristics as exchange-traded derivatives.603 a central counterparty shall base its initial margin calculation on price movements in the financial instruments underlying the positions over at least the previous 12 months. it may choose other and additional periods if these result in higher initial margin.4 if a central counterparty nets the positions of a participant when calculating that participant's initial margin, then the assumptions applied with regard to the correlations in the financial instruments underlying these positions shall also be appropriate under extreme but plausible market conditions.5 the variation margin shall cover the current credit exposure arising from realised price movements, taking into account the predefined thresholds.59 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).60 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).art. 28d risk control at central counterparties 1 a central counterparty shall assess:a. by means of daily back tests, whether the initial margin meets the requirements specified in article 28c paragraph 1;b. by means of daily stress tests, whether the margin and the default fund contributions meet the requirements specified in article 28b paragraph 3;c. on a monthly basis, how initial margin changes when the assumptions and parameters underlying its calculation vary;d. on a monthly basis, the scenarios, models, assumptions and parameters underlying the stress tests;e. at least annually and in a comprehensive manner, its credit risk management model and the implementation thereof.2 in the event that a central counterparty identifies shortcomings when performing the tests specified in paragraph 1, it shall make adjustments so as to meet the requirements.art. 29 management of liquidity risk 1 the operator shall identify, measure, manage and monitor its liquidity risk through the use of appropriate procedures and tools.2 the operator shall have sufficient liquid resources to effect its payment obligations in all currencies when due, under a wide range of stress scenarios. as regards these liquid resources, the operator shall apply haircuts which are also appropriate under extreme but plausible market conditions.3 when selecting stress scenarios, the operator shall, in particular, take into account the following stress events under extreme but plausible market conditions:a. the default of the participant or group of participants which would generate the largest aggregate payment obligation for the financial market infrastructure;b. additionally, for a central counterparty, the default of the two participants or two groups of participants which would generate the largest aggregate payment obligation for the central counterparty;c. the default of the largest liquidity provider in each of the five currencies in which the financial market infrastructure has the largest payment obligations.4 liquid resources in a currency, as specified in paragraph 2, comprise cash, credit lines and collateral in accordance with article 50 paragraph 1 and article 58 paragraph 1 of the financial market infrastructure ordinance of 25 november 201561 (finmio).625 the operator shall diversify its liquidity providers and avoid concentration risk for collateral and assets in accordance with article 50 paragraph 1 letters d and e finmio as well as article 58 paragraph 1 letters d and e finmio.636 the operator shall assess:a. by means of daily stress tests, whether the requirement specified in paragraph 2 is met;b. at least on a quarterly basis, the creditworthiness of the liquidity providers and their ability to meet their obligations.61 sr 958.1162 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).63 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).art. 30 management of custody and investment risks 1 the operator shall identify, measure, manage and monitor its custody and investment risks through the use of appropriate procedures and tools.2 if the operator places own assets or collateral and assets of participants in the custody of a third party, it shall minimise the associated risks. in particular, it shall place the collateral and assets concerned with creditworthy and, wherever possible, supervised financial institutions, and shall take measures to ensure that, if necessary, it can access the collateral and assets immediately.3 the operator's investment strategy shall be consistent with its risk management strategy and allow only liquid investments with minimal credit and market risks. the operator shall avoid risk concentrations and disclose the investment strategy vis--vis its participants, in particular regarding the possible re-use of the collateral they have provided.art. 31 management of general business risk 1 the operator shall identify, measure, manage and monitor its general business risk through the use of appropriate procedures and tools.2 in order to cover losses from general business risk, the operator shall hold capital and net liquidity. such capital and net liquidity shall be sufficient to ensure the implementation of the plan specified in article 26, and shall in any case be sufficient to cover current operating expenses for at least six months.3 collateral and other dedicated financial resources which are used to cover losses from participant defaults or from other credit or liquidity risks in accordance with articles 28 and 29 must not be used to satisfy the requirement specified in paragraph 2.644 the operator shall have a plan to raise additional capital in case the requirement specified in paragraph 2 is no longer fulfilled.64 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).art. 32 management of operational risk the operator shall identify, measure, manage and monitor its operational risk through the use of appropriate procedures and tools, particularly in order to ensure information security and business continuity, taking into account recognised standards.art. 32a information security 1 the operator shall apply a company-wide approach and maintain an appropriate organisational structure with regard to planning, implementing, monitoring and improving the management of tasks and activities relating to information security (information security management).2 the operator shall set appropriate targets with regard to the availability, integrity, confidentiality, auditability, authenticity, accountability and non-repudiation of information, particularly data in connection with transactions that are cleared or settled via the financial market infrastructure (information security objectives).3 the operator shall take organisational and technical measures to ensure that the information security objectives are met during normal operations, during development and maintenance activities, and in times of increased transaction volumes. in particular, it shall take precautions enabling it to:a. identify, analyse and evaluate internal and external threats to information security and, if necessary, implement appropriate protective measures;b. ensure the physical security of the data processing facilities;c. ensure the secure and continuous operation of the data processing facilities;d. control, record and evaluate access to information and to the data processing facilities;e. protect data from loss, leakage, unauthorised access, and other processing risks such as negligence, fraud, poor administration and inadequate recordkeeping;f. ensure the secure storage and transmission of sensitive data;g. ensure the correct and complete processing of transactions;h. record and check transactions at all key stages of processing, in particular regarding input to and output from the data processing system;i. record and monitor interventions in the data processing system, such as software and parameter changes;j.65 record, evaluate and rectify processing errors and system disruptions promptly and in standardised form and prevent them from recurring.4 the operator shall regularly monitor the appropriateness of, and compliance with, the information security objectives specified in paragraph 2.65 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).art. 32b business continuity 1 the operator shall apply a company-wide approach to maintaining or recovering business processes, in particular those business processes which are systemically important, in a timely manner in the event of damage or disruption.2 the operator shall define the necessary resources (premises, staff, technical facilities, data, external service providers) for the individual business areas and assess the impact of any complete or partial loss or disruption of each of these resources with regard to business processes, in particular systemically important business processes (business impact analysis). the assessment shall include any interdependency among business areas and any dependency on external service providers.3 based on the business impact analysis, the operator shall define the maximum acceptable time before business processes are recovered, as well as the required degree of recovery (recovery objectives) and the associated resource requirements. the maximum acceptable time for recovery in the case of systemically important business processes, even in the event of major damage or disruption (e.g. non-availability of a business-critical building including staff), shall be two hours.4 the operator shall define the procedure by which it aims to meet the recovery objectives specified in paragraph 3 (business continuity strategy), and shall draw up plans that describe in detail the action to be taken and the persons responsible (business continuity plans).5 subsequent to any major modifications but at least once a year, the operator shall review and test the business continuity plans with regard to their implementation and effectiveness, and to ensure that they are up to date. such tests shall, if necessary, also involve participants and important service providers.art. 32c data centres 1 the operator shall have at least two data centres that meet high standards, particularly with regard to physical security, fire protection, power supply, cooling systems and telecommunications infrastructure.2 the operator shall decide on the location of the data centres based on a risk analysis, and ensure that the data centres have different risk profiles and provide protection even in the event of a major incident adversely affecting a large geographical area.3 the data centres and precautions taken to ensure their operation shall be appropriate for the fulfilment of the information security and recovery objectives specified in articles 32a and 32b. if one of the data centres becomes inoperable, the operator shall ensure that, in particular, systemically important business processes can be continued within two hours at another data centre without the loss of any processing steps confirmed to participants.art. 32d66 outsourcing 1 if the operator outsources significant services, it shall select its service providers with care and instruct them appropriately.2 the operator shall integrate the outsourced services into its internal control system and monitor the performance of the service provider on an ongoing basis.3 the operator shall, with regard to any outsourced services, remain responsible for compliance with the special requirements specified in this chapter.4 the outsourcing contract shall, in particular, specify:a. the services to be rendered by the service provider;b. the possibilities for the national bank, the operator or a mandated external party to examine - in full and without hindrance - the services outsourced to the service provider.66 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).art. 33 management of risk from indirect participation if the financial market infrastructure has indirect participants and these are visible to the operator, the latter shall identify, measure, manage and monitor the risks to the financial market infrastructure arising from indirect participants.art. 34 management of risk from links between financial market infrastructures 1 the operator shall identify, measure, manage and monitor risks arising from links to other financial market infrastructures.2 if a central securities depository establishes a link with another central securities depository:a. the central securities depository shall use appropriate collateralisation measures to cover, with a high confidence level, the credit risk arising out of the granting of credit to the other central securities depository;b. the central securities depository shall permit the re-use of securities provisionally received from the other central securities depository only after the original transfer is unconditional and irrevocable;c. the central securities depository shall, in the case of indirect links, identify, measure, manage and monitor the risks arising due to intermediary financial institutions.d. the central securities depository shall, on a daily basis, match the holdings in its sub-custody with those it holds at other central securities depositories and custodians;e. the central securities depository shall make the settlement of transactions between the participants of linked central securities depositories possible on a delivery versus payment basis where practicable.673 if a central counterparty enters into a link with another central counterparty, it shall cover the resulting current and potential credit exposure with a high confidence level through the collection of collateral as specified in article 28a from the other central counterparty.67 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).section 3 assessment of compliance with special requirements68 68 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307). art. 3569 obligation to provide information the operator shall provide the national bank or any third party designated by the latter with all the information and documentation that it requires for the assessment of compliance with the special requirements specified in this chapter.69 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).art. 3670 reporting obligations 1 the operator shall submit the following documentation and information to the national bank:a. the annual report;b. the contractual framework;c. the organisational principles;d. the minutes of the board of directors' meetings;e. the internal and external auditors' reports;f. information on the participants;g. data on the clearing and settlement of payments and financial instruments and the central custody of securities;h. the plan specified in article 26, to ensure the recovery or orderly wind-down of systemically important business processes, and the plan specified in article 31 paragraph 4, to raise additional capital;i. the results of the risk controls specified in articles 27-32a, 33 and 34; j. information on the availability of the data processing system, as well as on system failures and disruptions, including their causes and the action taken (operating statistics and production report);k. the business impact analysis, the business continuity strategy and the business continuity plans specified in article 32b paragraphs 2-4;l. the results of the tests of the business continuity plans specified in article 32b paragraph 5;m. a report on the course of the exclusion procedure in the case of default of a participant;n.71 a report on compliance with the special requirements specified in this chapter.2 the operator shall inform the national bank in good time about any significant planned changes with regard to:a. the ownership structure;b. the corporate objectives, corporate strategy and services offered;c. the corporate governance and organisation pursuant to article 22;d. the means of payment used;e. the requirements for participation in the financial market infrastructure;f. the risk management, in particular the procedures and tools for managing credit and liquidity risks;g. the management of operational risk, in particular the business continuity strategy and the organisational and technical measures taken to achieve the information security objectives;h. agreements with third parties whose services are important for the operation of the financial market infrastructure.3 the operator shall inform the national bank immediately about:a. significant legal disputes;b.72 events that significantly impair the achievement of the information security objectives specified in article 32a and the business continuity objectives specified in article 32b;c. any non-compliance with the requirements regarding the management of credit and liquidity risks in accordance with articles 28, 28b, 28c, 28d and 29.4 the operator shall inform the national bank, finma and other responsible supervisory authorities immediately of any suspension or exclusion of a participant.5 the national bank shall, in consultation with the operator, define the frequency, deadlines and formats for the submission of the documents and the provision of the information specified in paragraphs 1-4.70 amended by no i of the snb o of 10 june 2013, in force since 1 july 2013 (as 2013 1987).71 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).72 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).art. 3773 on-site assessments 1 in order to assess compliance with the special requirements specified in this chapter, the national bank may undertake on-site assessments of the financial market infrastructure or charge a third party with the performance of such assessments.742 the operator shall have the adequacy and effectiveness of its risk management reviewed regularly by a qualified internal or external body. the national bank may set requirements regarding the scope and depth of the assessments.3 the operator shall have the adequacy and effectiveness of the procedures and tools used for the management of operational risk reviewed annually by a qualified external body. the national bank shall, in consultation with the operator, define the scope and depth of the assessments.73 amended by no i of the snb o of 10 june 2013, in force since 1 july 2013 (as 2013 1987).74 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).art. 3875 procedure in cases of non-compliance with the special requirements 1 if a financial market infrastructure does not satisfy the special requirements specified in this chapter, the national bank shall issue a recommendation to the operator.2 the national bank shall issue an order if the operator fails to comply with a corresponding recommendation as specified in paragraph 1.3 before issuing the recommendation specified in paragraph 1 or the order specified in paragraph 2, the national bank shall provide the operator with the opportunity to express an opinion. if the financial market infrastructure is subject to authorisation and supervision by finma pursuant to article 4 finmia76, the national bank shall first consult finma.75 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).76 sr 958.1art. 3977 77 repealed by no i of the snb o of 26 nov. 2015, with effect from 1 jan. 2016 (as 2015 5307).chapter 5 audit art. 4078 1 the audit companies shall check whether the statistical reporting obligations and the minimum reserve requirements are fulfilled and shall submit a separate report to the national bank.2 the audit shall, as a rule, be conducted at the same time as the audit specified in article 24 of the financial market supervision act of 22 june 200779. duplication should be avoided as far as possible. however, the report should be submitted to the national bank no later than six months after the annual accounts have been drawn up.78 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).79 sr 956.1chapter 6 final provisions art. 4180 transitional provisions 1 for financial market infrastructures which are subject to finma authorisation and supervision, the special requirements in accordance with articles 21a-34 and the obligations in accordance with article 36 shall apply only after the licence granted in accordance with article 25 finmia81 has entered into force. until such time, the relevant requirements and obligations as laid out in the existing legislation shall apply. 2 for financial market infrastructures which are not subject to finma authorisation and supervision, the special requirements in accordance with articles 22-34 and the obligations in accordance with article 36 shall apply as soon as the amended national bank ordinance of 26 november 2015 enters into force.80 amended by no i of the snb o of 26 nov. 2015, in force since 1 jan. 2016 (as 2015 5307).81 sr 958.1art. 42 commencement this ordinance comes into force on 1 may 2004.annex82 82 amended by no ii of the snb o of 3 sept. 2009 (as 2009 6373). revised in accordance with no i of the snb o of 23 june 2011 (as 2011 5043), no ii of the snb o of 10 june 2013 (as 2013 1987), of 7 may 2014 (as 2014 3023), the corrections of 24 feb. 2015 (as 2015 643), of 10 march 2015 (as 2015 767), no ii of teh snb o of 26 nov. 2015 (as 2015 5307), no i of the snb o of 8 june 2017 (as 2017 6495), the correction of 30 jan. 2018 (as 2018 527), no ii of the snb o of 31 oct. 2019 (as 2019 3909) and of 2 july 2020, in force since 1 jan. 2020 (as 2020 4627).(art. 5 para. 1)surveys name of survey:comprehensive monthly balance sheetcoverage:balance sheet positions and fiduciary business based on the bank accounting regulations of the federal council83 and finma84; breakdown by residual maturity, by currency (swiss francs, us dollars, euros, yen), by domicile or residence of customers in switzerland or abroad, and by economic sector; on-balance sheet monetary claims and liabilities arising from repo transactions and from cash collateral for lending and other transactions; loans granted in cooperation with banks abroad - these loans are recorded in the foreign bank's balance sheettype of survey:partial sample surveyreporting institutions:banks whose balance sheet total and fiduciary business combined exceed chf 500 million breakdown by economic sector: banks whose domestic assets exceed chf 1.5 billionreporting entity:bank office; parent companyfrequency:monthlysubmission deadline after survey date:17 daysspecial provisions:-name of survey:selected balance sheet positions for monetary aggregate statisticscoverage:those balance sheet positions that permit monetary aggregates to be estimated at an early stagetype of survey:partial sample surveyreporting institutions:banks whose total m3-relevant balance sheet positions exceed chf 3 billionreporting entity:bank officefrequency:monthlysubmission deadline after survey date:10 daysspecial provisions:-name of survey:comprehensive year-end statisticscoverage:balance sheet positions and off-balance sheet business based on the bank accounting guidelines of the federal council85 and finma86; breakdown by residual maturity, by currency (swiss francs, us dollars, euros, yen), and by domicile or residence of customers in switzerland or abroad; profit and loss account and supplementary information; country breakdown of assets and liabilities and of fiduciary business; on-balance-sheet monetary claims and liabilities arising from repo transactions and from cash collateral for lending and other transactionstype of survey:full sample surveypartial sample survey for the country breakdownreporting institutions:all bankscountry breakdown: banks that are required to participate in the locational banking statisticsreporting entity:parent company; bank office and group for individual subsectionsfrequency:annuallysubmission deadline after survey date:3 monthsspecial provisions:-name of survey:credit volume statisticscoverage:lending activities (credit limits, utilisation, value adjustments, write-downs) and impaired receivables; broken down into mortgage loans and claims against customers (secured and unsecured), by residual maturity, by economic sector, by domicile or residence of customers in switzerland or abroad, and by the size of the borrower's companytype of survey:partial sample surveyreporting institutions:banks whose loans to domestic non-banks exceed chf 280 millionreporting entity:bank officefrequency:monthlysubmission deadline after survey date:20 daysspecial provisions:-name of survey:survey on loan qualitycoverage:information on loan quality (probability of default and expected loss) and loan volume; breakdown by economic sector, and by domicile or residence of customers in switzerland or abroadtype of survey:partial sample surveyreporting institutions:banks whose loans to domestic non-banks exceed chf 15 billionreporting entity:groupfrequency:quarterlysubmission deadline after survey date:2 monthsspecial provisions:-name of survey:lending rate statisticscoverage:form of credit, amount of loan, collateral, rating, interest rate, interest rate fixing, commission, term of credit and mode of repayment as well as characteristics of the borrower; all transactions based on new loan agreements shall be reported separatelytype of survey:partial sample surveyreporting institutions:banks whose loans to non-financial domestic companies exceed chf 2 billionreporting entity:bank officefrequency:monthlysubmission deadline after survey date:1 monthspecial provisions:-name of survey:bank lending surveycoverage:information on changes in lending criteria, lending conditions and demand for loans; breakdown of borrowers into companies (and by company size) and private households, by type of lending, by residual maturity, and by domicile or residence of customers in switzerland or abroad.information on market interest rates in price-setting; broken down into different market rates or interest rate curves, and by type of loantype of survey:partial sample surveyreporting institutions:banks whose loans to domestic non-banks exceed chf 8 billionsurvey on bank lending abroad: swiss-controlled banks whose loans to non-banks abroad exceed chf 10 billionreporting entity:bank officesurvey on bank lending abroad: groupfrequency:quarterly; every 2 yearssubmission deadline after survey date:20 daysspecial provisions:-name of survey:new mortgagescoverage:newly approved mortgage loans financing real estate in switzerland for the three following business trans-actions: (i) financing the purchase of real estate, (ii) refinanc-ing a loan with another lender or (iii) financing the construction of real estate. information on a loan's general characteristics (e.g. borrower, type of business transaction, credit limit, usage, collateral, income), the characteristics of the individual tranches (e.g. interest rate product, interest rate, interest rate and capital commitment) and the characteristics of the individual property (e.g. type, location, value, net rent)type of survey:partial sample surveyreporting institutions:banks whose domestic mortgage lending volume ex-ceeds chf 6 billionreporting entity:bank officefrequency:quarterlysubmission deadline after survey date:40 daysspecial provisions:-name of survey:interest rate statisticscoverage:published end-of-month interest rates for new trans- actions; interest rates for variable mortgages, fixed mortgages, mortgages tied to money market interest rates and consumer credits; interest rates for customer deposits (break-down by product characteristic), time deposits and cash bondstype of survey:partial sample surveyreporting institutions:banks whose total swiss-franc denominated customer deposits and cash bonds in switzerland exceed chf 500 million (excluding private bankers who do not actively seek deposits from the public)reporting entity:bank officefrequency:monthlysubmission deadline after survey date:10 daysspecial provisions:-name of survey:breakdown of selected balance sheet items, by interest ratecoverage:selected balance sheet positions broken down by interest rate and by domicile or residence of counterparty in switzerland or abroadtype of survey:partial sample surveyreporting institutions:banks whose swiss franc denominated liabilities arising from customer deposits exceed chf 4 billion or whose swiss franc denominated liabilities towards banks exceed chf 1.3 billionreporting entity:parent companyfrequency:quarterlysubmission deadline after survey date:1 monthspecial provisions:-name of survey:securities holdingscoverage:securities held in open customer custody accounts; breakdown by category of securities (in particular money market instruments, medium-term bank-issued notes, bonds, shares, units in collective investment schemes, structured products), by origin of the issuer (resident or non-resident) and by currency; breakdown of custody account holders by economic sector and by domicile or residence in switzerland or abroad; stock of borrowed securitiestype of survey:partial sample survey; full sample surveyreporting institutions:banks, central securities depositories and central counterparties with total securities in customer custody accounts exceeding chf 4.3 billion report on a monthly basis; all other banks, central securities depositories and central counterparties report once a yearreporting entity:bank officefrequency:monthly; annuallysubmission deadline after survey date:monthly reporting: 25 daysannual reporting: 3 monthsspecial provisions:-name of survey:securities turnovercoverage:turnover in open customer custody accounts from purchase and sales transactions; breakdown of custody account holders by domicile or residence in switzerland or abroad; breakdown of turnover by securities category (in particular money market instruments, medium-term bank-issued notes, bonds, shares, units in collective investment schemes, structured products), by origin of issuer (resident or non-resident) and by currencytype of survey:partial sample surveyreporting institutions:banks, central securities depositories and central counterparties that are required to participate in the monthly securities holdings statisticsreporting entity:bank officefrequency:quarterlysubmission deadline after survey date:25 daysspecial provisions:-name of survey:collective investment schemes statisticscoverage:assets and changes in the assets of collective investment schemes; value of the units issued and reimbursed respectively by the collective investment schemes; breakdown of assets by switzerland and other countries, by currency and by investment category (money market instruments, claims from repurchase transactions, bonds, shares and other equity securities, units in other collective investment schemes, structured products, land and buildings, other securities); breakdown of liabilities into switzerland and abroad; breakdown of collective investment schemes by legal form and by the legal type of open-ended collective investment schemes; income statementtype of survey:full sample surveyreporting institutions:fund management companies of swiss funds and swiss companies offering collective investment schemes in accordance with article 13 paragraph 2 of the collective investment schemes act of 23 june 200687reporting entity:-frequency:quarterlysubmission deadline after survey date:20 daysspecial provisions:-name of survey:solvency risk of counterparties in the interbank sectorcoverage:recording of the ten or twenty largest claims and liabilities positions vis--vis other banks or bank groups in switzerland and abroadtype of survey:full sample surveyreporting institutions:all banks or bank groupsreporting entity:groupfrequency:quarterlysubmission deadline after survey date:6 weeksspecial provisions:if the conditions set forth in article 5 paragraph 2 nbo are fulfilled, the deadline may be shortened to 24 hoursname of survey:fsb survey on granular institution-to-aggregate assets and liabilitiescoverage:country breakdown of items on the assets and liabilities sides of the balance sheet, as well as off-balance-sheet items, financial derivatives and foreign exchange derivatives; breakdown by economic sector, currency and residual maturity; information on different reporting levels. the survey follows the recommendations of the financial stability boardtype of survey:partial sample surveyreporting institutions:global systemically important banks in accordance with definition of the financial stability boardreporting entity:groupfrequency:quarterlysubmission deadline after survey date:2 monthsspecial provisions:-name of survey:imf coordinated portfolio investment surveycoverage:recording of the stock of securities of non-resident issuers in the open custody accounts of resident customers; breakdown by category of securities (money market instruments, bonds, shares, units in collective investment schemes, structured products and other securities) and by country of origin of the issuertype of survey:partial sample surveyreporting institutions:banks, central securities depositories and central counterparties with total reportable securities holdings exceeding chf 1.8 billionreporting entity:bank officefrequency:quarterlysubmission deadline after survey date:25 daysspecial provisions:-name of survey:bis locational banking statisticscoverage:country breakdown of items on the assets and liabilities sides of the balance sheet, as well as off-balance-sheet items; recording of local claims and liabilities of subsidiaries and branches; breakdown by economic sector, residual maturity and collateral. the survey follows the requirements of the bank for international settlements (bis)type of survey:partial sample surveyreporting institutions:banks which are required to report for the bis locational banking statistics, and which are either swiss-controlled or whose foreign parent company has no banking licencereporting entity:groupfrequency:quarterlysubmission deadline after survey date:2 monthsspecial provisions:-name of survey:bis locational banking statisticscoverage:country breakdown of the assets and liabilities sides of the balance sheet, as well as fiduciary transactions; breakdown by economic sector, currency and residual maturity. the survey follows the requirements of the bank for international settlementstype of survey:partial sample surveyreporting institutions:banks for which the sum of assets and fiduciary assets abroad or the sum of liabilities and fiduciary liabilities abroad exceeds chf 1 billionreporting entity:bank officefrequency:quarterlysubmission deadline after survey date:25 daysspecial provisions:-name of survey:bis otc derivatives statisticscoverage:foreign exchange and derivatives transactions according to the requirements of the bank for inter-national settlements; amounts outstanding; turnovertype of survey:partial sample surveyreporting institutions:half-yearly statistics: two largest bank groupsevery three years: banks with contract volumes of open derivative financial instruments exceeding chf 8 billion (for turnover) and chf 30 billion (for amounts outstanding)reporting entity:bank office (turnover); group (amounts outstanding)frequency:turnover: every three yearsamounts outstanding: semi-annually and every three yearssubmission deadline after survey date:1 month (turnover); 2 months (amounts outstanding)special provisions:-name of survey:current account surveycoverage:cross-border trade in goods (excluding foreign trade according to the statistics of the federal customs administration) and services, merchanting, trade related to manufacturing services on physical inputs and production abroad, cross-border labour income and investment income, and transfers according to the guidelines of the international monetary fund and the european union (eu) requirements under the agreement of 26 october 200488 between the swiss confederation and the european community on cooperation in the field of statistics. breakdown by country, type of transaction and economic sectortype of survey:partial sample surveyreporting institutions:legal entities and companies where the transaction value per reporting item exceeds chf 100,000reporting entity:-frequency:quarterly or annuallysubmission deadline after survey date:quarterly reporting: 1 monthannual reporting: 3 monthsspecial provisions:the reporting obligation is also fulfilled if the bank involved in the payment transactions reports the transactionname of survey:survey on cross-border capital linkagescoverage:cross-border capital flows (transactions), capital stocks (foreign assets and liabilities) and investment income according to the guidelines of the inter-national monetary fund (imf) and the european union (eu) requirements under the agreement of 26 october 200489 between the swiss confederation and the european community on cooperation in the field of statistics. breakdown by country, size of stocks and economic sector. the survey covers both intragroup relations (direct investment) and relations with third partiestype of survey:partial sample surveyreporting institutions:legal entities and companies where the transaction value exceeds chf 1 million per reporting item, or where the foreign assets or liabilities at the time of the survey exceed chf 10 million per reporting itemreporting entity:-frequency:quarterly or annuallysubmission deadline after survey date:quarterly reporting: 1 monthannual reporting: 3 monthsspecial provisions:the reporting obligation is also fulfilled if the bank entrusted with the payment transactions or the custody of the foreign assets reports the itemname of survey:cashless payment transactions - payment systemscoverage:amount and number of settled transactions, broken down by currency; number of direct participantstype of survey:partial sample surveyreporting institutions:payment systems operators settling payments that exceed chf 100 million (gross) per financial year (excluding so-called in-house payment systems)reporting entity:-frequency:monthlysubmission deadline after survey date:1 monthspecial provisions:-name of survey:cashless payment transactions - payment cards and other payment instrumentscoverage:data on payment cards and other payment instruments, broken down into credit cards, debit cards and e-money: amount and number of transactions breakdown by location of transaction (domestics and foreign), by type of transaction (card present and card not present transactions for the purchase of goods and services; cash withdrawals) by card origin (domestic and foreign), and by business activity of the merchant (industry breakdown); number of cards; number of terminals; for e-money only: float and loading (amount of electronically stored monetary value)type of survey:partial sample surveyreporting institutions:issuers and acquirers (excluding atm acquirers) of credit cards settling payments that exceed chf 100 million (gross) per financial yearissuers and acquirers (excluding atm acquirers) of debit cards settling payments that exceed chf 100 million (gross) per financial yearissuers and acquirers (excluding atm acquirers) of e-money settling payments that exceed chf 50 million (gross) per financial yearreporting entity:-frequency:monthlysubmission deadline after survey date:1 monthspecial provisions:-name of survey:customer payment transactionscoverage:customer payments initiated at or received by banks within a given month. divided into incoming and outgoing payments, and then subdivided by type of order. payments are broken down into domestic payments and those involving a bank domiciled abroad, and also by currency. specific cash withdrawals and deposits, as well as data on bank infrastructure.type of survey:partial sample surveyreporting institutions:banks whose annual number of transactions in swiss interbank clearing exceeds 5 millionreporting entity:bank officefrequency:monthlysubmission deadline after survey date:1 monthspecial provisions:-name of survey:automated teller machines (atms)coverage:number of atmstype of survey:full sample surveyreporting institutions:operators of atm networksreporting entity:-frequency:monthlysubmission deadline after survey date:1 monthspecial provisions:-83 chap. 4, art. 25-42 of the banking o of 30 april 2014 (sr 952.02). 84 finma accounting o of 31 oct. 2019 (sr 952.024.1), as well as finma circular 2020/1 'accounting - banks' of 31 oct. 2019.85 chap. 4, art. 25-42 of the banking o of 30 april 2014 (sr 952.02).86 finma accounting o of 31 oct. 2019 (sr 952.024.1), as well as finma circular 2020/1 'accounting - banks' of 31 oct. 2019.87 sr 951.3188 sr 0.431.026.8189 sr 0.431.026.81

951.31english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.federal act on collective investment schemes(collective investment schemes act, cisa)of 23 june 2006 (status as of 1 january 2020) the federal assembly of the swiss confederation,based on articles 98 paragraphs 1 and 2 and 122 paragraph 1 of the federal constitution1, and having considered the federal council dispatch of 23 september 20052,decrees:1as 2006 5379 sr 1012 bbl 2005 6395title 1 general provisions chapter 1 aim and scope of application art. 1 aim this act aims to protect investors and to ensure transparency and the proper functioning of the market for collective investment schemes.art. 2 scope of application 1 this act governs the following, irrespective of their legal status:a.3collective investment schemes and persons who are responsible for the safekeeping of assets held in them;b.4foreign collective investment schemes which are offered in switzerland;c.-e.5.f.persons who represent foreign collective investment schemes in switzerland.62 the following are not governed by this act:a.institutions and ancillary institutions in the occupational pensions sector, in- cluding investment foundations;b.social security institutions and compensation funds;c.public authorities and institutions;d.operating companies which are engaged in business activities;e.companies which by way of a majority of the votes or by any another way bring together one or more companies to form a group under single man- agement (holding companies);f.investment clubs whose members are in a position to manage their financial interests themselves;g.associations and foundations as defined in the swiss civil code7;h.8.2bis .93 investment companies in the form of a swiss company limited by shares are not governed by this act, provided they are listed on a swiss exchange, or provided that:10a.11only shareholders as defined in article 10 paragraphs 3 and 3ter are entitled to participate in them; andb.their shares are registered.124 .133 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).4 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).5 repealed by annex no ii 13 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).6 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).7 sr 2108 inserted by no i of the fa of 28 sept. 2012 (as 2013 585; bbl 2012 3639). repealed by annex no ii 13 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).9 inserted by no i of the fa of 28 sept. 2012 (as 2013 585; bbl 2012 3639). repealed by annex no ii 13 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).10 amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).11 amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).12 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).13 repealed by no i of the fa of 28 sept. 2012, with effect from 1 march 2013 (as 2013 585; bbl 2012 3639).art. 3-614 14 repealed by annex no 3 of the financial services act of 15 june 2018, with effect from 1 jan. 2020 (as 2019 4417; bbl 2015 8901).chapter 2 collective investment schemes art. 7 definition 1 collective investment schemes are assets raised from investors for the purpose of collective investment, and which are managed for the account of such investors. the investment requirements of the investors are met on an equal basis.2 collective investment schemes may be open or closed-ended.3 the federal council may stipulate a minimum number of investors in accordance with the legal status and target group. it may authorise collective investment schemes for a single qualified investor (single investor fund) in accordance with article 10 paragraph 3 in conjunction with article 4 paragraph 3 letters b, e and f of the financial services act of 15 june 201815 (finsa).16 174 in the case of single investor funds, the fund management company and the in- vestment company with variable capital (sicav) may delegate the investment decisions to the single investor. finma may exempt them from the duty to subject themselves to supervision recognised under article 31 paragraph 3 and article 36 paragraph 3, respectively.185 collective investment schemes must have their registered office and head office in switzerland.1915 sr 950.116 second sentence amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).17 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639)18 inserted by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639)19 inserted by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).art. 8 open-ended collective investment schemes 1 open-ended collective investment schemes may be in the form of a contractual fund (art. 25 et seq.) or sicav (art. 36 et seq.).2 with open-ended collective investment schemes, investors have either a direct or indirect legal entitlement, at the expense of the collective assets, to redeem their units at the net asset value.3 each open-ended collective investment scheme has its own fund regulations. in the case of contractual funds this is the collective investment contract (fund contract), and in the case of sicavs it is the articles of association and the investment regulations.art. 9 closed-ended collective investment schemes 1 closed-ended collective investment schemes may be in the form of a limited partnership for collective capital investments (art. 98 et seq.) or an investment company with fixed capital (sicaf, art. 110 et seq.).2 in the case of closed-ended collective investment schemes, investors have neither a direct nor an indirect legal entitlement at the expense of the collective assets to the redemption of their units at the net asset value.3 limited partnerships for collective investment are based on a company agreement.4 sicafs are based on articles of association and issue a set of investment regulations.art. 10 investors 1 investors are natural and legal persons, as well as general and limited partnerships, which hold units in collective investment schemes.2 collective investment schemes are open to all investors, except where this act, the fund regulations or the articles of association restrict investor eligibility to qualified investors.3 qualified investors within the meaning of this act are professional clients as defined in article 4 paragraphs 3-5 or article 5 paragraphs 1 and 4 finsa20:213bis .223ter qualified investors also include retail clients for whom a financial intermediary in accordance with article 4 paragraph 3 letter a finsa or a foreign financial intermediary that is subject to equivalent prudential supervision provides portfolio management or investment advice in accordance with article 3 letter c items 3 and 4 finsa within the scope of a permanent portfolio management or investment advice relationship, provided they have not declared that they do not wish to be treated as such. such declaration must be made in writing or in another form demonstrable via text.234 .245 the finma may fully or partially exempt collective investment schemes from certain provisions of the financial market acts within the meaning of article 1 paragraph 1 of the financial market supervision act of 22 june 200725 (finmasa), provided that they are exclusively open towards qualified investors and that the protective purpose of this act is not impaired, specifically from the provisions concerning:26a.27.b.28.c.the requirement to produce a semi-annual report;d.the requirement to provide investors with the right to terminate their invest- ment at any time;e.the requirement to issue and redeem units in cash;f.risk diversification.20 sr 950.121 amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).22 inserted by no i of the fa of 28 sept. 2012 (as 2013 585; bbl 2012 3639). repealed by annex no 3 of the financial services act of 15 june 2018, with effect from 1 jan. 2020 (as 2019 4417; bbl 2015 8901).23 inserted by no i of the fa of 28 sept. 2012 (as 2013 585; bbl 2012 3639). amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).24 repealed by annex no 3 of the financial services act of 15 june 2018, with effect from 1 jan. 2020 (as 2019 4417; bbl 2015 8901).25 sr 956.126 amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).27 repealed by no i of the fa of 28 sept. 2012, with effect from 1 june 2013 (as 2013 585; bbl 2012 3639).28 repealed by annex no 3 of the financial services act of 15 june 2018, with effect from 1 jan. 2020 (as 2019 4417; bbl 2015 8901).art. 11 units units are claims against the fund management company conferring entitlement to the assets and income of the investment fund or interests in the investment company.art. 12 protection against confusion or deception 1 the designation collective investment scheme must not provide any grounds for confusion or deception, in particular in relation to the investments.2 designations such as investment fund, investment company with variable capital, sicav, limited partnership for collective investment, investment company with fixed capital and sicaf may only be used for the relevant collective investment schemes governed by this act.2929 amended by no iii of the fa of 25 sept. 2015 (law on business names), in force since 1 july 2016 (as 2016 1507; bbl 2014 9305).chapter 3 authorisation and approval section 1 general art. 13 duty to obtain authorisation 1 any party who establishes or operates a collective investment scheme or is responsible for the safekeeping of the assets held in it requires authorisation from finma.302 the following must apply for authorisation:a.31.b.sicavs;c.limited partnerships for collective investment;d.sicafs;e.32the custodian bank;f. und g.33 .h.representatives of foreign collective investment schemes.3 representatives who are already subject to other equivalent official supervision may be granted exemption from the duty to obtain authorisation by the federal council.344 .355 the persons cited in paragraph 2 letters b-d may only be entered in the commercial register once authorisation has been granted by finma.3630 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).31 repealed by annex no ii 13 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).32 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).33 repealed by annex no ii 13 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).34 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).35 repealed by no i of the fa of 28 sept. 2012, with effect from 1 march 2013 (as 2013 585; bbl 2012 3639).36 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 14 authorisation requirements 1 authorisation is granted if:a.37the persons under article 13 paragraph 2 and the persons responsible for the administration and management provide the guarantee of irreproachable business conduct; abis.38the persons responsible for the administration and management enjoy a good reputation and possess the specialist qualifications required for the function;b.the significant equity holders have a good reputation and do not exert their influence to the detriment of prudent and sound business practice;c.compliance with the duties stemming from this act is assured by internal regulations and an appropriate organisational structure;d.sufficient financial guarantees are available;e.the additional authorisation conditions listed in the relevant provisions of the act are met.1bis insofar as the financial guarantees are used to meet minimal capital requirements, the federal council may stipulate higher capital requirements than required by the code of obligations39.401ter the federal council may stipulate additional authorisation conditions if this is consistent with recognised international standards.412 .423 the following are deemed to be significant equity holders, provided they directly or indirectly control at least 10 percent of the capital or votes in the persons specified in article 13 paragraph 2 or can materially influence their business activities in another way:a.natural and legal persons;b.general and limited partnerships;c.financially related parties which meet this criterion on a combined basis.4337 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).38 inserted by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).39 sr 22040 inserted by annex no 14 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).41 inserted by no i of the fa of 28 sept. 2012 (as 2013 585; bbl 2012 3639). amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).42 repealed by annex no ii 13 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).43 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).art. 15 duty to obtain approval 1 the following documents are required for obtaining the approval of finma:a.for investment fund, the collective investment contract (art. 25);b.for sicavs, the articles of association and investment regulations;c.for limited partnerships for collective investment, the company agreement;d.sicafs, the articles of association and investment regulations;e.44the relevant documents of foreign collective investment schemes which are offered to non-qualified investors.2 if an investment fund or sicav is structured as an open-ended collective invest- ment scheme with subfunds (art. 92 et seq.), each subfund or category of shares requires individual approval.44 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 16 change in circumstances if there is a change in the circumstances underlying the authorisation or approval, finma's authorisation or approval must be sought prior to the continuation of activity.art. 17 simplified authorisation and approval procedure the federal council may specify a simplified authorisation and approval procedure process for collective investment schemes.section 2 . art. 18-18c45 45 repealed by annex no ii 13 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901)section 3 . art. 1946 46 repealed by annex no ii 13 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).chapter 4 protection of investors' interests47 47 amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901). art. 20 principles 1 persons who manage or represent collective investment schemes or hold the assets of these schemes in safekeeping, as well as their agents must fulfil the following duties in particular:48a.duty of loyalty: they act independently and exclusively in the interests of the investors;b.due diligence: they implement the organisational measures that are necessary for irreproachable business conduct;c.49duty to provide information: they shall render account of the collective investment schemes which they manage and represent and the assets of these schemes which they hold in safekeeping, and provide information on all of the fees and costs incurred directly or indirectly by investors as well as compensation from third parties, particularly commissions, discounts or other financial benefits.2 .503 persons who manage or represent collective investment schemes or hold their assets in safekeeping, as well as their agents, shall take all necessary precautions to ensure that all duties in relation to all their business activities are performed properly.5148 amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).49 amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).50 repealed by annex no 3 of the financial services act of 15 june 2018, with effect from 1 jan. 2020 (as 2019 4417; bbl 2015 8901).51 inserted by no i of the fa of 28 sept. 2012 (ru 2013 585; bbl 2012 3639). amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).art. 21 investments 1 persons who manage or represent collective investment schemes or hold their assets in safekeeping, as well as their agents shall pursue an investment policy that at all times corresponds with the investment characteristics of the collective investment scheme as set out in the relevant documents.522 in respect of the purchase and sale of assets and rights on their own behalf as well as that of third parties, they are only entitled to receive the fees specified in the relevant documents. compensation in accordance with article 26 finsa53 must be credited to the collective investment scheme.54 3 assets acquired for their own account may only be purchased at market price, while any sale of own-account assets must also be at market price.52 amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).53 sr 950.154 second sentence amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).art. 2255 55 repealed by annex no 3 of the financial services act of 15 june 2018, with effect from 1 jan. 2020 (as 2019 4417; bbl 2015 8901).art. 23 exercising membership and creditors' rights 1 the membership and creditors' rights associated with the investments must be exercised independently and exclusively in the interests of the investors.2 article 685d paragraph 2 of the code of obligations56 does not apply to investment funds.3 if a fund management company manages several investment funds, the level of the participation with respect to the percentage limit set out in article 685d paragraph 1 of the code of obligations is calculated individually for each investment fund.4 paragraph 3 also applies to each subfund of an open-ended collective investment scheme as defined in article 92 et seq.56 sr 220art. 2457 57 repealed by annex no 3 of the financial services act of 15 june 2018, with effect from 1 jan. 2020 (as 2019 4417; bbl 2015 8901).title 2 open-ended collective investment schemes chapter 1 the contractual fund section 1 definition art. 25 1 the contractual fund (investment fund) is based on a collective investment agree- ment (fund contract) under which the fund management company commits itself to:a.involving investors in accordance with the number and type of units which they have acquired in the investment fund;b.managing the fund's assets in accordance with the provisions of the fund contract at its own discretion and for its own account.2 the custodian bank is a party to the contract in accordance with the tasks conferred on it by the law and by the fund contract.3 the investment fund must have the stipulated minimum assets. the federal coun- cil determines the level thereof, and the period in which it must be accumulated.section 2 the fund contract art. 26 content 1 the fund management company draws up the fund contract and, with the consent of the custodian bank, submits it to finma for approval.2 the fund contract sets out the rights and duties of the investors, the fund manage- ment company and the custodian bank.3 the federal council determines the minimum contents.5858 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).art. 27 amendments to the fund contract 1 amendments to the fund contract must be submitted by the fund management company, with the consent of the custodian bank, to finma.2 if the fund management company amends the fund contract, it must publish a summary of the significant amendments in advance, in which reference is made to the locations where the full wording of the contractual amendments may be obtained free of charge.3 these publications must inform investors of their right to lodge objections with finma within 30 days of their publication. the procedure is based on the federal act on administrative procedure of 20 december 196859. investors must further- more be made aware that they may request the repayment of their units in cash, while observing the contractual or regulatory notice period.604 finma publishes its decision in the media of publication.59 sr 172.02160 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (ru 2013 585; bbl 2012 3639).section 3 . art. 28-3561 61 repealed by annex no ii 13 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).chapter 2 investment company with variable capital section 1 general provisions art. 36 definition and duties62 1 sicav is a company:a.whose capital and number of shares are not specified in advance;b.whose capital is divided into company and investor shares;c.for whose liabilities only the company's assets are liable;d.whose sole object is collective capital investment.2 a sicav shall have a minimum level of assets. the federal council determines the level and the period within which it must be accumulated.3 the sicav may delegate investment decisions only to persons who hold the authorisation required for this activity. articles 14 and 35 of the financial institutions act of 15 june 201863 (finia) apply mutatis mutandis.64 62 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).63 sr 954.164 inserted by by no i of the fa of 28 sept. 2012 (as 2013 585; bbl 2012 3639). amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 37 formation 1 the formation of a sicav is based on the provisions of the code of obligations65 regarding the formation of companies limited by shares, with the exception of the provisions regarding contributions in kind, acquisitions in kind and special privileges.2 the federal council specifies the minimum investment amount for a sicav on its formation.663 .6765 sr 22066 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).67 repealed by no i of the fa of 28 sept. 2012, with effect from 1 march 2013 (as 2013 585; bbl 2012 3639).art. 38 company name 1 the company name must contain a description of the legal status or the abbrevia- tion thereof (sicav).2 in all other respects, the provisions of the code of obligations68 regarding the name of companies limited by shares apply.68 sr 220art. 39 capital adequacy 1 there must be an appropriate relationship between the holdings of the company shareholders and the total assets of the sicav. the federal council regulates this relationship.2 in special cases, finma may grant a relaxation of the requirements or may order a tightening thereof.art. 40 shares 1 the company shares are registered.2 the company and investor shares have no nominal value and must be fully paid up in cash.3 the shares are freely transferable. the articles of association may restrict investor eligibility to qualified investors if the shares of the sicav are not listed on an exchange. if the sicav withholds its consent to a transfer of the shares, article 82 applies.4 the articles of association may specify different categories of shares, to which different rights are assigned.5 the issuing of participation certificates, dividend right certificates and preference shares is prohibited.art. 41 company shareholders 1 the company shareholders contribute the minimum holding necessary for the formation of the sicav.2 they resolve the dissolution of the sicav and its subfunds in accordance with article 96 paragraphs 2 and 3.693 in all other respects, the provisions regarding the rights of the shareholders (art. 46 et seq.) apply.4 the rights and duties of the company shareholders pass to the purchaser on the transfer of the shares.69 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).art. 42 issue and redemption of shares 1 unless the law and articles of association provide otherwise, a sicav may at any time issue new shares at the net asset value and must, if requested by a shareholder, at any time redeem issued shares at the net asset value. this requires neither an amendment to the articles of association nor an entry in the commercial register.2 a sicav may not hold treasury shares, whether directly or indirectly.3 the shareholders have no entitlement to the portion of newly issued shares corresponding to their previous holding. in the case of real estate funds, this is subject to article 66 paragraph 1.4 in all other respects, the issue and redemption of shares is conducted in accordance with articles 78-82.art. 43 articles of association 1 the articles of association must contain provisions concerning: a.the company name and its registered office;b.the objects;c.the minimum investment amount;d.the convening of general meetings;e.the executive and governing bodies;f.the media of publication.2 to be effective, the articles of association must include provisions on the following:a.the term;b.the restriction of shareholder eligibility to qualified investors and associated limitation of the transferability of shares (art. 40, para. 3);c.the categories of shares and rights associated therewith;d.the delegation of management and representation, and the attendant procedural details (art. 51);e.the passing of resolutions by means of correspondence.art. 44 investment regulations a sicav shall produce a set of investment regulations. its contents are based on the provisions regarding the fund contract, unless the law and articles of association provide otherwise.art. 44a70 custodian bank 1 the sicav must appoint a custodian bank in accordance with articles 72-74.2 finma may grant exemptions from this duty if justified, provided:a.the sicav is exclusively open to qualified investors;b.one or more institutions which are subject to equivalent supervision execute the transactions related to settlement and specialise in such transactions (prime broker); andc.it is ensured that the prime broker or the foreign supervisory authority responsible for the prime broker will provide finma with all the information and documents that it requires to carry out its duties.70 inserted by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).art. 4571 relationship with the financial market infrastructure act the provisions on public takeover offers (arts. 125 to 141 of the financial market infrastructure act of 19 june 201572) do not apply to sicavs.71 amended by annex no 9 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).72 sr 958.1section 2 shareholders' rights and obligations73 73 amended by no i 6 of the fa of 12 dec. 2014 on the implementation of the revised recommendations 2012 of the financial action task force, in force since 1 july 2015 (as 2015 1389; bbl 2014 605). art. 46 membership rights 1 any person recognised as a shareholder by the sicav may exercise membership rights.2 the shareholders may represent their shares at a general meeting in person or be represented by a third party. unless the articles of association provide otherwise, the third party need not be a shareholder.3 a sicav shall keep a register of the shares, in which the names and addresses of company shareholders are recorded. it shall also keep a register under article 697l of the code of obligations74 of the beneficial owners of the shares held by company shareholders.754 the articles of association may specify that the company shareholders and investor shareholders are both entitled to at least one seat on the board of directors in the case of self-managed as well as externally managed sicavs.7674 sr 22075 second sentence inserted by no i 6 of the fa of 12 dec. 2014 on the implementation of the revised recommendations 2012 of the financial action task force, in force since 1 july 2015 (as 2015 1389; bbl 2014 605).76 inserted by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).art. 46a77 company shareholders' obligation to give notice 1 company shareholders whose shares are not listed on a stock exchange are subject to the obligation to give notice under article 697j of the code of obligations78.2 the consequences of failure to comply with obligation to give notice are governed by article 697m of the code of obligations.77 inserted by no i 6 of the fa of 12 dec. 2014 on the implementation of the revised recommendations 2012 of the financial action task force, in force since 1 july 2015 (as 2015 1389; bbl 2014 605).78 sr 220art. 4779 voting rights 1 each share carries one vote.2 the federal council may authorise finma to order the splitting or merging of shares in a share class.79 amended by annex no 14 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).art. 48 inspection rights inspection rights are based on the provisions of the code of obligations80 regarding the shareholders' inspection rights unless this act provides otherwise.80 sr 220art. 49 other rights in all other respects, articles 78 et seq. apply.section 3 organisation art. 50 general meeting 1 the supreme governing body of the sicav is the general meeting of shareholders.2 the general meeting is held every year within four months of the close of the business year.3 unless otherwise provided for by the federal council, in all other respects, the provisions of the code of obligations81 regarding the general meetings of companies limited by shares apply.8281 sr 22082 amended by annex no 14 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).art. 51 board of directors 1 the board of directors consists of at least three but no more than seven members.2 the articles of association may authorise the board of directors to transfer management and representation in full or in part to individual members or third parties in accordance with the organizational regulations.3 the persons holding executive powers at the sicav and custodian bank must be independent of the other party.4 the board of directors fulfils the duties associated with the offering of financial instruments under title 3 of the finsa83.845 the administration of a sicav may be delegated only to an authorised fund management company in accordance with article 32 finia85 that has authorisation.866 unless otherwise provided for by the federal council, in all other respects, the provisions of the code of obligations87 regarding the board of directors of companies limited by shares apply.8883 sr 950.184 amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).85 sr 954.186 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).87 sr 22088 amended by annex no 14 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).art. 52 audit company a sicav shall appoint an audit company (art. 126 et seq.).chapter 3 types of open-ended collective investment schemes and investment regulations section 1 securities funds art. 53 definition securities funds are open-ended collective investment schemes which invest their assets in securities and comply with the laws of the european communities.art. 54 permitted investments 1 securities funds may invest in transferable securities issued on a large scale and in non-securitised rights having the same function (uncertified securities) and which are traded on a stock exchange or another regulated market that is open to the public, in addition to other liquid financial assets.2 the fund management company may also hold a limited volume of other securities and rights, as well as adequate liquidity.art. 55 investment techniques 1 the fund management company and the sicav may employ the following in- vestment techniques for the purpose of efficient management:a.securities lending;b.repurchase agreements;c.borrowing of funds, though only on a temporary basis and up to a certain percentage;d.pledging or transferring the ownership of collateral, however, only up to a certain percentage.2 the federal council may permit other investment techniques such as short selling and the granting of loans.3 it defines the percentage limits. finma regulates the details.art. 56 use of derivatives 1 the fund management company and the sicav may conduct transactions in derivatives provided:a.such transactions do not result in a change to the investment characteristics of the securities fund;b.they have an appropriate organisational structure and adequate risk management;c.the persons entrusted with processing and monitoring are qualified to do so, and can at all times comprehend and track the effect of the derivatives used.2 the overall exposure to transactions involving derivatives may not exceed a certain percentage of the fund's net assets. exposure to transactions involving derivatives must be calculated in relation to the statutory and regulatory limits, specifically with regard to risk diversification.3 the federal council determines the percentage rate. finma regulates the details.art. 57 risk diversification 1 in relation to their investments, the fund management company and sicav must comply with the principles of risk diversification. as a rule, they may invest only a certain percentage of the fund's assets in the same debt issuer or company.2 the voting rights acquired through the purchase of securities or rights in a single debt issuer or company may not exceed a certain percentage.3 the federal council decides the percentage rates. finma regulates the details.section 2 real estate funds art. 58 definition real estate funds are open-ended collective investment schemes which invest their assets in real estate.art. 59 permitted investments 1 real estate funds may invest their assets in:a.property, including fixtures and fittings;b.investments in and claims on real estate companies whose sole objective is the purchase and sale and/or the rental and lease of their own property, provided that at least two thirds of their capital and voting rights are incorporated in the investment fund;c.units in other real estate investment funds and listed real estate investment companies amounting to no more than 25% of the fund's total assets;d.foreign real estate securities whose value can be adequately valued.2 co-ownership of property is permitted only if the fund management company or the sicav can exert a dominant influence.art. 60 securing liabilities in order to secure their liabilities, the fund management company and sicav must maintain an adequate proportion of the fund's assets in short-term fixed-interest securities or in funds available at short notice.art. 61 use of derivatives the fund management company and sicav may conduct derivative transactions provided they comply with the investment policy. the provisions concerning the use of derivatives for securities funds (art. 56) shall apply accordingly.art. 62 risk diversification investments must be diversified by type of property, purpose of use, age, building fabric and location.art. 63 special duties 1 the fund management company shall bear responsibility with regard to the investors for ensuring that the real estate companies belonging to the real estate fund comply with this act and with the fund regulations.2 the fund management company, custodian bank and its agents, as well as closely related natural and legal persons, may not acquire real estate assets from real estate funds or assign any such assets to them.3 a sicav may not acquire any real estate assets from the company shareholders, their agents, or closely connected natural or legal persons, nor may it assign such assets to them.4 if justified, individual situations may arise where finma may grant an exemption from the ban on transactions with closely related persons as defined in paragraphs 2 and 3 if this is in the interest of the investors. the federal council regulates the exemption criteria.8989 inserted by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).art. 64 valuation experts90 1 the fund management company and the sicav shall appoint at least two natural persons or one legal person as valuation experts. appointments require the approval of finma.912 approval is granted if the valuation experts:92a.possess the necessary qualifications;b.are independent;c.93.3 the valuation experts must conduct their valuations with the due diligence and expertise required of a valuation expert.944 finma may make recognition dependent on the conclusion of professional indemnity insurance or on the evidence of financial guarantees.955 it may stipulate additional requirements for the valuation experts and describe the valuation methods to be adopted.9690 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).91 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).92 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).93 repealed by no i of the fa of 28 sept. 2012, with effect from 1 march 2013 (as 2013 585; bbl 2012 3639).94 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).95 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).96 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).art. 65 special powers 1 the fund management company and the sicav may commission the construction of buildings provided the fund regulations explicitly permit the purchase of building land and the execution of construction projects.2 they may pledge land and cede the rights of lien as collateral; however, the en- cumbrance may not exceed on average a certain percentage of the market value of all real estate assets.3 the federal council defines the percentage rate. finma regulates the details.art. 66 issue and redemption of units 1 the fund management company and the sicav must offer new units first to existing investors.2 the investors may request the redemption of their units at the end of a financial year provided they give twelve months' prior notice.art. 67 trading the fund management company and the sicav ensure that real estate fund units are regularly traded via a bank or a securities dealer on a stock exchange or over the counter.section 3 other funds for traditional and alternative investments art. 68 definition other funds for traditional and alternative investments are open-ended collective investment schemes that are neither securities funds nor real estate funds.art. 69 permitted investments 1 in particular, investments in securities, precious metals, real estate, commodities, derivatives, units of other collective investment schemes, as well as other assets and rights, are permitted for other funds for traditional and alternative investments.2 the following investments in particular may be conducted for these funds:a.those that have only limited marketability;b.those that are subject to strong price fluctuations;c.those that exhibit limited risk diversification;d.those that are difficult to value.art. 70 other funds for traditional investments 1 other funds for traditional investments include open-ended collective investment schemes which in terms of their investments, investment techniques and investment restrictions exhibit a risk profile that is typical for traditional investments.2 other funds for traditional investments are subject to the provisions concerning the use of investment techniques and derivatives for securities funds.art. 71 other funds for alternative investments 1 other funds for alternative investments include open-ended collective investment schemes whose investments, structure, investment techniques (short-selling, borrowing of funds, etc.) and investment restrictions exhibit a risk profile that is typical for alternative investments.2 leverage is permitted only up to a certain percentage of the fund's net assets. the federal council determines the percentage rate. finma regulates the details.3 reference must be made in the fund name and in the prospectus and key information document in accordance with title 3 of the finsa97, as well as in advertising material, to the special risks involved in alternative investments.984 .995 finma may allow the transaction-related settlement services of a directly invest- ing other fund for alternative investments to be provided by a regulated institution specializing in such transactions (prime broker). it may specify which monitoring functions must be undertaken by the fund management company and the sicav.97 sr 950.198 amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).99 repealed by annex no 3 of the financial services act of 15 june 2018, with effect from 1 jan. 2020 (as 2019 4417; bbl 2015 8901).chapter 4 common provisions section 1 custodian bank art. 72 organisation 1 the custodian bank must be a bank pursuant to the federal act on banks and savings banks of 8 november 1934100 and have an appropriate organisational structure to act as custodian bank to collective investment schemes.1012 in addition to the persons entrusted with the management, the persons entrusted with the tasks of custodian bank activity must also comply with the requirements laid down in article 14 paragraph 1 letter a.100 sr 952.0101 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).art. 73 duties 1 the custodian bank is responsible for the safekeeping of the investment fund's assets, the issue and redemption of units, as well as payment transfers on behalf of the investment fund.2 it may transfer the responsibility for the safekeeping of the investment fund's assets to third-party custodians and central securities depositories in switzerland or abroad, provided this is in the interest of efficient safekeeping. investors must be informed in the prospectus and key information document in accordance with title 3 of the finsa102 about the risks associated with such transfers.1032bis financial instruments may only be transferred (paragraph 2) to regulated third-party custodians and central securities depositories. this does not apply to mandatory safekeeping at a location where the transfer to regulated third-party custodians and collective securities depositories is not possible, in particular due to mandatory legal provisions or to the investment product's modalities. investors must be informed in the product documentation of safekeeping by non-regulated third-party custodians or collective securities depositories.1043 the custodian bank ensures that the fund management company or the sicav complies with this act and with the fund regulations. it verifies whether:105a.the calculation of the net asset value and of the issue and redemption prices of the units is in compliance with this act and with the fund regulations;b.the investment decisions are in compliance with this act and with the fund regulations;c.the income is appropriated in accordance with the fund regulations.4 the federal council regulates the requirements for acting as a custodian bank and may specify parameters for the protection of the securities investments.106102 sr 950.1103 amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).104 inserted by no i of the fa of 28 sept. 2012 (as 2013 585; bbl 2012 3639). amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).105 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).106 inserted by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).art. 74 change of custodian bank 1 in the case of investment funds, the provisions concerning a change of fund management company (art. 39 finia107) also apply accordingly to a change of custodian bank.1082 in the case of a sicav, a change of custodian bank requires a contract in writing or in another form demonstrable via text, and must be approved in advance by finma.1093 finma shall publish its decision in the media of publication.107 sr 954.1108 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).109 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).section 2 . art. 75-77110 110 repealed by annex no 3 of the financial services act of 15 june 2018, with effect from 1 jan. 2020 (as 2019 4417; bbl 2015 8901).section 3 position of investors art. 78 purchase and redemption 1 on concluding a contract, or subscribing and paying in cash, investors acquire:a.in the case of an investment fund, a claim against the fund management company to participate in the assets and income of the investment fund in accordance with the fund units they acquire;b.in the case of a sicav, an interest in the company and its unappropriated net earnings in accordance with the shares they acquire.2 they are, in principle, entitled at all times to request the redemption of their units and payment of the redemption amount in cash. unit certificates must be returned for cancellation purposes.3 in the case of collective investment schemes with various unit classes, the federal council regulates the details.4 finma may allow a derogation from the duty to make payments in and out of the fund in cash.5 in the case of collective investment schemes with subfunds, the asset entitlements are based on article 93 paragraph 2 and article 94 paragraph 2.art. 79 exceptions from the right to redeem at any time 1 in accordance with the investment provisions (art. 54 et seq., art. 59 et seq. and art. 69 et seq.), the federal council may in the case of collective investment schemes whose value is difficult to ascertain, or which have limited marketability, specify exemptions from the right to redeem at any time.2 however, it may only suspend the right to redeem at any time for a maximum period of five years.art. 80 issue and redemption price the issue and redemption prices of the units are based on the net asset value per unit on the day of valuation, plus or minus any fees and expenses.art. 81 deferred repayment 1 the federal council determines in which instances the fund regulations may specify a limited deferment of the repayment of the units in the interest of all investors.2 finma may in exceptional instances grant limited deferment for the repayment of the units in the interest of all investors.art. 82 enforced redemption the federal council enforces redemption if:a.this is necessary to safeguard the reputation of the financial market, and specifically to combat money laundering;b.the investor no longer meets the statutory, regulatory or contractual requirements, or the requirements set out in the articles of association, for participation in a collective investment scheme.art. 83 calculation and publication of the net asset value 1 the net asset value of an open-ended collective investment scheme is calculated at the market value as of the end of the financial year, and on each day on which units are issued or redeemed.2 the net asset value per unit represents the market value of the fund's assets, less all the fund's liabilities, divided by the number of units in circulation.3 finma may permit a method of calculating the net asset value(s) that differs from that specified in paragraph 2, provided such method meets international standards and the protective purpose of this act is not impaired as a result.4 the fund management company and the sicav publish the net asset values at regular intervals.art. 84 right to information 1 the fund management company and the sicav shall on request supply investors with information concerning the basis for the calculation of the net asset value per unit.2 if investors express an interest in more detailed information on specific business transactions effected by the fund management company or the sicav, such as the exercising of membership and creditors' rights, or on risk management, they must be given such information at any time.1113 the investors may request at the courts of the registered office of the fund management company or the sicav that the audit company or another expert investigate the matter which requires clarification and furnish the investors with a report.111 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).art. 85 claim for reimbursement if the open-ended collective investment scheme is unlawfully denied asset entitlements or benefits are withheld from it, the investors may claim compensation from the open-ended collective investment scheme concerned.art. 86 representative of the investors 1 the investors may request that the courts appoint a representative if they wish to pursue a claim for damages in favour of the open-ended collective investment scheme.2 the court shall give notice of the appointment in the media of publication of the open-ended collective investment scheme.3 the representative has the same rights as the investors.4 if the representative files an action for damages in favour of the open-ended collective investment scheme, the investors may no longer exercise their individual right to file such an action.5 unless the court decides otherwise, the expenses incurred by the representative are paid by the investment fund.section 4 accounting, valuation and financial statements art. 87 accounting duty separate books of account must be kept for each open-ended collective investment scheme. unless this act or the implementing regulations provide otherwise, article 662 et seq. of the code of obligations112 apply.112 sr 220. today, art. 957 et seq.art. 88 valuation at market value 1 investments which are listed on a stock exchange or another regulated market open to the public shall be valued at the prices paid on the main market.2 other investments for which no current price is available must be valued at the price that would probably be obtained in a diligent sale at the time of valuation.art. 89 annual and semi-annual report 1 an annual report shall be published for each open-ended collective investment scheme within four months of the close of the financial year; it shall contain the following data in particular:a.the annual accounts consisting of a statement of net assets or the balance sheet and the profit and loss account, together with information concerning the appropriation of net income and the disclosure of expenses;b.the number of units redeemed and newly issued during the financial year, as well as the final balance of the issued units;c.the inventory of the fund's assets at market value and the resulting value (net asset value) of a fund unit as of the last day of the financial year;d.the valuation principles as well as the principles used for the calculation of the net asset value;e.a breakdown of the buy and sell transactions;f.the names of persons and companies to which duties have been entrusted;g.information relating to matters of particular economic or legal significance, specifically:1.amendments to the fund regulations,2.material questions concerning interpretation of this act and the fund regulations,3.a change of fund management company and custodian bank,4.113changes concerning the executive officers at the fund management company, sicav or asset manager of collective investment schemes,5.legal disputes;h.the performance of the open-ended collective investment scheme, possibly benchmarking it with comparable investments;i.a brief report by the audit company regarding the information mentioned above, as well as the items set out in article 90 in the case of real estate funds.2 the statement of net assets of the investment fund and the balance sheet of the sicav must be prepared on the basis of market values.3 a semi-annual report must be issued within two months after the end of the first half of the financial year. the report contains an unaudited statement of net assets or unaudited balance sheet and income statement, as well as information as per paragraph 1 letters b, c and e.4 the annual and semi-annual reports shall be filed with finma the latest at the time of publication.5 these are made available for inspection free of charge to interested parties for ten years.113 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).art. 90 annual accounts and annual report of real estate funds 1 the annual accounts of a real estate fund consist of a consolidated statement of net assets or balance sheet and profit and loss account of the real estate fund and the associated real estate companies. article 89 applies accordingly.2 the statement of net assets must show property assets at market value.3 the inventory of the fund's assets must state the purchase price and estimated market values of the individual property assets.4 in addition to the information required as per article 89, the annual report and the annual accounts shall contain the particulars of the valuation expert, the valuation methods and the capitalisation and discounting rates applied.art. 91 supervisory requirements finma issues additional regulations concerning the duty to maintain books of account, valuation, financial statements and publication requirements.section 5 open-ended collective investment schemes with subfunds art. 92 definition in the case of an open-ended collective investment scheme with subfunds (umbrella fund), each subfund constitutes a collective investment scheme in its own right and has its own net asset value.art. 93 umbrella funds 1 in the case of an umbrella fund, investors are only entitled to the income and assets of the respective subfund in which they are participating.2 each subfund is liable only for its own liabilities.art. 94 sicav with subfunds 1 investors are only entitled to participate in the assets and income of the respective subfund in accordance with the number of shares they hold.2 each subfund under paragraph 1 is liable only for its own liabilities.114114 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).section 6 restructuring and dissolution art. 95115 restructuring 1 the following restructurings of open-ended collective investment schemes are permitted:a.a merger through the transfer of assets and liabilities;b.a conversion to a different legal status of a collective investment scheme;c.in the case of sicavs: the transfer of assets in accordance with articles 69-77 of the mergers act of 3 october 2003116.2 a restructuring in accordance with paragraph 1 letters b and c may only be entered in the commercial register following finma's approval in accordance with article 15.115 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).116 sr 221.301art. 96 dissolution 1 an investment fund is dissolved:a.if it was formed for an unlimited period: on notice by the fund management company or the custodian bank;b.if it was formed for a fixed period: on expiry of such period;c.by order of finma:1.if it was formed for a fixed period: based on reasonable cause, at the re- quest of the fund management company or the custodian bank,2.if the minimum assets fall below the required amount,3.in the cases specified in article 13 paragraph 3 et seq.2 a sicav is dissolved:a.if it was formed for an unlimited period: by resolution of the company shareholders, provided such resolution is carried by at least two thirds of the company shares;b.if it was formed for a fixed period: on expiry of such period;c.by order of finma:1.if it was formed for a fixed period: based on reasonable cause, by reso- lution of the company shareholders, provided such resolution is carried by at least two thirds of the company shares,2.if the minimum assets fall below the stipulated amount,3.in the cases specified in article 133 et seq.;d.in the other cases specified by the act.3 for the dissolution of subfunds, paragraphs 1 and 2 apply accordingly.4 the fund management company and the sicav shall notify finma of the disso- lution forthwith, and shall announce the dissolution in the media of publication.art. 97 consequences of dissolution 1 following its dissolution, an investment fund or sicav may neither issue nor redeem any units.2 in the case of an investment fund, investors have a claim to a proportionate share of the proceeds of liquidation.3 in the case of a sicav, investors have the right to a proportionate share of the proceeds of the liquidation. the rights of company shareholders are subordinate. in all other respects, articles 737 et seq. of the code of obligations117 apply.117 sr 220title 3 closed-ended collective investment schemes chapter 1 the limited partnership for collective investment art. 98 definition 1 a limited partnership for collective investment is a partnership whose sole object is collective investment. at least one member bears unlimited liability (general partner), while the other members (limited partners) are liable only up to a specified amount (limited partner's contribution).2 general partners must be companies limited by shares with their registered office in switzerland. companies limited by shares without authorisation as managers of collective assets may only be active as a general partner in one limited partnership for collective investment.1182bis the conditions for obtaining an authorisation as defined in article 14 also apply to the general partners.1193 limited partners must be qualified investors as defined in article 10 paragraph 3 or 3ter.120118 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).119 inserted by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).120 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 99 relationship to the code of obligations unless this act provides otherwise, the provisions of the code of obligations121 concerning limited partnerships apply.121 sr 220art. 100 commercial register 1 the partnership exists on being entered in the commercial register.2 notification of the facts to be entered or any amendments thereto must be signed by all general partners in the commercial register or submitted in writing together with notarised signatures.art. 101122 partnership name the partnership name must contain a description of the legal status or its permitted abbreviation.122 amended by no iii of the fa of 25 sept. 2015 (law on business names), in force since 1 july 2016 (as 2016 1507; bbl 2014 9305).art. 102 partnership agreement and prospectus 1 the partnership agreement must contain provisions regarding:a.the partnership name and its registered office;b.the object;c.the company name and the registered office of the general partners;d.total limited partners' contributions;e.the duration; f.the conditions of the limited partners' joining and departing;g.the maintenance of a register of limited partners;h.the investments, investment policy, investment restrictions, risk diversification, the risks associated with investment, and the investment techniques;i.the delegation of management and representation;j.the appointment of a custodian bank and a paying agent.2 the partnership agreement must be in writing.3 .123123 repealed by annex no 3 of the financial services act of 15 june 2018, with effect from 1 jan. 2020 (as 2019 4417; bbl 2015 8901).art. 103 investments 1 the partnership conducts investments in risk capital.2 the federal council may also permit other investments.art. 104 non-competition clause 1 the limited partners are entitled without the consent of the general partners to conduct other business transactions for their own account and on behalf of third parties and to participate in other companies.2 unless the partnership agreement provides otherwise, the general partners may without the consent of the limited partners conduct other business transactions for their own account and on behalf of third parties and participate in other companies, provided this is disclosed and the interests of the limited partnership for collective investment are not impaired as a consequence.art. 105 joining and departure of limited partners 1 where specified by the partnership agreement, the general partner may decide on the joining and departure of limited partners.2 this is subject to the provisions of the code of obligations124 regarding the exclusion of owners of the limited partnership.3 the federal council may prescribe compulsory exclusion. this shall be based on article 82.124 sr 220art. 106 inspection and information 1 the limited partners are entitled to inspect the business accounts of the partnership at any time. business confidentiality with regard to the companies in which the limited partnership invests shall be preserved.2 the limited partners are entitled to obtain information about the business performance of the partnership at least once every quarter.art. 107 audit company the partnership shall appoint an audit company (art. 126 et seq.).art. 108 financial statements 1 with respect to the financial statements of the partnership and the valuation of the assets, article 88 et seq. apply accordingly.2 internationally recognised standards must be observed.art. 109 dissolution the partnership is dissolved:a.by resolution of the owners;b.for the reasons set forth in this act and in the partnership agreement;c.by order of finma in the cases specified in article 133 et seq.chapter 2 the investment company with fixed capital art. 110 definition 1 sicaf is a company limited by shares pursuant to the code of obligations125 (art. 620 et seq. co):a.the sole object of which is the investment of collective capital;b.the shareholders of which are not required to be qualified pursuant to article 10 paragraph 3; andc.which is not listed on a swiss stock exchange.2 there must be an appropriate relationship between a sicaf's equity and its total assets. the federal council defines this relationship.126125 sr 220126 inserted by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).art. 111 company name 1 the company name must contain the designation of its legal status or the abbreviation thereof (sicaf).2 in all other respects, the provisions of the code of obligations127 regarding the name of companies limited by shares apply.127 sr 220art. 112 relationship with the code of obligations unless this act provides otherwise, the provisions of the code of obligations128 concerning companies limited by shares apply.128 sr 220 art. 113 shares 1 the share capital is fully paid up.2 the issuing of voting shares, participation certificates, dividend right certificates and preference shares is prohibited.3 the federal council may specify compulsory redemption. this is laid down in article 82.art. 114129 custodian bank the sicaf must appoint a custodian bank in accordance with articles 72-74.129 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).art. 115 investment policy and investment restrictions 1 a sicaf defines the investments, investment policy, investment restrictions, risk diversification, together with the risks associated with the investments, in the articles of association and in the investment regulations.2 the investments are subject to article 69; articles 64, 70 and 71 apply according- ly.3 resolutions to amend the investment regulations must be passed by a majority of votes at the general meeting.art. 116130 130 repealed by annex no 3 of the financial services act of 15 june 2018, with effect from 1 jan. 2020 (as 2019 4417; bbl 2015 8901).art. 117 financial statements with respect to the financial statements, article 89 paragraph 1 letters a and c-i, paragraphs 2-4 and article 90 apply accordingly in addition to the statutory provisions concerning accounting standards.art. 118 audit company a sicaf shall appoint an audit company (art. 126 et seq.).title 4 foreign collective investment schemes chapter 1 definition and approval art. 119 definition 1 the following are considered foreign open-ended collective investment schemes:a.assets that were accumulated on the basis of a fund contract or another agreement with similar effect for the purpose of collective investment and are managed by a fund management company with its registered office and main administrative office abroad;b.companies and schemes with their registered office and main administrative office located abroad whose purpose is collective capital investment and whose investors have a legal right with regard to the company itself, or with regard to a closely associated company, to the redemption of their units at the net asset value.2 closed-end collective investment schemes are deemed to be companies and schemes with their registered office and main administrative office located abroad whose purpose is collective capital investment and whose investors have no legal right with regard to the company itself, or with regard to a closely connected company, to the redemption of their units at the net asset value.art. 120 duty to obtain approval 1 foreign collective investment schemes must be approved by finma before they can be offered in switzerland to non-qualified investors. the representative shall submit the documents requiring approval to finma.1312 approval is granted if:a.132the collective investment scheme, fund management company or company, asset manager of the collective investment scheme and depository are sub- ject to public supervision intended to protect investors;b.133with regard to organization, investor rights and investment policy, the fund management company or company and the depository are subject to regula- tions which are equivalent to the provisions of this act;c.the designation of the collective investment scheme does not provide grounds for confusion or deception;d.134a representative and a paying agent are appointed for the offer of units in switzerland;e.135there is an agreement on cooperation and the exchange of information between finma and the foreign supervisory authorities relevant to the offer.2bis the representative and the paying agent may only end their mandate with finma's prior approval.1363 the federal council may specify a simplified, fast-track approval procedure for foreign collective investment schemes provided such investments have already been approved by a foreign supervisory authority, such arrangement being reciprocal.4 foreign collective investment schemes which are offered in switzerland to qualified investors in accordance with article 5 paragraph 1 finsa137 do not require approval but must meet the conditions pursuant to paragraph 2 letters c and d at all times.1385 employee share participation schemes in the form of foreign collective investment schemes that are offered exclusively to employees do not require approval.139131 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).132 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).133 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).134 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).135 inserted by no i of the fa of 28 sept. 2012 (as 2013 585; bbl 2012 3639). amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).136 inserted by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).137 sr 950.1138 inserted by no i of the fa of 28 sept. 2012 (as 2013 585; bbl 2012 3639). amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).139 inserted by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 121 paying agent 1 the paying agent must be a bank pursuant to the federal act on banks and savings banks of 8 november 1934140.2 the investors may request the issue and redemption of the units from the paying agent.140 sr 952.0art. 122 international treaties assuming the mutual recognition of regulations and measures of an equivalent standard, the federal council may conclude international treaties which specify that collective investment schemes from the signatory countries merely have a duty to register rather than the duty to obtain approval.chapter 2 representatives of foreign collective investment schemes art. 123 mandate 1 foreign collective investment schemes may be offered in switzerland to non-qualified investors and to qualified investors in switzerland in accordance with article 5 paragraph 1 finsa141 only if the fund management company or the company has first appointed a representative to undertake the duties specified in article 124, subject to the provisions of article 122.1422 the fund management and the investment scheme company undertake to provide the representative with the information the latter may require for the performance of its tasks.141 sr 950.1142 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 124 duties 1 the representative represents the foreign collective investment scheme with regard to investors and finma. the representative's powers of representation may not be restricted.2 the representative observes the statutory obligations to report, publish and inform, as well as the codes of conduct of industry bodies which have been declared to be the minimum standard by finma. the representative's identity must be disclosed in every publication.art. 125 place of performance and place of jurisdiction143 1 the place of performance for units of the foreign collective investment schemes offered in switzerland is the registered office of the representative.1442 it shall continue to be the registered office of the representative after the revocation of authorisation or following the dissolution of the foreign collective investment scheme.3 the place of jurisdiction is:a.the registered office of the representative; orb.the registered office or place of residence of the investor.145143 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).144 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).145 inserted by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).title 5 audit146 and supervision 146 term in accordance with annex no 14 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829). this change has been made throughout the text. chapter 1 audit art. 126 appointment 1 the following persons must appoint an audit company licensed by federal audit oversight authority under article 9a paragraph 1 of the auditor oversight act of 16 december 2005147 to carry out an audit under article 24 of the finmasa148:149a.150.fund management companies for the investment funds they manage;b.sicavs;c.limited partnerships for collective investment;d.sicafs;e.151.f.representatives of foreign collective investment schemes.2 .1523 the same audit company must audit the sicav and any fund management company that it appoints pursuant to article 51 paragraph 5. finma may grant exemptions.1534 .1545 the persons named in paragraph 1, managed investment funds and any real estate companies belonging to real estate funds or real estate investment companies must have their annual accounts and if applicable their consolidated accounts audited by a state supervised audit firm in accordance with the principles of the code of obligations155 on the ordinary audit.1566 the federal council shall regulate the details. it may authorise finma to issue implementing provisions on matters of limited scope, and in particular on largely technical matters.157147 sr 221.302148 sr 956.1149 amended by annex no 4 of the fa of 20 june 2014 (consolidation of oversight through audit companies), in force since 1 jan. 2015 (as 2014 4073; bbl 2013 6857).150 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).151 repealed by annex no ii 13 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).152 repealed by annex no 14 of the financial market supervision act of 22 june 2007, with effect from 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).153 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).154 repealed by annex no ii 13 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).155 sr 220156 inserted by annex no 4 of the fa of 20 june 2014 (consolidation of oversight through audit companies), in force since 1 jan. 2015 (as 2014 4073; bbl 2013 6857).157 inserted by annex no 4 of the fa of 20 june 2014 (consolidation of oversight through audit companies), in force since 1 jan. 2015 (as 2014 4073; bbl 2013 6857).art. 127-129158 158 repealed by annex no 4 of the fa of 20 june 2014 (consolidation of oversight through audit companies), with effect from 1 jan. 2015 (as 2014 4073; bbl 2013 6857).art. 130159 duty to provide information 1 the valuation experts and real estate companies belonging to the collective in vestment scheme shall provide the audit company with full access to the accounting records, the accounting vouchers, the records and to the reports of the valuation experts; moreover, they shall supply them with all the information needed to perform the audit function.2 the audit company of the custodian bank and the audit company of the other licensees cooperate with each other.159 amended by annex no 14 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).art. 131160 160 repealed by annex no 14 of the financial market supervision act of 22 june 2007, with effect from 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).chapter 2 supervision art. 132161 supervision 1 finma issues the necessary authorisations and approvals pursuant to this act and supervises compliance with the statutory, contractual and regulatory provisions as well as the provisions of the articles of association.2 it does not review the expediency of the business decisions taken by the licensees.161 amended by annex no 14 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).art. 133162 supervisory instruments 1 in the event of infringements of the contractual or regulatory provisions or of the provisions of the articles of association, the supervisory instruments pursuant to articles 30-35 and 37 of the finmasa163 apply mutatis mutandis.1642 article 37 of finmasa also applies mutatis mutandis to approval under the present act.3 if the investors' rights appear to be endangered, finma may order the licensees to provide the necessary collateral.4 if an enforceable order issued by finma is not complied with after prior warning within the deadline that has been set, finma may itself carry out the required actions at the expense of the negligent party.162 amended by annex no 14 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).163 sr 956.1164 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).art. 134165 liquidation licensees from which authorisation has been withdrawn or collective investment schemes from which approval has been withdrawn may be liquidated by finma. the federal council regulates the details.165 amended by annex no 14 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).art. 135 measures in the case of non-authorised or non-approved activity 1 where persons operate without any authorisation or approval, finma may order that the collective investment scheme be dissolved.2 to safeguard the interests of investors, finma may order that the collective investment scheme be changed to another legal status.art. 136 other measures 1 in justified cases, finma may, in accordance with article 64, appoint valuation experts to value the assets of real estate funds or real estate investment companies.2 it may dismiss the valuation experts appointed by the real estate fund or by the real estate investment company.art. 137166 initiation of bankruptcy proceedings 1 where there is justified concern that an authorised parties as defined in article 13 paragraph 2 letters b-d is excessively indebted or has serious liquidity problems and there is no prospect of restructuring or restructuring has failed, finma shall withdraw authorisation from the financial institution, initiate bankruptcy proceedings and make this public.1672 the provisions on composition proceedings (art. 293-336 of the federal act of 11 april 1889168 on debt enforcement and bankruptcy, deba), on a stay of proceedings for companies (art. 725 and 725a of the code of obligations169) and on notification of the court (art. 728c para. 3 of the code of obligations) do not apply to the licensee referred to in paragraph 1.3 finma appoints one or more bankruptcy liquidators. these are subject to supervi- sory control by finma and shall provide finma with a report if requested.170166 amended by annex no 3 of the fa of 18 march 2011 (securing investments), in force since 1 sept. 2011 (as 2011 3919; bbl 2010 3993).167 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).168 sr 281.1169 sr 220170 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).art. 138171 conduct of bankruptcy proceedings 1 the bankruptcy order has the effect of a commencement of bankruptcy proceedings pursuant to articles 197-220 deba172.2 the bankruptcy proceedings are conducted in accordance with articles 221-270 deba. articles 138a-138c remain subject to reservation.3 finma may issue different rulings and orders.171 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).172 sr 281.1art. 138a173 creditors' meetings and creditors' committees 1 the bankruptcy liquidator may apply to finma for the following:a.to constitute a creditors' meeting and determine its powers as well as the necessary attendance and voting quorums necessary to pass resolutions;b.to designate a creditors' committee and determine its composition and powers.2 in the case of a sicav with subfunds as defined in article 94, a creditors' meeting or creditors' committee may be established for each subfund.3 finma is under no obligation to follow the proposals of the bankruptcy liquidator.173 inserted by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).art. 138b174 distribution and closure of the proceedings 1 if all assets have been realised and all processes relating to the calculation of assets and liabilities have been completed, the bankruptcy liquidators shall draw up the final distribution list as well as the final accounts and forward these to finma for approval. processes arising from the assignment of legal claims under article 260 deba175 shall be disregarded.1762 the approval decision, together with the distribution list and final accounts, shall be made available for inspection for 30 days. notice of this availability for inspection shall be published in the swiss official gazette of commerce and on finma's website; advance notification shall be given to each of the creditors, stating their share, as well as to the owners if need be.1773 finma issues the necessary orders for the closure of the proceedings. it announces the closure publicly.174 inserted by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).175 sr 281.1176 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).177 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 138c178 foreign insolvency proceedings articles 37f and 37g of the federal act on banks and savings banks of 8 november 1934179 apply to recognising foreign bankruptcy decrees and insolvency measures, as well as for coordination with foreign insolvency proceedings.178 inserted by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).179 sr 952.0art. 138d180 appeals 1 in bankruptcy proceedings, creditors and owners of an authorised party covered by article 137 paragraph 1 may appeal only against realisation actions and against approval of the distribution list and the final accounts. appeals pursuant to article 17 deba181 shall be excluded.2 the timeframe for filing an appeal against approval of the distribution list and the final accounts commences the day after they have been made available for inspection.3 appeals in bankruptcy proceedings have no suspensive effect. the instructing judge can restore the suspensive effect on request.180 inserted by annex no 9 of the financial market infrastructure act of 19 june 2015 (as 2015 5339; bbl 2014 7483). amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).181 sr 281.1art. 139182 duty to provide information 1 persons who perform a role in the context of this act must provide finma with all the information and documents that it requires to carry out its duties.2 finma may order licensees to provide it with the information it requires to carry out its duties.183182 amended by annex no 14 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).183 inserted by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).art. 140184 184 repealed by annex no ii 13 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 141185 185 repealed by annex no 9 of the financial market infrastructure act of 19 june 2015, with effect from 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 142186 186 repealed by annex no 14 of the financial market supervision act of 22 june 2007, with effect from 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).art. 143187 187 repealed by annex no 9 of the financial market infrastructure act of 19 june 2015, with effect from 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 144 collection and reporting of data188 1 finma is authorised to collect data concerning licensees' business activities and the trend of collective investment schemes in order to maintain market transparency or to execute its supervisory function. it may appoint third parties to collect this information or order licensees to submit this data themselves.1892 third parties appointed to collect data must treat such data as confidential.3 the statistical reporting duties vis--vis the swiss national bank, as specified in the swiss national bank act of 3 october 2003190, together with the right of finma and the swiss national bank to exchange data are reserved.188 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).189 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).190 sr 951.11title 6 liability and criminal provisions chapter 1 liability art. 145 principle 1 any person who breaches their duties is liable to the company, the individual investors and the company's creditors for the losses resulting therefrom, unless they prove that they are not at fault. any person involved in the establishment, management, portfolio management, auditing or liquidation of any of the following financial institutions may be held liable:191a.the fund management company;b.the sicav;c.the limited partnership for collective investment;d.the sicaf;e.the custodian bank;f.192the manager of collective assets;g.the representative of foreign collective investment schemes;h.the audit company;i.the liquidator.2 liability as defined in paragraph 1 also applies to the valuation expert and the representative of the investors.1933 any person who assigns the fulfilment of a task to a third party is liable for the losses caused by that third party unless they prove that they applied the degree of due diligence with regard to the selection, instruction and monitoring required in the given circumstances. the federal council may regulate the requirements for monitoring, subject to article 68 paragraph 3 finia194.195 1964 the liability of the executive and governing bodies of the fund management com- pany, sicav and sicaf is based on the provisions of the code of obligations197 governing companies limited by shares.5 the liability of a limited partnership for collective investment is based on the provisions of the code of obligations governing limited partnerships.191 second sentence amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).192 amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).193 amended by annex no 14 of the financial market supervision act of 22 june 2007, with effect from 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).194 sr 954.1195 third sentence amended by annex no ii 13 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).196 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639).197 sr 220art. 146 joint and several liability and recourse 1 if more than one person is liable to pay compensation, each of them is liable jointly and severally to the extent that the loss is attributable directly to them by reason of their fault and the circumstances.2 the claimant may file a claim for the overall loss against more than one party jointly, and may request that in the same proceedings the court determine each individual defendant's liability to pay compensation.3 the court, taking all circumstances into consideration, determines recourse among the parties.art. 147198 prescription 1 the right to claim damages prescribes five years from the date on which the person suffering damage became aware of the damage and of the identity of the person liable for it, but not later than three years after the redemption of a unit and in any event not later than ten years after the date on which the harmful conduct took place or ceased.2 if the person liable has committed a criminal offence through his or her harmful conduct, then notwithstanding the foregoing paragraphs the right to damages or satisfaction prescribes at the earliest when the right to prosecute the offence becomes time-barred. if the right to prosecute is no longer liable to become time-barred because a first instance criminal judgment has been issued, the right to claim damages or satisfaction prescribes at the earliest three years after notice of the judgment is given.198 amended by annex no 28 of the fa of 15 june 2018 (revision of the law on prescription), in force since 1 jan. 2020 (as 2018 5343; bbl 2014 235).chapter 2 criminal provisions art. 148 felonies and misdemeanours199 1 any person who wilfully does any of the following is liable to a custodial sentence not exceeding three years or to a monetary penalty:200a.201.b.establishes a collective investment scheme without approval or authorisation;c.202.d.203offers domestic and foreign collective investment schemes that have not been approved to non-qualified investors;e.fails to maintain the books of account in an orderly manner or does not ar- chive company books of account, records and documents as prescribed;f.204in annual report or semi-annual report:1.provides false information or withholds material facts,2.does not provide all the mandatory information;g.205with respect to the annual report or semi-annual report:1.fails to produce them or fails to produce them in an orderly manner,2.fails to publish it or fails to publish it by the specified deadline;h.provides false information to the audit company, the investigating officer, the administrative receiver, the liquidator or finma or refuses to provide the requested information;i.206.j.as valuation experts, commit a gross breach of the duties assigned to them;k.207.l.208.1bis .2092 where the offender acts through negligence, the penalty is a fine not exceeding chf 250,000.3 .210199 amended by no i 1 of the fa of 12 dec. 2014 on expanding the offence of breach of professional confidentiality, in force since 1 july 2015 (as 2015 1535; bbl 2014 6231 6241).200 amended by no i 1 of the fa of 12 dec. 2014 on expanding the offence of breach of professional confidentiality, in force since 1 july 2015 (as 2015 1535; bbl 2014 6231 6241).201 repealed by annex no 14 of the financial market supervision act of 22 june 2007, with effect from 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).202 repealed by annex no 14 of the financial market supervision act of 22 june 2007, with effect from 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).203 amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).204 amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).205 amended by annex no 3 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).206 repealed by annex no 14 of the financial market supervision act of 22 june 2007, with effect from 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).207 repealed by annex no ii 13 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).208 inserted by no i 1 of the fa of 12 dec. 2014 on expanding the offence of breach of professional confidentiality (as 2015 1535; bbl 2014 6231 6241). repealed by annex no ii 13 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).209 inserted by no i 1 of the fa of 12 dec. 2014 on expanding the offence of breach of professional confidentiality (as 2015 1535; bbl 2014 6231 6241). repealed by annex no ii 13 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).210 repealed by annex no 9 of the financial market infrastructure act of 19 june 2015, with effect from 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 149 contraventions 1 any person who wilfully does any of the following is liable to a fine not exceeding chf 500,000:a.commits a breach of the provision concerning the protection against confusion or deception (art. 12);b.provides non-permissible, false or misleading information in advertising material for a collective investment scheme;c.211.d.fails to file the required notification with finma, the swiss national bank or investors, or provides false information therein;e.212.f.213fails to keep the share register in terms of article 46 paragraph 3 correctly.2 .2143 .2154 .216211 repealed by annex no 3 of the financial services act of 15 june 2018, with effect from 1 jan. 2020 (as 2019 4417; bbl 2015 8901).212 repealed by annex no 3 of the financial services act of 15 june 2018, with effect from 1 jan. 2020 (as 2019 4417; bbl 2015 8901).213 inserted by no i 6 of the fa of 12 dec. 2014 on the implementation of the revised recommendations 2012 of the financial action task force, in force since 1 july 2015 (as 2015 1389; bbl 2014 605).214 repealed by annex no 3 of the financial services act of 15 june 2018, with effect from 1 jan. 2020 (as 2019 4417; bbl 2015 8901).215 repealed by annex no 9 of the financial market infrastructure act of 19 june 2015, with effect from 1 jan. 2016 (as 2015 5339; bbl 2014 7483).216 repealed by annex no 14 of the financial market supervision act of 22 june 2007, with effect from 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).art. 150217 217 repealed by annex no ii 13 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 151218 218 repealed by annex no 14 of the financial market supervision act of 22 june 2007, with effect from 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).title 7 final provisions219 219 amended by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639). chapter 1 implementation; repeal and amendment of existing legislation220 220 inserted by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639). art. 152221 implementation 1 the federal council issues the implementing provisions.2 when issuing subordinate legislation, the federal council and finma shall observe the key requirements of the law of the european communities.221 amended by annex no 14 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207 5205; bbl 2006 2829).art. 153 repeal and amendment of existing legislation the repeal and amendment of the existing legislation are set out in the annex.chapter 2 . art. 154-158222 222 repealed by annex no ii 13 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).chapter 3 . art. 158a-158e223 223 inserted by no i of the fa of 28 sept. 2012 (as 2013 585; bbl 2012 3639). repealed by annex no ii 13 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901)chapter 4 referendum and commencement224 224 inserted by no i of the fa of 28 sept. 2012, in force since 1 march 2013 (as 2013 585; bbl 2012 3639). art. 159 .225 1 this act is subject to an optional referendum.2 the federal council determines its commencement date.commencement date: 1 january 2007226225 repealed by no i of the fa of 28 sept. 2012, with effect from 1 march 2013 (as 2013 585; bbl 2012 3639).226 fcd of 22 nov. 2006.annex (art. 153)amendment of existing legislation ithe investment funds act of 18 march 1994227 is repealed.iithe following federal acts are amended as follows:.228227 [as 1994 2523, 2000 2355 annex no 27, 2004 1985 annex no ii 4]228 the amendments may be consulted under as 2006 5379.

951.312english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinance of the swiss financial market supervisory authorityon collective investment schemes(finma collective investment schemes ordinance, ciso-finma)of 27 august 2014 (status as of 1 january 2021)the swiss financial market supervisory authority (finma),based on articles 55 paragraph 3, 56 paragraph 3, 71 paragraph 2, 91 and 128 paragraph 2 of the collective investment schemes act of 23 june 20061 (cisa),decrees:1 sr 951.31title 1 collective investment schemes chapter 1 securities funds section 1 securities lending (art. 55 para. 1 let. a cisa; art. 76 ciso2)art. 1 definition securities lending means: a legally binding transaction in which the fund management company or investment company with variable capital (sicav), acting as lender, undertakes to temporarily transfer to the borrower ownership of specific securities, and where:a.the borrower is obliged to return to the lender securities of the same type, quantity and quality at the end of the securities lending period and to transfer any income earned during that period to the lender; andb.the lender bears the price risk of the securities for the duration of the securities lending.art. 2 principles 1 the fund management company or sicav may lend securities in its own name and for its own account to a borrower (principal).2 the fund management company or sicav may also appoint an intermediary to put the securities at the disposal of the borrower either on a fiduciary basis (agent) or directly (finder), in accordance with the provisions of this section.3 the fund management company or sicav shall conclude a standardised framework agreement governing securities lending with each borrower or intermediary in accordance with article 7.art. 3 authorised borrowers and intermediaries 1 the fund management company or sicav shall conduct securities lending transactions exclusively with first-class supervised borrowers and intermediaries which are specialised in transactions of this type, such as banks, brokers and insurance companies, as well as licensed and recognised central counterparty clearing houses and central securities depositories that guarantee the proper execution of such transactions.2 the fund management company or sicav must obtain the custodian bank's written consent should the latter not be participating in the securities lending transaction as either borrower or intermediary.3 the custodian bank may only withhold its consent if there is no guarantee that it can meet its statutory and contractual duties with regard to settlement, safekeeping, provision of information, and control.art. 4 securities eligible for lending 1 the fund management company or sicav may lend all types of securities that are traded on an exchange or other regulated market open to the public.2 it may not lend securities acquired under a reverse repo transaction.art. 5 termination dates and notice periods 1 it must be possible to terminate individual transactions and the standardised framework agreement for the securities lending transaction at any time.2 where the observation of a notice period has been agreed, that period may not exceed seven banking days.art. 6 scope and duration 1 if the fund management company or sicav is required to observe a notice period before it may again have legal control of the loaned securities, it may not lend more than 50 percent of the eligible holding of a particular security.2 if, however, the borrower or intermediary provides a contractual guarantee to the fund management company or sicav that the latter may again legally dispose of the loaned securities on the same or following banking day, the fund management company or sicav may lend the entire eligible holding of a particular security.art. 7 minimum contents of the standardised framework agreement 1 the standardised framework agreement must meet the relevant international standards.2 the standardised framework agreement must indicate those securities funds whose securities are in principle eligible for securities lending, in addition to the securities which are excluded from securities lending.3 the fund management company or sicav shall stipulate in the standardised framework agreement with the borrower or intermediary that they:a.pledge or transfer collateral to the fund management company or sicav for the purposes of guaranteeing restitution in accordance with article 51;b.are liable vis--vis the fund management company or sicav for:1.the prompt, unconditional payment of any income accruing during the securities lending period, 2.the assertion of other proprietary rights such as conversion and subscription rights, and 3.the contractually agreed return of securities of the same type, quantity and quality;c.assign all securities available for the securities lending transaction to the individual lenders on the basis of objective and transparent criteria.4 the framework agreement should also set out: a.agreement of an appropriate collateral value that at all times should amount to at least 100 percent of the market value of the loaned securities; b.the loaned securities are excluded from the claims of the borrower or intermediary.art. 8 special duties of the custodian bank the custodian bank has the following special duties in connection with the settlement of the securities lending transaction:a.it shall inform the fund management company or sicav on a regular basis of the lending transactions conducted.b.it shall, at least once a month, account for any income earned on the securities lending.c.it shall ensure that the securities lending transactions are settled in a secure manner, in line with the agreements and, in particular, it shall monitor compliance with the requirements relating to collateral.d.in addition, it shall carry out the administrative duties assigned to it under the safe-custody regulations during the term of the lending transaction and assert all rights associated with the loaned securities, unless such duties have been ceded under the terms of the standardised framework agreement.art. 9 inventory and statement of net assets, or balance sheet, inclusion in investment limits 1 loaned securities must be denoted as being lent in the securities fund's inventory and must continue to be included in the statement of net assets, or the balance sheet.2 loaned securities must continue to be taken into account when ensuring compliance with the statutory and regulatory investment restrictions.2 collective investment schemes ordinance of 22 nov. 2006 (sr 951.311).section 2 securities repurchase agreements (repo, reverse repo) (art. 55 para. 1 let. b cisa; art. 76 ciso3)art. 10 definitions the terms below are defined as follows:a.securities repurchase agreement means a repo (or sale and repurchase agreement) and reverse repo (or reverse sale and repurchase agreement);b.repo means a legally binding transaction in which one party (the borrower or repo seller) temporarily transfers ownership of securities to another party (the repo buyer), and where:1.the repo buyer undertakes to return to the repo seller securities of the same type, quantity and quality at the end of the repo term together with any income earned during such term,2.during the term of the repurchase agreement, the price risk associated with the securities shall be borne by the repo seller; c.reverse repo means a repo from the perspective of the lender;d.repo interest means the difference between the selling price and purchase price of the securities.art. 11 principles 1 the fund management company or sicav may conclude repurchase agreements in its own name and for its own account with a counterparty (principal).2 it may appoint an intermediary to conclude repurchase agreements with a counterparty either indirectly on a fiduciary basis (agent) or directly (finder), in accordance with the provisions of this section.3 the fund management company or sicav shall conclude a standardised framework agreement governing repurchase agreements with each counterparty or intermediary in accordance with article 17.art. 12 authorised counterparties and intermediaries 1 the fund management company or sicav shall conduct repurchase agreements exclusively with first-class supervised counterparties and intermediaries that specialise in these types of transactions, such as banks, brokers and insurance companies, as well as licensed and recognised central counterparty clearing houses and central securities depositories that can guarantee the execution of transactions in a due and proper manner.2 the fund management company or sicav must obtain the written consent of the custodian bank if the latter is not to be involved in the repurchase agreement as either counterparty or intermediary. 3 the custodian bank may only deny its consent if there is no guarantee that it can meet its statutory and contractual duties with regard to settlement, safekeeping, provision of information, and control.art. 13 securities eligible for repurchase agreements 1 for repo transactions, the fund management company or sicav may use all types of securities that are traded on a stock exchange or other regulated market open to the public.2 for repo purposes, it may not use securities acquired under a reverse repo.art. 14 termination dates and notice periods 1 it must be possible to terminate individual transactions and the standardised framework agreement for the repurchase transaction at any time.2 where the observation of a notice period has been agreed, such period may not exceed seven banking days.art. 15 scope and duration of the repo 1 if the fund management company or sicav must observe a notice period before it can again have legal control of the securities under the repurchase agreement, it may not use more than 50 percent of its holdings of a particular security eligible for repo transactions.2 if, however, the counterparty or intermediary provides the fund management company or sicav with a contractual guarantee that the latter may again have legal control of the securities under the repurchase agreement on the same or following banking day, its entire holding of a particular security eligible for repo transactions may be used.art. 16 securing claims for money and securities 1 in order to secure claims for money and securities arising from repurchase agreements, the claims and obligations must be valued daily at the current market price, taking account of accrued interest and the income due to the borrower, and the difference must be marked to market daily.2 compensation must be in cash or in securities. the latter must be comparable in type and quality to the securities used for the repurchase agreement.art. 17 minimum contents of the standardised framework agreement 1 the standardised framework agreement must meet the relevant international standards.2 the standardised framework agreement must indicate both the securities funds for which repurchase agreements may in principle be conducted and the securities which are excluded from the repurchase agreement.3 the fund management company or sicav shall stipulate in the standardised framework agreement with the counterparty or intermediary that:a.the lender is liable vis--vis the borrower for:1.the prompt, unconditional payment of any income accruing during the repurchase agreement and the compensating payments to be made pursuant to article 16, 2.the assertion of other proprietary rights such as conversion and subscription rights, and3.the contractually agreed return of securities of the same type, quantity and quality;b.the borrower is liable vis--vis the lender for:1.the prompt, unconditional payment of any compensating payments to be made during the term of the repurchase agreement pursuant to article 16, and 2.the repurchase of the securities under the repo transaction in compliance with the terms of the agreement;c.claims for money and securities arising from repurchase agreements may not be netted with claims of the counterparty or intermediary.art. 18 special duties of the custodian bank the custodian bank has the following special duties in relation to the settlement of the repurchase transaction:a.it ensures that the repurchase transaction is settled in a secure and contractually agreed manner.b.it ensures that fluctuations in the value of the securities used in repo transactions are compensated for in cash or securities (marked to market).c.for the duration of the repurchase transaction it shall, in addition, carry out the administrative duties assigned to it under the safe-custody regulations and assert all rights associated with the securities used in the repo transaction, unless such duties have been ceded under the standardised framework agreement.art. 19 raising loans via repo agreements 1 pursuant to article 77 paragraph 2 ciso4, a repurchase agreement represents the raising of a loan by the securities fund.2 the money obligations arising from repos, together with all other loans taken, must comply with the statutory and regulatory limits on borrowing.3 if, when conducting a repo transaction, the fund management company or sicav uses the money received to acquire securities of the same type, quality, credit rating and maturity in conjunction with the conclusion of a reverse repo, this is not deemed to be taking a loan.4 sr 951.311art. 20 distinction between reverse repos and the granting of loans 1 pursuant to article 77 paragraph 1 letter a ciso5, reverse repos do not represent the granting of a loan.2 pursuant to article 75 ciso, money claims in connection with the conclusion of reverse repos are deemed liquid assets.5 sr 951.311art. 21 inclusion in investment limits 1 securities sold through repos must continue to be taken into account when ensuring compliance with the statutory and regulatory investment restrictions.2 money claims acquired through reverse repos must continue to be taken into account when ensuring compliance with the statutory and regulatory investment restrictions.art. 22 inventory, statement of net assets, or balance sheet and profit and loss account 1 securities sold through repos must be denoted as being used in repo in the inventory of the securities fund's assets and must continue to be included in the statement of net assets, or the balance sheet.2 money obligations arising from repos must be disclosed in the statement of net assets, or the balance sheet, under liabilities from repurchase agreements at the value assigned on the calculation date based on the assumption of a linear development in value.3 in the case of repos, repo interest must be disclosed in the profit and loss account under interest payable.4 securities purchased through reverse repos are not included in the inventory of the securities fund's assets, nor in the statement of net assets, or the balance sheet.5 money claims arising from reverse repos must be disclosed in the statement of net assets, or the balance sheet, under claims from repurchase agreements at the value assigned on the calculation date based on the assumption of a linear development in value.6 in the case of reverse repos, repo interest must be disclosed in the profit and loss account under income from reverse repos.3 sr 951.311section 3 derivative financial instruments (art. 56 para. 3 cisa; art. 72 ciso6)art. 23 definitions the terms below are defined as follows:a.basic type of derivative:1.a call or put option, the expiration value of which is linearly dependent on the positive or negative difference between the market value of the underlying and the strike price and is zero if the difference is preceded by the opposite algebraic sign, 2.a credit default swap (cds), 3.a swap, the payments of which are dependent on the value of the underlying or on an absolute amount in both a linear and a path-independent manner, 4.a future or forward transaction the value of which is linearly dependent on the value of the underlying;b.exposure-increasing: derivative exposure, the financial effect of which is similar to the purchase of an underlying (e.g. the purchase of a call option, purchase of a future, sale of a put option, exchanging of variable for fixed interest payments or the conclusion of a credit default swap as protection seller);c.exposure-reducing: a derivative exposure the financial effect of which is similar to the sale of an underlying (in particular, the sale of a call option, sale of a future, purchase of a put option, exchanging of fixed for variable interest payments or the conclusion of a credit default swap as secured party);d.exotic derivative means a derivative with a mode of operation that cannot be described as a basic form of derivative or a combination of basic forms of derivatives (for instance, a path-dependent option, an option with several factors or an option with contract modifications);e.contract size: number of underlying securities or nominal value of a derivative contract;f.contract value:1.in the case of a swap, the product of the nominal value of the underlying and the contract size,2.in the case of all other derivatives, the product of the underlying's market value and the contract size;g.otc (over the counter): the conclusion of transactions off an exchange or any other regulated market which is open to the public;h.synthetic liquidity: underlyings whose market risk and potential credit risk are hedged with derivatives that have a symmetric payment profile;i.overall exposure: exposure to the fund's net assets, the net overall exposure to derivatives and investment techniques under article 55 cisa, including short-selling; j.gross overall exposure to derivatives: total amount of capital requirements eligible from derivatives, including derivative components;k.net overall exposure to derivatives: total amount of capital requirements eligible from derivatives, including derivative components, taking account of permissible netting, hedging transactions and other rules set out in articles 35 and 36;l.leverage: effect of derivatives, derivative components investment techniques, including short-selling on the fund's net assets, by building up over-proportionally high positions in an underlying when compared to the capital invested.art. 24 principles derivatives may be used only where, even in exceptional market conditions, the effect of using derivatives does not result in a deviation from the investment objectives set out in the fund regulations, prospectus and important information for investors, or in a change in the investment character of the securities fund.art. 25 umbrella funds the provisions in this section apply to the individual securities funds or, in the case of an umbrella fund, to each individual sub-fund.art. 26 structured products, derivative components and warrants 1 in order to comply with the statutory and regulatory provisions for risk diversification, the underlying and the issue of a structured product must be taken into account.2 if a structured product has one or more derivative components, these must be treated in accordance with the provisions in this section.3 to establish the amount eligible for the overall exposure and the risk diversification requirements, the structured product is to be broken down into its components, if it has leverage. the components are to be considered individually. the breakdown is to be documented.4 if structured products that cannot be broken down are used as a not negligible part of the fund's assets, the model approach as a risk measurement procedure is to be applied.5 derivative components of a financial instrument must be taken into account in compliance with statutory and regulatory risk diversification provisions, and are eligible for the overall exposure to derivatives. 6 warrants must be treated as derivatives in accordance with the provisions of this section. an option belonging to a warrant bond is deemed a warrant.art. 27 credit derivatives 1 as defined in article 77 paragraph 1 letter a ciso7, an exposure-increasing credit derivative is not deemed a guarantee.2 the debtor of reference of a credit derivative must have outstanding equity or debt securities or rights to equity or debts that are traded on an exchange or another regulated market open to the public.7 sr 951.311art. 28 exotic derivatives 1 the fund management company or sicav may only use an exotic derivative if:a.it can calculate the minimum and the maximum delta across the entire price spectrum of the underlyings; and b.it understands the derivative's mode of operation, as well as the factors that influence its pricing.2 in the case of securities funds, where the commitment approach ii is applied, the exotic derivative must be weighted according to its maximum possible delta (absolute value) when converted to its underlying equivalent pursuant to article 35 paragraph 2. 3 the risk assessment model used risk must be capable of reflecting the exotic derivative in accordance with its risk.4 if the maximum delta of the exotic derivative is positive, it must be weighted by such maximum delta in order to comply with the statutory and regulatory maximum limits. if the minimum delta is negative, it must be weighted by this minimum delta in order to comply with the regulatory minimum limits.art. 29 conclusion of the contract 1 the fund management company or sicav shall conclude derivative transactions on an exchange or other regulated market which is open to the public.2 transactions with otc derivatives (otc transactions) are permitted, provided the conditions stipulated in articles 30 and 31 are met.art. 30 otc transactions 1 otc transactions may only be concluded on the basis of a standardised framework agreement which complies with the pertinent international standards.2 the counterparty must:a.be a regulated financial intermediary specialised in such types of transactions;b.ensure proper execution of the contract; and c.meet the credit rating requirements stipulated in article 31 paragraph 1.3 it must be possible to reliably and verifiably value an otc derivative on a daily basis and to sell or close out the derivative at market value at any time.4 if the market price for an otc derivative is not available, it must be possible at all times to determine the price at any time using appropriate valuation models that are recognised in practice, based on the market value of the underlyings from which the derivative was derived;5 before concluding a contract for a derivative under paragraph 4, specific offers must be obtained from at least two potential counterparties. the contract is to be concluded with the counterparty providing the most favourable offer in terms of price. a deviation from this principle is possible for reasons relating to risk diversification, or where other parts of the contract such as credit rating or the range of services offered by the counterparties in another offer seem are more advantageous overall for the investors.6 if it is in the investors' best interests, obtaining offers from at least two potential counterparties may be dispensed with. the reasons for doing so must be clearly documented.7 the conclusion of the transaction and pricing must be clearly documented.art. 31 credit rating 1 in the case of otc transactions, the counterparty or its guarantor shall have a high credit rating.2 this requirement does not apply to the custodian bank of the securities fund.art. 32 valuation 1 derivatives for which market prices are available shall be valued at the current prices paid on the main market. prices are to be obtained from an external source specialising in this type of transaction and which operates independently of the fund management company or sicav and its agents.2 if no current market price is available for derivatives, it must be possible to determine the price at any time using appropriate valuation models that are recognised in practice, based on the market value of the underlyings. valuations are to be documented clearly.art. 33 risk measurement procedure 1 the fund management company or sicav shall apply commitment approach i or ii, or the model approach.2 the model approach requires the approval of finma.3 the fund management company or sicav shall align the risk assessment process selected with the investment objectives.4 the model approach must be used where:a.the overall exposure of the securities fund using commitment approach i or ii cannot be appropriately recorded and measured;b.a not negligible amount is being invested in exotic derivatives; orc.complex investment strategies of a not negligible amount are being used.art. 34 commitment approach i 1 for a securities fund applying commitment approach i, only basic derivative types are permitted. they may only be used where account is taken of the necessary coverage set out in this article and their use does not result in a leverage effect on the fund's assets nor does it involve short-selling.2 exposure-reducing derivatives must at all times be covered by the relevant underlyings. if the delta has been calculated, it may be taken into account when calculating the necessary underlyings. article 44 paragraph 3 also applies mutatis mutandis.3 covering with other investments is permitted if the exposure-reducing derivative is indexed by an independent external office. the index must be representative of the underlyings and there must be an adequate correlation between the index and such investments.4 the underlying equivalents (art. 35 para. 2) of exposure-increasing derivatives must at all times be covered by highly liquid assets.5 the following assets are considered highly liquid:a.liquid assets as defined in article 75 ciso8;b.money market instruments as defined in article 74 ciso;c.collective investment schemes which invest exclusively in liquid assets or money market instruments;d.debt securities and rights with a time remaining till maturity of maximum twelve months and the issuer or guarantor have a high credit rating;e.synthetic liquidity;f.credit limits accorded to, but not used by, the securities fund, in line with the statutory and regulatory maximum investment limits;g.withholding tax credits as confirmed by the swiss federal tax administration.6 account can be taken of permitted netting rules and hedging transactions under article 36 paragraphs 1, 2 and 4. covered hedging transactions by interest derivatives are permitted. convertible bonds do not have to be taken into account when calculating the overall exposure to derivatives.8 sr 951.311art. 35 commitment approach ii: determination of the overall exposure 1 to establish the overall exposure of a securities fund using commitment approach ii, the fund management company shall determine the individual conversion amounts of the respective derivatives and derivative components as well as the conversion amounts arising from investment techniques.2 in the case of basic types of derivatives, the conversion amount for the overall exposure arising from derivatives is normally the underlying equivalent, based on the market value of the underlying assets of the derivatives. the underlying equivalents are calculated in accordance with annex 1. the nominal value or the forward price of futures contracts calculated on each trading day may be taken as the basis, if the result is a more conservative calculation.3 the conversion amount for the overall exposure is the basic commitment from the net fund assets and the sum of the following absolute values:a.conversion amounts of the individual derivatives and derivative components pursuant to annex 1 that are not included in netting pursuant to article 36;b.conversion amounts after permitted netting pursuant to article 36; andc.conversion amounts from permitted investment techniques.4 the following transactions may be disregarded when determining the conversion amount for the overall exposure arising from derivatives pursuant to paragraph 3:a.swaps by means of which the performance of the underlyings directly held by the securities fund is swapped with the performance of other underlyings (total return swaps), provided that:1.the market risk of the swapped underlyings is completely eliminated from the securities fund so that these assets have no impact on the change in the value of the securities fund, and 2.the swap does not grant option rights or contain leverage or other additional market risks that exceed those of a direct investment in the relevant underlyings;b.derivatives to which corresponding highly liquid assets are assigned so that the combination of derivative and highly liquid assets is equivalent to a direct investment in the underlying asset and neither an additional market risk nor leverage is generated. the highly liquid assets used to cover the derivative position may not be used for more than one combination simultaneously.5 securities lending and repurchase transactions must be taken into account when calculating the overall exposure if these generate leverage on the fund assets through the reinvestment of collateral. where collateral is reinvested in financial assets that provide a return in excess of the risk-free interest rate, the amount received must be included when determining the overall exposure if cash collateral is held.art. 36 commitment approach ii: rules on netting and hedging transactions 1 counter positions in derivatives based on the same underlying as well as counter positions in derivatives and in investments in the same underlying may be netted, irrespective of the maturity date of the derivatives, provided that:a.the derivative transaction was concluded with the sole purpose of eliminating the risks associated with the derivatives or investments acquired;b.no material risks are disregarded in the process; andc.the conversion amount of the derivatives is determined pursuant to article 35.2 if the derivatives in hedging transactions do not relate to the same underlying as the asset that is to be hedged, the following additional conditions must be met for netting:a.the derivative transaction is not based on an investment strategy that serves to generate a profit.b.the derivative results in a demonstrable reduction in the risk of the securities fund.c.the general and special risks of the derivative are balanced out. d.the derivatives, underlyings or assets that are to be netted relate to the same class of financial instruments.e.the hedging strategy remains effective even under exceptional market conditions.3 where interest rate derivatives are predominantly used, the amount to be included in the overall exposure arising from derivatives can be determined using internationally recognised duration-netting rules provided that:a.the rules result in a correct determination of the risk profile of the securities fund; b.the material risks are taken into account;c.the use of these rules does not generate an unjustified level of leverage;d.no interest rate arbitrage strategies are pursued; ande.the leverage of the securities fund is not increased either by applying these rules or through investments in short-term positions.4 notwithstanding paragraph 2, derivatives that are used solely for currency hedging purposes and do not result in leverage or contain additional market risks may be netted when calculating the overall exposure arising from derivatives.art. 37 commitment approach ii: documentation requirements all calculations under articles 35 and 36 must be clearly documented.art. 38 model approach: principles of value-at-risk (var) 1 applying the model approach, the fund management company or sicav shall estimate the risks for a securities fund as value-at-risk (var).2 the model must be fully documented. the documentation must in particular provide information about the specification of the risk assessment model, back-testing and stress tests.3 the fund management company or sicav shall verify the suitability of the model on a periodic basis, but at least once a year. the results must be clearly documented.4 the var of a securities fund may at no time exceed twice the var of the benchmark portfolio of such securities fund (relative var limits)5 when using the model approach, the fund management or the sicav must ensure a periodical calculation of the gross overall exposure to derivatives of the securities fund in question.art. 39 model approach: calculation of var 1 the var may be determined using variance/covariance models, historical simulations and monte-carlo simulations. when selecting the model, the investment strategy is to be taken into account.2 the var must be calculated daily on the basis of the previous day's positions using the following parameters:a.a 99th percentile, one-tailed confidence interval;b.a holding period of 20 trading days;c.an effective historical observation period of at least one year (250 bank working days).3 the var factors in interest rate risk, currency risk, share price risk and commodity risks. the following must also be taken into account:a.gamma and vega risks in the case of option positions;b.specific risks in the form of residual risks;c.event, default and liquidity risks as part of stress tests.4 the calculations must be clearly documented.5 variance from the confidence interval, the holding period or the observation period is possible owing to exceptional market circumstances, and must have the prior approval of finma.art. 40 model approach: benchmark portfolio 1 the benchmark portfolio of a securities fund is assets without any leverage and generally without any derivatives.2 the composition of the benchmark portfolio corresponds to the information in the fund regulations, prospectus and information necessary for the securities fund's investors, specifically concerning its investment objectives, investment policy and limits.3 it must be reviewed periodically, but at least once a quarter. the respective composition and any changes thereto must be documented clearly.4 where a benchmark, such as an equity index for benchmark portfolios, is defined in the fund regulations or in the prospectus and information necessary for the securities fund's investors, it may be used for calculating the var of the benchmark portfolios. the benchmark must be:a.derivative-free and not have any leverage;b.calculated by an independent, external office; andc.representative of the investment objectives, investment policy and limits of the securities fund.5 the benchmark portfolio may include derivatives, where:a.according to the fund regulations or prospectus, the securities fund is implementing a long/short strategy, and in the benchmark portfolio the short exposure is shown as derivatives;b.according to the fund regulations or prospectus, the securities fund is implementing a currency hedge investment policy and a currency hedge benchmark portfolio is used as a benchmark.6 if it is not possible to construct a representative benchmark portfolio on the basis of the specific investment objectives and investment policy of a securities fund, a var limit may be agreed upon with finma (absolute var limit). this must be stated in the prospectus.art. 41 model approach: reviewing the risk assessment model 1 in the case of a securities fund, the forecast quality of the risk assessment model must be examined by comparing the actual changes in the value of its net assets during the course of a trading day with the relevant one-day var (back-testing).2 the comparison must be documented clearly.3 the sample to be used must be compiled from the previous 250 observations.4 if back-testing shows the risk assessment model to be impracticable, the audit company and finma must be notified forthwith.5 if back-testing produces more than six anomalies, the practicability of the risk assessment model must be examined in depth and the audit company and finma notified forthwith.6 if the model is impracticable, finma may demand a swift rectification of any shortcomings of the model and order tighter restrictions on the risk.art. 42 model approach: stress tests 1 in the case of securities funds, extreme market circumstances must be simulated periodically, but at least monthly (stress tests).2 stress tests must also be conducted where significant changes to the results of the stress test owing to changes in the value or the composition of the securities fund's assets, or to changes in the market circumstances cannot be excluded. 3 stress tests include all risk factors which may have a material influence on the market value of the securities fund. special attention must be paid to risk factors which are not or only insufficiently taken into account by the risk assessment model.4 the results of the conducted stress tests and any necessary resulting measures must be clearly documentedart. 43 model approach: changes under the model approach 1 finma may allow variances from the requirements stipulated in articles 39- 43.2 it may permit the use of other risk assessment models, provided they afford an appropriate degree of protection.3 if changes are made to the risk assessment model, back-testing or stress tests, these changes must be submitted to finma for approval in advance.art. 44 cover for a physical delivery obligation of an underlying 1 if the fund management company or sicav enters into a physical delivery obligation in respect of a derivative, this derivative must be covered by the corresponding underlyings.2 cover of such an obligation with other investments is permitted if the investments and the underlyings are highly liquid and, if delivery is requested, they may be purchased or sold at any time.3 the fund management company or sicav must have unrestricted access to these underlyings or investments at all times.art. 45 covering a payment obligation 1 if the fund management company or sicav enters into a payment obligation in respect of a derivative, this payment obligation must at all times be covered by highly liquid assets as defined in article 34 paragraph 5.2 in the case of securities funds applying commitment approach ii or the model approach, the following shall additionally be recognised as cover:a.debt securities and rights the remaining time to maturity of which is more than twelve months and whose issuer or guarantor has a high credit rating;b.shares traded on an exchange or another regulated market open to the public.3 it must be possible at all times to turn collateral as defined in paragraph 2 into liquid assets within seven banking days.4 shares may only be included as cover at market value less a security margin. this security margin must take account of the volatility of the corresponding share and must amount to at least 15 percent.5 if an investment may require an additional payment, it is deemed an obligation to pay.art. 46 general provisions for inclusion of investment restrictions 1 in complying with the statutory and regulatory investment restrictions on determining maximum and minimum limits, the following must be taken into account:a.investments, including derivatives, in accordance with article 70 ciso9;b.liquid assets as defined in article 75 ciso;c.claims against counterparties arising from otc transactions.2 pursuant to article 82 ciso, exceptions may be made for index funds.3 any overrun of an investment limit due to a change in the delta must be rectified within three banking days; the rectification must ensure that the investors' interests remain safeguarded.9 sr 951.311art. 47 inclusion of derivatives 1 in complying with the statutory and regulatory maximum and minimum limits, and in particular the regulations on risk diversification, underlying equivalents as set out in annex 1 are decisive. 2 a minimum limit may be temporarily undercut with exposure-reducing derivatives purchased as part of a hedging strategy if the interests of investors remain safeguarded.3 derivative components are to be taken into account with the capital requirement under article 35. art. 48 inclusion of claims against counterparties at the maximum limits 1 claims against counterparties arising from derivative transactions must be calculated on the basis of the current positive replacement values.2 positive and negative replacement values arising from transactions in derivatives with the same counterparty may be netted if a netting agreement exists that meets the current legal requirements and is legally enforceable.3 claims arising from derivative transactions against a central counterparty of an exchange or another regulated market open to the public must not be taken into account if:a.such a unit is subject to an appropriate supervisory body; andb.the derivatives and collateral are subject to daily marking to market and daily margining.art. 49 disclosure 1 if the use of derivatives is permitted for the management of a securities fund, such derivatives must be described in the fund regulations and the prospectus.2 the prospectus must indicate whether the derivatives are used as part of the investment strategy or solely to hedge investment positions. in addition, the prospectus must explain how the use of derivatives affects the risk profile of the securities fund.3 the fund regulations and prospectus must state which risk assessment process is applied to the securities fund. the risk assessment process must also be described in the prospectus. if the model approach is used, the gross overall exposure to derivatives must be shown. if the relative var approach is used, the benchmark portfolio must be disclosed in the prospectus. 4 if a securities fund exhibits increased volatility or leverage due to the use of derivatives, special reference must be made to this in the prospectus and advertising material.5 reference must be made to the counterparty risks of derivatives in the prospectus.6 sr 951.311section 4 management of collateral (art. 76 para. 2 and art. 80 para. 4 ciso10)art. 50 scope of application assets received as collateral as part of investment techniques or otc transactions must satisfy the requirements of this section.art. 51 requirements for collateral only collateral that meets the following requirements may be accepted:a.it is highly liquid and is traded at a transparent price on an exchange or other regulated market open to the public. it can be disposed of at short notice at a price close to the valuation undertaken prior to sale.b.it is valued at least on each trading day. where price volatility is high, suitable conservative security margins must be applied.c.it is not issued by the counterparty or by a company that belongs to or is dependent on the counterparty's group.d.the credit quality of the issuer is high.art. 52 management of collateral the fund management company, sicav or their agents must comply with the following duties and requirements when managing the collateral:a.they must diversify the collateral appropriately in terms of countries, markets and issuers. appropriate diversification of issuers is deemed to have been achieved if the collateral of a single issuer held does not correspond to more than 20 percent of the net asset value. deviation from this rule is permitted if the collateral meets the requirements of article 83 paragraph 1 ciso11 or the approval conditions set out in article 83 paragraph 2 ciso are met. if collateral is provided by more than one counterparty, an aggregate perspective must be ensured.b.they must be able to obtain power of disposal over, and authority to dispose of, the collateral received at any time in the event of default by the counterparty, without involving the counterparty or obtaining its consent.c.they may not re-lend, re-pledge, sell or reinvest collateral pledged or transferred to them or use it as part of a repurchase transaction or to hedge obligations arising from derivative financial instruments. they may only use cash collateral received in the corresponding currency as liquid assets or invest it in high-quality government bonds and directly or indirectly in short-term money market instruments or use it as a reverse repo.d.if they accept collateral representing more than 30 percent of the fund assets, they must ensure that the liquidity risks can be captured and monitored appropriately. regular stress tests must be carried out that take account of both normal and exceptional liquidity conditions. the controls carried out must be documented.e.they must take account of the risks associated with the management of collateral in their risk management process.f.they must be in a position to attribute any uncovered claims remaining after the realisation of collateral to the securities funds whose assets were the subject of the underlying transactions.11 sr 951.311art. 53 collateral strategy 1 the fund management company, sicav and their agents must have in place a collateral strategy that:a.provides for appropriate security margins; b.is geared to all types of assets received as collateral; and c.takes account of characteristics of the collateral such as volatility and the default risk of the issuer.2 they must document the collateral strategy.art. 54 safekeeping of collateral 1 the collateral received must be kept at the custodian bank.2 safekeeping by a supervised third-party custodian on behalf of the fund management company is permitted provided that:a.ownership of the collateral is not transferred; andb.the third-party custodian is independent of the counterparty.3 in the case of collateral delivered to a counterparty, a custodian appointed by the latter, or a central counterparty, the custodian bank must ensure that transactions are settled in a secure manner and in line with the agreements.art. 55 prospectus the prospectus of the securities fund must contain appropriate information on the collateral strategy, in particular details of:a.the permitted types of collateral;b.the required level of collateralisation;c.the determination of security margins;d.the investment strategy and the risks in the event that cash collateral is reinvested.10 sr 951.311section 5 master-feeder structures (art. 73a ciso12)art. 56 principle in principle, the investors in a master fund are its feeder funds. other investors may be accepted provided the fund management company or sicav informs them in advance of the fact that they are investing in a master fund and ensures that the other investors receive equal treatment with the feeder funds.art. 57 requirements for the documents of a feeder fund 1 in addition to the information set out in articles 35a and 62b ciso13, the fund contract or investment regulations of a feeder fund or feeder sub-fund shall in particular contain the following:a.a statement that the fund is a feeder fund which invests at least 85 percent of its assets in a specific master fund;b.the name of the master fund;c.the investment objective and the investment policy of the master fund;d.the nature, amount and method of calculation of all remuneration as well as incidental costs that result from the investment in the master fund and that are permitted to be charged to the fund assets or the investors;e.a statement that the fund contract or investment regulations, the prospectus, the key investor information document, as well as the annual and semi-annual reports of the master fund may be obtained free of charge;f.a statement that the feeder fund may continue to exist after the dissolution of the master fund or after merger, conversion or transfer of the assets of the master fund up until the application is approved pursuant to article 63 or 64.2 in addition to the information set out in article 106 ciso, the prospectus of a feeder fund shall in particular contain the following:a.a statement that the fund is a feeder fund which invests at least 85 percent of its assets in a specific master fund;b.a description of the master fund including the investment strategy and risk profile;c.a summary of the most important content of the agreements on cooperation and duties of disclosure concluded in accordance with articles 58, 61 and 62;d.the location from which further information about the master fund and the agreements on cooperation and duties of disclosure concluded may be obtained free of charge.3 the annual report of the feeder fund shall indicate the location from which the annual and semi-annual reports of the master fund may be obtained free of charge.4 the marketing documents and the key investor information document on the feeder fund shall include a statement that it is a feeder fund which invests at least 85 percent of its assets in a specific master fund. 13 sr 951.311art. 58 joint duties of the master and feeder fund / their fund management companies 1 the master fund shall provide the feeder fund with all the documents and information it needs to fulfil its duties. to this end, they shall conclude an agreement on cooperation and duties of disclosure. 2 the agreement on cooperation and duties of disclosure shall, as a minimum, govern the following points:a.the principles regarding the transfer of the relevant documents and further information by the master fund to the feeder fund;b.the master fund's duty of disclosure to the feeder fund regarding the delegation of tasks to third parties;c.the violations of statutory and contractual provisions which the master fund is required to report to the feeder fund and the form and timing of such reports;d.the duty of the master fund to inform the feeder fund of the overall exposure arising from derivative financial instruments;e.the master fund's duty of disclosure to the feeder fund if it concludes additional agreements regarding the exchange of information with third parties;f.the ways in which the feeder fund may invest in the master fund as well as details of the costs and expenses to be borne by the feeder fund;g.the principles and arrangements for implementing the measures set out in paragraph 4;h.the arrangements for reporting the deferral of issues and redemptions and for reporting errors in the setting of prices by the master fund;i.the principles for reconciling the audit reports of the master fund and feeder fund.3 if the master fund and feeder fund are managed by the same fund management company or sicav, the agreement on cooperation and duties of disclosure may be replaced by internal regulations. these must contain measures to prevent conflicts of interest. in all other respects, the internal regulations must meet the requirements set out in paragraph 2 letters f-i.4 the master fund and feeder fund shall take measures to coordinate the schedules for calculating and publishing the net asset value in order to prevent market timing and possibilities for arbitrage.art. 59 duties of the master fund / its fund management company 1 the master fund shall inform finma without delay of the identity of every feeder fund that invests in its units.2 it shall not charge the feeder fund an issue or redemption commission for investments in its units.3 it shall ensure that all information required by law or contract is made available in a timely manner to the feeder fund, its custodian bank and the audit company as well as finma. in so doing, it shall comply with its statutory and contractual obligations regarding the disclosure of data and data protection.art. 60 duties of the feeder fund / its fund management company 1 the feeder fund shall provide its custodian bank with all the information regarding the master fund that it needs in order to fulfil its task.2 it shall take effective measures to monitor the activities of the master fund.3 when calculating its overall exposure in accordance with article 72 paragraph 3 ciso14, it shall take account of the overall exposure of the master fund in proportion to the feeder fund's investments in the master fund.4 if the feeder fund, its fund management company or another person acting on behalf of the feeder fund or its fund management company receives a pecuniary benefit in connection with the investment in units of the master fund, this shall be credited to the assets of the feeder fund.14 sr 951.311art. 61 duties of the custodian bank 1 if the master fund's custodian bank identifies irregularities in the master fund that may have a negative impact on the feeder fund, it shall notify its audit company and the feeder fund / the feeder fund's fund management company and custodian bank. this includes, inter alia, the following events:a.errors in the calculation of the net asset value of the master fund;b.errors in transactions, in the settlement of purchases and sales or of orders to issue or redeem units of the master fund by the feeder fund;c.errors in the distribution or reinvestment of income from the master fund;d.violations of statutory provisions or of the investment objectives, limits, policy or strategy of the master fund described in the fund contracts or investment regulations, the prospectus or the key investor information document.2 if the master fund and feeder fund have different custodian banks, the latter shall, with the approval of the master fund and feeder fund, conclude an agreement on cooperation and duties of disclosure to ensure the fulfilment of their duties. this agreement shall, as a minimum, contain the following points:a.a description of the documents and categories of information that the two custodian banks exchange on a regular basis, including the arrangements for and timing of such exchanges;b.the principles regarding the handling of operational issues, including the calculation of the net asset value, protection against market timing, and the processing of orders of the feeder fund;c.the arrangements for the reporting of violations of statutory and contractual provisions by the master fund;d.other points that are necessary for the cooperation between the custodian banks. 3 when exchanging data, the custodian banks shall comply with their statutory and contractual obligations regarding the disclosure of data and data protection.art. 62 duties of the audit company 1 in its short-form report for the feeder fund, the audit company shall take account of the short-form report for the master fund. if the master fund and feeder fund have different accounting years, the master fund shall compile an interim financial statement as of the reporting date of the feeder fund. based on this, the audit company shall compile an ad-hoc short-form report for the master fund as of the reporting date of the feeder fund.2 in its short-form report for the feeder fund, the audit company shall mention any deviations from the standard wording contained in the short-form report for the master fund as well as any other material information, together with any influence on the feeder fund.3 if the master fund and feeder fund have different audit companies, the latter shall conclude an agreement on cooperation and duties of disclosure to ensure the fulfilment of their duties. this shall contain, as a minimum:a.a description of the documents and categories of information that the two audit companies exchange on a regular basis, including the arrangements for and timing of such exchanges;b.the coordination of the role of the audit companies in the process of compiling the annual financial statements for the master fund and feeder fund;c.a statement of the information that must be included in the audit report for the master fund in accordance with paragraph 2;d.other arrangements governing the cooperation between the audit companies as well as the compilation and transfer of the short-form and ad-hoc reports.art. 63 dissolution of the master fund 1 following the announcement of the dissolution of the master fund, the feeder fund shall without delay defer repayments. within one month following the announcement of the dissolution of the master fund, it shall submit to finma a report / an application regarding:a.the dissolution of the master fund;b.an amendment to the fund contract or investment regulations due to the change of master fund; or c.an amendment to the fund contract or investment regulations due to the conversion into a non-feeder fund.2 the liquidation proceeds of the master fund may not be paid out before the applications set out in paragraph 1 letters b and c have been approved unless they are reinvested solely for the purpose of efficient liquidity management until the time of approval.art. 64 merger, conversion and transfer of assets 1 if the master fund decides on a merger, conversion or transfer of assets, the feeder fund must, within a month of the announcement being made by the master fund, notify finma whether it:a.is dissolving itself;b.intends to retain the same master fund;c.is switching to another master fund; ord.is converting itself into a non-feeder fund.2 simultaneously with the notification, the feeder fund shall submit to finma any necessary application for approval of amendments to the fund contract or investment regulations.3 if the merger, conversion or transfer of assets of the master fund takes place before the application pursuant to paragraph 1 letters c and d has been approved, the feeder fund may only return the units of the master fund if the proceeds received are reinvested for the sole purpose of efficient liquidity management until the amendments enter into force. 12 sr 951.311chapter 2 other funds art. 65 1 the provisions for securities funds relating to securities lending (arts. 1-9), securities repurchase agreements (arts. 10-22), derivatives (arts. 23-49), collateral management (arts. 50-55) and master-feeder structures (arts. 56-64) apply to other funds, mutatis mutandis.2 the above must be read subject to articles 100 and 101 ciso15.3 finma may permit deviations from these provisions (art. 101 ciso).15 sr 951.311title 2 institutions chapter 116 duties of representatives of foreign collective investment schemes 16 amended by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).(art. 128a para. 2 and 131 ff. ciso17)art. 66 publication duties 1 representatives of foreign collective investment schemes shall publish the issue and redemption prices and if applicable the asset value with the indication excluding commission.together in the organs of publication named in the prospectus on every issue and redemption of units, but at least twice each month.2 in the case of collective investment schemes for which the right to redeem at any time pursuant to article 109 paragraph 3 ciso18 has been restricted, publication in accordance with paragraph 1 is required at least once each month. the weeks and weekdays on which publication takes place must be indicated in the prospectus.3 notice of the amendment of documents given to investors in the foreign collective investment scheme's home country must at the same time be published in switzerland.18 sr 951.311art. 66a obligation to give notice 1 the representative of foreign collective investment schemes must in particular give notice to finma if:a.collective investment schemes or sub-funds are combined or liquidated or their legal form is changed;b.a collective investment scheme or a sub-fund is not launched or the offer in switzerland is not taken up or is cancelled;c.the redemption of units in a foreign collective investment scheme that it represents is postponed or if the management company decides to reduce redemption requests on a pro rata basis (gating);d.a foreign supervisory authority has taken measures against the collective investment scheme, and in particular if it has withdrawn approval.2 in the event of a change of paying agent or the termination of agency agreements, finma's approval for the termination of the mandate must be obtained in advance (art. 120 para. 2bis cisa).art. 66b obligation to give notice on cancellation or amendment of the professional indemnity insurance representatives of foreign collective investment schemes must give immediate notice to finma of the cancellation or amendment of the professional indemnity insurance.17 sr 951.311chapter 2 risk management and risk control (art. 14 cisa; art. 12a ciso19)art. 6720 articles 8-14 der finma financial institutions ordinance of 4 november 202021 apply by analogy to risk management and risk control for the sicav.20 amended by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).21 sr 954.111art. 68-7122 22 repealed by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, with effect from 1 jan. 2021 (as 2020 5327).19 sr 951.311chapter 323 sicav 23 amended by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327). (art. 33 para. 1 ciso24)art. 72 the self-managed sicav shall ensure that the valuation of investments is separated from the function concerned with investment decisions (portfolio management), both functionally and in terms of personnel.24 sr 951.311chapter 4 . art. 73-7625 25 repealed by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, with effect from 1 jan. 2021 (as 2020 5327).chapter 5 custodian bank (art. 14, 72 f. cisa; art. 102a ff. ciso26)art. 77 organisation 1 the custodian bank shall ensure that its premises, staff and functions are independent of the fund management company or sicav.2 where tasks are delegated to the custodian bank by the fund management company or the sicav, measures must be put in place to ensure that no conflicts of interest arise. managerial independence between the delegating fund management company or sicav and/or its agents, on the one hand, and those entrusted with the tasks of the custodian bank in accordance with article 73 cisa must be ensured. where conflicts of interest are unavoidable, they must be disclosed to the investors.3 those entrusted with the tasks of the custodian bank in accordance with article 73 cisa may not simultaneously perform tasks delegated by the fund management company or sicav.art. 78 control function 1 in order to carry out its control tasks in accordance with article 73 paragraph 3 letters a and b cisa, the custodian bank shall assess the risks in connection with the nature, scope and complexity of the strategy of the collective investment scheme in order to develop control processes that are appropriate to the collective investment scheme and the assets in which it invests.2 the custodian bank shall issue appropriate internal guidelines to this effect setting out, as a minimum:a.how it organises its control function, in particular what roles there are and who is responsible for what;b.the control processes in accordance with which the controls, including those carried out when transferring safekeeping to a third-party custodian or collective securities depository within the meaning of article 105a ciso27, are to be carried out;c.the control plan and the control processes, in particular the methods, data basis and frequency of controls;d.the escalation processes that are triggered when irregularities are identified, in particular the process steps, deadlines, contacts with the fund management company or sicav and other relevant parties, procedures for defining measures and duties of disclosure;e.the custodian bank's reporting on its control activities to the governing bodies, in particular the frequency, form and content thereof as well as any further addressees.3 in respect of the fund management company, the custodian bank has the right and duty to intervene to prevent investments that are not permitted. if, in the exercise of its control function, it becomes aware of such investments, it shall restore compliance with the law by, for example, arranging for the investments to be reversed.27 sr 951.31126 sr 951.311title 3 accounting, valuation, financial statements and duty to publish chapter 1 accounting section 1 general provisions art. 79 principles (arts. 87 and 91 cisa)1 unless the cisa and this ordinance provide otherwise, the provisions set out in the code of obligations28 (co) in accordance with article 87 cisa apply in respect of accounting.2 accounting must comply with the statutory requirements for the annual and semi-annual reports (art. 89 ff. cisa) and be conducted in such a way that the accounts provide a true and fair view of the financial situation and income.3 transactions, including off-balance-sheet transactions, must be recognised immediately after conclusion of the contract. concluded transactions that have not yet been executed must be accounted for by using the closing date principle.4 the accounting must take account of the tax law requirements.28 sr 220art. 80 unit of account (arts. 26 para. 3 and 108 cisa; art. 35a para. 1 let. o ciso29)1 a foreign currency may be designated as the unit of account for:a.an investment fund or its sub-funds in the fund regulations;b.the sub-funds of a sicav in the investment regulations;c.a limited partnership for collective investment in the partnership agreement.2 in its investment regulations, a sicav must also specify the currency which will serve as the unit of account for the overall accounts (art. 98), as well as the conversion process.3 if a foreign currency is used in accounting, the values must not also be given in the local currency.29 sr 951.311section 2 open-ended collective investment schemes art. 81 sub-funds and unit classes (arts. 92-94 cisa and art. 112 ciso30)311 in the case of collective investment schemes which include sub-funds, the provisions of this title apply to each individual sub-fund.2 the sub-funds must be presented separately in the annual and semi-annual reports.3 the accounting year ends on the same date for all sub-funds.4 in the case of unit classes, the net asset value must be disclosed for each class.30 sr 951.31131 amended by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).art. 82 control of units and unit certificates (arts. 11 and 73 para. 1 cisa)1 the custodian bank shall record the issue and redemption of units, including fractions thereof, on a continuous basis. it shall record the following details:a.the date of issue or redemption;b.the number of units issued or redeemed;c.the gross amount paid by the investor or net payment made to the investor;d.the fees and incidental costs in relation to the issue or redemption;e.the amount credited or debited to the collective investment scheme;f.the net asset value of the unit.2 in the case of registered units, the identity of the investor must also be recorded.3 the custodian bank shall record the issue and redemption of unit certificates separately.art. 83 real estate funds (arts. 59 para. 1 let. b, 83 cisa; arts. 86 para. 3 let. b and 93 ciso32)1 the real estate fund and real estate companies owned by it must close their accounts on the same day. finma may grant exemptions provided consolidated financial statements are produced.2 the calculation of the net asset value must take account of taxes (income and real estate gains tax and, if applicable, real estate transfer tax) incurred in connection with any liquidation of the real estate fund.3 depreciation of buildings, including fixtures, may be charged to the profit and loss account provided it is economically reasonable.32 sr 951.311chapter 2 valuation section 1 general provisions art. 84 investments (arts. 88 and 89 para. 2 cisa)1 investments are valued at market value (art. 88 cisa).2 in the notes to the statement of net assets, or balance sheet and profit and loss account (arts. 94 and 95), the investments are to be summarised in a table according to the following three valuation categories: a.trading of investments listed in a stock exchange or in another regulated market open to the public and valued according to the prices in the primary market (art. 88 para 1 cisa);b.investments that are not priced according to let. a whose value is based on market-observed parameters;c.investments whose value cannot be based on market-observed parameters and are valued with suitable valuation models taking account of the current market circumstances. art. 85 private equity (arts. 88 para. 2 and 108 cisa)1 private equity investments are valued in accordance with recognised international standards, provided the valuation is not governed by this ordinance.2 the standards applied must be described in detail in the prospectus or regulations.art. 8633 real estate fund (arts. 88 and 90 cisa)building land and buildings under construction must be recognised at market price in the statement of net assets. the fund management or sicav provides an estimation of buildings under construction recognised at market price at the closing of the financial year. 33 amended by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).section 2 open-ended collective investment schemes (art. 88 para. 2 cisa)art. 87 1 the tangible and intangible assets of the company shareholders of a sicav must be valued at acquisition or production cost less any economically necessary depreciation.2 the valuation principles for the tangible and intangible assets must be disclosed under additional information. if they are amended, the restated data for the previous year must also be disclosed for information purposes.3 the other assets of a sicav shall be valued in accordance with articles 84 to 86.section 3 closed-ended collective investment schemes art. 88 limited partnership for collective investment (arts. 88 para. 2 and 108 cisa)articles 84-87 apply mutatis mutandis to the valuation process.art. 89 investment company with fixed capital (sicaf) (art. 117 cisa)1 the valuation methods applied to prepare the single entity financial statements (art. 109 para. 1) shall be in accordance with the provisions of accounting. in addition, the market values of the investments must be indicated for information purposes.2 the valuation methods applied to prepare the consolidated financial statements (art. 109 para. 2) are as stipulated in the ordinance in accordance with internationally recognised accounting standards of 21 november 201234 (vasr).34 sr 221.432chapter 3 general provisions on accountability art. 90 private equity (arts. 88 and 108 cisa)1 the valuation methods applied (art. 85) must be disclosed in the annual and semi-annual reports.2 if an investment is recognised below cost, this fact must be disclosed.3 in the case of collective investment schemes which can invest more than 10 percent of their assets in private equity, the following minimum information on the individual private equity investments, classified by type and phase of development, must be provided if they account for more than 2 percent of the assets of the collective investment scheme:a.description of the investment (name, registered office, purpose, capital stock and equity stake);b.description of the business activity and any significant developments;c.information on the board of directors and executive board;d.categorisation by development phase (such as seed, early stage or buyout);e.scope of commitments entered into.art. 91 subsidiary companies (art. 90 para. 1 cisa; art. 68 ciso35)1 if subsidiary companies are used to implement the investment policy, a transparent substance-over-form approach must be applied to the accounts (such as in the statement of net assets, or the balance sheet and profit and loss account, inventory, buy and sell transactions).2 the companies must be consolidated in accordance with a vasr36 standard. therefore, the accounting principles applied to them must be for consolidation purposes.35 sr 951.31136 sr 221.432chapter 4 accounting for open-ended collective investment schemes section 1 annual accounts art. 92 sicavs (art. 36 para. 1b cisa; arts. 68, 70, 86 and 99 ciso37)1 the annual accounts of a sicav comprise the annual accounts relating to the individual pools of investor assets (sub-funds) and the annual accounts relating to the shareholders' assets, and the overall accounts of the sicav.2 the annual accounts disclose the permitted investments pursuant to articles 70, 86 and 99 ciso in respect of the investors' assets.3 in respect of the shareholders' assets, the annual accounts disclose the following: permitted investments within the meaning of paragraph 2 and the movable, immovable and intangible assets essential for immediate business operations of the sicav;the permitted liabilities.4 short-term liabilities and liabilities secured by mortgage, entered into in connection with the sicav's immediate business operations, are permitted.5 the annual accounts relating to one or more selected pools of investor assets may only be published together with the overall accounts of the sicav.6 the annual accounts form part of the annual report, which replace the business report under the co38. a management report and a cash flow statement are not required.37 sr 951.31138 sr 220art. 93 minimum breakdown of statement of net assets, or the balance sheet and profit and loss account for investment funds and sicavs (art. 91 cisa)the statement of net assets, or the balance sheet and profit and loss account for investment funds and sub-funds must be published in the annual and semi-annual reports, whereby a minimum breakdown under articles 93-98 must be ensured.art. 94 securities funds (arts. 53-57 and 89 cisa; arts. 70-85 ciso39)for securities funds, the statement of net assets, or the balance sheet and profit and loss account, have the minimum structure set out in annex 2.39 sr 951.311art. 95 real estate funds (arts. 58-67 and 89 cisa; arts. 86-98 ciso40)for real estate funds, the statement of net assets, or the balance sheet and profit and loss account, have the minimum structure set out in annex 3.40 sr 951.311art. 96 other funds (arts. 68-71 and 89 cisa; arts. 99-102 ciso41)the provisions on the minimum breakdown for securities funds (art. 94) apply mutatis mutandis to other funds. they also include the investments permitted for other funds.41 sr 951.311art. 97 minimum breakdown of balance sheet and profit and loss account relating to the shareholders' assets (art. 53 ff. cisa; art. 68 ciso42)1 the shareholders' assets must be broken down into:a.investments;b.business assets. 2 for the breakdown of investments, articles 94-96 apply.3 for the breakdown of the business assets, articles 959 and 959a co43 apply mutatis mutandis. 4 for the notes, article 959c co apply mutatis mutandis. in addition, the valuation principles for the tangible and intangible assets of the company shareholders must be disclosed. the notes must also provide information on the risk assessment process.5 company shareholders and shareholder associations with aligned voting rights holding 5 percent or more of the shares must be listed in the annual report as follows:a.name or company;b.place of residence or domicile;c.percentage of shares held.42 sr 951.31143 sr 220art. 98 overall accounts of a sicav (art. 91 cisa)1 the overall accounts of a sicav consist of the balance sheet, profit and loss account and the notes pursuant to the co44 and include the investors' assets and the shareholders' assets.2 for the purpose of preparing the balance sheet and profit and loss account, the positions constituting the investors' assets must be aggregated. classification is in accordance with articles 94-96.3 the shareholders' assets must be disclosed separately in the balance sheet and profit and loss account. items are broken down mutatis mutandis in accordance with articles 94-96 in the case of investments, and article 959, 959a and 959b co in the case of business assets.4 the overall accounts of a sicav must be structured into investors' assets, the shareholders' assets and the overall assets of the sicav.5 the information stated in article 97 paragraph 5 must also be disclosed in the overall financial statement.44 sr 220section 2 further information art. 99 inventory of the collective investment scheme (art. 89 para. 1 let. c cisa)1 as a minimum, the inventory must be broken down by type of investment such as securities, bank credit balances, money market instruments, derivative financial instruments, precious metals and commodities and, within such types of investment, in accordance with the investment policy by industry, geographical location, type of security (annex 2 let. 1.4) and currencies.2 the total amount and the percentage of the overall assets of the collective investment scheme must be indicated for each group or subgroup.3 the share in the overall assets of the collective investment scheme must be indicated for each individual value disclosed in the inventory.4 securities must also be broken down as follows:a.traded on an official stock exchange;b.traded on another regulated market open to the public;c.as defined in article 70 paragraph 3 ciso45;d.as defined in article 71 paragraph 2 ciso;e.securities that do not correspond to categories a-d above.5 the valuation category must be indicated for each value recognised in the inventory in accordance with article 84 paragraph 2.6 in relation to the securities listed in paragraph 3, only the subtotal per category need be indicated and each item denoted accordingly.45 sr 951.311art. 100 inventory of real estate funds (arts. 89 para. 1 let. c and 90 cisa)1 as a minimum, the inventory must be broken down into:a.residential buildings;b.commercially used properties;c.mixed-use properties;d.building land, including properties for demolition, and buildings under construction;e.units in other real estate funds and real estate investment companies;f.mortgages and other advances secured by mortgage.2 for property in buildings with development rights and condominiums, the circumstances for each property and the total for each item in paragraph 1 letters a-d are to be indicated in the inventory. 3 the inventory must include information on each item of land and buildings:a.address;b.purchase price;c.estimated market value;d.gross income generated.4 any investments in short-term fixed-interest securities, real estate certificates or derivatives must also be disclosed.5 any mortgages and other liabilities secured by mortgage outstanding at the end of the year, as well as loans and advances must be listed stating their interest terms and maturity periods.6 a list of the real estate companies owned must be published for each real estate fund, including an indication of the equity stake (voting rights/capital).7 the items in the inventory must be indicated in accordance with the three valuation categories under article 84 paragraph 2. if all the investment property have the same valuation category, they can be put together and summarised under the total property portfolio.art. 101 itemisation of buy, sell and other transactions (art. 89 para. 1 let. e cisa)1 all changes in the composition of the collective investment scheme, in particular buy, sell, off-balance-sheet exposures, bonus shares, subscription rights and splits, must be disclosed in the annual report. the individual assets must be described in precise terms.2 in the case of real estate funds, each property acquired or sold must be listed individually. the agreed price must be disclosed at the request of any investor.3 in the case of real estate funds, transactions between collective investment schemes which are managed by the same or an associated fund management company or sicav must be disclosed separately.4 mortgages and advances secured by mortgage which have been granted over the course of the financial year and redeemed prior to the end of that financial year must be listed, including interest terms and maturity periods.5 mortgages and other liabilities secured by mortgage, as well as loans and advances which have been taken up and repaid within the financial year, must be listed, including interest terms and maturity periods, or summarised per category with an average maturity period and an average interest rate.art. 102 changes in the fund's net assets (art. 89 cisa)1 for each collective investment scheme, any changes in the fund's net assets must be itemised and contain at least:a.the fund's net assets at the beginning of the reporting year;b.distributions;c.balance from unit transactions;d.overall net income;e.the fund's net assets at the end of the reporting year.2 the unit statistics for the reporting year must also be disclosed (art. 89 para. 1 let. b cisa).art. 103 figures from previous years (art. 91 cisa)1 in the annual and semi-annual reports, the previous year's figures must also be disclosed in the statement of net assets, or the balance sheet and profit and loss account.2 the fund's net assets and the net asset value per unit for the past three reporting years must also be itemised in the annual report. the key date shall be the last day of the reporting year.section 3 appropriation of net income and distributions art. 104 appropriation of net income (art. 89 para. 1 let. a cisa)1 the appropriation of net income has the following minimum structure:a.net income for the accounting year;b.capital gains generated during the accounting year intended for distribution;c.capital gains from previous accounting years earmarked for distribution;d.balance brought forward from the previous year;e.net income available for distribution;f.net income earmarked for distribution to investors;g.net income retained for reinvestment;h.balance brought forward to new account.2 no reserves may be created.art. 105 distributions (art. 91 cisa)1 interim distributions of net income are only permitted if specified in the fund regulations.2 capital gains may only be distributed if the following conditions are met:a.the fund regulations must provide for the distribution.b.the capital gains must be realised.c.they do not constitute interim distributions.3 the distribution of capital gains is also permitted if there are capital losses from previous years.4 no share in profit may be disbursed.section 4 duty to publish art. 106 publication of issue and redemption prices, or of net asset value (arts. 26 para. 3, 79, 80, 83 para. 4 cisa; art. 35a para. 1 let. 1 and 39 ciso46)1 the issue and redemption price, or net asset value, must be published in the print media or electronic platforms cited in the prospectus each time units are issued and redeemed.2 prices for securities funds and other funds must also be published at least twice a month.3 prices of the following collective investment schemes must be published at least once a month:a.real estate funds;b.collective investment schemes for which the right to redeem at any time is restricted pursuant to article 109 paragraph 3 ciso.4 the weeks and weekdays on which publication takes place pursuant to paragraphs 2 and 3 must be stated in the prospectus.5 if the net asset value is published, it must be flagged exclusive of commission.46 sr 951.311art. 10747 47 repealed by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, with effect from 1 jan. 2021 (as 2020 5327).chapter 5 accounting for closed-ended collective investment schemes art. 108 limited partnership for collective investment (art. 108 cisa)1 accounting shall be based on the provisions relating to open-ended collective investment schemes mutatis mutandis.2 participations which are held purely for investment purposes may not be consolidated, irrespective of the percentage of votes and capital held in the company concerned.art. 109 sicafs (art. 117 cisa)1 the accounting methods applied to individual financial statements shall in principle be based on the provisions of the open-ended collective investment schemes.2 the duty to consolidate under the co48 is not applied. consolidation may be effected in accordance with a recognised vasr49 standard.48 sr 22049 sr 221.432title 4 audits and audit reports chapter 1 audits art. 11050 separation of financial and regulatory audits (art. 126 cisa; art. 24 finmasa51)audits shall be separated into a financial audit and a regulatory audit.50 amended by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).51 financial market supervision act of 22 june 2007 (sr 956.1).art. 111 financial audit (art. 126 paras. 5 and 6 cisa; art. 137 ciso52)1 for a financial audit of collective investment schemes, the information is audited in accordance with articles 89 paragraph 1 letters a-h and 90 cisa.1bis the audit of the management or management company of the collective investment scheme and compliance with the statutory, contractual and regulatory provisions that do not relate to the annual accounts is a matter for the regulatory audit of the fund management company.532 the financial audit, general partners of a limited partnership for collective investment and representatives of foreign collective investment schemes is conducted in accordance with article 728-731a co54.553 finma may allow exceptions for representatives of foreign collective investment schemes.52 sr 951.31153 inserted by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).54 sr 22055 amended by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).art. 112 regulatory audit (art. 126 paras. 1-3 cisa; art. 24 finmasa56 and 2-8 fmao57)581 the regulatory audit comprises the examination of the licensee's compliance with the regulatory provisions applied under article 13 paragraph 2 letters b-d and h cisa including collective investment schemes.592 for audit scope is to include the general partner of a limited partnership for collective investment.3 the regulatory audit in relation to collective investment schemes also examines the prospectus and basic information sheet.604 .6156 sr 956.157 financial market auditing ordinance of 15 oct. 2008 (sr 956.161).58 amended by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).59 amended by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).60 amended by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).61 repealed by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, with effect from 1 jan. 2021 (as 2020 5327).chapter 2 audit reports art. 113 type of reports (art. 126 cisa; art. 24 finmasa62; art. 137 ciso63; arts. 9-12 fmao64)the audit company shall produce:a.reports on the regulatory audit of the licensees and the collective investment schemes, as well as the representatives of foreign collective investment schemes not requiring authorisation (regulatory audit);b.audit reports on the annual accounts audit under article 126 paragraph 5 cisa (financial audit);c.brief reports on the audits of collective investment schemes (financial audit).62 sr 956.163 sr 951.31164 sr 956.161art. 114 financial audit report (art. 126 para. 1-3 cisa; art. 24 finmasa65 and 9-12-fmao66)671 the audit company shall produce the report on the regulatory audit.682 in the case of a fund management company, the report also covers the investment funds that it manages.693 the audit reports for a limited partnership for collective investment also include the general partner. 4 the audit reports for licensees and investment funds are to be shown to the ultimate management and those responsible for supervision and control. the audit reports must be discussed at a meeting of such a governing body, and minutes thereof shall be taken.65 sr 956.166 sr 956.16167 amended by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).68 amended by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).69 amended by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).art. 115 financial audit (art. 126 paras. 5 and 6 cisa; art. 137 ciso70)1 the provisions set out for regular audits under the co71 apply mutatis mutandis to financial reports on a financial report. 2 the audit company produces short-form reports on a timely basis prior to the publication of the annual reports. they must be signed by the responsible lead auditor and an authorised signatory of the audit company.3 reports must be provided for each of the collective investment schemes with a sub-fund.70 sr 951.31171 sr 220art. 116 short-form report (art. 126 paras. 5-6 cisa; art. 24 finmasa72; art. 137 ciso73; arts 9-12 fmao74)1 the brief report expresses an opinion on the adherence to the statutory, contractual and regulatory provisions for the annual accounts, as well as the provisions laid down in the articles of association, and on the audits of the information required by article 89 paragraph 1 letters a-h cisa, and additionally in the case of real estate funds on those audits pursuant to article 90 cisa.2 in relation to a sicav or sicaf, the short-form report may also include the reports of the statutory audit company pursuant to article 728 co75. 3 finma may declare a standard confirmation of the audit industry organisation to be generally binding. 72 sr 956.173 sr 951.31174 sr 956.16175 sr 2204a. titel76 form of submission 76 inserted by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327). (art. 142 ciso77)art. 116a 1 the documents in accordance with article 142 paragraph 1 ciso78 must be submitted in electronic form using the templates provided by finma.2 finma may permit exceptions to electronic submission.78 sr 951.31177 sr 951.311title 5 final and transitional provisions art. 117 repeal of another decree the finma collective investment schemes ordinance of 21 december 200679 is repealed.79 [as 2007 301, 2008 5613 n. i 1]art. 11880 80 repealed by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, with effect from 1 jan. 2021 (as 2020 5327).art. 119 commencement this ordinance comes into force on 1 january 2015.annex 1 (art. 35 para. 2)inclusion of derivatives / underlying equivalents 1. in principle, underlying equivalents are determined in accordance with the following, non-exhaustive list of derivatives. the following points apply in general:1.1 the reference currency of the securities fund must be used on the basis of the current exchange rates.1.2 in the case of a currency derivative consisting of two contract legs where both are not required to be fulfilled in the reference currency of the securities fund, both contract legs must be included.1.3 if delta is not calculated, a delta of one must be employed.2. basic types of derivatives are, specifically:2.1 futures:2.1.1 bond future: number of contracts x contract size x market value of the cheapest deliverable reference bond2.1.2 interest rate future: number of contracts x contract size2.1.3 currency future: number of contracts x contract size2.1.4 equity future: number of contracts x contract size x market price of the underlying share2.1.5 index future: number of contracts x contract size x index level2.2 options (buy/sell position; call/put options):2.2.1 bond option: number of contracts x contract size x market price of the underlying bond x delta2.2.2 equity option: number of contracts x contract size x market price of the underlying share x delta2.2.3 interest rate option: contract value x delta2.2.4 currency option: contract value of the currency leg(s) x delta2.2.5 index option: number of contracts x contract size x index level x delta2.2.6 options on futures: number of contracts x contract size x market value of the underlying x delta2.2.7 warrants and subscription rights: number of shares/bonds x market value of the underlying x delta2.3 swaps:2.3.1 interest rate swaps: contract value2.3.2 currency swaps: nominal value of currency leg(s)2.3.3 cross-currency interest rate swaps: nominal value of currency leg(s)2.3.4 total return swap: market value of the underlying asset2.3.5 complex total return swap: cumulative market value of both legs of the total return swap2.3.6 single name credit default swaps:a.protection seller: the higher of the market value of the underlying asset or the nominal value of the credit default swapb.protection buyer: market value of the underlying asset2.3.7 contracts for differences: number of shares/bonds x market value of the underlying asset2.4 forwards:2.4.1 fx forwards: nominal value of currency leg(s)2.4.2 forward rate agreements: nominal value2.5 leveraged exposure to indices or indices with embedded leverage:in the case of derivatives providing leveraged exposure to an underlying index, or indices that embed leveraged exposure, the conversion amounts of the corresponding assets must also be determined and included in the calculation.3. financial instruments with a derivative component are, specifically:3.1 convertible bonds: number of underlying assets x market value of the underlying assets x delta3.2 credit linked notes: market value of the underlying asset3.3 partially paid securities: number of shares/bonds x market value of the underlying assets3.4 warrants and subscription rights: number of shares/bonds x market value of the underlying x delta4. barrier optionsnumber of contracts x contract size x market price of the underlying asset x deltaannex 2 (art. 94)minimum structure of the statement of net assets / balance sheet and profit and loss account of securities funds 1. statement of net assets and balance sheet1.1 due from banks, including fiduciary deposits with third-party banks, broken down into:1.1.1 sight deposits1.1.2 time deposits1.2 money market instruments1.3 claims from repurchase agreements1.4 securities, including those on loan and under repurchase agreements, broken down into:1.4.1 bonds, convertible bonds, warrant bonds and other debt securities and rights1.4.2 structured products1.4.3 shares and other equity securities and rights1.4.4 units in other collective investment schemes1.5 other investments1.6 derivative financial instruments1.7 other assets1.8 total fund assets, less1.9 liabilities from repurchase agreements1.10 loans1.11 other liabilities1.12 net fund assets1.13 number of units outstanding1.14 net asset value per unit2. profit and loss account2.1 income from bank assets2.2 income from money market instruments2.3 income from reverse repos 2.4 income from securities lending2.5 income from securities, broken down by:2.5.1 bonds, convertible bonds, warrant bonds and other debt securities and rights2.5.2 structured products2.5.3 shares and other equity securities and rights, including income from bonus shares2.5.4 units of other collective investment schemes2.6 income from other investments2.7 other income2.8 current net income paid in on issued units2.9 total income less:2.10 interest paid2.11 auditing expenses2.12 remunerations to the following in accordance with the fund regulations:2.12.1 the fund management company2.12.2 the company shareholders2.12.3 the custodian bank2.12.4 the asset manager2.12.5 other third parties2.13 other expenses2.14 current net income paid out on redeemed units2.15 net income2.16 realised capital gains and losses2.17 realised net income2.18 unrealised capital gains and losses2.19 total net income3. notes3.1 derivatives:3.1.1 if applying commitment approach i: as amount and as a percentage of net fund assets a.total exposure-increasing positions (underlying equivalent)b.total exposure-reducing positions (underlying equivalent)3.1.2 if applying commitment approach ii: as amount and as a percentage of net fund assetsa.gross overall exposure arising from derivativesb.net overall exposure arising from derivatives c.commitment arising from securities lending and repurchase agreements3.1.3 if applying the model approach:a.value-at-risk limit on closing date as a percentage of the fund's net assetsb.value-at-risk on closing date as a percentage of the fund's net assetsc.value-at-risk (average as a percentage of the fund's net assets)d.back-testing: number of outliers e.gross overall exposure arising from derivatives 3.1.4 identity of contracting partners for otc transactions 3.2 security, issuer, number / nominal value of the securities lent as at the balance sheet date3.3 security, issuer, number / nominal value of the securities under repurchase agreement as at the balance sheet date3.4 balance of account for income retained for reinvestment3.5 information on expenses:3.5.1 information on actual rates of remuneration if maximum rates are indicated in the fund regulations3.5.2 indication and explanation of performance in accordance with industry standards3.5.3 total expense ratio (ter) in accordance with industry standards3.6 information concerning soft commission agreements3.7 principles applied to value and calculate the net asset value3.8 direct and indirect operating expenses arising from securities lending and repurchase agreements as well as the borrowers, counterparties and intermediaries involved3.9 for index-replicating collective investment schemes: information on the level of the tracking error3.10 nature and amount of collateral receivedannex 381 81 revised by annex no 1 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327.(art. 95)minimum structure of the statement of net assets / balance sheet and profit and loss account of real estate funds 1. statement of net assets and balance sheet1.1 cash on hand, postal check and bank sight deposits, including fiduciary deposits with third-party banks1.2 bank time deposits, including fiduciary investments with third-party banks1.3 short-term fixed-income securities, broken down into:1.3.1 collateral for construction projects (art. 90 ciso82)1.3.2 other (art. 89 ciso)1.4 real estate, broken down into:1.4.1 residential property 1.4.2 commercial property 1.4.3 mixed-use property 1.4.4 building land, including properties for demolition, and buildings under construction1.4.5 mortgages and other advances secured by mortgage1.4.6 units in other real estate funds and real estate investment companies1.5 derivative financial instruments1.6 other assets1.7 total fund assets, less:1.8 short-term liabilities, broken down into:1.8.1 short-term interest-bearing mortgages and other liabilities secured by mortgage1.8.2 short-term loans and advances subject to interest1.8.3 short-term other liabilities1.9 long-term liabilities, broken down into:1.9.1 long-term mortgages subject to interest and other liabilities secured by mortgage1.9.2 long-term loans and advances subject to interest 1.9.3 long-term other liabilities1.10 units of minority shareholders in real estate companies1.11 net fund assets before estimated liquidation taxes1.12 estimated liquidation taxes1.13 net fund assets1.14 number of units outstanding1.15 net asset value per unit2. profit and loss account2.1 income from bank and postal accounts2.2 income from short-term, fixed-interest securities2.3 rental income (gross income received)2.4 capitalised interest on building loans2.5 other income2.6 current net income paid in on issued units2.7 total income less:2.8 mortgage interest and interest from liabilities secured by mortgage2.9 other interest paid2.10 repairs and maintenance2.11 property management, broken down into:2.11.1 property expenses2.11.2 general and administrative expenses2.12 appraisals and auditing expenses2.13 depreciation of land and buildings2.14 provisions for future repairs2.15 remunerations to the following in accordance with the fund regulations:2.15.1 the fund management company2.15.2 the company shareholders2.15.3 the custodian bank2.15.4 the real estate manager2.15.5 other third parties2.16 other expenses2.17 current net income paid out on redeemed units2.18 interests of minority shareholders in real estate companies2.19 net income2.20 realised capital gains and losses2.21 realised net income2.22 unrealised capital gains and losses including liquidation taxes2.23 total net income3. notes3.1 balance of depreciation account for land and buildings3.2 balance of provisions account for future repairs3.3 balance of account for income retained for reinvestment3.4 number of units scheduled for redemption at the end of the next accounting year3.5 ratios in accordance with industry standards:3.6.1 rent default rate3.6.2 borrowing ratio3.6.3 dividend yield3.6.4 pay-out ratio3.6.5 operating profit margin3.6.6 fund operating expense ratio3.6.7 return on equity3.6.8 premium or discount3.6.9 performance3.6.10 investment return3.7 information on derivatives (annex 2 is applicable, mutatis mutandis)3.8 principles for the valuation of fund assets (method of estimation and quantitative information on the assumptions in the estimation model) and calculation of the net asset value 3.9 information on actual rates of remuneration if maximum rates are indicated in the fund regulations3.10 total amount of contractual payment obligations after the balance sheet date for property purchases, construction orders and investments in property.3.11 long-term liabilities, broken down into maturing within one to five years, and after five years.82 sr 951.311

952.03 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinance on the capital adequacy and risk diversification of banks and securities firms1(capital adequacy ordinance, cao)of 1 june 2012 (status as of 1 august 2021)1 amended by annex 1 no ii 10 of the financial institutions ordinance of 6 nov. 2019, in force since 1 jan. 2020 (as 2019 4633).the swiss federal council,based on article 3 paragraph 2 letter b, article 3g, article 4 paragraphs 2 and 4, article 4bis paragraph 2, article 10 paragraph 4 letter a and article 56 of the banking act of 8 november 19342 (banka) and on articles 46 paragraph 3 and 72 of the financial institutions act of 15 june 20183 (finia),4ordains:2 sr 952.03 sr 954.14 amended by annex 1 no ii 10 of the financial institutions ordinance of 6 nov. 2019, in force since 1 jan. 2020 (as 2019 4633).title 1 general provisions chapter 1 purpose, scope and definitions art. 1 principles 1 to protect creditors and the stability of the financial system, banks and account-holding securities firms must mitigate their risks appropriately and hold adequate capital commensurate with their business activities and risks.52 they shall provide capital backing for credit risks, market risks, non-counterparty risks and operational risks.5 amended by annex 1 no ii 10 of the financial institutions ordinance of 6 nov. 2019, in force since 1 jan. 2020 (as 2019 4633).art. 2 subject matter 1 this ordinance governs:a. eligible capital;b. the risks to be backed with capital and the level of capital backing;c. risk diversification, i.e. the limits for risk concentrations and the treatment of intra-group exposures;d. the special requirements for systemically important banks.2 the swiss financial market supervisory authority (finma) may issue technical implementing provisions.art. 36 scope this ordinance applies to banks in accordance with the banka and account-holding securities firms pursuant to the finia (hereinafter banks).6 amended by annex 1 no ii 10 of the financial institutions ordinance of 6 nov. 2019, in force since 1 jan. 2020 (as 2019 4633).art. 4 definitions in this ordinance:a. regulated stock exchange means an institution that is appropriately regulated and supervised according to internationally recognised standards whose purpose is to enable the simultaneous purchase and sale of securities among several securities firms7 and that also ensures this by means of sufficient market liquidity;b. main index means an index comprising all securities traded on a regulated stock exchange (total market index) or a selection of key securities on such an exchange, or an index comprising the key securities of various regulated stock exchanges;c. regulated entity means an entity active in the financial sector that must comply with appropriate capital adequacy requirements, particularly with regard to business risks, and that is regulated according to internationally recognised standards and supervised by a banking, securities or insurance supervisory authority;d. equity security means a security representing a financial interest in the share capital of an entity;e. equity instrument means equity securities that qualify as common equity tier 1 capital or additional tier 1 capital, as well as debt instruments that qualify as additional tier 1 capital or tier 2 capital;f. corresponding deduction approach means the corresponding deduction approach described in the basel committee's minimum standards;g. qualifying interest rate instrument means an interest rate instrument that has:1. a rating of between 1 and 4 from at least two recognised rating agencies,2. a rating of between 1 and 4 from one recognised rating agency, provided it does not have a lower rating from another finma-recognised rating agency,3. no rating from a recognised rating agency, but has a yield to maturity and residual maturity comparable to those of securities with a rating of between 1 and 4, provided that the issuer's securities are traded on a regulated stock exchange or on a market where at least three market makers independent of each other normally quote rates on a daily basis that are published regularly, or4. no rating from a recognised rating agency (external rating), but has an internal bank rating (internal rating) corresponding to a rating of between 1 and 4, provided that the issuer's securities are traded on a regulated stock exchange or on a market where at least three market makers independent of each other normally quote rates on a daily basis that are published regularly;h. basel minimum standards means those documents of the basel committee on banking supervision (bcbs) that are relevant for calculating capital adequacy requirements.87 term in accordance with annex 1 no ii 10 of the financial institutions ordinance of 6 nov. 2019, in force since 1 jan. 2020 (as 2019 4633). this amendment has been made throughout the text.8 the current basel minimum standards may be obtained from the bank for international settlements at centralbahnplatz 2, 4002 basel, or viewed online at www.bis.org/bcbsart. 5 trading book 1 banks may keep a trading book of exposures in financial instruments and commodities held with the intent to trade or to hedge other exposures.2 they may allocate exposures to the trading book only if:a. they are unencumbered by contractual agreements regarding their tradability; orb. they can be fully hedged at all times.3 an intent to trade exists if the bank intends to:a. hold the exposures for the short term;b. benefit from short-term fluctuations in market prices; orc. realise arbitrage gains.4 the exposures must be valued frequently and accurately. the trading book must be actively managed.art. 6 rating agencies 1 finma may recognise a rating agency if:a. its rating methodology and ratings are objective;b. the agency and its rating procedure are independent;c. it makes its ratings and the underlying information available;d. it discloses its rating methodology, its code of conduct, the basis for its remuneration and the main characteristics of its ratings;e. it has sufficient resources; andf. the agency and its ratings are credible.2 finma shall publish a list of recognised rating agencies.3 if it finds that a recognised rating agency no longer meets the recognition requirements, it shall withdraw such recognition.chapter 2 consolidation art. 7 consolidation requirement 1 the capital adequacy and risk diversification requirements must be met not only at the level of the individual entity, but also at the level of the financial group and financial conglomerate (consolidation requirement).2 consolidation shall include all group companies operating in the financial sector as described in article 4 in conjunction with article 22 of the banking ordinance of 30 april 20149 (banko), with the following exceptions:10a. subject to article 12, financial interests in the insurance sector shall be consolidated only within the framework of the risk diversification requirements;b. there shall be no collective investment consolidation requirement concerning the management of collective investments on behalf of investors or the holding of the initial capital of investment companies.3 if the bank holds equity instruments in an unconsolidated company in accordance with paragraph 2 letter a, these shall be subject to the corresponding deduction approach.4 if the bank holds equity instruments in an unconsolidated company in accordance with paragraph 2 letter b, these shall be subject to the corresponding deduction approach without reference to a threshold.9 sr 952.0210 amended by annex 2 no 4 of the banking ordinance of 30 april 2014, in force since 1 jan. 2015 (as 2014 1269).art. 8 consolidation types and options available to the bank 1 majority interests in companies subject to consolidation must be fully consolidated.2 in the case of financial interests held jointly with a second shareholder or partner where each holds 50% of the voting rights (joint ventures), the bank may choose full consolidation, proportionate consolidation or the corresponding deduction approach.3 in the case of minority interests of at least 20% in companies subject to consolidation over which the bank exerts a controlling influence directly or indirectly with other shareholders, the bank may opt for proportionate consolidation or the corresponding deduction approach. 4 the corresponding deduction approach shall be applied for all other minority interests.5 with proportionate consolidation, the eligible and required capital, as well as the risk concentrations, must be taken into account in proportion to the financial interest in question.6 financial interests accounted for using the corresponding deduction approach shall not be included in risk diversification.7 the corresponding deduction approach under paragraphs 2 and 3 shall be applied without reference to a thresholdart. 9 alternative treatment with the consent of the audit firm 1 with the audit firm's consent, the following financial interests may be treated as exempt from the consolidation requirement:a. financial interests in companies which, due to their size and business activities, are insignificant for compliance with the capital adequacy requirements;b. significant group companies held for less than a year.2 financial interests conferring more than 50% of the voting rights may exceptionally be consolidated on a proportionate basis with the audit firm's consent if it is contractually stipulated that:a. the support for the company subject to consolidation is limited to the bank's proportionate share; andb. the other shareholders or partners are obliged to provide support to the extent of their proportionate share and are legally and financially capable of fulfilling that obligation.3 financial interests that are exempt from the consolidation requirement in accordance with paragraph 1 shall be subject to the corresponding deduction approach without reference to a thresholdart. 10 special provisions 1 in special cases, finma may fully or partially exempt a bank from fulfilling the capital adequacy and risk diversification requirements at the level of the individual entity, in particular if the conditions under article 17 of the banko11 are met.122 in the context of the capital adequacy requirements to be met at the level of the financial group or financial conglomerate, finma may impose additional requirements regarding the adequate capitalisation of a company which is at the head of a financial group or financial conglomerate and which is not supervised as an individual entity.3 in special cases, finma may permit a bank to consolidate group companies operating in the financial sector at the level of the individual entity (solo consolidation) due to their particularly close relationship with the bank.11 sr 952.0212 amended by annex 2 no 4 of the banking ordinance of 30 april 2014, in force since 1 jan. 2015 (as 2014 1269).art. 11 subordinate financial groups 1 the consolidation requirement shall apply to every financial group, even if a superordinate financial group or such a financial conglomerate is already supervised by finma.2 finma may exempt a subordinate financial group from the consolidation requirement in special cases, particularly if:a. its group companies operate exclusively in switzerland; andb. the superordinate financial group or such a financial conglomerate is itself subject to appropriate consolidated supervision by a financial market supervisory authority.art. 12 captives for operational risks subject to approval by finma, group companies with the sole purpose of insuring intra-group operational risks may be fully consolidated at financial group level in the same way as group companies operating in the financial sector and, if appropriate, solo consolidation may be used (art. 10 para. 3).art. 13 financial interests outside the financial sector the upper limits for qualified financial interests of a bank in a company outside the financial sector under article 4 paragraph 4 of the banka do not apply if:a. such financial interests are acquired temporarily as part of a corporate restructuring or bail-out;b. securities are acquired for the standard underwriting period; orc. the difference between the carrying value and the upper limits applicable to these financial interests is fully backed by freely disposable eligible capital.chapter 3 demonstration and disclosure of adequate capital art. 14 capital adequacy reporting 1 banks shall provide quarterly evidence that they have adequate capital. finma shall determine what the capital adequacy reporting must include.2 capital adequacy reports on a consolidated basis must be submitted every six months.3 the reports must be submitted to the swiss national bank within six weeks of the end of the quarter or half-year.art. 15 calculation basis when calculating the eligible and required capital for capital adequacy reporting, the bank shall rely on the financial statements prepared in accordance with the accounting standards prescribed by finma. finma shall regulate the exceptions to this principle.art. 16 disclosure 1 the banks shall publish information in appropriate form on their risks and capital. the calculation of eligible capital must be derived from the financial statements in a comprehensible manner.2 private bankers who do not actively seek deposits from the public are exempt from this obligation.3 finma shall issue technical implementing provisions. in particular, it shall define which information must be disclosed in addition to the annual financial statements or interim financial statements.chapter 4 simplified application art. 17 1 the banks may opt for simplified application of individual provisions of this ordinance and of finma's technical implementing provisions that flesh them out if:a. they thereby avoid disproportionate efforts;b. they ensure risk management that is appropriate with regard to their business activities; andc. the ratio of minimum capital to the bank's eligible capital is at least maintained as a result.2 they shall ensure that these requirements are met and shall document the type of simplification.title 2 eligible capital chapter 1 general art. 18 capital components 1 eligible capital consists of core capital (tier 1 capital; t1) and supplementary capital (tier 2 capital; t2).2 core capital is composed of common equity tier 1 (cet1) capital and additional tier 1 (at1) capital.art. 19 loss absorption 1 the loss absorbtion principles for the capital components are as follows:a. cet1 capital shall absorb losses ahead of at1 capital;b. at1 capital shall absorb losses ahead of tier 2 capital.2 if individual instruments of the same capital component (excluding cet1) are not to absorb losses in the same way, this must be specified in the articles of association or when the instrument is issued.art. 20 common capital requirements 1 capital must be fully paid up or generated internally to the extent of its recognition.2 at the time of issuance, it may not:a. be directly or indirectly financed by loans granted by the bank to third parties;b. be offset against the bank's receivables;c. be secured by bank assets.3 it must be subordinate to the senior claims of all other creditors in the event of liquidation, bankruptcy or restructuring.4 capital instruments that provide for conditional conversion or write-off not only for the point of non-viability (art. 29) shall be recognised as capital components in the same way as corresponds to their characteristics prior to conversion or write-down. this shall be without prejudice to:a.13 recognition to cover the capital buffer requirement under article 43 paragraph 1 and annex 8; as well asb. the provisions for the convertible capital of systemically important banks pursuant to title 5.13 amended by no i of the o of 22 nov. 2017, in force since 1 jan. 2018 (as 2017 7625)chapter 2 calculation section 1 common equity tier 1 (cet1) capital art. 21 eligible elements 1 the following shall be eligible as cet1 capital:a. paid-up share capital;b. disclosed reserves;c. reserves for general banking risks after deduction of deferred taxes, where a corresponding provision has not been created;d. retained earnings;e.14 the profit for the current business year after deducting the estimated earnings distribution, subject to the existence of a full income statement in accordance with finma's implementing provisions based on article 42 of the banko15 that has been audited according to finma's guidelines or of a full income statement in accordance with an international standard recognised by finma that has been audited according to finma's guidelines.2 minority interests in fully consolidated regulated entities shall be eligible to the extent that they are eligible in these entities themselves. capital surpluses attributable to minorities, calculated on the basis of requirements that include capital buffers and additional capital, are not eligible.14 amended by annex 2 no 4 of the banking ordinance of 30 april 2014, in force since 1 jan. 2015 (as 2014 1269).15 sr 952.02art. 22 eligibility of share capital 1 share capital shall be eligible as cet1 capital if:a. it meets the requirements set out in article 20;b. it was directly issued in accordance with the resolution or authorisation of the owners;c. it does not constitute a liability for the company;d. it is shown clearly and separately in the balance sheet in accordance with the applicable accounting standards;e. it is perpetual and not subject to any provision to the contrary in the bank's articles of association or contractual obligations;f. distributions to the owners are carried out from distributable reserves without any obligations or privileges; andg. owners do not have any privileges or preferential claims to proceeds in the event of liquidation.2 preferred stock and participation capital shall be eligible as cet1 if:a. they meet the criteria under paragraph 1;b. they can be used as collateral in the same way as share capital in the form of cet1 capital; andc. the issuer (as a company limited by shares) has not listed its ordinary shares on a regulated stock exchange.163 finma shall take account of the bank's legal form and the characteristics of its share capital when assessing whether the criteria under paragraph 1 and paragraph 2 letter b are met.16 amended by annex 2 no 4 of the banking ordinance of 30 april 2014, in force since 1 jan. 2015 (as 2014 1269).art. 23 types of share capital 1 depending on a bank's legal form, the share capital shall consist of equity, nominal, cooperative or endowment capital and the limited-partner contribution in the case of banks in the form of partnerships (private bankers).2 finma may issue technical implementing provisions on the regulatory recognition of banks' share capital.art. 24 endowment capital of banks under public law if cantonal legislation or the articles of association of banks under public law provide for a maturity date for their endowment capital, this capital may be recognised as cet1 capital if the maturity: a. serves the purpose of being able to redefine the conditions; andb. does not lead to the repayment of the endowment capital.art. 25 capital contributions of private bankers 1 private bankers may recognise capital contributions as cet1 capital if:a. their amount is specified in the partnership agreement to be approved by finma;b. they bear interest or entitle the contributor to a share in profits only if sufficient profit is available at the end of the financial year; andc. they are liable for losses in the same way as a limited-partner contribution.2 capital contributions may be reduced only in a process that involves all partners with unlimited liability.3 cet1 capital may be decreased by a reduction in capital contributions only to the extent that the remaining capital meets the requirements under article 41.art. 26 cooperative capital 1 if the articles of association provide for the redemption of cooperative capital share certificates, the cooperative capital may be recognised as cet1 capital if the articles of association specify that the redemption:a. may be rejected by the governing bodies at any time without giving reasons; andb. is carried out only to the extent that the bank's remaining capital meets the requirements under article 41.2 a restriction on the claim to the liquidation proceeds must:a. affect all share certificate holders equally; andb. be provided for in the articles of association.3 a share in the liquidation proceeds may be foregone only in favour of:a. a public or tax-exempt private institution; orb.17 a central organisation within the meaning of article 17 of the banko18 if the bank to be liquidated belongs to this central organisation.4 articles of association may not guarantee distributions for holders of share certificates, even if they set a ceiling.17 amended by annex 2 no 4 of the banking ordinance of 30 april 2014, in force since 1 jan. 2015 (as 2014 1269).18 sr 952.02section 2 additional tier 1 (at1) capital art. 27 eligibility 1 a capital instrument shall be eligible as at1 capital if:a. it meets the requirements under articles 20 and 29;b. it is open-ended and, at the time of issuance, the bank does not raise expectations of repayment or the corresponding approval of the supervisory authority;c. the bank is entitled to repay the capital no earlier than five years after issuance;d. the bank indicates at the time of issuance that the supervisory authority will consent to repayment only if: 1. the remaining capital continues to meet the requirements under article 41, or2. sufficient capital that is at least equivalent is issued to replace it;e. it does not have any characteristics which would in any way complicate an increase in the bank's share capital;f. distributions by the bank to the capital providers are made solely on a discretionary basis and only if distributable reserves are available; andg. it is excluded that distributions to the capital providers may be increased during the term as a result of issuer-specific credit risk. 2 equity securities shall be eligible as at1 capital if they meet the criteria under paragraph 1.3 liabilities that meet the criteria under paragraph 1 shall be eligible as at1 capital if, in the event of a contractually defined event (trigger) occurring, but no later than when cet1 capital falls below 5.125%, they cease to exist by virtue of: a. a write-down; orb. conversion to cet1 capital.4 the terms and conditions of issue of a conditional write-off capital instrument may grant the capital provider a deferred conditional right to participate in an improvement in the bank's financial situation. this may not substantially impair the strengthening of the bank's capital base at the time of the write-down.5 before a capital instrument is issued, finma shall approve:a. the contractually defined trigger event under paragraph 3; andb. the extent to which a right to participate in an improvement under paragraph 4 is permissible.6 article 21 paragraph 2 concerning the eligibility of minority interests in fully consolidated regulated entities applies by analogy.art. 28 availability in the financial group at1 capital issued by a non-operating special purpose entity shall be recognised on a consolidated basis if it is directly and unrestrictedly transferred in the same or higher quality to the group parent company or an operating entity of the bank.art. 29 point of non-viability (ponv) 1 the terms and conditions of issue or the articles of association must make provision for at1 capital to contribute to the bank's restructuring by means of a complete write-off or conversion at the point of non-viability. in this case, creditors' claims must be written off in full.2 the conversion to cet1 capital or the write-down must take place at the latest:a. before recourse to public sector assistance; orb. when finma orders this to avoid insolvency.3 in the case of equity securities that are recognised as at1 capital and do not have a loss absorption mechanism in accordance with paragraph 1, the contract or the articles of association must make provision for the irrevocable waiver of any privileges with respect to the share capital that qualifies as cet1 capital at the point of non-viability.section 3 supplementary (tier 2) capital art. 30 eligibility 1 a capital instrument shall be eligible as tier 2 capital if:a. it meets the requirements under article 20 and article 29 paragraphs 1 and 2;b. it has an original maturity of at least five years and the terms and conditions of issue do not contain any repayment incentives for the bank;c. the bank is entitled to repay the capital no earlier than five years after issuance;d. the bank indicates at the time of issuance that the supervisory authority will consent to early repayment only if:1. the remaining capital continues to meet the requirements under article 41, or2. sufficient capital that is at least equivalent is issued to replace it; ande. it is excluded that distributions to the capital providers may be increased during the term as a result of issuer-specific credit risk.2 in the last five years prior to final maturity, the recognition of tier 2 capital instruments shall decrease by 20% of the nominal amount each year. they shall not be recognised at all in the last year.3 article 21 paragraph 2, article 28 and article 29 paragraphs 1 and 2 apply by analogy.4 finma shall define in technical implementing provisions the criteria for the recognition of additional tier 2 capital components, in particular:a. banks under public law;b. the capital contributions made by partners with unlimited liability to private bankers which do not meet the criteria under article 25; andc. hidden reserves.section 4 adjustments art. 31 general 1 the adjustments to eligible capital shall be calculated in the same manner for both individual entities and consolidated financial groups.2 the carrying value shall be the relevant amount for an adjustment. anticipated taxation effects may be taken into account to reduce the adjustment only if:a. the tax liability expires automatically together with the corresponding item; orb. this is expressly provided for in this ordinance or in finma's technical implementing provisions.3 finma's technical implementing provisions may provide for adjustments for banks that prepare their financial statements in accordance with internationally recognised accounting standards.art. 31a19 changes in the fair value of own liabilities as a result of a change in the bank's credit risk 1 when calculating cet1 capital, all unrealised gains and losses on own liabilities that are attributable to fair value changes caused by changes in the bank's credit risk must be neutralised.2 in addition, all valuation adjustments concerning derivative liabilities that arise from the bank's own credit risk must be neutralised.3 valuation adjustments arising from the bank's own credit risk may not be netted against valuation adjustments arising from counterparties' credit risk.19 inserted by annex 2 no 4 of the banking ordinance of 30 april 2014, in force since 1 jan. 2015 (as 2014 1269).art. 32 deductions from cet1 capital the following must be deducted in full from cet1 capital:a. any loss carried forward and the loss for the current financial year;b. any uncovered valuation adjustment and provisioning requirements for the current financial year;c. goodwill, including any goodwill included in the valuation of significant interests in financial sector entities outside the scope of consolidation, and intangible assets other than mortgage servicing rights (msr);d. deferred tax assets (dtas) that depend on future profitability, whereby offsetting against corresponding deferred tax liabilities within the same geographical and material tax jurisdiction is permitted, with the exception of dtas due to temporary differences;e. for banks using the irb approach20 (art. 77), the amount by which the expected losses calculated using this approach exceed the value adjustments according to the basel minimum standards;f. any gain on sale related to securitisation transactions;g. defined benefit pension fund assets recognised on the balance sheet in accordance with the relevant requirements of the basel minimum standards;h. the net long positions under article 52 in own equity securities that are part of cet1 capital, held directly or indirectly by the bank, both on and off the trading book, provided that they have not already been recognised in the income statement;i. qualified financial interests in the capital of another financial sector entity, where such entity also has a stake in the capital of the bank (reciprocal cross-holdings);j.21 in the context of the individual entity calculation, if finma does not permit risk weighting in accordance with sections 1.6 or 1.7 of annex 4: the net long positions of the directly held financial interests in financial sector entities subject to consolidated reporting, calculated in accordance with article 52;k. deductions resulting from a deduction option chosen by the bank within the framework of the consolidation provisions under article 7 paragraph 4, article 8 paragraphs 2 and 3 and article 9 paragraphs 1 and 3.20 internal ratings-based approach21 amended by no i of the o of 21 nov. 2018, in force since 1 jan. 2019 (as 2018 5241).art. 33 corresponding deduction approach 1 if the bank holds equity instruments of a financial sector entity, the deductions shall be made using the corresponding deduction approach. the value of these instruments shall be deducted from the bank's capital component that corresponds to the component at the level of the third-party entity.1bis bail-in bonds issued by internationally active systemically important banks in accordance with article 126a paragraph 1 or corresponding regulations in foreign jurisdictions shall be treated as tier 2 capital instruments for the requirements of this section.222 if the bank does not hold any capital for the deduction in the corresponding eligible capital component, or if such capital is insufficient, the deduction shall be made from the next higher capital component.22 inserted by no i of the o of 21 nov. 2018 (as 2018 5241). amended by no i of the o of 27 nov. 2019, in force since 1 jan. 2020 (as 2019 4623).art. 34 deductions of positions in own equity instruments outside cet1 capital 1 the bank's own direct or indirect net long positions in at1 capital and tier 2 capital instruments, calculated in accordance with article 52, must be deducted using the corresponding deduction approach.2 with the corresponding deduction approach in accordance with paragraph 1 for tier 2 capital instruments, the restricted recognition under article 30 paragraph 2 (amortisation) shall not apply to securities of the same issue, and nominal values may be netted against each other.art. 35 threshold deductions 1 in the case of threshold deductions, the amount that exceeds the threshold shall be deducted. to determine the threshold, a bank's positions are to be measured against a predefined percentage of its own cet1 capital in accordance with the requirements of the basel minimum standards.2 threshold 1 shall amount to 10% of cet1 capital after all adjustments under article 31 paragraph 3 and article 32 letters a to i and k.3 threshold 2 shall amount to 10% of cet1 capital after all adjustments under article 31 paragraph 3 and article 32, including any deductions from cet1 capital as a result of the threshold 1 calculation (in accordance with art. 37 paras. 1 and 2).4 threshold 3 shall be determined such that, after the application of all regulatory adjustments, including any deductions at this threshold level in accordance with article 40 paragraph 1, the amount of the three positions that remains recognised does not exceed 15% of cet1 capital.2323 amended by annex 2 no 4 of the banking ordinance of 30 april 2014, in force since 1 jan. 2015 (as 2014 1269).art. 36 applicable deduction approach for equity instruments 1 whether the deduction approach under article 37 or that under article 38 applies to a bank's equity holdings in a financial sector entity shall depend on the percentage of direct or indirect equity securities holdings in such an entity calculated in accordance with article 52, as well as other forms of investment in such securities which synthetically embody the same risk (securities held).242 equity instruments which the bank holds in the form of at1 capital or tier 2 capital in companies whose equity securities must be deducted in full from cet1 capital in accordance with article 32 letters i to k shall be subject to the procedure under article 38 paragraph 1.24 amended by annex 2 no 4 of the banking ordinance of 30 april 2014, in force since 1 jan. 2015 (as 2014 1269).art. 37 equity securities in financial sector entities up to 10% 1 a bank that holds no more than 10% equity securities in a financial sector entity in the form of cet1 capital shall deduct from its own capital components the total carrying value of all equity instruments held in all such financial sector entities that exceeds threshold 1. this shall apply even if the bank only holds equity instruments in a financial sector entity that do not constitute cet1 capital.252 when applying the corresponding deduction approach, the amount to be deducted under paragraph 1 shall be in proportion to the equity instruments held by the bank in the relevant financial sector entities before the deduction.2bis in addition to the threshold 1 limit under paragraph 1, a bank may hold bail-in bonds in accordance with article 33 paragraph 1bis up to 5% of cet1 capital without deducting them from its own capital components. finma may issue corresponding implementing provisions.263 the portion of the aggregate carrying values under paragraph 1 that is below the threshold shall be risk-weighted. the risk weight for each capital component shall be based on its allocation to the banking and trading book before the deduction.25 amended by annex 2 no 4 of the banking ordinance of 30 april 2014, in force since 1 jan. 2015 (as 2014 1269).26 inserted by no i of the o of 27 nov. 2019, in force since 1 jan. 2020 (as 2019 4623).art. 38 equity securities in financial sector entities over 10% 1 a bank that holds more than 10% equity securities in a financial sector entity in the form of cet1 capital shall apply the corresponding deduction approach to all at1 capital and tier 2 capital instruments of such entities without a threshold. the corresponding deduction approach without thresholds shall also apply to bail-in bonds of internationally active systemically important banks under article 33 paragraph 1bis.272 it must deduct from its cet1 capital the amount by which the total carrying value of all directly or indirectly held shares in the cet1 capital of such entities outside the scope of consolidation exceeds threshold 2, both at the level of the individual entity and on a consolidated basis.3 the amount calculated in accordance with paragraph 2 that is below the threshold shall be treated in accordance with article 40.27 amended by no i of the o of 27 nov. 2019, in force since 1 jan. 2020 (as 2019 4623).art. 39 further threshold 2 deductions 1 the bank must separately deduct from its cet1 capital the following amounts that exceed threshold 2:a. mortgage servicing rights; andb. deferred tax assets (dtas) due to temporary differences.2 amounts below the threshold shall be treated in accordance with article 40.art. 40 threshold 3 deductions 1 the carrying values resulting from the calculations under article 38 paragraphs 2 and 3 and article 39 that are below threshold 2 shall be aggregated and measured against threshold 3. the bank must deduct the amount that exceeds threshold 3 from its cet1 capital.2 the bank shall apply a risk weight of 250% to each amount below threshold 3.title 3 required capital chapter 1 general art. 41 composition required capital shall be composed of the following:a. minimum capital;b. the capital buffer;c.28 the countercyclical buffer;cbis.29 the countercyclical buffer add-on; andd. additional capital.28 amended by no i of the o of 11 may 2016, in force since 1 july 2016 (as 2016 1725).29 inserted by no i of the o of 11 may 2016, in force since 1 july 2016 (as 2016 1725).art. 42 minimum capital 1 after the deductions in accordance with articles 31 to 40, banks must hold total capital representing 8.0% of the risk-weighted exposures as minimum capital. at least 4.5% of the risk-weighted exposures must be backed by cet1 capital and at least 6.0% by tier 1 capital.302 the risk-weighted exposures shall be composed of:a. the exposures weighted according to their credit risk (art. 49) and the weighted exposures from unsettled transactions (art. 76);b. the non-counterparty risks weighted in accordance with article 79;c. the minimum capital requirement for market risk (arts. 80 to 88) multiplied by a factor of 12.5;d. the minimum capital requirement for operational risk (arts. 89 to 94) multiplied by a factor of 12.5;e. the minimum capital requirement for risks arising from guarantee commitments to central counterparties (art. 70) multiplied by a factor of 12.5;f. the minimum capital requirement for the credit valuation adjustment risk due to the counterparty credit risk of derivatives (art. 55) multiplied by a factor of 12.5.3 a bank must inform finma and its audit firm as soon as its capital falls below the minimum required under paragraph 1.4 a bank that holds less than the minimum capital required under paragraphs 1 and 2 shall be deemed non-compliant with the capital adequacy requirements within the meaning of article 25 paragraph 1 of the banka.30 amended by no i of the o of 11 may 2016, in force since 1 july 2016 (as 2016 1725).art. 43 capital buffer 1 in addition to the minimum capital, banks shall permanently maintain a capital buffer representing the amount of the total capital ratio in accordance with the requirements of annex 8. the more stringent special requirements for systemically important banks under title 5 remain reserved.312 banks whose capital buffer temporarily falls below the requirements due to exceptional, unforeseeable circumstances such as a crisis in the international or swiss financial system shall not be deemed to be non-compliant with the capital adequacy requirements.3 in the event of a shortfall, finma shall set a bank-specific deadline for restoring the capital buffer.31 amended by no i of the o of 11 may 2016, in force since 1 july 2016 (as 2016 1725).art. 44 countercyclical buffer 1 the swiss national bank may request the federal council to oblige banks to hold a countercyclical capital buffer in the form of cet1 capital of a maximum of 2.5% of their risk-weighted exposures in switzerland if this is necessary to:a. strengthen the banking sector's resilience to the risks of excessive credit growth; orb. counteract excessive credit growth.2 the swiss national bank shall consult finma before submitting the request and simultaneously inform the federal department of finance. if the federal council approves the request, this ordinance shall be supplemented with a corresponding annex.3 the countercyclical buffer may be restricted to certain credit exposures. it shall be removed or adjusted in line with the changed circumstances if the criteria for its imposition no longer apply. the procedure shall be based on paragraphs 1 and 2.4 article 43 paragraphs 2 and 3 shall apply by analogy to the countercyclical buffer.art. 44a32 countercyclical buffer add-on 1 banks with total assets of at least chf 250 billion including total foreign exposure of at least chf 10 billion, or with a total foreign exposure of at least chf 25 billion, shall be obliged to hold a countercyclical buffer add-on in the form of cet1 capital.2 for such banks, the level of the countercyclical buffer add-on shall correspond to the weighted average level of the countercyclical buffers which, according to the list published by the basel committee, apply in the member countries where a bank's relevant private sector claims are located, but it shall not exceed 2.5% of the risk-weighted exposures. claims vis--vis banks and the public sector shall not be deemed to be private sector claims.3 the weighting of the ratios for each member country shall correspond to the total capital requirement for credit exposures to the private sector in that country, divided by the bank's total capital requirement for credit exposures to the private sector.4 the relevant level of the countercyclical buffer add-on for switzerland shall correspond to the countercyclical buffer stipulated for all exposures in accordance with article 44. a buffer under article 44 is eligible to be recognised for the countercyclical buffer add-on.5 a countercyclical buffer restricted to certain credit exposures in accordance with article 44 paragraph 3 shall not be recognised for the countercyclical buffer add-on.6 article 43 paragraphs 2 and 3 apply by analogy.32 inserted by no i of the o of 11 may 2016, in force since 1 july 2016 (as 2016 1725).art. 4533 additional capital in special circumstances, finma may require certain banks to hold additional capital if the minimum capital under article 42 and the capital buffer under article 43 do not provide sufficient security, particularly in relation to:a. their business activities; b. their risk exposures;c. their business strategy;d. the quality of risk management; ore. the state of the art of the techniques used.33 amended by no i of the o of 11 may 2016, in force since 1 july 2016 (as 2016 1725).art. 4634 leverage ratio 1 after the deductions in accordance with articles 31 to 40, banks must hold tier 1 capital amounting to 3% of the unweighted exposures (total exposure).2 the total exposure shall be the denominator of the leverage ratio calculated in accordance with the requirements of the basel minimum standards. finma shall issue technical implementing provisions based on the basel committee's minimum standards.34 amended by no i of the o of 22 nov. 2017, in force since 1 jan. 2018 (as 2017 7625).art. 47 parallel calculations when using model-based approaches for banks that determine their required capital using model-based approaches that are subject to approval (irb, epe modelling method35, market risk model approach or ama36), finma may require a parallel calculation of the required capital using a standardised approach that it deems appropriate.35 expected positive exposure modelling method36 advanced measurement approachchapter 1a37 simplifications for particularly liquid and well-capitalised banks in categories 4 and 5 37 inserted by no i of the o of 27 nov. 2019, in force since 1 jan. 2020 (as 2019 4623).art. 47a simplifications banks in categories 4 and 5 under annex 3 to the banko38 may apply to finma to be exempted from compliance with the provisions on required capital under articles 41 to 46.38 sr 952.02art. 47b prerequisites 1 banks in categories 4 and 5 may take advantage of the simplifications if they meet the following prerequisites at all times at the level of both the individual entity and the financial group:a. the required capital corresponds to a simplified leverage ratio of at least 8%.b. the average liquidity ratio is at least 110%.c. the refinancing ratio is at least 100%.2 the simplified leverage ratio is the quotient of:a. tier 1 capital; andb. the sum of all balance sheet assets, less goodwill and financial interests, plus all off-balance sheet items.3 the average liquidity ratio is the quotient of:a. the average of the last twelve month-end holdings of high-quality liquid assets (hqla) in accordance with article 15 of the liquidity ordinance of 30 november 201239 (liqo); andb. the average value for the last twelve months of the net cash outflow at month-end in accordance with article 16 of the liqo which can be expected over a 30-day horizon under the stress scenario for the liquidity coverage ratio (lcr).4 the refinancing ratio is the quotient of:a. the sum of amounts due in respect of client deposits, medium-term notes, bonds with a residual maturity of more than one year, mortgage bond loans with a residual maturity of more than one year and net assets/equity; andb. claims against customers and mortgage claims.5 finma may issue technical implementing provisions concerning paragraphs 2 to 4.39 sr 952.06art. 47c rejection of application finma may reject the application for simplifications if:a. the prerequisites under articles 47a and 47b are not met;b. it has taken supervisory measures against the bank in question, proceedings have been initiated under article 30 of the financial market supervision act of 22 june 200740 (finmasa) or the bank has not taken measures to restore compliance in accordance with article 31 of the finmasa in the following areas:1. the code of conduct under the financial services act of 15 june 201841,2. market rules of conduct under the financial market infrastructure act of 19 june 201542,3. anti-money laundering and terrorist financing under the anti-money laundering act of 10 october 199743,4. cross-border transactions; c. interest rate risk management is insufficient or the interest rate risk is disproportionately high in relation to tier 1 capital, net interest income or risk-bearing capacity, taking all risks into account.40 sr 956.141 sr 950.142 sr 958.143 sr 955.0art. 47d prerequisites no longer met 1 banks that no longer meet the prerequisites under article 47b must notify finma immediately. 2 if finma finds that a bank is no longer in category 4 or 5 or that there is a reason for rejection in accordance with article 47c, it shall inform the bank accordingly.3 in the event of notifications in accordance with paragraphs 1 and 2, finma shall grant the bank a deadline for restoring compliance with the prerequisites. this deadline shall generally be one year, but it may be shortened or extended in justified individual cases. if the prerequisites are not met at the end of this period, the simplifications under article 47a may no longer be availed of.art. 47e waiver of simplifications banks that no longer wish to avail themselves of the simplifications under article 47a shall notify finma and the audit firm accordingly.chapter 2 credit risk section 1 general art. 48 definition 1 in the context of the calculation of required capital, credit risk refers to the risk of loss resulting from:a. a counterparty's failure to meet its contractual obligations; orb. a reduction in the value of financial instruments issued by a third party, namely equity securities, interest rate instruments or units of collective investment schemes.2 in the case of derivatives, repo and repo-like transactions, counterparty credit risk means the credit risk vis--vis the counterparty, and not the credit risk of the financial instruments underlying the transactions.4444 inserted by no i of the o of 22 nov. 2017, in force since 1 jan. 2019 (as 2017 7625).art. 49 risk-weighted exposures 1 exposures shall be risk-weighted if they carry a credit risk and no deduction from capital is provided for under articles 31 to 40.2 the following shall be deemed to be exposures:a. receivables, including claims arising from guarantee credits not recognised under assets;b. claims in connection with securitisations;c. other off-balance sheet transactions converted into their credit equivalent;d. net exposures in equity securities and interest rate instruments not in the trading book;e. net exposures in equity securities and interest rate instruments in the trading book, provided the de minimis approach (art. 82 para. 1 lit. a) is applied;f. net exposures in own securities and qualified participations in the trading book.3 any exposure to a group of affiliated counterparties as described in article 109 that is not broken down by counterparty shall be risk-weighted according to the highest of the risk weights assigned to the individual counterparties in the group.art. 50 approaches 1 one of the following approaches shall be used to calculate the minimum capital requirement for credit risk in accordance with article 42 paragraph 2 letter a:a. the bis sa45 (arts. 63-75); orb. the irb (art. 77).2 the irb and bis sa may be combined.3 use of the irb requires approval from finma, which shall define the approval criteria.4 finma shall issue technical implementing provisions on credit risks and securitisations.45 international standardised approach.section 2 calculation of exposures art. 51 net exposures 1 net exposures shall be calculated as follows:physical holdings plus securities lending claims minus securities borrowing commitments+ unsettled spot and forward purchases (including financial futures and swaps)./. unsettled spot and forward sales (including financial futures and swaps)+ firm commitments to underwrite securities less sub-participations and firm subscriptions, provided these eliminate the bank's price risk+ exercise rights from purchased calls, delta-weighted./. delivery obligations from written calls, delta-weighted+ underwriting obligations from written puts, delta-weighted./. exercise rights from purchased puts, delta-weighted2 amounts for individual value adjustments and provisions recognised as liabilities shall be deducted from net exposures.3 positive net exposures shall be referred to as net long positions, and the absolute amounts of negative net exposures shall be referred to as net short positions.art. 52 net exposures for equity instruments of companies active in the financial sector 1 the net exposures for equity instruments of companies active in the financial sector shall be calculated as follows, taking into account the additional requirements set out in paragraphs 2 and 3:physical holdings plus synthetic positions, as well as securities lending claims minus securities borrowing commitments+ unsettled spot and forward purchases (including financial futures and swaps)./. unsettled spot and forward sales (including financial futures and swaps)./. underwriting positions held for five business days or less+ exercise rights from purchased calls, delta-weighted./. delivery obligations from written calls, delta-weighted+ underwriting obligations from written puts, delta-weighted./. exercise rights from purchased puts, delta-weighted2 in the case of direct holdings of instruments that are equity instruments or through which equity instruments are held indirectly or synthetically, other than own equity instruments, long and short positions in equity instruments may be netted only if:46a. the long and short positions relate to the same equity instrument; andb. the maturity of the short position either matches the maturity of the long position or has a residual maturity of at least one year.3 in the case of own equity instruments, the following net exposures must be determined for each component (cet1, at1 and t2) and deducted from the corresponding component in accordance with articles 32 to 34:a. net exposures in own equity instruments held directly or synthetically, whereby long and short positions may be netted only if they relate to the same equity instrument and the short position does not involve counterparty risk;b. net exposures in own equity instruments held indirectly via a financial instrument such as an index or an option on an index, whereby long and short positions may be netted only if they relate to the same underlying instrument; the short position's counterparty risk must have capital backing.46 amended by annex 2 no 4 of the banking ordinance of 30 april 2014, in force since 1 jan. 2015 (as 2014 1269).art. 53 exposures in off-balance sheet transactions 1 off-balance sheet transactions shall be converted into a credit equivalent using credit conversion factors. this shall constitute the risk-weighted exposure.2 banks using the irb approach shall calculate the credit equivalent for contingent funding obligations and irrevocable commitments in accordance with the bis sa rules where the irb does not contain a corresponding provision.art. 54 contingent funding obligations and irrevocable commitments 1 in the case of contingent funding obligations and irrevocable commitments, the credit equivalent under the bis sa shall be calculated by multiplying the nominal or present value of the transaction in question with its credit conversion factor as set out in annex 1.2 contingent funding obligations where the bank has ceded sub-participations may be treated as direct claims against the respective sub-participants in the amount of the sub-participation.art. 55 credit valuation adjustment risk for derivatives 1 the banks must use minimum capital to cover not only the credit default risks of derivatives counterparties under articles 50 and 56, but also the risk of market value losses due to valuation adjustments of derivatives based on the counterparty credit risk.2 finma shall regulate the calculation method for the corresponding minimum capital depending on the calculation methods chosen for credit equivalents (art. 56) and market risk (art. 82). it shall base it on the basel minimum standards.3 finma shall provide a conservative, simplified calculation method for banks that have chosen neither a model approach in accordance with article 56 nor a model approach in accordance with article 82.art. 56 calculation methods for derivatives 1 credit equivalents for derivatives may be calculated using the following methods:a. the standardised approach;b. the expected positive exposure modelling method (epe modelling method).472 use of the epe modelling method requires approval from finma, which shall define the approval criteria.3 finma shall specify how the credit equivalent is to be calculated in the event of statutory or contractual netting in accordance with article 61 involving more than two parties.4 these calculation methods shall apply to all derivatives, irrespective of whether they are traded on an exchange or concluded over the counter.47 amended by no i of the o of 23 nov. 2016, in force since 1 jan. 2017 (as 2016 4683).art. 5748 standardised approach 1 to calculate the credit equivalents of derivatives using the standardised approach, the sum of the regulatory replacement cost and the amount for potential future exposure shall be multiplied by a factor of 1.4.2 finma shall issue technical implementing provisions in accordance with the basel minimum standards.48 amended by no i of the o of 23 nov. 2016, in force since 1 jan. 2017 (as 2016 4683).art. 5849 49 repealed by no i of the o of 23 nov. 2016, with effect from 1 jan. 2017 (as 2016 4683).art. 59 epe modelling method 1 finma shall determine how the credit equivalent of derivatives is to be calculated using the epe modelling method based on the basel minimum standards. 2 the credit equivalents are multiplied by the epe factor. finma shall determine the epe factor in each individual case. it shall be at least 1.2.art. 60 interest rate instruments and equity securities 1 if the interest rate instruments or equity securities are equity instruments of an entity active in the financial sector, the net exposure shall be determined in accordance with article 52.2 in the case of interest rate instruments and equity securities of the same issuer which are not in the trading book and which have the same risk weight, the net exposure shall be calculated in accordance with article 51.3 the carrying value of the physical holding shall be used for exposures not in the trading book.4 paragraphs 1 and 2 shall also apply to interest rate instruments and equity securities in the trading book, provided the de minimis approach (art. 82 para. 1 lit. a) is applied.art. 61 risk mitigation measures 1 the following risk mitigation measures may be taken into account when calculating exposures:a. statutory and contractual netting;b. guarantees;c. credit derivatives; andd. other collateral.2 upon request, the banks must demonstrate to the audit firm or to finma that these risk mitigation measures are legally enforceable in the jurisdictions concerned.3 finma shall flesh out these risk mitigation measures.art. 62 secured transactions 1 a bank may choose one the following approaches to take account of collateral under article 61 paragraph 1 letter d:a. the simplified approach;b. the comprehensive approach.2 with the simplified approach, the collateralised exposure components shall be assigned to the collateral provider's exposure class.3 with the comprehensive approach, the exposure shall be netted against the collateralised exposure component. the net exposure shall remain in the original exposure class.4 finma shall flesh out these approaches.5 when calculating the credit equivalents in accordance with articles 56 to 59, all eligible collateral provided by the bank and received by the bank to secure derivatives must be taken into account.5050 inserted by no i of the o of 23 nov. 2016, in force since 1 jan. 2017 (as 2016 4683).section 3 exposure classes and their weightings according to the bis sa art. 63 exposure classes 1 the banks shall assign the individual exposures to exposure classes.2 the individual exposures in the following exposure classes may be risk-weighted using external ratings:a. central governments and central banks;b. public sector entities;c. the bank for international settlements (bis), the international monetary fund (imf) and multilateral development banks;d. banks and securities firms;e. community bodies;f. stock exchanges and clearing houses;g. corporates.3 external ratings may not be used for the following exposure classes:a. private individuals and small businesses (retail exposures);b. domestic pfandbrief bonds;c. direct and indirect mortgage-backed positions;d. subordinated exposures;e. past-due exposures;f.51 equity securities;fbis.52 units of managed collective investment schemes;g. other exposures.51 amended by no i of the o of 23 nov. 2016, in force since 1 jan. 2017 (as 2016 4683).52 inserted by no i of the o of 23 nov. 2016, in force since 1 jan. 2017 (as 2016 4683).art. 64 use of external ratings 1 banks using the bis sa may risk-weight exposures with ratings from rating agencies, provided such agencies are recognised by finma for this purpose.2 finma shall assign the ratings of recognised rating agencies to individual rating categories and determine the risk weight for the individual categories.3 the use of external ratings must be based on a concrete, institution-specific concept, which must be adhered to consistently.4 if a bank risk-weights exposures based on external rating agencies' ratings, it must generally use external ratings to risk-weight all exposures other than those in the corporates exposure class. if it also uses external ratings to risk-weight exposures in the corporates exposure class, it must generally risk-weight all exposures in this class according to external ratings.5 if a bank does not use external ratings to risk-weight exposures, or if no rating from a recognised rating agency is available to risk-weight an exposure, the weights of the unrated rating category must be used.art. 65 use of external ratings at group level the ratings used in the companies to be consolidated may be used at group level.art. 66 calculation of the exposures to be risk-weighted 1 for bis sa purposes, exposures within exposure classes under article 63 paragraph 2 shall be risk-weighted in accordance with annex 2.2 exposures within the exposure classes under article 63 paragraph 3 letters a to e and g shall be risk-weighted in accordance with annex 3.3 exposures within the exposure class under article 63 paragraph 3 letter f shall be risk-weighted in accordance with annex 4.3bis exposures within the exposure class under article 63 paragraph 3 letter fbis shall be risk-weighted in accordance with finma's technical implementation provisions. finma shall use the basel minimum standards as a basis.534 net exposures in interest rate instruments under article 60 shall be allocated to the issuer's exposure class and risk-weighted accordingly.5 in the case of exposures in the form of equity instruments of entities active in the financial sector, the weighting under paragraphs 3 and 4 shall refer to the portion of the net exposure in accordance with article 52 that was not deducted from capital under the corresponding deduction approach (art. 33).53 inserted by no i of the o of 23 nov. 2016, in force since 1 jan. 2017 (as 2016 4683).art. 67 local currency exposures to central governments or central banks where the supervisory authority of a country other than switzerland provides for a lower risk weight than that stipulated in article 66 paragraph 1 for local currency exposures to the central government or central bank of that country, banks may apply a similar weight to such exposures, provided that such exposures are refinanced in the local currency of that country and that the banking supervision of that country is appropriate. this similar weight shall refer to the portion of such exposure that is refinanced in the local currency.art. 68 banks and securities firms 1 securities firms may be assigned to the banks and securities firms exposure class (art. 63 para. 2 letter d) only if they are subject to supervision that is equivalent to that of banks.2 netted exposures arising from off-balance sheet transactions shall be allocated to the time band of the shortest netted exposures.3 with the exception of short-term self-liquidating trade letters of credit, exposures to banks without an external rating may not be assigned a risk weight that is lower than the risk weight for exposures to the banks' country of domicile.5454 inserted by annex 2 no 4 of the banking ordinance of 30 april 2014, in force since 1 jan. 2015 (as 2014 1269).art. 69 stock exchanges and clearing houses 1 clearing houses are institutions through which the contractual obligations of traded contracts are settled.2 the risk weights of 0% or 2% under annex 2 shall apply for credit risks only if a regulated central counterparty interposes itself directly in the transaction between two market participants and an appropriate and comprehensive collateralisation system is established as the basis for the performance of the functions of that central counterparty.3 this collateralisation system shall be considered appropriate and comprehensive particularly if:a. the contracts are marked to market daily and there are daily margin calls;b. the changes in value expected the next day are collateralised on an ongoing basis with a high level of confidence; andc. unexpected losses are hedged.4 finma shall regulate the additional criteria for central counterparties in connection with derivatives, repo and repo-like transactions in accordance with the basel minimum standards.art. 70 credit risks and guarantee commitments to central counterparties 1 for banks that act as a clearing member of a central counterparty for exchange-traded or over-the-counter derivatives and for repos or repo-like transactions, finma shall define the method for determining the minimum capital required for risks arising from explicit and implicit guarantee commitments to the central counterparty. finma shall use the basel minimum standards as a basis.2 central counterparties are clearing houses that act as a contracting party between the counterparties to contracts and guarantee the performance of the contracts throughout their term.3 clearing members are authorised to enter into a direct transaction with the central counterparty as a party, irrespective of whether they do so on their own behalf or as intermediaries between the central counterparty and other market participants.art. 71 exposures to unrated companies if a bank uses ratings to risk-weight exposures to companies, unrated exposures shall be assigned the risk weight of 100% or that of the relevant central government if that is higher than 100%.art. 72 direct and indirect mortgage-backed exposures 1 residential real estate shall be deemed to be real estate occupied or rented out by the borrower personally.2 construction loans and loans for building land shall be allocated to the real estate categories set out in annex 3 according to the future use of the financed property.3 the risk weight of 35% for foreign residential real estate shall apply only if appropriate risk management that is equivalent to that for swiss residential real estate can be ensured for this foreign real estate.4 pledged pension assets and pledged pension benefit entitlements in accordance with article 30b of the federal act of 25 june 198255 on occupational old age, survivors' and invalidity pension provision (opa) and article 4 of the ordinance of 13 november 198556 on tax relief on contributions to recognised pension schemes shall be included in the borrower's capital when calculating the relevant exposure for risk weighting in accordance with annex 3, provided that: a. the pledge exists as additional security for a mortgage-backed claim;b. the real estate in question is used by the borrower personally; andc. the minimum requirements under paragraph 5 are met.5 the risk weight for mortgage-backed exposures in accordance with annex 3 shall be 100% if the credit transaction does not meet the requirements of one of the self-regulation standards recognised as a minimum standard by finma in accordance with article 7 paragraph 3 of the financial market supervision act of 22 june 200757. the minimum requirements shall provide for:a. an appropriate minimum share of capital to be supplied by the borrower for the financing; such share must not originate from a pledge or an advance withdrawal pursuant to articles 30b or 30c of the opa;b. appropriate repayment of the loan in terms of timeframe and amount.55 sr 831.4056 sr 831.461.357 sr 956.1art. 73 equity securities net exposures in equity securities shall be risk-weighted in accordance with annex 4. this shall not apply to portions of net exposures which:a. are to be deducted from the capital components under articles 31 to 40; orb. are to be risk-weighted in accordance with article 40 paragraph 2.art. 74 lombard loans within the corresponding exposure class, lombard loans can be weighted individually according to the simplified approach (art. 62 para. 1 lit. a) or the comprehensive approach (art. 62 para. 1 lit. b).art. 75 loan, repo and repo-like transactions in securities within the corresponding exposure class for the individual transactions, loan, repo and repo-like transactions in securities can be treated according to the simplified approach, the comprehensive approach or the epe modelling method.art. 76 exposures arising from unsettled transactions 1 positive replacement values of exposures arising from unsettled foreign exchange, securities and commodities transactions which carry a risk of loss owing to late or failed settlement (exposures arising from unsettled transactions) and are settled through a payment system or securities settlement system according to the payment-versus-settlement or payment-versus-payment principle shall be weighted as follows:number of business days afteragreed settlement daterisk weight 5-15 100%16-30 625%31-45 937.5%46 or more1,250%2 for exposures arising from unsettled transactions that are settled in another manner, the treatment shall be as follows:a. the bank that has delivered shall treat the transaction as a credit until receipt of the corresponding receivable. if the exposures are not materially significant, a risk weight of 100% may be applied instead of a ratings-based risk weight.b. if the corresponding receivable has not been received five business days after the agreed settlement date, a 1,250% weight shall be assigned to the delivered asset and any positive replacement value.3 repos, reverse repos and securities lending and borrowing shall be treated exclusively as set out in article 75.section 4 irb approach art. 77 1 banks using the internal ratings-based approach (irb) to calculate risk-weighted exposures and required capital for credit risk may choose between:a. simplified, or foundation irb (f-irb58); orb. advanced irb (a-irb59).2 finma shall flesh out the calculation details, based on the basel minimum standards.3 in the absence of a rule, the provisions of the bis sa apply by analogy.58 footnote not relevant to english text.59 footnote not relevant to english text.chapter 3 non-counterparty risks art. 78 definition the term non-counterparty risks refers to the risk of loss owing to valuation changes or a liquidation of non-counterparty assets such as real estate and other fixed assets.art. 79 weighting 1 to calculate the charge for non-counterparty risk, a 100% weight shall be assigned to the following exposures:a. real estate;b. other fixed assets and depreciable items recognised on the balance sheet as other assets, unless they can be deducted from cet1 capital in accordance with article 32 letter c.2 a 0% weight shall be assigned to the asset balance of the compensation account.chapter 4 market risk section 1 general art. 80 principle 1 a capital charge shall apply to the market risk of interest rate instruments and equity securities in the trading book, and of foreign exchange, gold and commodities exposures for the whole bank.2 finma shall issue technical implementing provisions on market risk.art. 81 definition the term market risk refers to the risk of losses arising from movements in the value of an exposure caused by changes in, and the volatility of, price-relevant factors such as share or commodity prices, exchange rates and interest rates.art. 82 calculation approaches 1 the minimum capital requirement for market risk may be calculated using the following approaches:a. the de minimis approach;b. the standardised approach; orc. the market risk model approach. 2 when more than one of these approaches is used, the minimum capital requirement shall be derived from the sum of the minimum capital amounts calculated according to these approaches.section 2 de minimis approach art. 83 1 banks that do not exceed certain thresholds may use articles 66 to 76 to calculate the minimum capital requirement for interest rate instruments and equity securities in the trading book. in so doing, they shall apply the provisions of the same approach as that used to calculate the credit risk capital requirement.2 finma shall set the thresholds.section 3 standardised approach for market risk art. 84 interest rate instruments in the trading book 1 the minimum capital requirement for specific risk in interest rate instruments shall be derived by multiplying the net exposure for each issue by the rates in annex 5.2 finma shall issue technical implementing provisions on calculating the minimum capital requirement for specific risk in interest rate instruments from securitisations broken down into risk buckets.3 the minimum capital requirement for general market risk in interest rate instruments comprises the sum of the values calculated for each currency using either the maturity method or the duration method.art. 85 equity instruments in the trading book 1 the minimum capital requirement for specific risk in equity instruments shall amount to 8% of the sum of the net exposures per issuer.2 the minimum capital requirement for general market risk in equity instruments shall amount to 8% of the sum of the net exposures per national market.art. 86 foreign exchange exposures the minimum capital requirement for market risk in foreign exchange exposures shall amount to 8% of the sum of net long positions or the sum of net short positions, whichever is higher.art. 87 gold and commodity exposures 1 the minimum capital requirement for market risk in gold exposures shall amount to 8% of the net exposure.2 the minimum capital requirement for commodity risk shall be determined using either the maturity band method or the simplified method.section 4 model-based approach for market risk art. 88 1 use of the model-based approach for market risk requires approval by finma, which shall define the approval criteria.2 finma shall flesh out the details for calculating minimum capital under the model-based approach for market risk, based on the basel committee's minimum standards.3 it shall define the multipliers provided for under the model-based approach in each individual case. in so doing, it shall take account of the approval criteria and the forecast accuracy of the institution-specific risk aggregation model. the multipliers shall be at least 3.0 in each case.chapter 5 operational risk section 1 general art. 89 definition the term operational risk refers to the risk of loss resulting from the inappropriateness or failure of internal procedures, people or systems, or from external events. this includes legal risk, but not strategic risk or reputational risk.art. 90 calculation approaches 1 banks may choose between the following approaches when determining the minimum capital requirement for operational risk:a. the basic indicator approach;b. the standardised approach;c. institution-specific approaches (ama).2 use of an institution-specific approach requires approval by finma.3 finma shall issue technical implementing provisions on the approaches.art. 91 income indicator 1 banks that determine their minimum capital requirement for operational risk according to either the basic indicator approach or the standardised approach must calculate an income indicator for each of the previous three years. this comprises the sum of the following items in the income statement:a.60 gross income from interest business;b. income from commission business and services;c.61 income from trading and the fair value option;d. income from participating interests not subject to consolidated reporting; ande. income from real estate.2 all income from outsourcing agreements in which the bank itself acts as service provider must be included as components of the income indicator.3 if the bank acts as the contracting authority of an outsourced service, the corresponding expenses may be deducted from the income indicator only if the outsourcing occurs within the same financial group and is included in consolidated reporting.4 when determining the income indicator, banks may use internationally recognised accounting standards instead of the swiss accounting standards, subject to finma approval.60 amended by annex 2 no 4 of the banking ordinance of 30 april 2014, in force since 1 jan. 2015 (as 2014 1269).61 amended by annex 2 no 4 of the banking ordinance of 30 april 2014, in force since 1 jan. 2015 (as 2014 1269).section 2 approaches art. 92 basic indicator approach 1 minimum capital shall amount to 15% of the average of the income indicators for the previous three years. only years in which the income indicator was positive should be taken into account.2 finma may make the use of the basic indicator approach contingent on additional qualitative risk management requirements.art. 93 standardised approach 1 minimum capital shall be calculated as follows:a. for each business line and each of the previous three years, an income indicator shall be determined and multiplied by the rate under paragraph 2.b. the resulting numerical values shall be added for each year. negative numerical values from individual business lines can be offset against positive values from other business lines.c. the minimum capital corresponds to the three-year average amount. for the purposes of obtaining the average, any negative totals are set to zero.2 activities shall be assigned to the following business lines and multiplied by the following rates:a. corporate finance/advice 18%b. trading 18%c. retail client business 12%d. corporate client business 15%e. payment transactions/securities settlement 18%f. custody and fiduciary business 15% g. institutional asset management 12%h. securities commission business 12%3 finma may make the use of the standardised approach contingent on additional qualitative risk management requirements.art. 94 institution-specific approaches (ama) 1 banks may use an institution-specific approach to determine the minimum capital.2 finma shall issue the required approval if the bank has a model that allows it to quantify operational risks by using internal and external loss data, scenario analyses and the key factors in the business environment and the internal control system.title 4 risk diversification chapter 1 general provisions section 1 subject matter art. 9562 risk concentrations and other large credit risk exposures 1 a risk concentration exists when the total exposure to a counterparty or group of affiliated counterparties equals or exceeds 10% of the bank's adjusted eligible tier 1 capital under articles 31 to 40.2 banks must identify and monitor risk concentrations and other large credit risk exposures to an individual counterparty or group of affiliated counterparties, and comply with associated reporting obligations.62 amended by no i of the o of 22 nov. 2017, in force since 1 jan. 2019 (as 2017 7625).art. 9663 recordable exposures and total exposure 1 for the purposes of identifying and monitoring risk concentrations, all on- and off-balance sheet items in the banking book and trading book that carry a credit risk exposure or counterparty credit risk exposure to an individual counterparty or group of affiliated counterparties must be recorded.2 the recorded exposures must be aggregated to form a total exposure.3 the following do not need to be included in the calculation of the total exposure:a. exposures that can be deducted from tier 1 capital in accordance with articles 31 to 40: the amount of the deduction;b. intraday exposures to banks.4 exposures that are assigned a 1,250% risk weight in the minimum capital calculation must be included in the total exposure.5 the total exposure to a group of affiliated counterparties is the sum of total exposures to the individual counterparties.63 amended by no i of the o of 22 nov. 2017, in force since 1 jan. 2019 (as 2017 7625).section 2 upper limits on risk concentrations art. 9764 upper limit on individual risk concentrations 1 risk concentrations may not exceed 25% of adjusted eligible tier 1 capital under articles 31 to 40.2 this limit does not apply to:a. exposures to central banks and central governments;b. exposures with an explicit guarantee from counterparties under letter a;c. exposures secured by financial collateral from counterparties under letter a;d. exposures to qualifying central counterparties resulting from clearing services.3 the exposures shall be calculated in accordance with article 119 paragraph 3.64 amended by no i of the o of 22 nov. 2017, in force since 1 jan. 2019 (as 2017 7625).art. 9865 upper limit on risk concentrations with banks and securities firms in a departure from article 97 paragraph 1, as regards banks in categories 4 and 5 under annex 3 of the banko66, the upper limit on individual risk concentrations with banks and securities firms, where these are not designated as systemically important banks or financial groups in accordance with article 8 paragraph 3 of the banka or article 136 paragraph 2 letter b, shall be: 100% of the adjusted eligible tier 1 capital under articles 31 to 40.65 amended by no i of the o of 22 nov. 2017, in force since 1 jan. 2019 (as 2017 7625).66 sr 952.02art. 9967 upper limit breaches 1 the upper limit on risk concentrations may not be breached, except in the cases specified in paragraphs 2 and 3.2 a limit breach is permitted if this is related to the settlement of client payment transactions and lasts for no more than five business days.3 a limit breach is also permitted if this results solely from the affiliation of previously independent counterparties or the affiliation of a bank with other financial entities.4 the amount by which the limit may be breached owing to an affiliation under paragraph 3 may not be actively increased further. the breach must be rectified within two years of the affiliation acquiring legal force.67 amended by no i of the o of 22 nov. 2017, in force since 1 jan. 2019 (as 2017 7625).section 368 reporting obligations relating to risk concentrations and other large credit risk exposures 68 amended by no i of the o of 22 nov. 2017, in force since 1 jan. 2019 (as 2017 7625).art. 100 reporting risk concentrations and other large credit exposures 1 the bank shall report all outstanding risk concentrations and other large credit exposures to its body responsible for overall management, supervision and control:a. quarterly on an individual entity basis;b. semi-annually on a consolidated basis.2 the reports must be submitted to the statutory banking audit firm and the swiss national bank within six weeks of the end of the quarter or half-year, using the form prescribed by finma.3 the following reference dates apply for the reports:a. total exposure: last day of the current quarter and half-year;b. tier 1 capital: last day of the current or preceding quarter and half-year.4 specifically, the following must be reported:a. all risk concentrations;b. all exposures amounting to at least 10% of eligible tier 1 capital, without applying the risk mitigation under article 119 paragraph 1;c. all total exposures for which there is no upper limit and which amount to at least 10% of eligible tier 1 capital.5 in addition, each year the twenty largest total exposures must be reported, irrespective of whether or not they constitute risk concentrations, excluding total exposures to central banks and central governments.6 for the exposures under paragraphs 4 and 5, values both before and after applying the risk mitigation under article 119 paragraph 1 must be reported.7 if a risk concentration involves a member of the management or holder of a qualified participation under article 3 paragraph 2 letter cbis of the banka or a related person or company, the risk concentration must be reported under the collective heading management business.8 if a risk concentration involves a group company, the risk concentration must be reported under the collective heading group business. the components of the group business item that are exempted from the upper limit in accordance with article 111a paragraph 1 and article 112 paragraph d must also be reported.9 the audit firm shall assess the internal controls carried out by the bank to ensure correct risk identification and reporting, and shall examine the trend of risks.art. 101 reporting of unauthorised breaches if the bank observes that a risk concentration has breached the upper limit without the existence of an exception under article 99, it must inform its audit firm and finma immediately and rectify the breach within a period to be approved by finma. limit breaches caused by the use of the settlement date principle and arising out of transactions having a settlement date within the next two business days shall be exempt from the reporting duty.art. 102 reporting of intra-group exposures the bank must report intra-group exposures under article 111a on a quarterly basis and submit the report to the audit firm, the swiss national bank and the body responsible for overall management, supervision and control, together with the report on outstanding risk concentrations under article 100. a distinction must be made between group companies in accordance with article 111a paragraphs 1 and 3.section 4 calculation principles art. 103 firm commitments to underwrite securities the issuer-specific exposures for firm commitments to underwrite securities must be calculated as follows:a. sub-participations and firm subscriptions may be deducted from firm commitments to underwrite debt and equity securities, provided this eliminates the bank's associated market risk;b. the resulting amount must be multiplied by one of the following credit conversion factors:1. 0.05 as of the day on which the firm commitment to underwrite is irrevocably entered into,2. 0.1 on the issue's payment date,3. 0.25 on the second and third business day after the issue's payment date,4. 0.5 on the fourth business day after the issue's payment date,5. 0.75 on the fifth business day after the issue's payment date,6. 1 as of the sixth business day after the issue's payment date.arts. 104 and 10569 69 repealed by no i of the o of 22 nov. 2017, with effect from 1 jan. 2019 (as 2017 7625).art. 106 exposures arising from unsettled transactions transactions that remain unsettled after five business days (art. 76) must be included in the total exposure figure at their full exposure value.arts. 107 and 10870 70 repealed by no i of the o of 22 nov. 2017, with effect from 1 jan. 2019 (as 2017 7625).art. 10971 groups of affiliated counterparties 1 a group of affiliated counterparties comprises:a. counterparties between which there is a control relationship or economic dependence;b. counterparties that are held as financial interests by the same person, or are directly or indirectly controlled by them; orc. counterparties that form a consortium.2 groups of affiliated counterparties must be treated as one entity.3 if the total exposure to a single counterparty exceeds 5% of eligible tier 1 capital, it must be verified, within three months and at appropriate intervals thereafter, whether counterparties are economically dependent on each other.4 central counterparties do not constitute a group of affiliated counterparties if the exposures to them are related to clearing services.5 legally independent public enterprises together with their controlling public sector entity do not constitute a group of affiliated counterparties if:a. the public sector entity is not legally liable for the enterprise's obligations; orb. the enterprise in question is a bank.71 amended by no i of the o of 22 nov. 2017, in force since 1 jan. 2019 (as 2017 7625).art. 110 exposures to a consortium 1 exposures to a consortium shall be allocated to the individual consortium members according to their participating interest.2 in the case of joint and several liability, the bank must recognise the entire exposure to the consortium member to which it assigned the highest credit rating during the lending decision.art. 111 exposures of group companies from the perspective of each bank in the financial group or financial conglomerate, group companies constitute a group of affiliated counterparties.art. 111a72 intra-group exposures 1 if a bank is part of a financial group or financial conglomerate subject to appropriate consolidated supervision, intra-group exposures to group companies fully integrated into the consolidated capital and risk diversification may be exempted from the upper limit under article 97 if the group companies:a. are individually subject to appropriate supervision; orb. act as counterparty only to group companies that are individually subject to appropriate supervision.2 finma is authorised to issue implementing provisions to appropriately restrict the exclusion of intra-group exposures under paragraph 1.3 intra-group exposures to other group companies shall be subject, on an aggregate basis, to the regular limit of 25% of the adjusted eligible tier 1 capital under articles 31 to 40.72 inserted by no i of the o of 22 nov. 2017, in force since 1 jan. 2019 (as 2017 7625).section 5 easing and tightening of requirements art. 11273 1 finma shall regulate the extent to which the risk diversification requirements may be relaxed for banks in categories 4 and 5 under annex 3 of the banko74.2 in special cases, it may also relax or tighten the risk diversification requirements. specifically, it may:a. set lower reporting limits or upper limits for individual total exposure figures;b. impose upper limits on a bank's direct and indirect real estate holdings;c. subject to prior request, allow the upper limit to be breached temporarily;d. declare that the exemption from the upper limit under article 111a paragraph 1 does not apply to some or all group companies, or extend the exemption to cover individual group companies that do not meet the criteria under article 111a paragraph 1;e. exempt individual group companies that do not operate in the financial sector from inclusion in the aggregate exposure under article 111a paragraphs 1 and 3;f. declare that financial interests excluded from consolidation under article 9 paragraph 1 are exempt from inclusion in the aggregate exposure under article 111a paragraphs 1 and 3.g. lower or raise the applicable weighting rates for a specific counterparty;h. set a different deadline to that in article 99 paragraph 4;i. in special circumstances for which the bank must provide justification, allow the parties concerned to not be considered as a group of affiliated counterparties, even if they meet the criteria under article 109 paragraph 1;j. allow counterparties to not be considered as a group of affiliated counterparties, provided the bank demonstrates that a counterparty can absorb the financial problems or the default of an economically closely interconnected counterparty and find other business partners or fund providers within a reasonable period.73 amended by no i of the o of 22 nov. 2017, in force since 1 jan. 2019 (as 2017 7625).74 sr 952.02chapter 275 calculation of total exposure 75 amended by no i of the o of 22 nov. 2017, in force since 1 jan. 2019 (as 2017 7625). section 1 weighting art. 113 1 counterparty exposures shall be assigned a risk weight of 100% as a rule.2 the following exposures are to be weighted differently to paragraph 1:a. exposures to cantons rated 1 or 2: 20%;b. exposures in domestic pfandbrief bonds issued in accordance with the mortgage bond act of 25 june 193076: 10%;c. exposures in covered bonds under article 118 paragraph 1 letter c: at least 20%.76 sr 211.423.4section 2 addition art. 114 when calculating the total counterparty exposure, the associated exposures in the trading book and those in the banking book must be added together. short positions in the trading book may not be offset against long positions in the banking book.section 3 general exposure calculation art. 115 risk weighting, derivatives, loan, repo and repo-like transactions in securities and other instruments with counterparty credit risk exposure 1 the counterparty credit risk exposure for derivatives in the banking and trading books must be calculated in accordance with article 57.2 for non-linear derivatives in the trading book, the exposure shall additionally include the credit risk exposure of the underlying assets, assuming complete loss of value.3 the exposures for loan, repo and repo-like transactions with securities in the banking and trading books must be calculated using either the simplified or the comprehensive approach for calculating minimum capital; model-based approaches are not permitted. finma shall issue the implementing provisions.art. 116 other balance sheet items for balance sheet items in the banking book that are not covered by article 115, the carrying value in the accounts shall apply. individual value adjustments and individual provisions for balance sheet items may be deducted. alternatively, the bank may also use the gross value without deducting individual value adjustments and value changes.art. 117 off-balance sheet items 1 off-balance sheet items in the banking book shall be converted to their credit equivalent using the credit conversion factors under annex 1. individual value adjustments and individual provisions for off-balance sheet items may be deducted. for exposures under annex 1 no. 1.3, a credit conversion factor of 0.1 shall be applied instead of 0.0.2 for irrevocable loan commitments as part of a syndicated loan, the following credit conversion factors shall be applied:a. 0.1 from the time at which the bank provides the commitment, up to the time of acceptance and confirmation by the counterparty;b. 0.5 from the time at which the counterparty accepts the bank's commitment, up to the start of the syndication phase;c. 0.5 for the non-syndicated portion during the syndication phase, and 1 for the planned equity contribution;d. 1.0 for the entire non-syndicated portion after 90 days (residual risk).art. 118 finma's implementing provisions on calculating the different exposures 1 finma shall regulate the calculation of:a. exposures in the trading book;b. exposures to central counterparties;c. exposures in covered bonds;d. exposures in collective investment schemes, securitisations and other investment structures;e. other exposures.2 it shall base these provisions on the basel committee's minimum standards.section 4 risk mitigation art. 119 off-balance sheet transactions 1 the following may be included in the total exposure calculation:a. netting;b. guarantees;c. credit derivatives;d. collateral recognised under the bis sa.2 upon request, the banks must demonstrate to the audit firm or to finma that these risk mitigation instruments are legally enforceable in the jurisdictions concerned.3 finma shall issue technical implementing provisions based on the basel committee's minimum standards.arts. 120-123 repealedtitle 5 provisions for systemically important banks chapter 1 general provisions art. 12477 principle 1 in addition to the requirements applicable to all banks concerning capital and risk diversification under titles 2 to 4 of this ordinance, the special requirements of this title shall apply to systemically important banks.2 the amount of the special requirements shall be defined for the highest level of the financial group.3 the special requirements must be met by the entities listed below, at the level of the financial group, the level of each individual entity licensed under the banka78 and the level of each securities firm licensed under the finia:a. entities performing systemically important functions;b. the highest entity in a financial group, where the consolidation scope includes an entity under letter a;c. entities at the head of significant subordinate financial groups, where their consolidation scope includes an entity under letter a; andd. entities which, owing to their core function or their relative size, are significant for the financial group.794 in individual cases, finma may exempt entities which perform systemically important functions but whose direct share in the financial group's domestic systemically important functions does not exceed 5% in total, or whose significance for the continued performance of the financial group's systemically important functions is otherwise minor.8077 amended by no i of the o of 21 nov. 2018, in force since 1 jan. 2019 (as 2018 5241).78 sr 952.079 amended by no i of the o of 27 nov. 2019, in force since 1 jan. 2020 (as 2019 4623).80 inserted by no i of the o of 27 nov. 2019, in force since 1 jan. 2020 (as 2019 4623).art. 124a81 internationally active and non-internationally active systemically important banks 1 internationally active systemically important banks are those designated as global systemically important banks by the financial stability board.2 where a systemically important bank no longer qualifies as internationally active under paragraph 1, finma may continue to designate it as such if this is necessary owing to the scale of its activities abroad.3 other systemically important banks shall not be deemed to be internationally active.81 inserted by no i of the o of 11 may 2016, in force since 1 july 2016 (as 2016 1725).art. 12582 82 repealed by no i of the o of 21 nov. 2018, with effect from 1 jan. 2019 (as 2018 5241).art. 125a83 83 inserted by no i of the o of 11 may 2016 (as 2016 1725). repealed by no i of the o of 22 nov. 2017, with effect from 1 jan. 2018 (as 2017 7625).chapter 2 convertible capital and bail-in bonds84 84 amended by no i of the o of 11 may 2016, in force since 1 july 2016 (as 2016 1725). art. 126 convertible capital85 1 convertible capital shall be deemed to be capital within the meaning of article 11 paragraph 1 letter b in conjunction with article 13 of the banka and capital from write-down bonds in accordance with article 11 paragraph 2 of the banka that meets the criteria in this chapter.2 convertible capital shall be issued to investors outside the financial group by:a. the group parent company;b. a group company specially established for this purpose by financial groups and bank-dominated financial conglomerates; orc. another group company licensed by finma.85 amended by no i of the o of 11 may 2016, in force since 1 july 2016 (as 2016 1725).art. 126a86 bail-in bonds 1 bail-in bonds may be recognised as additional loss-absorbing funds under chapter 4 only if they:87a. are fully paid up;b. are issued by a swiss entity;c. are subject to swiss law and jurisdiction; if justified, finma may grant exemptions if it can be demonstrated that a conversion or write-off ordered by finma is enforceable in the jurisdictions concerned;d. are issued by the group parent company or, with finma approval and in accordance with international standards, are issued by a group company exclusively established for this purpose, provided it is ensured that the bonds can be used to absorb losses during restructuring;e. are legally or contractually subordinate to the issuer's other obligations, or structurally subordinate to the obligations of other group companies;f. do not contain an option for early termination by the creditors;g. cannot be offset or secured or guaranteed in a way that restricts their bail-in capacity;h. their terms and conditions contain a binding and irrevocable clause stating that creditors declare themselves in agreement with any potential conversion or write-off ordered by the supervisory authority during restructuring;i. do not contain derivatives transactions and, with the exception of hedging transactions, are not linked to derivatives transactions;j. were not purchased using either direct or indirect funding from the issuing bank or one of its group companies;k.88 were issued with the approval of finma or are part of a finma-approved annual issuance programme and may be redeemed before maturity only with finma approval, provided this would not cause the level of additional loss-absorbing funds to fall below the quantitative requirements.2 finma may deem loans that meet the criteria under paragraph 1 to be equivalent to bail-in bonds.3 the redemption/repayment of bail-in bonds or loans under paragraphs 1 and 2 that were issued with finma approval and are to be redeemed/repaid before their maturity/due date without finma approval must be reported to finma.8986 inserted by no i of the o of 11 may 2016, in force since 1 july 2016 (as 2016 1725).87 amended by no i of the o of 27 nov. 2019, in force since 1 jan. 2020 (as 2019 4623).88 amended by no i of the o of 27 nov. 2019, in force since 1 jan. 2020 (as 2019 4623).89 amended by no i of the o of 21 nov. 2018, in force since 1 jan. 2019 (as 2018 5241).art. 126b90 intra-group bail-in bonds 1 swiss entities of systemically important banks may recognise intra-group bail-in bonds as additional loss-absorbing funds under chapter 4 at a level below group parent company if these funds:a. meet the criteria under article 126a paragraph 1 letters a to c and f to i;b. are contractually subordinated to the issuer's other obligations;c. may be redeemed before maturity only with finma approval, provided this would not cause the level of additional loss-absorbing funds to fall below the quantitative requirements.2 finma may deem loans that meet the criteria under paragraph 1 to be equivalent to bail-in bonds.3 the debt instruments under paragraph 1 may be recognised in the amount of the receivable, provided they have a residual maturity of at least one year.90 inserted by no i of the o of 27 nov. 2019, in force since 1 jan. 2020 (as 2019 4623).art. 127 eligibility of convertible capital91 1 convertible capital may be recognised in the amount of certain capital components to the extent that it contributes to loss absorption when a trigger event occurs. the loss absorption must take the following forms:a. write-off as the result of a debt waiver;b. conversion into cet1 capital of the bank.2 finma shall grant the approval under article 11 paragraph 4 of the banka only if the bank demonstrates that the effects under the banka and its implementing ordinances will occur and that the requirements under corporate and capital market legislation are met.3 the convertible capital must meet at least the criteria for tier 2 capital within the meaning of article 30 of this ordinance.91 amended by no i of the o of 11 may 2016, in force since 1 july 2016 (as 2016 1725).art. 127a92 eligibility of bail-in bonds 1 bail-in bonds meeting the criteria under article 126a may be recognised as additional loss-absorbing funds under chapter 4 in the amount of the receivable, provided they have a residual maturity of at least one year.932 the maturities of the loss-absorbing funds shall be staggered so as to ensure that the requirements concerning the level of these funds can be met, even in the event of temporarily impaired borrowing conditions. a maximum of 25% of the requirements concerning additional loss-absorbing funds may be met with assets with a residual maturity between one and two years.943 where tier 2 capital in accordance with article 30 paragraph 2 is excluded as regulatory capital for a period of five years up to one year before final maturity, it can be recognised in the same way as bail-in bonds in accordance with international standards, provided it is ensured that these instruments will absorb losses ahead of bail-in bonds.4 systemically important banks may not hold at their own risk convertible or debt-reducing capital instruments of other banks, nor bail-in bonds of other swiss banks or foreign systemically important banks governed by swiss law or corresponding regulations in foreign jurisdictions. the following are exempt:a. exposures relating to the provision of bid and offer prices as a market maker, and short-term exposures relating to underwriting activities; andb. the holding of bail-in bonds under articles 37 and 38 in the bank's trading book, provided these bail-in bonds are resold within 30 business days of their purchase.9592 inserted by no i of the o of 11 may 2016, in force since 1 july 2016 (as 2016 1725).93 amended by no i of the o of 27 nov. 2019, in force since 1 jan. 2020 (as 2019 4623).94 amended by no i of the o of 27 nov. 2019, in force since 1 jan. 2020 (as 2019 4623).95 amended by no i of the o of 27 nov. 2019, in force since 1 jan. 2020 (as 2019 4623).chapter 396 going-concern capital of the bank 96 amended by no i of the o of 11 may 2016, in force since 1 july 2016 (as 2016 1725). art. 128 principle 1 systemically important banks must hold sufficient capital to continue operating even in the event of major losses.2 required capital shall be calculated according to:a. the leverage ratio; andb. the share in risk-weighted assets (rwa ratio).art. 129 total capital requirement 1 the total capital requirement is made up of a base requirement plus surcharges for market share and bank size as measured by total exposure.2 the base requirement shall amount to:a. 4.5% for the leverage ratio;b. 12.86% for the rwa ratio.3 for the purpose of determining the surcharges, finma shall periodically allocate the banks to buckets according to their market share and total exposure. the relevant values and the surcharges are set down in annex 9. the surcharges shall be determined annually at the end of the second quarter.4 market share is determined using whichever is the higher of the average market share in domestic lending business and the market share in domestic deposit-taking business based on the swiss national bank's statistical surveys on the reporting date at the end of the previous calendar year.5 the fdf shall regularly review the values and surcharges set down in annex 9 against system stability and the competitiveness of the systemically important banks, and shall apply to the federal council for any adjustments.9797 inserted by no i of the o of 27 nov. 2019, in force since 1 jan. 2020 (as 2019 4623).art. 130 minimum capital and the capital buffer 1 systemically important banks shall permanently hold minimum capital amounting to:a. 3% for the leverage ratio;b. 8% for the rwa ratio.2 in addition, they must hold a capital buffer up to the amount of the total requirement.3 the capital buffer should be complied with at all times. temporary shortfalls are permitted in the event of bank losses.4 if there is a temporary shortfall in the capital buffer, the bank must demonstrate what measures will be taken to restore it and by what deadline. finma shall approve the deadline. if the capital requirements are not met after the deadline has expired, finma may order the necessary measures.art. 131 capital quality to meet the requirements, the capital must be of at least the following quality:a. leverage ratio requirements:1. minimum capital: cet1 capital; to meet the minimum capital requirement, up to 1.5% may be used as at1 capital in the form of convertible capital that is triggered if the eligible cet1 capital falls below 7% of the rwa ratio (high-trigger convertible capital),2. capital buffer: cet1 capital;b. rwa ratio requirement:1. minimum capital: cet1 capital; up to 3.5% may be used as at 1 capital in the form of high-trigger convertible capital to comply with the minimum capital requirement,2. capital buffer: cet1 capital; up to 0.8% may be used as at1 capital in the form of high-trigger convertible capital to comply with the capital buffer.art. 131a countercyclical buffer in addition to the capital requirements as a measure of risk-weighted exposures under this title, the countercyclical buffer under articles 44 and 44a must be complied with.art. 131b additional capital in special circumstances, finma may require individual banks to hold additional capital according to the criteria under article 45, or may set higher quality requirements.chapter 498 additional loss-absorbing funds 98 originally before art. 133. amended by no i of the o of 11 may 2016, in force since 1 july 2016 (as 2016 1725). art. 13299 principle 1 systemically important banks must permanently hold additional funds to ensure resolution in accordance with sections 11 and 12 of the banka.2 the requirement concerning these additional funds is based on the total requirement comprising the base requirements and surcharges under article 129. it shall amount to:a. for an internationally active systemically important bank:1 for entities performing systemically important functions (art. 124 para. 3 lit. a): 62% of the total requirement at the level of the financial group and the individual entity,2 at the level of the highest entity in a financial group (art. 124 para. 3 lit. b) and significant subordinate financial groups (art. 124 para. 3 lit. c), unless the requirements under no. 1 apply: 100% of the total requirement minus the rebate under article 133,3 at the level of the individual entity under article 124 paragraph 3 letters c or d, the sum of:- the nominal amounts of additional loss-absorbing funds passed on to subsidiaries- 100% of the total requirement minus the rebate under article 133, except for financial interests subject to the consolidation requirement, including similarly recorded regulatory capital, and except for exposures from intra-group relationships, and- 30% of the consolidated requirements applicable to that entity;b. for a non-internationally active systemically important bank: 40% of the total requirement.1003 the additional funds must be held in the form of bail-in bonds meeting the criteria under article 126a. this is without prejudice to paragraphs 4 to 7 and article 132a.4 if a systemically important bank holds the additional funds in the form of cet1 capital or convertible capital that meets the requirements concerning at1 capital, the requirements under paragraph 2 shall be reduced by a factor of 0.5 for the amount of additional funds thus held. the requirements may be reduced by a maximum of one third.5 if an internationally active systemically important bank holds the additional funds in the form of capital under paragraph 4, these funds shall receive preferential treatment within the meaning of paragraph 4, up to a maximum of 2% for the leverage ratio and up to a maximum of 5.8% for the rwa ratio. the requirements concerning loss-absorbing capacity according to financial stability board recommendations101 must be complied with.6 capital held by a bank to meet the requirements under this chapter must not simultaneously be used to meet the requirements under articles 128 to 131b.7 if a bank has previously held capital to meet the requirements in this chapter, it may use now use it to meet the requirements under articles 128 to 131b only insofar as the requirements of this article continue to be met with the remaining funds.99 amended by no i of the o of 21 nov. 2018, in force since 1 jan. 2019 (as 2018 5241).100 amended by no i of the o of 27 nov. 2019, in force since 1 jan. 2020 (as 2019 4623).101 total loss-absorbing capacity term sheet of 9 november 2015art. 132a102 banks with a state guarantee or similar mechanism if a non-internationally active systemically important bank benefits from an explicit state guarantee or similar mechanism, the requirement under article 132 paragraph 2 letter b, in the amount of the guarantee:a. shall be deemed to be met up to a maximum of half the required 40%;b. shall be deemed to be fully met if, in a crisis situation, the corresponding funds are available to finma irrevocably and rapidly; finma shall decide whether these criteria are met on a case-by-case basis.102 inserted by no i of the o of 21 nov. 2018, in force since 1 jan. 2019 (as 2018 5241).art. 133 rebates for internationally active systemically important banks103 1 finma shall determine the rebate for measures to improve the overall resolvability of the financial group under articles 65 and 66 of the banko104 after consultation with the swiss national bank:a. based on the effectiveness of the measures to improve the overall resolvability of the financial group; andb. taking into account the interactions between the various rebate groups.2 for entities under article 124 paragraph 3 letters b to d, the level of the additional capital requirement taking account of the rebates and the reduced requirements owing to the preferential treatment of convertible capital under article 132 paragraph 4 must not fall below 3.75% for the leverage ratio and 10% for the rwa ratio.1053 the reduction may not result in:a.106 a shortfall with regard to the international standards, after the inclusion of cet1 capital or convertible capital under article 132 paragraph 4 has been taken into account;b. the implementability of the contingency plan being jeopardised.4 no rebates are granted for demonstrating that the contingency plan ensures the continued operation of systemically important functions in the event of impending insolvency under article 9 paragraph 2 letter d of the banka.5 finma may consult foreign supervisory and insolvency authorities regarding the bank's proposed measures and may take their evaluation into account when assessing the improvement in the financial group's overall resolvability with respect to the rebates on additional funds.103 amended by no i of the o of 21 nov. 2018, in force since 1 jan. 2019 (as 2018 5241).104 sr 952.02105 amended by no i of the o of 27 nov. 2019, in force since 1 jan. 2020 (as 2019 4623).106 amended by no i of the o of 21 nov. 2018, in force since 1 jan. 2019 (as 2018 5241).arts. 134 and 135 repealedchapter 5 special risk diversification requirements art. 136107 risk concentrations 1 a risk concentration may not exceed 25% of the adjusted eligible tier 1 capital under articles 31 to 40 which is not used to meet the additional loss-absorbing capital requirements.2 a risk concentration may not exceed 15% of the tier 1 capital under paragraph 1 in the case of:a. exposures to other systemically important banks under article 8 paragraph 3 of the banka;b. exposures to foreign systemically important banks that have been designated as global systemically important banks by the financial stability board.3 the upper limit under paragraph 2 must be complied with at the latest twelve months after:a. the designation of a bank as systemically important under article 8 paragraph 3 of the banka;b. the designation of a foreign bank as a global systemically important bank under paragraph 2 letter b.4 furthermore, article 99 applies by analogy.107 amended by no i of the o of 22 nov. 2017, in force since 1 jan. 2019 (as 2017 7625).title 6 transitional and final provisions chapter 1 transitional provisions section 1 transitional provisions of 1 june 2012108 108 inserted by attachment no i of the o of 11 may 2016, in force since 1 july 2016 (as 2016 1725). arts. 137 and 138109 109 repealed by no i of the o of 22 nov 2017, with effect from 1 jan 2019 (as 2017 7625).art. 139 entry into force of the capital adequacy requirement for exchange-traded derivatives and credit risk exposures to central counterparties finma shall set the starting date for compliance with the new provisions of the basel minimum standards on exchange-traded derivatives (art. 56 para. 4) and credit risk exposures to central counterparties (arts. 69 and 70).art. 140 eligible capital 1 capital instruments comprising at1 capital and tier 2 capital which were issued after 12 september 2010 and which do not meet the relevant new eligibility criteria for regulatory capital shall no longer qualify as capital from 1 january 2013. paragraph 3 is reserved.2 capital instruments which were issued before 12 september 2010 may be recognised subject to phasing out over a ten-year horizon in accordance with article 141 and shall no longer qualify as capital from 1 january 2022 at the latest.3 capital instruments comprising at1 capital and tier 2 capital which were issued between 12 september 2010 and 31 december 2011, and for which only the contractual provisions on impending insolvency (art. 29) are missing, may be recognised subject to phasing out in accordance with article 141.art. 141 eligibility of tier 1 capital and tier 2 capital under existing legislation 1 participation capital and other tier 1 capital components under existing legislation which now no longer qualify as cet1 capital or at1 capital and were issued before 12 september 2010 may be recognised over a maximum ten-year horizon in accordance with the provisions of paragraphs 6 and 7. this does not include participation capital of banks which are not organised as corporations; the participation capital of such banks may continue to be recognised as cet1 capital under the same mechanism.2 tier 2 capital under existing legislation which was issued before 12 september 2010 and does not qualify as tier 2 capital under this ordinance, may be recognised as tier 2 capital subject to phasing out in accordance with paragraph 1.3 with the entry into force of this ordinance, between 1 january 2013 and 31 december 2022 at the latest, regulatory capital shall be divided into the following components:a. cet1 capital as measured by the new provisions;b. at1 capital as measured by the new provisions;c. tier 1 capital under existing legislation: in accordance with paragraph 1;d. tier 2 capital as measured by the new provisions;e. tier 2 capital under existing legislation: in accordance with paragraph 2.4 until 31 december 2021 at the latest, the components under paragraph 3 letters b and c shall constitute at1 capital, and the components under letters d and e tier 2 capital.5 at the time of entry into force of this ordinance, all capital components under paragraphs 1 and 2 shall be quantified and added together for each category.6 the amounts determined in accordance with paragraph 5 on 1 january 2013 shall be reduced by 10% annually, starting on 1 january 2013. they shall constitute the upper limit for the maximum eligible capital components under existing legislation in the year concerned. they may be recognised only to the extent that the bank has outstanding capital instruments of the corresponding quality.7 if an existing capital instrument can no longer be recognised as at1 capital as a result of the phased reduction under paragraph 6, it may instead be recognised as tier 2 capital in the same amounts as have been derecognised from at1 capital, provided it meets the new criteria for tier 2 capital.art. 142 introductory phase for corrections 1 deductions that were not provided for under existing legislation shall be made from cet1 capital over a five-year horizon in increments of 20% annually, as follows:a. 20% of the relevant amount from 1 january 2014;b. 40% of the relevant amount from 1 january 2015;c. 60% of the relevant amount from 1 january 2016;d. 80% of the relevant amount from 1 january 2017; ande. 100% of the relevant amount from 1 january 2018.2 the portion of exposures under paragraph 1 that is not subject to deductions shall be recognised in required capital in accordance with the risk weighting under existing legislation.3 full or partial deductions from existing tier 1 capital under existing legislation shall be gradually changed over to deductions from cet1 capital using the increments in paragraph 1.4 for the portion of exposures under paragraph 3 that is not subject to a deduction, the deductions under existing legislation shall be continued over a five-year horizon in decrements of 20% annually, as follows:a. 100% of the relevant amount from 1 january 2013;b. 80% of the relevant amount from 1 january 2014;c. 60% of the relevant amount from 1 january 2015;d. 40% of the relevant amount from 1 january 2016;e. 20% of the relevant amount from 1 january 2017.5 the additional deduction under paragraph 4 shall be eliminated completely from 1 january 2018.6 up to 31 december 2017, threshold 3 (art. 35 para.4) shall be 15% of cet1 capital after taking account of all regulatory adjustments except the deduction from threshold 3.1107 new deductions from at1 capital or from tier 2 capital shall be made using the same phased procedure as in paragraphs 1 to 5.110 amended by annex 2 no 4 of the banking ordinance of 30 april 2014, in force since 1 jan. 2015 (as 2014 1269).arts. 143-147111 111 repealed by no i of the o of 11 may 2016, with effect from 1 july 2016 (as 2016 1725).art. 148112 112 repealed by no i of the o of 22 nov. 2017, with effect from 1 jan. 2019 (as 2017 7625).art. 148a113 113 inserted by annex 2 no 4 of the banking ordinance of 30 april 2014 (as 2014 1269). repealed by no i of the o of 11 may 2016, with effect from 1 july 2016 (as 2016 1725).section 2114 transitional provisions to the amendment of 11 may 2016 114 inserted by no i of the o of 11 may 2016, in force since 1 july 2016 (as 2016 1725). art. 148b capital quality 1 as regards required capital quality under article 131, instruments shall be recognised as follows:a: high-trigger convertible capital qualifying as tier 2 capital which is held at the time this amendment enters into force: recognised as high-trigger convertible capital in the form of at1 capital for the period of its maturity or up to the time of the first capital call, but at the latest until 31 december 2019;b. low-trigger convertible capital qualifying as at1 capital which is held at the time this amendment enters into force: recognised as high-trigger convertible capital in the form of at1 capital up to the time of the first capital call;c. convertible capital that no longer qualifies under letter a: recognised as funds used to meet the requirements under articles 132 and 133 up to one year before final maturity;d. convertible capital that no longer qualifies under letter b: recognised as funds used to meet the requirements under articles 132 and 133 up to the time of any termination by the bank.2 as regards required capital quality under article 131, convertible capital with a 5% trigger and issued before the entry into force of the amendment on 1 july 2016 shall be recognised as follows:a: where it qualifies as tier 2 capital: recognised as high-trigger convertible capital in the form of at1 capital for the period of its maturity or up to the time of the first capital call, but at the latest until 31 december 2019;b. where it qualifies as at1 capital: recognised as high-trigger convertible capital in the form of at1 capital up to the time of the first capital call;c. where it no longer qualifies under letters a and b: recognised as funds used to meet the requirements under articles 132 and 133 up to one year before final maturity.art. 148c going-concern capital of the bank 1 with the entry into force of the amendment on 1 july 2016, the requirement under article 129 shall be 3% for the leverage ratio and 10.75% for the rwa ratio. a maximum of 0.70% of at1 capital in the form of high-trigger convertible capital may be recognised for the leverage ratio, and a maximum of 2.625% for the rwa ratio.2 in 2017, the requirement under article 129 shall be 3.5% for the leverage ratio and 12.0% for the rwa ratio. a maximum of 0.9% of at1 capital in the form of high-trigger convertible capital may be recognised for the leverage ratio, and a maximum of 3% for the rwa ratio.3 in 2018, the requirement under article 129 shall be 4.0% for the leverage ratio and 12.86% for the rwa ratio. a maximum of 1.1% of at1 capital in the form of high-trigger convertible capital may be recognised for the leverage ratio, and a maximum of 3.4% for the rwa ratio.4 in 2019, the base requirement under article 129 must be met for the leverage ratio, and the base requirement under article 129 plus half the surcharges for market share and total exposure must be met for the rwa ratio. a maximum of 1.3% of at1 capital in the form of high-trigger convertible capital may be recognised for the leverage ratio, and a maximum of 3.9% for the rwa ratio.art. 148d additional loss-absorbing funds 1 with the entry into force of the amendment on 1 july 2016, the requirement under article 132 shall be 1.0% for the leverage ratio and 3.5% for the rwa ratio.2 in 2017, the requirement under article 132 shall be 1.875% for the leverage ratio and 5.84% for the rwa ratio, plus a quarter of the surcharges for market share and total exposure.3 in 2018, the requirement under article 132 shall be 2.75% for the leverage ratio and 8.18% for the rwa ratio, plus half the surcharges for market share and total exposure.4 in 2019, the requirement under article 132 shall be 3.625% for the leverage ratio and 10.52% for the rwa ratio, plus three quarters of the surcharges for market share and total exposure.5 the reduction in requirements in accordance with paragraphs 1 to 4 as a result of a rebate under article 133 remains reserved.art. 148e bail-in bonds issued before the entry into force of the amendment of 11 may 2016 1 finma shall retroactively approve the bail-in bonds issued by internationally active banks as defined in article 124a before the entry into force of the amendment on 1 july 2016, subject to the criteria under article 126a being met.2 up to 31 december 2012, bail-in bonds issued by a special purpose entity may also be approved.art. 148f extended countercyclical buffer measured in terms of weighted exposures, the maximum extended countercyclical buffer may amount to:a. with the entry into force of the amendment on 1 july 2016: 0.625%;b. in 2017: 1.25%;c. in 2018: 1.875%.section 3115 transitional provision to the amendment of 23 november 2016 115 inserted by no i of the o of 23 nov. 2016, in force since 1 jan. 2017 (as 2016 4683).art. 148g116 1 for the purposes of determining the capital requirement, the credit equivalents of derivatives must be calculated in accordance with articles 56 to 59 at the latest 36 months after the entry into force of the amendment of 23 november 2016.2 the exposures in the exposure class under article 63 paragraph 3 letter fbis must be weighted in accordance with article 66 paragraph 3bis at the latest 36 months after the entry into force of the amendment of 23 november 2016.3 up to 31 december 2019, the conversion of derivatives into their credit equivalent within the scope of title 4 may also be carried out using the market valuation method or the standardised method in accordance with articles 56 to 58 in the version of 1 july 2016.117 finma may extend this deadline.116 amended by no i of the o of 22 nov. 2017, in force since 1 jan. 2018 (as 2017 7625).117 as 2012 5441section 4118 transitional provision to the amendment of 22 november 2017 118 inserted by no i of the o of 22 nov. 2017, in force since 1 jan. 2018 (as 2017 7625).art. 148h banks which expect or suspect that, from 1 january 2019, they will impermissibly breach the upper limit on risk concentrations (arts. 97 to 99) shall report this to finma within three months after the entry into force of the amendment of 22 november 2017.section 5119 transitional provision to the amendment of 21 november 2018 119 inserted by no i of the o of 21 nov. 2018, in force since 1 jan. 2019 (as 2018 5241).art. 148i treatment of participations individual transitional rules on the treatment of participations that were set by finma before the entry into force of the amendment of 21 november 2018 shall take precedence over the provisions of article 32 paragraph j and annex 4.art. 148j additional funds for non-internationally active systemically important banks the requirement under article 132 paragraph 2 letter b shall amount to:a. in 2019: 0.21% for the leverage ratio and 0.64% for the rwa ratio;b. in 2020: 0.42% for the leverage ratio and 1.28% for the rwa ratio;c. in 2021: 0.63% for the leverage ratio and 1.92% for the rwa ratio;d. in 2022: 0.84% for the leverage ratio and 2.56% for the rwa ratio;e. in 2023: 1.05% for the leverage ratio and 3.2% for the rwa ratio;f. in 2024: 1.26% for the leverage ratio and 3.84% for the rwa ratio;g. in 2025: 1.5% for the leverage ratio and 4.5% for the rwa ratio, plus half the surcharges for market share and total exposure.section 6120 transitional provisions to the amendment of 27 november 2019 120 inserted by no i of the o of 27 nov. 2019, in force since 1 jan. 2020 (as 2019 4623).art. 148k calculation methods for derivatives 1 up to 31 december 2021, banks in categories 4 and 5 under annex 3 of the banko121 may also use the market valuation method in accordance with article 57 in the version of 1 july 2016122 to convert derivatives into their credit equivalents within the scope of titles 3 and 4.1bis the deadline in accordance with paragraph shall be extended to 31 december 2023.1232 this also applies to banks in category 3 under annex 3 of the banko which do not have significant derivatives exposures. finma shall issue technical implementing provisions.121 sr 952.02122 as 2012 5441123 inserted by no i 6 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400).art. 148l additional funds for internationally active systemically important banks the requirement under article 132 paragraph 2 letter a number 3 third indent shall amount to:a. in 2020: 0%;b. in 2021: 5%;c. in 2022: 10%;d. in 2023: 20%.art. 148m rebates for internationally active systemically important banks in 2020 and 2021, the requirements under article 133 paragraph 2 may not fall below 3% for the leverage ratio and 8.6% for the rwa ratio.chapter 2 final provisions art. 149 repeal of existing legislation the capital adequacy ordinance of 29 september 2006124 is repealed.124 [as 2006 4307, 2008 5363 annex no 8, 2009 6101, 2010 5429 and 2012 3539]art. 150 amendment of existing legislation the amendment of existing legislation is regulated in annex 6.art. 151 commencement 1 this ordinance enters into force on 1 january 2013, subject to paragraphs 2 and 3.2 article 43 enters into force on 1 january 2016.3 the entry into force of the provisions of title 5, with the exception of articles 126 and 127, is conditional on approval by the federal assembly.125125 approved by the fa on 18 sept. 2012 (bbl 2012 8395).annex 1126 126 revised by annex 2 no 4 of the banking ordinance of 30 april 2014, in force since 1 jan. 2015 (as 2014 1269). the correction of 10 may 2016 relates to the french text only (as 2016 1359).(art. 54 para. 1)credit conversion factors when using the bis standardised approach no.contingent funding obligations and irrevocable commitmentscredit conversion factorsbis sa1.loan commitments1.1with firm commitment and agreed original maturity of less than one year0.201.2with firm commitment and agreed original maturity of one year or more0.501.3that are unconditionally cancellable at any time, or provide for automatic cancellation due to deterioration in the borrower's creditworthiness0.002.builder warranties for construction work in switzerland and abroad0.503.self-liquidating guarantees from goods trade transactions0.203.1short-term self-liquidating trade letters of credit, e.g. documentary credits collateralised by the underlying shipment0.204.initial and variation margin obligations4.1on equity securities not recorded as participations in the balance sheet1.004.2on equity securities that are not participations subject to consolidated reporting1.004.3on equity securities that are not participations subject to consolidated reporting or equity securities in the insurance sector1.005.warranties5.1transaction-related contingent liabilities, e.g. performance bonds, bid bonds, warranties and standby letters of credit related to particular transactions0.505.2note issuance facilities (nifs) and revolving underwriting facilities (rufs)0.506.other contingent liabilities1.006.1direct credit substitutes, e.g. general guarantees of indebtedness including standby letters of credit serving as financial guarantees for loans and securities, and acceptances including endorsements with the character of acceptances1.006.2other contingent liabilities1.00comments:other contingent liabilities (under no. 6.2) contain, in particular:1. - sale and repurchase agreements and asset sales with recourse, where the credit risk remains with the bank [paragraph 83(ii) of the basel ii framework];- lending of securities and posting of securities as collateral, including instances where these arise out of repo-style transactions, e.g. repurchase/reverse repurchase and securities lending/borrowing transactions [paragraph 84 of the basel minimum standards];- forward asset purchases, forward forward deposits and partly paid shares and securities which represent commitments with certain drawdown [paragraph 84(i) of the basel ii framework];2. where there is an undertaking to provide a commitment on an off-balance sheet item, banks may use the lower of the two applicable credit conversion factors [paragraph 86 of the basel ii framework].annex 2127 127 revised by annex 2 no 4 of the banking ordinance of 30 april 2014, in force since 1 jan. 2015 (as 2014 1269).(art. 66 para. 1)exposure classes under the bis sa when using external ratings and their risk weights no.exposure classes (bis sa) for which external ratings can be usedrating category1234567unratedfixed1.central governments and central banks1.1central governments and central banks0%0%20%50%100%100%150%100%-1.2confederation and swiss national bank, where the asset is denominated and refinanced in domestic currency--------0%2.public sector entities2.1public sector entities20%20%50%100%100%150%150%100%-2.2unrated public sector entities, where they have tax-collecting powers or where their obligations have a full and unlimited guarantee from a public body--------50%2.3unrated cantons--------20%3.bis, imf and multilateral development banks3.1multilateral development banks20%20%50%50%100%100%150%50%-3.2bank for international settlements (bis), international monetary fund (imf), certain multilateral development banks designated by finma--------0%4.banks and securities firms4.1banks and securities firms, original asset maturity < 3 months20%20%20%20%50%50%150%20%-4.2banks and securities firms, original asset maturity > 3 months20%20%50%50%100%100%150%50%-5.community bodies5.1banks' community bodies recognised by finma20%20%50%100%100%150%150%100%-5.2payment obligations to the agency of the deposit protection scheme--------20%6.stock exchanges, clearing houses and central counterparties6.1stock exchanges, clearing houses and central counterparties20%20%50%100%100%150%150%100%-6.2central counterparties, where credit risks are directly linked to the central counterparty's guarantee of payment performance for exchange-traded or over-the-counter contracts (especially derivatives, repos or repo-like transactions for which the central counterparty guarantees performance of the obligation over the entire maturity).--------2%6.3stock exchanges and clearing houses, where credit risks are directly linked to the central counterparty's guarantee of payment performance for transactions for which the central counterparty guarantees only the settlement (especially spot transactions).--------0%7.corporates20%20%50%100%100%150%150%100%-annex 3128 128 the correction of 9 april 2019 concerns the italian text only (as 2019 1203).(art. 66 para. 2)exposure classes under the bis sa without the use of external ratings and their risk weights exposure classes (bis sa) without external ratingsrisk weightbis sa1.private individuals and small businesses (retail)1.1retail exposures, where the total value of the exposures under article 49 paragraph 1 to a counterparty, excluding residential mortgage-backed securities, does not exceed chf 1.5 million and 1% of all retail exposures75%1.2other retail exposures100%2.mortgage bonds (pfandbrief bonds)2.1domestic pfandbrief bonds20%3.direct and indirect mortgage-backed exposures3.1residential real estate in switzerland and abroad, up to two thirds of the market value35%3.2residential real estate in switzerland and abroad, over two thirds and up to 80% of the market value75%3.3residential real estate in switzerland and abroad, over 80% of the market value100%3.4other real estate and buildings100%4.subordinated exposures4.1subordinated exposures to public sector entities with a maximum risk weight under annex 2 (bis sa) of 50%are weighted in the same way as unsubordinated exposures4.2other subordinated exposures5.past-due exposures5.1the exposures under 3.1, corrected for individual value adjustments; mortgage-backed exposures under 3.2 to 3.4 shall be deemed unsecured100%5.2the unsecured exposure components, corrected for individual value adjustments, where the individual value adjustments amount to at least 20% of the outstanding amount100%5.3the unsecured exposure components, corrected for individual value adjustments, where the individual value adjustments amount to less than 20% of the outstanding amount150%6.other exposures6.1liquid assets, excluding exposures under annex 2 no. 6.20%6.2credit equivalents from initial and variation margin obligations100%6.3other exposures (incl. accruals and deferrals)100%annex 4129 129 revised by no i of the o of 23 nov. 2016 (as 2016 4683) and no ii of the o of 21 nov. 2018, in force since 1 jan. 2019 (as 2018 5241).(art. 32 let. j and 66 para. 3)risk weighting of equity securities and units of collective investment schemes under the bis sa exposure class: equity securities and units of collective investment schemesrisk weightbis sa1.1equity securities held as financial investments or - where the bank applies the de minimis approach - in the trading booktraded on a regulated stock exchangeyes100%no 150%1.2.1.3.1.4participations outside the banking, financial and insurance sectorstraded on a regulated stock exchangeyes100%no150%1.5participations in the banking, financial and insurance sectors, where these are not deducted from cet1 or at1 capital or weighted at 250% in accordance with article 40 paragraph 2150%1.6as part of the individual entity calculation: the net long positions of direct or indirect participations calculated in accordance with article 52 in companies subject to consolidated financial reporting, with registered office:in switzerland: 250%abroad: 400%1.7as part of the individual entity calculation: the net long positions of direct or indirect regulatory capital instruments calculated in accordance with article 52 in companies subject to consolidated financial reporting, with registered office:in switzerland: 250%abroad: 400%annex 5 (art. 84 para. 1)rates for calculating the minimum capital requirement for specific risk in interest rate instruments according to the standardised approach for market risk categoryrating categoryratecentral governments andcentral banks1 or 2 0.00%3 or 4 0.25% (residual maturity < 6 months) 1.00% (residual maturity > 6 months and < 24 months) 1.60% (residual maturity > 24 months)5 or 6 8.00%712.00%unrated 8.00%eligible interest rate instruments (art. 4 lit. g) 0.25% (residual maturity < 6 months) 1.00% (residual maturity > 6 months and < 24 months 1.60% (residual maturity > 24 months)other5 8.00%6 or 712.00%unrated 8.00%annex 6 (art. 150)amendment of existing legislation .130130 the amendment may be consulted under as 2012 5441.annex 7131 131 inserted by no i of the o of 13 feb. 2013 (as 2013 693). repealed by no i of the o of 27 march 2020, with effect from 28 march 2020 (as 2020 1105).annex 8132 132 inserted by no ii of the o of 11 may 2016, in force since 1 july 2016 (as 2016 1725).(art. 43 para. 1)minimum capital, capital buffer and total capital ratio (in % of risk-weighted exposures)category under annex 3 of the banko1331 and 2345minimum capital8.0%- of which cet14.5%- of which at1 or higher1.5%- of which t2 or higher2.0%capital buffer 4.8% 4.0% 3.2% 2.5%- of which cet1 3.7% 3.3% 2.9% 2.5%- of which at1 or higher 0.5% 0.3% 0.1%-- of which t2 or higher 0.6% 0.4% 0.2%-total capital ratio12.8%12.0%11.2%10.5%133 sr 952.02annex 9134 134 inserted by no ii of the o of 11 may 2016 (as 2016 1725). revised by no ii of the o of 27 nov. 2019, in force since 1 jan. 2020 (as 2019 4623).(art. 129)surcharges 1 surcharges for market share 1.1 market share of up to 27% bucketmarket sharelr surchargerwa ratio surchargem1< 12% 0%0%m2< 17% 0.125%0.36%m3< 22% 0.25%0.72%m4< 27% 0.375%1.08%1.2 market share of 27% or more for every additional 5 percentage points of market share, the requirement increases by 0.125 percentage points for the leverage ratio and by 0.36 percentage points for the rwa ratio.2 surcharges for total exposure 2.1 total exposure of up to chf 1,341 billion bucket total exposure lr surcharge rwa ratio surcharge g1 < chf 697 billion0% 0% g2 < chf 912 billion0.125% 0.36% g3 < chf 1,127 billion0.25% 0.72% g4< chf 1,341 billion0.375% 1.08% 2.2 total exposure exceeding chf 1,341 billion for every additional chf 215 billion of total exposure, the requirement increases by 0.125 percentage points for the leverage ratio and by 0.36 percentage points for the rwa ratio.

952.05 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinanceof the swiss financial market supervisory authority on the insolvency of banks and securities firms1(finma banking insolvency ordinance, bio-finma)of 30 august 2012 (status as of 1 january 2021)1 term in accordance with annex no 3 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327). this amendment has been made throughout the text.the swiss financial market supervisory authority (finma),based on articles 28 paragraph 2 and 34 paragraph 3 of the banking act of 8 november 19342 (banka), article 67 of the financial institutions act of 15 june 20183 (finia), and article 42 of the mortgage bond act of 25 june 19304 (mba),5decrees:2 sr 952.0 3 sr 954.14 sr 211.423.45 amended by annex no 3 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).chapter 1 general provisions art. 1 object this ordinance defines restructuring proceedings and bankruptcy proceedings under articles 28-37g banka.art. 2 scope of application 1 in this ordinance, banks are:6a.banks under the banka;b.7securities firms and fund management companies under the finia;c.central mortgage bond institutions under the mba.2 the provisions on bank restructuring (arts. 40-57) do not apply to individuals and legal entities operating without the requisite licence. finma may declare them applicable where there is sufficient public interest.6 amended by annex no 3 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).7 amended by annex no 3 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).art. 3 universality 1 if bankruptcy proceedings or restructuring proceedings are opened, they cover all realisable assets in a bank's possession at the time in question, regardless of whether they are located in switzerland or abroad.2 all swiss and foreign creditors of the bank and its foreign branches are equally entitled to participate in bankruptcy proceedings or restructuring proceedings opened in switzerland and enjoy the same privileges.3 the assets of a branch of a foreign bank operating in switzerland include all assets in switzerland and abroad that are constituted by parties acting on behalf of that branch.art. 4 public notices and communications 1 public notices are published in the swiss official gazette of commerce and on the finma website.2 communications are sent directly to creditors whose name and address are known. if it simplifies the proceedings, finma may require creditors domiciled or residing abroad to appoint an authorised person for service in switzerland. for reasons of urgency or to simplify the procedure, direct communications may be dispensed with.3 with regard to deadlines and the legal consequences associated with a public notice, publication in the swiss official gazette of commerce is the deciding factor.art. 5 inspection of documents 1 any person making a credible claim that their financial interests are directly affected by the restructuring or the bankruptcy is entitled to inspect documents relating to the restructuring or the bankruptcy, although professional confidentiality in accordance with article 47 banka and article 69 finia must be observed wherever possible.82 the right to inspect documents may be restricted to specific stages of the proceedings, or it may be limited or refused where opposing interests take precedence.3 any person granted the right to inspect documents may only use the information received through inspecting documents to protect their own immediate financial interests.4 the right to inspect documents may be made dependent on a declaration which states the information inspected may only be used to protect the individual's own immediate financial interests. in the event of any failure to comply, reference may be made in advance to the criminal penalties under article 48 of the financial market supervision act of 22 june 20079 and article 292 of the swiss criminal code10.5 the restructuring agent or bankruptcy administrator and, following completion of the restructuring proceedings or bankruptcy proceedings, finma shall decide on the right to inspect documents.8 amended by annex no 3 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).9 sr 956.110 sr 311.0art. 6 complaints to finma 1 any person whose interests are adversely affected by a decision, an act or an omission by a person who was entrusted with tasks in accordance with this ordinance may make a complaint to finma.2 any decisions made by these persons are not regarded as rulings and the complainants are not deemed to be parties within the meaning of the federal act of 20 december 196811 on administrative procedure.3 finma shall assess the facts reported, take the necessary measures and issue a ruling if required. 11 sr 172.021art. 7 insolvency venue 1 the insolvency venue is the location of the registered office of the bank or the swiss branch of a foreign bank.2 if a bank has more than one registered office or a foreign bank has more than one swiss branch, there will only be one insolvency venue. this venue shall be determined by finma.3 in the case of individuals, the insolvency venue is the person's business domicile at the time the bankruptcy proceedings or restructuring proceedings are opened.art. 8 book claims and liabilities the bank's claims and liabilities are deemed to be book claims and liabilities where the bank's books are kept properly and the bankruptcy liquidator is genuinely able to discern that the claim or liability exists and the extent to which they exist.art. 9 coordination finma and the restructuring agent or bankruptcy liquidator shall coordinate their actions as far as possible with authorities and governing bodies in switzerland and abroad.art. 10 recognition of foreign bankruptcy decrees and measures 1 where finma recognises a foreign bankruptcy decree or a foreign insolvency measure in accordance with article 37g banka, the provisions of this ordinance apply to the assets located in switzerland.2 even if there are no reciprocal rights, finma may meet recognition requests where this is in the interests of the creditors affected.3 it shall determine one insolvency venue in switzerland and the privileged creditors under article 37g paragraph 4 banka.4 it shall give public notice of the recognition and the circle of creditors.chapter 2 bankruptcy section 1 procedure art. 11 publication and notice to creditors 1 finma shall inform the bank of the bankruptcy order and give public notice of it together with notice to creditors.2 public notice shall be given of the following details in particular:a.the bank's name as well as its registered office and branches;b.the date and time of the opening of bankruptcy proceedings;c.the bankruptcy venue;d.the name and address of the bankruptcy liquidator;e.a notice to creditors and persons who have claims to assets held with the bank instructing them to register their claims, together with proof of the same, with the bankruptcy liquidator within a specific deadline;f.a reference to claims that qualify as registered under article 26;g.a reference to the surrender and reporting obligations under articles 17-19.3 the bankruptcy liquidator may provide known creditors with a copy of the notice.art. 12 appointing a bankruptcy liquidator 1 finma shall issue a ruling appointing a bankruptcy liquidator unless it is to carry out the liquidator's duties itself.2 where finma appoints a bankruptcy liquidator, it must ensure when making its choice that the liquidator has sufficient time and expertise to perform the mandate diligently, efficiently and effectively and is not subject to any conflict of interests that might compromise his or her ability to perform the mandate.3 it specifies the details of the task, in particular regarding the bankruptcy liquidator's costs, reporting and control.art. 13 the bankruptcy liquidator's tasks and powers the bankruptcy liquidator conducts the proceedings. in particular, he or she must:a.create the technical and administrative conditions for conducting the bankruptcy;b.secure and realise the bankruptcy assets;c.put in place the executive management required for the bankruptcy proceedings;d.represent the bankruptcy assets and other authorities before the courts;e.ensure, in conjunction with the agency of the deposit protection scheme, that the deposits protected under article 37h banka are identified and paid out.art. 14 assembly of creditors 1 if the bankruptcy liquidator deems it necessary to convene an assembly of creditors, he or she shall submit a request to this effect to finma. the latter shall stipulate the powers of the assembly of creditors as well as the quorum and voting majority requirements.2 all creditors are entitled to attend or be represented at the assembly. in cases of doubt, the bankruptcy liquidator decides on admission.3 the bankruptcy liquidator chairs the hearing and reports on the bank's assets and the progress of the proceedings.4 the creditors may pass resolutions by circular vote. creditors who do not expressly reject the bankruptcy liquidator's proposal within the specified deadline are regarded as being in agreement with it.art. 15 committee of creditors 1 finma decides, at the request of the bankruptcy liquidator, on the appointment, composition, tasks and powers of a committee of creditors.2 if the agency of the deposit protection scheme has paid out a substantial amount of privileged assets under article 37h banka, it must nominate a person to represent its interests on the committee of creditors.3 finma determines the chair, the voting procedure and the compensation of the individual members.section 2 bankruptcy assets art. 16 inventory 1 the bankruptcy liquidator draws up an inventory of the bankruptcy assets.2 the inventory is drawn up in accordance with articles 221 to 229 of the federal act of 11 april 188912 on debt enforcement and bankruptcy (deba), unless this ordinance provides otherwise.3 the assets held in custody that are to be segregated under article 37d banka and investment funds that are to be segregated under article 40 finia must be recorded in the inventory at their market value at the time the bankruptcy proceedings were opened. the inventory shall refer to the following claims that conflict with segregation:a.bank claims against the depositors;b.claims by the fund management company against the investment fund.134 the bankruptcy liquidator shall submit a request to finma for the measures required to secure the bankruptcy assets.5 he or she shall forward the inventory to the banker or a person selected by the bank's owners to act as the bank's agent. this person must confirm that the inventory is complete and correct. their confirmation must be recorded in the inventory.12 sr 281.113 amended by annex no 3 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).art. 17 surrender and reporting obligation 1 the bank's debtors and persons who have taken possession of the bank's assets through a pledge or for any other reason must report to the bankruptcy liquidator within the deadline specified in article 11 paragraph 2 letter e and release the assets to him or her.2 claims for which the right to offset has been asserted must still be reported.3 any existing pre-emptive right lapses in the event of an unjustifiable failure to report or surrender.art. 18 exceptions to the obligation to surrender 1 securities and other financial instruments serving as collateral need not be surrendered provided the legal conditions for the collateral recipient to take responsibility for their realisation are met.2 however, these assets must be reported, together with proof of the right to realise them, to the bankruptcy liquidator, who shall make a note of them in the inventory.3 the collateral recipient must agree a settlement with the bankruptcy liquidator over the proceeds from the realisation of these assets. any surplus accrues to the bankruptcy assets.art. 19 exceptions to the obligation to report finma may waive the requirement for debtors to be reported in respect of book claims.art. 20 segregation 1 the bankruptcy liquidator checks the surrender of assets claimed by third parties.2 if he or she believes a surrender claim to be justified, the bankruptcy liquidator shall offer the creditors the opportunity to demand assignment of their right to object under article 260 paras. 1 and 2 deba14 and set a reasonable deadline for this purpose.3 if he or she believes a surrender claim to be unjustified, or if creditors have demanded assignment of their right to object, the bankruptcy liquidator shall set the person making the claim a deadline for filing an action before the court at the bankruptcy venue. if the deadline is allowed to expire, the surrender claim is regarded as waived.4 in the case of assignment, the action must be filed against the assignee creditors. the bankruptcy liquidator shall provide the third party with the details of the assignee creditors when setting the deadline.14 sr 281.1art. 20a15 segregation in the bankruptcy of a fund management company 1 if the continuation of an investment fund is in the interests of the investors, the bankruptcy liquidator shall request finma to transfer the investment fund concerned with all its rights and obligations to another fund management company.2 if no other fund management company is prepared to take over the investment fund, the bankruptcy liquidator shall request finma to liquidate the investment fund concerned as part of the bankruptcy of the fund management company.15 inserted by annex no 3 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).art. 21 assets due, bankruptcy estate and contestation 1 claims falling due to the bankruptcy assets are collected by the bankruptcy liquidator, through debt enforcement if necessary.2 the bankruptcy liquidator shall check claims on the part of the bankruptcy assets for movable assets in the custody or co-custody of a third party or land entered in the land register in the name of a third party.3 he or she shall also check if legal transactions under articles 285 to 292 deba16 may be contested. the duration of any prior restructuring proceedings or any prior order for protective measures under article 26 paragraph 1 letters e-h banka are not taken into account in the deadlines under articles 286 to 288 deba.4 if the bankruptcy liquidator intends to pursue a contested claim in accordance with paragraph 2 or 3 through the actions process, he or she shall obtain approval and appropriate instructions from finma.5 if the bankruptcy liquidator does not file a claim, he or she shall give the creditors the opportunity to demand assignment within the meaning of article 260 paragraphs 1 and 2 deba or to realise the claims in question and any other entitlements under article 31.6 if he or she gives the creditors the opportunity to demand assignment, he or she shall set them an appropriate deadline.7 realisation in accordance with article 31 is not permitted in the case of contested claims under paragraph 3 or responsibility claims under article 39 banka.16 sr 281.1art. 22 continuation of ongoing proceedings under civil and administrative law 1 the bankruptcy liquidator shall assess claims on the part of the bankruptcy assets that are already the subject of proceedings under civil and administrative law at the time the bankruptcy proceedings are opened and submit a request to finma for the continuation of these proceedings.2 if finma rejects a request for continuation, the bankruptcy liquidator shall give the creditors the opportunity to demand assignment of their right to continue proceedings within the meaning of article 260 paragraphs 1 and 2 deba17 and set a reasonable deadline for this purpose.17 sr 281.1art. 23 discontinuation due to lack of assets 1 if the bankruptcy assets are not sufficient to continue the bankruptcy proceedings, the bankruptcy liquidator shall submit a request to finma to discontinue the proceedings.2 finma shall continue the proceedings in exceptional cases, in particular where there is a special interest in doing so, even if the bankruptcy assets are not sufficient.3 if finma intends to discontinue proceedings, it shall give public notice of this fact, stating that it will continue them if a creditor can provide security for the costs of the proceedings not covered by the bankruptcy assets within a specified deadline. finma shall set the deadline as well as the type and amount of the security.4 if the required security is not provided within the deadline, all pledgees may demand realisation of the assets pledged in their favour by finma within a deadline specified by the latter. finma shall instruct a bankruptcy liquidator to proceed with the realisation.5 in the case of legal entities, finma shall order the realisation of assets that are not subject to a demand for realisation from a pledgee within the specified deadline. any proceeds remaining after the realisation costs and any encumbrances attached to individual assets are covered go to the federal government once the costs incurred by finma have been covered.6 where bankruptcy proceedings against individuals are discontinued, the debt enforcement procedure is governed by article 230 paragraphs 3 and 4 deba18.18 sr 281.1section 3 bankruptcy liabilities art. 24 groups of creditors 1 where a joint claim against the bank exists, the group shall be treated as a creditor in its own right, separate from its individual members.2 solidary claims shall be attributed to the solidary creditors in equal shares, provided the bank has no setting-off right. the shares are treated as claims on the part of each individual solidary creditor.art. 25 privileged deposits 1 under article 37a banka privileged deposits are:a.client claims arising from banking or securities dealing operations that are booked or should be booked as liabilities from client deposits in the balance-sheet;b.medium-term notes booked as medium-term notes in the balance sheet that are deposited at the bank in the depositor's name.192 within the meaning of article 37a banka privileged deposits are not:a.bearer claims;b.medium-term notes that are not held at the bank;c.contractual and non-contractual compensation claims such as compensation claims for custody assets no longer at the bank's disposal in accordance with article 37d banka.3 claims on the part of bank foundations under article 5 paragraph 2 of the ordinance of 13 november 198520 on tax-deductible contributions to recognised forms of retirement provision and on the part of vested benefits foundations under article 19 paragraph 2 of the vested benefits ordinance of 3 october 199421 qualify as deposits belonging to the individual pension fund members and policy holders. however, these claims shall be paid out to the respective bank foundation or vested benefits foundation.19 amended by no i of the finma ordinance of 27 march 2014, in force since 1 jan. 2015 (as 2014 1309).20 sr 831.461.321 sr 831.425art. 26 verification of claims 1 the bankruptcy liquidator shall verify the claims registered and those to be considered by law. he or she may make enquiries personally and ask the creditors to provide additional proof.2 the following claims shall be considered by law:a.land register claims, complete with accrued interest; andb.book claims under article 8.3 the bankruptcy liquidator obtains a statement of claims that are not book claims from the banker or from a person selected by the bank's owners to act as the bank's agent. art. 27 schedule of claims 1 the bankruptcy liquidator shall decide whether, to what extent and with what rank claims are recognised and shall draw up the schedule of claims.2 if the bankruptcy assets include land, he or she shall draw up a schedule of the encumbrances on that land such as rights of lien, easements, land charges and priority notices. this schedule shall form part of the schedule of claims.3 the bankruptcy liquidator may with finma's consent draw up a separate schedule of claims for claims secured by a registered pledge if systemic risks can only be restricted by doing so.art. 28 claims subject to proceedings under civil and administrative law 1 claims that are already the subject of proceedings under civil or administrative law at the time the bankruptcy proceedings are opened in switzerland must initially be marked in the schedule of claims pro memoria.2 if the bankruptcy liquidator opts not to continue the proceedings under civil and administrative law, he or she shall give the creditors the opportunity to demand assignment in accordance with article 260 paragraph 1 deba22.3 unless proceedings under civil and administrative law are continued by the bankruptcy assets or by individual assignee creditors, the claim is deemed to be recognised, and the creditors no longer have any right to contest it via an action to contest the schedule of claims.4 where proceedings are continued by individual assignee creditors, the amount by which the success of these proceedings reduces the subordinated creditors' share of the bankruptcy assets serves to satisfy the assignee creditors up to the full coverage of their collocated claims as well as the cost of the proceedings. any surplus accrues to the bankruptcy assets.22 sr 281.1art. 29 inspection of the schedule of claims 1 the creditors may inspect the schedule of claims under article 5 for a period of at least 20 days.2 the bankruptcy liquidator shall give public notice of when and how the schedule of claims may be inspected.3 he or she may provide for inspection at the bankruptcy office in the bankruptcy venue.4 the bankruptcy liquidator shall inform every creditor whose claim was not collocated as registered or as a book or land register claim why the claim was rejected in full or in part.art. 30 actions to contest the schedule of claims 1 actions to contest the schedule of claims are governed by article 250 deba23.2 the deadline for actions runs from the point when the schedule of claims may first be inspected.23 sr 281.1section 4 realisation art. 31 type of realisation 1 the bankruptcy liquidator shall decide on the type and timing of realisation and shall carry it out.2 pledged assets may not be realised by means other than a public auction except with the pledgees' consent.3 assets may be realised without delay if they:a.are subject to rapid depreciation;b.generate unreasonably high administrative costs;c.are traded on a representative market; or d.are of insignificant value.art. 32 public auction 1 public auctions are held in accordance with articles 257-259 deba24 unless this ordinance specifies otherwise.2 the bankruptcy liquidator shall conduct the auction. he or she may set a reserve price for the first auction in the terms and conditions.3 he or she shall give public notice that the terms and conditions may be inspected. he or she may provide for inspection at the bankruptcy or debt enforcement office at the bankruptcy venue.24 sr 281.1art. 33 assignment of legal claims 1 in the certificate of assignment pertaining to a legal claim on the part of the bankruptcy assets within the meaning of article 260 deba25, the bankruptcy liquidator shall specify the deadline within which the assignee creditors must assert their claim before the court. if the deadline is allowed to expire, the assignment lapses.2 the assignee creditors shall report without delay the outcome of their assertion to the bankruptcy liquidator and, following completion of the bankruptcy proceedings, to finma.3 where no creditor demands assignment or the deadline expires without the claim being asserted, the bankruptcy liquidator and, following completion of the bankruptcy proceedings, finma shall decide on any further realisation of the legal claims in question.25 sr 281.1art. 34 contestation of realisation actions 1 the bankruptcy liquidator shall periodically draw up a realisation plan containing information on the bankruptcy assets awaiting realisation and the nature of their realisation.2 realisation actions that may proceed without delay in accordance with article 31 need not be included in the realisation plan.3 the assignment of legal claims under article 33 does not constitute a realisation action.4 the bankruptcy liquidator forwards the realisation plan to the creditors and sets them a deadline within which they may demand a contestable ruling from finma on individual realisation actions contained therein.section 5 distribution art. 35 bankruptcy liabilities the following liabilities are covered first from the bankruptcy assets in the order listed:a.liabilities under article 37 banka and under article 43 of this ordinance;b.liabilities incurred by the bankruptcy assets during the proceedings;c.all costs incurred through the opening and conduct of the bankruptcy proceedings;d.liabilities towards a third-party custodian under article 17 paragraph 3 of the book entry securities act of 3 october 200826.26 sr 957.1art. 36 distribution 1 the bankruptcy liquidator may provide for provisional distributions. he or she shall draw up a provisional distribution list for this purpose and forward it to finma for approval.2 if all assets have been realised and all processes relating to the calculation of assets and liabilities have been completed, the bankruptcy liquidator shall draw up the final distribution list as well as the final accounts and forward these to finma for approval. the proceedings conducted by individual creditors under article 260 deba27 may be disregarded.3 once the distribution list has been approved, the bankruptcy liquidator shall pay out to the creditors.4 no payout is made for claims:a.whose existence or amount has not been definitively established;b.whose beneficiaries are not definitively known;c.that are partially covered by collateral outside switzerland or under article 18 that has not been realised; ord.that are likely to be partially covered by a pending settlement in foreign foreclosure proceedings connected to the bank bankruptcy.5 if a separate schedule of claims is drawn up in accordance with article 27 paragraph 3, the bankruptcy liquidator may with finma's consent carry out the distribution once this ordinance has entered into force, and independently of the entry into force of the schedule of claims regarding the remaining claims.27 sr 281.1art. 37 certificate of loss 1 creditors may demand a certificate of loss under article 265 deba28 for the amount of their claim that remains outstanding from the bankruptcy liquidator and, following completion of the bankruptcy proceedings, from finma against payment of a flat fee.2 the bankruptcy liquidator shall inform the creditors of this option when paying out their share.28 sr 281.1art. 38 depositing 1 subject to the rules on dormant assets, finma shall issue the necessary instructions for depositing the shares not yet paid out as well as the segregated custody assets not yet surrendered.2 deposited assets that become free or are not withdrawn after 10 years shall be realised and distributed in accordance with article 39 unless special legislation provides otherwise.art. 39 assets discovered after the fact 1 if assets or other legal claims that have not previously been included in the bankruptcy assets are discovered within 10 years of the bankruptcy proceedings being completed, finma shall appoint a bankruptcy liquidator to restart the bankruptcy proceedings without further formalities.2 assets discovered after the fact or legal claims shall be distributed to creditors who suffered a loss and for whom the bankruptcy liquidator has the details needed to make the payout. the bankruptcy liquidator may ask creditors to provide up-to-date details, stating that these are required in connection with their claim. he or she shall set a reasonable deadline for this purpose.3 where it is clear that the costs incurred through restarting the bankruptcy proceedings will not be covered or will only be marginally exceeded by the expected proceeds from realising the assets discovered after the fact, finma may refrain from restarting the proceedings. in such cases, it shall pass the assets discovered after the fact to the federal government.chapter 3 restructuring section 1 procedure art. 40 prerequisites 1 the prospect of restructuring the bank or continuing individual banking services is justified if, at the time of the decision, there is sufficient evidence that:a.the creditors are likely to fare better from the restructuring than from the bankruptcy; andb.the restructuring plan is feasible in terms of time and scope.2 there is no automatic entitlement to opening restructuring proceedings.art. 41 opening 1 finma opens the restructuring proceedings with a ruling.2 it shall give public notice of the opening immediately.3 in its opening ruling, it shall specify whether existing protective measures under article 26 banka are to be maintained or altered, or replaced by new ones.4 when it opens the restructuring proceedings, it may also already approve the restructuring plan.art. 42 restructuring agent 1 finma shall issue a ruling appointing a restructuring agent, unless it is to carry out these duties itself.2 where finma appoints a restructuring agent, it must ensure when making its choice that the agent has sufficient time and expertise to carry out the mandate diligently, efficiently and effectively and is not subject to any conflict of interests that might compromise its ability to perform the mandate.3 it shall determine the restructuring agent's powers and whether he or she is authorised to act in place of the bank's governing bodies. during the duration of the restructuring proceedings, he or she may in particular make commitments pertaining to the restructuring to be honoured by the bank.4 finma shall specify the details of the task, in particular with regard to the restructuring agent's costs, reporting and control.art. 43 liabilities during the restructuring proceedings during the restructuring proceedings, liabilities into which the bank enters with the restructuring agent's consent shall, in the event that restructuring fails, be satisfied before all other claims in the ensuing bankruptcy proceedings.art. 44 restructuring plan 1 the restructuring plan shall set out the basic elements of the restructuring, the bank's future capital structure and business model after the restructuring, and explains how it fulfils the conditions for approval under article 31 paragraph 1 banka.2 the restructuring plan shall also provide information on the following elements:a.future compliance with the licensing requirements;b.the bank's assets and liabilities;c.the bank's future organisation and management and, if the bank is part of a banking group or a banking conglomerate, the future organisation of the group or conglomerate;d.whether and how the restructuring plan affects the rights of the bank's creditors as well as the owners;e.whether the bank's right to contest legal acts and assert civil responsibility claims under article 32 banka are excluded;f.which current members of the bank's governing bodies are to retain responsibility for its management, and why this is in the interests of the bank, its creditors and its owners;g.the severance settlements for departing members of governing bodies;h.those transactions which require an entry in the commercial register or in the land register; andi.the provisions in sections 3 and 4 of this chapter which are to be applied to a specific restructuring case.3 finma may request that the restructuring plan provide information on additional elements.section 2 approval of the restructuring plan art. 45 approval 1 finma shall approve the restructuring plan with a ruling if the conditions stipulated in the banka and this ordinance are met.2 it shall give public notice of the approval and the basic features of the restructuring plan, stating how the affected creditors and owners can inspect the plan.3 if the restructuring plan orders the transfer of land, the granting of in rem rights and obligations over land or changes in the share capital, these orders shall have direct effect with the approval of the restructuring plan. the required entries in the land register, the commercial register or in any other register shall be made as soon as possible.2929 the correction of 6 sept. 2016, concerns french text only (as 2016 3099).art. 46 rejection by creditors 1 where the restructuring plan provides for an intervention into creditors' rights, finma sets the creditors a deadline at the latest with the approval of the restructuring plan within which they can reject it. the deadline is of at least ten working days. the transfer of liabilities and contractual relationships and the change of debtor involved do not infringe upon the rights of the creditors.2 creditors wishing to reject the plan must do so in writing. they must give their name and address as well as the amount of their claim at the time of opening the restructuring proceedings, and the reasons for it. the rejection letter must be sent to the restructuring agent.section 3 corporate actions art. 47 general provisions 1 if the restructuring plan allows corporate actions in accordance with this section, it is necessary to ensure that:a.the creditors' interests take precedence over the interests of the owners and the hierarchy of creditors is respected;b.the provisions of the swiss code of obligations30 apply mutatis mutandis.2 where granting pre-emption rights may endanger the restructuring, they may be denied to the owners. 30 sr 220art. 48 principles for converting debt capital into equity capital 1 if the restructuring plan provides for the conversion of debt capital into equity capital then:a.sufficient debt capital must be converted into equity capital to ensure that the bank holds the required capital to continue its business activities after the restructuring is completed;b.share capital must be completely written down before converting debt capital into equity capital;c.debt capital may be converted into equity capital only if the debt instruments issued by the bank which are part of additional core capital or supplementary capital have already been converted into equity capital, in particular contingent convertible bonds; d.the following order of rank shall be observed when converting debt capital into equity capital where claims of the next rank are only converted if the conversion of claims of the previous rank does not suffice to meet the capital adequacy requirements in accordance with letter a:1.subordinated claims without capital adequacy eligibility,2.other claims not excluded from the conversion, with the exception of deposits, and3.deposits, in so far as they are not privileged. art. 49 convertibility of claims all debt capital may be converted into equity capital. the following are excluded:a.privileged claims in classes 1 and 2 according to article 219 paragraph 4 deba31 and article 37a paragraph 1-5 banka to the extent that they are classed as preferential; andb.secured claims to the extent that they are secured and offsettable claims to the extent that they are offsettable, if the creditor can credibly demonstrate the existence, amount and fact that the claim is object of a relevant agreement, or this is evident from the bank's books.31 sr 281.1art. 50 reduction in claims in addition to or instead of converting debt capital into equity capital, finma may order a partial or full reduction in claims. article 48 letters a-c and article 49 apply equally.section 4 continuation of certain banking services art. 51 continuation of banking services 1 where the restructuring plan provides for individual banking services or groups of services to be continued and for certain bank assets or contractual relationships to be transferred to another legal entity, including a bridge bank, it must in particular:a.name the legal entity or entities to which such banking services and assets are to be transferred;b.describe the assets, liabilities and contractual relationships to be transferred and the compensation to be provided for them;c.describe the banking services that are to be continued and transferred;d.list the corporate actions undertaken and, where banking services are to be transferred to a bridge bank, describe how assets and liabilities will be shared between the bank and the bridge bank;e.stipulate an obligation on the bank's part to take any action necessary to ensure that all of the assets and objects to be transferred, including in particular those located abroad or subject to foreign law, can be transferred to the other legal entity;f.explain whether compensation is to be paid, how such compensation is to be calculated and whether a maximum compensation amount is to be imposed; g.explain whether systems and applications will be used jointly by the bank and the other legal entity and, if banking services are to be continued by a bridge bank, how the latter will be guaranteed access to payment transaction and financial market infrastructure and how it will be able to use this; h.describe how to preserve the legal and economic connections between assets, liabilities and contractual relationships, thereby ensuring that only the following can be transferred:1.all claims and liabilities on the bank's part vis--vis a counterparty or several counterparties that can be offset, in particular those that are subject to a netting agreement,2.secured claims and liabilities together with their collateral, and3.structured financing arrangements or comparable capital market agreements to which the bank is a party, together with all rights and obligations pertaining to them.2 as soon as the approved restructuring plan is enforceable, or in the case of a systemically important bank once the restructuring plan has been approved, all transferred assets or contractual relationships, together with all rights and obligations pertaining to them at the time of the approval of the restructuring plan, pass to the new legal entity or entities.art. 52 bridge bank 1 the bridge bank serves to ensure the temporary continuation of individual banking services transferred to it.2 finma shall grant the bridge bank a licence with a fixed term of two years. it may deviate from the licensing requirements when granting it. the licence may be extended.chapter 432 protecting systems and financial market infrastructure 32 amended by annex 2 no ii 1 of the finma financial market infrastructure ordinance of 3 dec. 2015, in force since 1 jan. 2016 (as 2015 5509). art. 53 repealedart. 54 binding nature of instructions to a central counterparty, a central custodian or a payment system 1 the following measures may restrict the legally binding nature of an instruction within the meaning of article 89 paragraph 2 of the financial market infrastructure act of 19 june 201533 (finmia):a.the opening of bankruptcy proceedings under articles 33-37g banka; andb.protective measures under article 26 paragraph 1 letters f-h banka.2 in its ruling, finma shall expressly order the time from when the measures under paragraph 1 apply.33 sr 958.1art. 55 netting agreements netting agreements under article 27 paragraph 1 banka include the following in particular: a.netting provisions in bilateral agreements or in framework agreements;b.offsetting and netting provisions as well as default agreements of central counterparties, central custodians or payment systems under article 89 paragraph 1 finmia34.34 sr 958.1chapter 5 stay on early termination rights35 35 amended by no i of the finma ordinance of 9 march 2017, in force since 1 april 2017 (as 2017 1675). art. 5636 contracts 1 the requirement set out in article 12 para. 2bis of the banking ordinance of 30 april 201437 (bo) applies to:a.contracts for the purchase, sale, lending or repurchase agreements relating to certificated securities, uncertificated securities or intermediated securities and corresponding transactions involving indices containing these underlying assets, as well as options in relation to such underlying assets;b.contracts for the purchase and sale with future delivery, lending or repurchase agreements relating to commodities and corresponding transactions involving indices containing these underlying assets, as well as options in relation to such underlying assets;c.contracts for the purchase, sale or transfer of commodities, services, rights or interest at a future date and at a predetermined price (futures contracts);d.contracts for swap transactions relating to interest, foreign exchange, currencies and commodities as well as to certificated securities, uncertificated securities, intermediated securities, the weather, emissions or inflation, and corresponding transactions involving indices containing these underlyings, including credit derivatives and interest rate options; e.interbank borrowing agreements;f.other contracts with the same effect as those listed under letters a-e;g.contracts in accordance with letters a-f in the form of master agreements;h.contracts in accordance with letters a-g entered into by foreign group entities guaranteed or otherwise secured by a bank or securities firm domiciled in switzerland.2 the requirement set out in article 12 para. 2bis bo does not apply to:a.contracts which provide for the termination or exercise of rights pursuant to article 30a para. 1 ba which are neither directly nor indirectly triggered by actions taken by finma in accordance with the eleventh section of the banking act;b.contracts which are concluded or settled directly or indirectly through a financial market infrastructure or organised trading facility;c.contracts with central banks;d.contracts of group entities which are not active in the financial services sector;e.contracts with counterparties that are not companies within the meaning of article 77 of the financial market infrastructure ordinance of 25 november 201538;f.contracts relating to the placement of financial instruments in the market;g.amendments to existing contracts which become effective pursuant to their terms and conditions and without further action by the parties.36 amended by no i of the finma ordinance of 9 march 2017, in force since 1 april 2017 (as 2017 1675).37 sr 952.0238 sr 958.11art. 5739 39 repealed by annex 2 no ii 1 of the finma financial market infrastructure ordinance of 3 dec. 2015, with effect from 1 jan. 2016 (as 2015 5509).chapter 6 completion of proceedings art. 58 concluding report 1 the bankruptcy liquidator or the restructuring agent shall report to finma, summarising the progress of the bankruptcy proceedings or the restructuring proceedings.2 the bankruptcy liquidator's concluding report shall also contain the following information:a. details of the completion of all processes relating to the calculation of the assets and liabilities;b. details of the status of the legal claims assigned to creditors under article 260 deba40; andc. a list of the shares not yet paid out as well as the segregated custody assets not yet surrendered, complete with an explanation as to why no payout or surrender has been possible to date.3 finma shall give public notice that the bankruptcy proceedings or the restructuring proceedings have been completed.40 sr 281.1art. 59 document archiving 1 finma shall determine how the insolvency and business documentation is to be archived following completion of the bankruptcy proceedings or the restructuring proceedings.2 the insolvency documentation and the remaining business documentation shall be destroyed on finma's instructions 10 years after completion of the bankruptcy proceedings or the restructuring proceedings.3 any special legislation providing otherwise for the archiving of individual documents applies notwithstanding.chapter 7 final provisions art. 60 repeal and amendment of prior legislation 1 the finma bankruptcy ordinance of 30 june 200541 is repealed.2 .4241 [as 2005 3539, 2008 5613 no i 3, 2009 1769]42 the amendment may be consulted under as 2012 5573.art. 61 transitional provisions the provisions of this ordinance apply to proceedings pending in court when this ordinance comes into force.art. 61a43 transitional provisions to the amendment of 9 march 2017 1 the requirements set out in article 12 para. 2bis bo44 in conjunction with article 56 must be met: a.within twelve months of this amendment coming into effect for the conclusion or amendment of contracts with banks and securities firms or with counterparties who would qualify as such if they were domiciled in switzerland;b.within 18 months of this amendment coming into effect for the conclusion or amendment of contracts with other counterparties.2 finma may extend the implementation deadline for individual institutions where this is justified.43 inserted by no i of the finma ordinance of 9 march 2017, in force since 1 april 2017 (as 2017 1675).44 sr 952.02art. 62 commencement this ordinance comes into force on 1 november 2012.

954.1english is not an official language of the swiss confederation. this translation is provided for information purposes only, has no legal force and may not be relied on in legal proceedings.federal act on financial institutions(financial institutions act, finia)of 15 june 2018 (status as of 1 august 2021)the federal assembly of the swiss confederation,based on articles 95 and 98 paragraphs 1 and 2 of the federal constitution1,and having considered the federal council dispatch of 4 november 20152,decrees:1 sr 1012 bbl 2015 8901chapter 1 general provisions section 1 subject matter, purpose and scope of application art. 1 subject matter and purpose 1 this act governs the requirements for acting as a financial institution.2 its purpose is to protect the investors and clients of financial institutions and ensure the proper functioning of the financial market.art. 2 scope of application 1 financial institutions within the meaning of this act are as follows, irrespective of their legal form:a. portfolio managers (article 17 paragraph 1); b. trustees (article 17 paragraph 2);c. managers of collective assets (article 24);d. fund management companies (article 32);e. securities firms (article 41).2 this act does not apply to: a. persons who manage solely the assets of persons with whom they have business or family ties;b. persons who manage assets solely within the context of employee participation schemes;c. lawyers, notaries and their auxiliaries insofar as their activity is subject to professional confidentiality in accordance with article 321 of the swiss criminal code3 or article 13 of the lawyers act of 23 june 20004, as well as the legal entities into which these persons are organised;d. persons who manage assets within the framework of a legally regulated mandate;e. the swiss national bank and the bank for international settlements;f. occupational pension schemes and other occupational pension institutions (occupational pension schemes), employer-sponsored foundations (employer-sponsored welfare funds); employers who manage the assets of their occupational pension schemes; employer and employee associations which manage the assets of their association schemes;g. social security institutions and compensation funds;h. insurance companies as defined in the insurance supervision act of 17 december 20045;i public insurance institutions in accordance with article 67 paragraph 1 of the federal act of 25 june 19826 on occupational old age, survivors' and invalidity pension provision;j. banks pursuant to the banking act of 8 november 19347 (banka). 3 sr 311.04 sr 935.615 sr 961.016 sr 831.407 sr 952.0art. 3 commerciality within the meaning of the present act, the criterion of a commercial basis is deemed satisfied by an independent economic activity pursued on a permanent, for-profit basis.art. 4 group parent companies and significant group companies 1 the following are subject to the insolvency law measures under article 67 paragraph 1 provided they are not subject to the bankruptcy jurisdiction of the swiss financial market supervisory authority (finma) within the scope of the supervision of the individual institution:a. group parent companies of a financial group or financial conglomerate which have their registered office in switzerland;b. those group companies which have their registered office in switzerland and perform significant functions for activities which require authorisation (significant group companies).2 the federal council shall set the criteria for assessing significance.3 finma shall identify significant group companies and keep a publicly accessible list of said companies.section 2 common provisions art. 5 duty to obtain authorisation 1 financial institutions under article 2 paragraph 1 require authorisation from finma. 2 they may be entered in the commercial register only after authorisation has been granted.3 financial institutions in accordance with article 2 paragraph 1 letter c that are already subject to other equivalent official supervision in switzerland are exempt from the duty to obtain authorisation.art. 6 authorisation chain 1 authorisation to operate as a bank within the meaning of the banka8 also authorises an entity to operate as a securities firm, a manager of collective assets, a portfolio manager and a trustee.2 authorisation to operate as a securities firm under article 41 letter a also authorises an entity to operate as a manager of collective assets, a portfolio manager and a trustee.93 authorisation to operate as a fund management company also authorises an entity to operate as a manager of collective assets and a portfolio manager.4 authorisation to operate as a manager of collective assets also authorises an entity to operate as a portfolio manager. 8 sr 952.09 amended by no i 7 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).art. 7 authorisation conditions 1 any party that meets the conditions set out in this section and the specific conditions that apply to individual financial institutions is entitled to authorisation.2 portfolio managers and trustees submitting an application for authorisation are required to provide proof that they are subject to supervision by a supervisory organisation in accordance with article 43a of the financial market supervision act of 22 june 200710 (finmasa).3 the federal council may define additional authorisation conditions if this is necessary for implementing recognised international standards.10 sr 956.1art. 8 change in facts 1 the financial institution shall notify finma of any changes in the facts on which its authorisation is based. 2 if the changes are of material significance, the financial institution must obtain prior authorisation from the supervisory authority in order to pursue its activity.art. 9 organisation 1 the financial institution must establish appropriate corporate management rules and be organised in such a way that it can fulfil its statutory duties. 2 it shall identify, measure, control and monitor its risks, including legal and reputational risks, and organise effective internal controls. 3 the federal council shall set the minimum organisational requirements to be satisfied by financial institutions, taking into account their different business activities and sizes as well as the risks.art. 10 place of management 1 the financial institution must effectively be managed from switzerland. general directives and decisions within the context of group supervision are excluded if the financial institution forms part of a financial group that is subject to appropriate consolidated supervision by foreign supervisory authorities.2 the persons entrusted with managing the financial institution must be resident in a place from which they may effectively exercise such management.art. 11 guarantee of irreproachable business conduct 1 the financial institution and the persons responsible for its administration and management must provide a guarantee of irreproachable business conduct.2 moreover, the persons responsible for the administration and management of the financial institution must enjoy a good reputation and have the specialist qualifications required for their functions. 3 qualified participants in a financial institution must also enjoy a good reputation and ensure that their influence is not detrimental to prudent and sound business activity.4 persons who directly or indirectly hold at least 10% of the share capital or votes or who can significantly influence its business activity in another manner are deemed to be qualified participants in a financial institution.5 each person must notify finma before directly or indirectly acquiring or disposing of a qualified participation in accordance with paragraph 4 in a financial institution. this mandatory notification also applies if a qualified participation is increased or reduced in such a way as to reach, exceed or fall below the thresholds of 20%, 33% or 50% of the share capital or votes.6 the financial institution shall notify finma of the persons who meet the conditions of paragraph 5 as soon as it becomes aware of the same.7 portfolio managers and trustees are exempt from the requirements of paragraphs 5 and 6.8 qualified participants in portfolio managers and trustees are permitted to perform management dutiesart. 12 public offer of securities on the primary market persons operating primarily in the financial sector may perform the following activities only if they have authorisation as a securities firm as defined in this act or as a bank in accordance with the banka11:a. underwriting securities issued by third parties and offering these to the public on a primary market on a commercial basis; b. creating derivatives in the form of securities and offering these to the public on the primary market on a commercial basis.11 sr 952.0art. 13 protection against confusion and deception 1 the name of the financial institution must not lead to confusion or deception.2 the terms portfolio manager, trustee, manager of collective assets, fund management company or securities firm may be used, alone or in compound terms, in the company name, in the description of its business purpose or in commercial documents only if the corresponding authorisation has been obtained. the foregoing is without prejudice to article 52 paragraph 3 and article 58 paragraph 3.art. 14 delegation of tasks 1 financial institutions may delegate a task solely to third parties that possess the necessary skills, knowledge and experience and that have the required authorisations. they shall carefully instruct and supervise the appointed third parties.2 finma may make the delegation of investment decisions to a person located abroad subject to an agreement on cooperation and information exchange between finma and the competent foreign supervisory authority, in particular if such an agreement is required under the other country's legislation.art. 15 international business a financial institution must notify finma before: a. establishing, acquiring or closing a foreign subsidiary, branch or representation;b. acquiring or surrendering a qualified participation in a foreign company.art. 1612 ombudsman financial institutions that provide financial services under article 3 letter c of the financial services act of 15 june 201813 (finsa) must affiliate to an ombudsman as stipulated in the provisions of title 5 of the finsa at the latest on assuming their activity.12 amended by no i 7 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 feb. 2021 (as 2021 33; bbl 2020 233).13 sr 950.1chapter 2 financial institutions section 1 portfolio managers and trustees art. 17 definitions 1 a portfolio manager is a person mandated to manage assets on a commercial basis in the name of and on behalf of clients within the meaning of article 3 letter c items 1 to 4 finsa14. 2 a trustee is a person who on a commercial basis manages or holds a separate fund for the benefit of the beneficiaries or for a specified purpose based on the instrument creating a trust within the meaning of the hague convention of 1 july 198515 on the law applicable to trusts and on their recognition.14 sr 950.115 sr 0.221.371art. 18 legal form 1 portfolio managers and trustees which have their registered office or place of residence in switzerland must have one of the following legal forms: a. sole proprietorship; b. commercial enterprise;c. cooperative.2 portfolio managers and trustees must be listed in the commercial register. art. 19 tasks 1 the portfolio manager manages individual portfolios.2 the trustee manages the separate fund, ensures its value is maintained and employs it for the specified purposes.3 portfolio managers and trustees may also provide the following services in particular:a. investment advice;b. portfolio analysis;c. offering of financial instruments.art. 20 qualified managers 1 the management body of a portfolio manager or trustee entity must consist of at least two qualified persons. 2 the management body may consist of only one qualified person subject to proof that continuation of business operations on a going concern basis is guaranteed. 3 a person is deemed qualified to manage business operations if they have received appropriate training in the activities of a portfolio manager or trustee and at the time of assuming management duties has had sufficient professional experience in portfolio management for third parties or within the framework of trusts. the federal council shall regulate the details. art. 21 risk management and internal control 1 portfolio managers and trustees must have an appropriately defined risk management system in place as well as an effective internal control structure to ensure, among other requirements, compliance with legal and internal provisions.2 the tasks of risk management and internal control may be carried out by a qualified manager or delegated to one or more suitably qualified employees or to a qualified external entity.3 persons who carry out the tasks of risk management and internal control may not be involved in the activities which they supervise.art. 22 minimum capital and collateral 1 the minimum capital of portfolio managers and trustees must amount to chf 100,000 and be paid up in cash. the minimum capital requirement must be complied with at all times.2 portfolio managers and trustees must have adequate collateral or take out professional liability insurance. 3 the federal council shall set the amount of collateral and the sum to be insured under professional liability insurance. art. 23 own funds 1 portfolio managers and trustees must have sufficient own funds.2 own funds must at all times amount to at least one quarter of the fixed costs reported in the most recent annual financial statement and no more than chf 10 million. section 2 managers of collective assets art. 24 definition 1 a manager of collective assets is a person who manages assets on a commercial basis in the name and on behalf of:a. collective investment schemes;b. occupational pension schemes. 2 portfolio managers within the meaning of article 17 paragraph 1 are:a. managers of collective assets in accordance with paragraph 1 letter a whose investors are qualified within the meaning of article 10 paragraph 3 or 3ter of the collective investment schemes act of 23 june 200616 and fulfil one of the following conditions:1. the assets of collective investment schemes under their management, including the assets acquired through the use of leveraged finance, amount in total to no more than chf 100 million.2. the assets of collective investment schemes under their management do not exceed chf 500 million in total and do not include leveraged financial instruments. the collective investment schemes give no right to redemption in the first five years after making the first investment.b. managers of collective assets in accordance with paragraph 1 letter b who manage the assets of occupational pension schemes totalling no more than chf 100 million and in the mandatory segment manage no more than 20% of the assets of an individual occupational pension scheme.3 portfolio managers in accordance with paragraph 2 may request authorisation as managers of collective assets provided this is required by the state where the collective investment scheme is established or offered or where the occupational pension scheme is managed. the federal council shall regulate the details.16 sr 951.31art. 25 legal form managers of collective assets who have their registered office in switzerland must have the legal form of a commercial enterprise.art. 26 tasks 1 managers of collective assets are responsible for the portfolio and risk management of the assets entrusted to them.2 in addition, managers of collective assets may conduct fund business, in particular, for foreign collective investment schemes. if the foreign country's law requires an agreement on cooperation and information exchange between finma and the foreign supervisory authorities of relevance for the fund business, they may perform this business only where such an agreement exists.3 managers of collective assets may also perform administrative activities within the scope of these tasks.art. 27 delegation of tasks 1 managers of collective assets may delegate tasks to third parties, provided this is in the interests of efficient management.2 any person who delegates the management of the assets of an occupational pension scheme or collective investment scheme to a manager of collective assets remains responsible for adhering to the relevant investment guidelines.art. 28 minimum capital and collateral 1 managers of collective assets must possess the required minimum capital. this must be fully paid up.2 finma may permit managers of collective assets in the form of partnerships to provide appropriate collateral instead of minimum capital.3 the federal council shall regulate the amount of the minimum capital and of the collateral. it may furthermore make the granting of authorisation contingent upon possession of professional liability insurance. art. 29 own funds 1 managers of collective assets must possess an appropriate level of own funds.2 the federal council shall set the amount of own funds based on the business activity and the risks.art. 30 group and conglomerate supervision where a financial group is dominated by a manager of collective assets or a financial conglomerate is dominated by a manager of collective assets, finma may make these subject to group or conglomerate supervision, provided this is in accordance with recognised international standards.art. 31 change of manager of collective assets a manager of collective assets shall give advance notice of the assumption of its rights and obligations by another manager of collective assets to the relevant supervisory authority for the collective investment scheme or occupational pension scheme. section 3 fund management companies art. 32 definition a fund management company is an entity that manages investment funds independently in its own name and for the account of investors.art. 33 legal form and organisation 1 the fund management company must be a company limited by shares that has its registered office and head office in switzerland.2 the share capital shall be divided into registered shares.3 the persons managing the fund management company and the custodian bank must be independent of each other's company.4 the main purpose of the fund management company is to conduct the fund business; this consists of the offering of units in the investment fund and its management and administration.art. 34 tasks in addition to conducting activities in accordance with the present act, the fund management company may perform the following other services, in particular:a. the safekeeping and technical management of collective investment schemes;b. the administration of an investment company with variable capital (sicav).art. 35 delegation of tasks 1 the fund management company may not delegate the management of the investment fund to third parties. however, it may delegate investment decisions as well as specific tasks to third parties, provided this is in the interests of efficient management.2 in the case of collective investment schemes for which the facilitated offering of shares exists in the european union based on a treaty, investment decisions may not be delegated to either the custodian bank or any other companies whose interests may conflict with those of the manager of collective assets or the fund management company or the investors.art. 36 minimum capital 1 the fund management company must possess the required minimum capital. this must be fully paid up.2 the federal council shall regulate the amount of the minimum capital. art. 37 own funds 1 there must be an appropriate ratio between the fund management company's own funds and the overall assets of the collective investment schemes under its management. the federal council shall specify this ratio.2 in special cases, finma may ease the requirements, provided this does not adversely affect the protective purpose of this act, or it may order more stringent requirements.3 the fund management company may not invest the prescribed level of its own funds in fund units that it has issued itself or lend its own funds to its shareholders or any natural or legal person with whom they have business or family ties. the holding of liquid funds with the custodian bank shall not constitute a loan.art. 38 rights 1 the fund management company is entitled to:a. receive the fees stipulated in the fund contract;b. an exemption from any liabilities which may have arisen in the course of the proper execution of its tasks;c. receive reimbursement of the expenses incurred in connection with such liabilities.2 these payments are made from the assets of the investment fund. investors are not held personally liable.art. 39 change of fund management company 1 the rights and duties of the fund management company may be transferred to another fund management company.2 in order to be effective, the transfer agreement between the outgoing and incoming fund management company must be made in writing or in another form demonstrable via text and must have the consent of the custodian bank and the approval of finma.3 prior to approval by finma, the outgoing fund management company shall publish the proposed transfer in the publication media.4 the investors must be informed in these publications of their right to lodge objections with finma within 30 days of publication. the procedure is based on the administrative procedure act of 20 december 196817.5 finma shall approve the change of fund management company if the legal requirements are met and the continuation of the investment fund is in the interest of the investors.6 it shall publish the decision in the publication media.17 sr 172.021art. 40 segregation of the fund assets 1 in the event of the bankruptcy of the fund management company, assets and rights belonging to the investment fund shall be segregated in favour of the investors. the foregoing is without prejudice to the fund management company's claims under article 38.2 debts incurred by the fund management company that do not result from the fund contract may not be set off against claims belonging to the investment fund.section 4 securities firms art. 41 definition a securities firm is an entity that, on a commercial basis:a. trades in securities in its own name for the account of clients;b. trades in securities for its own account on a short-term basis, operates primarily on the financial market and: 1. could thereby jeopardise the proper functioning of the financial market, or2. is a member of a trading venue, or3.18 operates an organised trading facility under article 42 of the financial market infrastructure act of 19 june 201519; orc. trades in securities for its own account on a short-term basis and publicly quotes prices for individual securities upon request or on an ongoing basis (market maker). 18 inserted by no i 7 of the fa of 26 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).19 sr 958.1art. 42 legal form a securities firm that has its registered office in switzerland must have the legal form of a commercial enterprise.art. 43 foreign-controlled securities firms the provisions of the banka20 on foreign-controlled banks apply by analogy.20 sr 952.0art. 44 tasks 1 in particular, the securities firm may:a. hold accounts for settling securities trade within the context of its activity under article 41 for clients, either itself or with third parties; b. act as custodian of clients' securities, either itself or in its own name with third parties; c. underwrite securities issued by third parties as a firm commitment or on commission and offer these to the public on the primary market on a commercial basis; d. create derivatives itself on a commercial basis, which it offers to the public on the primary market on its own behalf or that of another party. 2 it may accept deposits from the public on a commercial basis within the context of its activity under paragraph 1 letter a. 3 the federal council may regulate the use of deposits from the public.art. 45 minimum capital and collateral 1 securities firms must possess the required minimum capital. this must be fully paid up.2 finma may permit securities firms in the form of partnerships to post appropriate collateral instead of the minimum capital.3 the federal council shall regulate the amount of the minimum capital and of the collateral.art. 46 own funds, liquidity and risk diversification 1 securities firms must have sufficient own funds and liquidity individually and on a consolidated basis. 2 they must diversify their risks appropriately. 3 the federal council shall regulate the risk diversification requirements. it shall set the amount of own funds and liquidity based on the business activity and the risks. 4 where there are legitimate grounds for so doing, finma may ease the requirements, provided this does not adversely affect the protective purpose of the law, or it may order more stringent requirements.5 finma may issue implementing regulations. art. 47 additional capital the provisions of the banka21 on additional capital apply by analogy.21 sr 952.0art. 48 accounting the provisions of the banka22 on accounting apply by analogy.22 sr 952.0art. 49 group and conglomerate supervision 1 two or more companies are deemed to be a financial group dominated by a securities firm if:a. at least one of them operates as a securities firm;b. they operate primarily in the financial sector; andc. they form an economic unit or other circumstances suggest that one or more of the companies under individual supervision is de jure or de facto obliged to provide assistance to group companies.2 a financial conglomerate dominated by a securities firm is a financial group as defined in paragraph 1 operating primarily in the field of securities trading and comprising at least one insurance company of considerable economic significance.3 the provisions of the banka23 on financial groups and financial conglomerates apply by analogy.23 sr 952.0art. 50 record-keeping duty the securities firm must keep a record of the orders and transactions it conducts together with all the details necessary for their traceability and for the supervision of its activity.art. 51 reporting duty 1 the securities firm must report all of the information necessary for transparent securities trading.2 finma shall regulate which information is to be reported to whom and in what form.3 provided this is required for the purposes of the act, the federal council may also impose the reporting duty in accordance with paragraph 1 on persons and companies that buy and sell securities on a commercial basis but without the involvement of a securities firm. any such company must instruct an audit firm licensed by the federal audit oversight authority (faoa) in accordance with article 9a paragraph 1 of the auditor oversight act of 16 december 200524 (aoa) to audit compliance with this reporting duty and must inform finma.24 sr 221.302section 5 branches art. 52 duty to obtain authorisation 1 authorisation from finma is required by financial institutions that have their registered office abroad (foreign financial institutions) and that wish to establish a branch in switzerland that employs persons who perform any of the following activities in the name of the foreign financial institution on a permanent commercial basis in switzerland or from switzerland:a. asset management or trustee activities;b. portfolio management for collective investment schemes or occupational pension schemes;c. securities trading;d. conclusion of transactions; or e. client account management.2 foreign fund management companies may not establish branches in switzerland. 3 the federal council may sign international treaties allowing financial institutions from the treaty states to open a branch without requiring authorisation from finma if both sides recognise the equivalent nature of the respective regulation of financial institutions' activity and the supervisory measures.art. 53 authorisation conditions finma shall grant the foreign financial institution authorisation to establish a branch if:a. the foreign financial institution:1. is sufficiently organised and has adequate financial resources and qualified personnel to operate a branch in switzerland,2. is subject to appropriate supervision that includes the branch, and3. proves that the business name of the branch can be entered in the commercial register;b. the competent foreign supervisory authorities:1. do not raise any objections to the establishment of a branch,2. undertake to notify finma immediately if any circumstances arise that could seriously prejudice the interests of the investors or clients, and3. provide finma with administrative assistance;c. the branch: 1. fulfils the conditions set out in articles 9 to 11 and has a set of regulations that accurately describes the scope of business and provides for an administrative or operational organisation corresponding to its business activity, and2. fulfils the additional authorisation conditions under articles 54 to 57.art. 54 requirement of reciprocity finma may make the granting of authorisation to establish a branch of a foreign financial institution additionally contingent upon a guarantee of reciprocity with the states in which the foreign financial institution or the foreigners with qualified participations have their place of residence or registered office. art. 55 financial groups and financial conglomerates where a foreign financial institution is part of a financial group or financial conglomerate, finma may make the granting of authorisation contingent upon it being subject to appropriate consolidated supervision by foreign supervisory authorities.art. 56 collateral finma may make the granting of authorisation to establish a branch of a foreign portfolio manager, a foreign trustee or a foreign manager of collective assets additionally contingent upon the posting of collateral if so required for the protection of investors or clients.art. 57 exemptions the federal council may make provision for exempting branches of foreign financial institutions from certain provisions of this act. section 6 representations art. 58 duty to obtain authorisation 1 foreign financial institutions require authorisation from finma if they employ persons in switzerland who work for them on a permanent and commercial basis in switzerland or from switzerland in another manner than that set out in article 52 paragraph 1, specifically where these persons forward client orders to them or represent them for marketing or other purposes.2 foreign fund management companies may not establish representations in switzerland. 3 the federal council may sign international treaties allowing financial institutions from the treaty states to open a representation without requiring authorisation from finma if both sides recognise the equivalent nature of the respective regulation of financial institutions' activity and the supervisory measures.art. 59 authorisation conditions 1 finma shall grant the foreign financial institution authorisation to establish a representation if:a. the foreign financial institution is subject to appropriate supervision;b. the competent foreign supervisory authorities do not raise any objections to the establishment of the representation;c. the persons entrusted with its management provide a guarantee of irreproachable business conduct.2 finma may make authorisation additionally contingent upon the granting of reciprocity by the state in which the foreign financial institution has its registered office.art. 60 exemptions the federal council may make provision for exempting representations of foreign financial institutions from certain provisions of this act.chapter 3 supervision art. 61 competence 1 portfolio managers and trustees are supervised by finma in consultation with a supervisory organisation under finmasa25, subject to consolidated supervision by finma in accordance with articles 30 and 49 of the present act or article 1 paragraph 1 finmasa.2 ongoing supervision of portfolio managers and trustees will be performed by finma-approved supervisory organisations.3 managers of collective assets, fund management companies and securities firms are supervised by finma.4 where no supervisory organisation exists in accordance with paragraph 1, supervision is performed by finma. 25 sr 956.1art. 62 auditing of portfolio managers and trustees 1 portfolio managers and trustees must appoint an audit firm in accordance with article 43k paragraph 1 finmasa26 to perform an annual audit, provided that this audit is not conducted by the respective supervisory organisation itself.2 the supervisory organisation may increase the audit frequency to a maximum of four years taking account of the activity of those supervised and the associated risks.3 in the years without a periodic audit, portfolio managers and trustees shall submit to the supervisory organisation a report on their business activity's compliance with the legislative provisions. this report may be delivered in a standardised format.26 sr 956.1 art. 63 auditing of managers of collective assets, fund management companies, securities firms, financial groups and financial conglomerates 1 the managers of collective assets, fund management companies, securities firms, financial groups and financial conglomerates must:a. appoint an audit firm licensed by the faoa under article 9a paragraph 1 aoa27 to carry out an annual audit under article 24 finmasa28;b. have their annual accounts, and if applicable their consolidated accounts, audited by an audit company subject to state oversight in accordance with the ordinary auditing principles set out in the swiss code of obligations29 (co). 2 finma may establish an audit frequency of several years for the audit in accordance with paragraph 1 letter a taking account of the activity of those supervised and the associated risks.3 in the years without a periodic audit, financial institutions in accordance with paragraph 1 shall submit a report to finma on their business activity's compliance with the legislative provisions. this report may be delivered in a standardised format.4 the fund management company shall appoint the same audit firm for itself and for the investment funds it manages. 5 finma may itself conduct audits directly.27 sr 221.30228 sr 956.129 sr 220art. 64 duty to provide information and to report in the case of delegation of significant functions 1 if a financial institution delegates significant functions to other persons, these shall be subject to the duty to provide information and to report in accordance with article 29 finmasa30.2 finma may conduct audits of these persons at any time.30 sr 956.1art. 65 suspension of voting rights in order to enforce article 11 paragraphs 3 and 5, finma may suspend the voting rights attached to equities or shares held by qualified participants.art. 66 liquidation 1 if finma withdraws authorisation from a financial institution, this shall result in liquidation in the case of legal entities and general and limited partnerships and in deletion from the commercial register in the case of sole proprietorships. 2 finma shall designate the liquidator and oversee its activity. 3 the provisions under insolvency law are reserved.art. 67 measures under insolvency law 1 the provisions of the banka31 on measures in case of the risk of insolvency and bankruptcy apply by analogy to fund management companies and securities firms.2 the provisions of the banka on the protection of deposits and dormant assets apply by analogy to securities firms under article 41 letter a.3231 sr 952.032 amended by no i 7 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).chapter 4 liability and criminal law provisions section 1 liability art. 68 1 the liability of the financial institutions and their bodies is based on the provisions of the co33.2 where a financial institution delegates performance of a task to a third party, it remains liable for any losses caused by the latter unless it proves that it took the due care required in that party's selection, instruction and monitoring. the federal council may set out the requirements for such monitoring.3 the fund management company remains liable for the actions of persons to whom it has delegated tasks in accordance with article 35 paragraph 1 as if it had performed those tasks itself.33 sr 220section 2 criminal provisions art. 69 violation of professional confidentiality 1 a custodial sentence not exceeding three years or a monetary penalty shall be imposed on any person who wilfully:a. discloses a secret entrusted to them in their capacity as a director or officer, employee, agent or liquidator of a financial institution or of which they have become aware in said capacity;b. attempts to induce a violation of professional secrecy;c. discloses to other persons a secret disclosed to them in violation of letter a or exploits such a secret for their own benefit or for the benefit of others.2 a custodial sentence not exceeding five years or a monetary penalty shall be imposed on any person who obtains a pecuniary advantage for themselves or another person through an action as detailed in paragraph 1 letter a or c.3 a fine not exceeding chf 250,000 shall be imposed on persons who commit the foregoing acts through negligence.4 any person who violates professional confidentiality remains liable to prosecution after termination of the official or employment relationship or exercise of the profession.5 the federal and cantonal provisions relating to the duty to testify and the duty to provide information to the authorities are reserved.6 the cantons are responsible for the prosecution and adjudication of acts under this provision.art. 70 violation of the provisions on protection against confusion and deception and notification duties a fine not exceeding chf 500,000 shall be imposed on any person who wilfully:a. violates the provision on protection against confusion and deception (article 13);b. fails to provide finma with the prescribed notifications in accordance with articles 11 and 15, or does so incorrectly or too late.art. 71 violation of the record-keeping and reporting duties a fine not exceeding chf 500,000 shall be imposed on any person who wilfully:a. violates the record-keeping duty set out in article 50;b. violates the reporting duty in accordance with article 51.chapter 5 final provisions art. 72 implementing provisions the federal council shall issue the implementing provisions.art. 73 repeal and amendment of other legislative instruments the repeal and amendment of other legislative instruments are set out in the annex.art. 74 transitional provisions 1 financial institutions that already possess authorisation by virtue of a financial market act pursuant to article 1 paragraph 1 finmasa34 for the corresponding activity at the time of this act coming into force are not required to obtain new authorisation. they must fulfil the requirements of this act within one year of its coming into force.2 financial institutions that under prior law are not subject to an authorisation requirement but are newly subject to an authorisation requirement at the time of this act coming into force shall report to finma within six months of this act coming into force. they must satisfy the requirements of this act and submit an authorisation application within three years of the act coming into force. they may continue to perform their activity until a decision has been made concerning authorisation, provided that they are affiliated to a self-regulatory organisation in accordance with article 24 of the anti-money laundering act of 10 october 199735 (amla) and are supervised by said organisation with regard to compliance with the corresponding duties.3 portfolio managers and trustees that assume their activity within one year of this act coming into force must report immediately to finma and after assuming their activity must satisfy authorisation conditions with the exception of article 7 paragraph 2. no later than one year after finma has authorised a supervisory organisation in accordance with article 43a finmasa, they must affiliate to such an organisation and submit an application for authorisation. they may perform their activity until a decision has been made concerning authorisation, provided that they are affiliated to a self-regulatory organisation in accordance with article 24 amla and are supervised by said organisation with regard to compliance with the corresponding duties.4 in special cases, finma may extend the deadlines under paragraphs 1 and 2.34 sr 956.135 sr 955.0art. 74a36 coordination with the amendment of the anti-money laundering act within the context of the gambling act of 29 september 2017 .3736 inserted by the correction made by the federal assembly drafting committee of 24 sept. 2019 (as 2019 5065).37 the coordination provisions can be consulted under as 2019 5065 and as 2020 501. correction by federal assembly drafting committee of 31 jan. 2020, published on 18 febr. 2020 (as 2020 501).art. 75 referendum and commencement 1 this act is subject to an optional referendum.2 the federal council will determine the commencement date.3 this act shall only come into force with the finsa38.4 the federal council may implement the following provisions early:a. amendments to the federal act of 23 march 200139 on consumer credit (annex no. 2);b. article 9a paragraph 4bis aoa40 (annex no 3);c. articles 1a, 1b, 47 paragraph 1 letter a and 52a banka41 (annex no 14);d. article 2 paragraph 2 letter a amla42 (annex no 15);e. articles 4, 5 and 15 paragraph 2 letter a finmasa43 (annex no 16).5 article 15 paragraph 2 letter a finmasa shall apply until article 15 paragraph 2 letter abis finmasa (annex no 16) comes into force.commencement date: 1 january 20204438 sr 950.139 sr 221.214.140 sr 221.30241 sr 952.042 sr 955.043 sr 956.144 o of 6 nov. 2019 (as 2019 4631).annex (art. 73)repeal and amendment of other legislative instruments ithe stock exchange act of 24 march 199545 is repealediithe legislative instruments below are amended as follows:.4645 [as 1997 68 2044, 2005 5269 annex no ii 7, 2006 2197 annex no 146, 2008 5207 annex no 16, 2012 6679 annex no 8, 2013 1103, 2014 4073 annex no 6, 2015 1535 no i 3 5339 annex no 11]46 the amendments may be consulted under as 2018 5247.

954.11english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinance on financial institutions(financial institutions ordinance, finio)of 6 november 2019 (status as of 1 august 2021)the swiss federal council,based on the financial institutions act of 15 june 20181 (finia),ordains:1 sr 954.1chapter 1 general provisions section 1 subject matter and scope of application art. 1 subject matter (art. 1 and 72 finia)this ordinance governs:a. the authorisation conditions for financial institutions;b. the duties of the financial institutions;c. the supervision of the financial institutions.art. 2 scope of application (art. 2 finia)this ordinance applies to financial institutions operating in or from switzerland.art. 3 business ties (art. 2 para. 2 let. a finia)companies or units of a group are deemed to have business ties insofar as they provide financial services or services in the capacity of trustee for other companies or units of the same group.art. 4 family ties (art. 2 para. 2 let. a finia)1 the following persons are deemed to have family ties with one another:a. relatives by blood or by marriage in the direct line;b. relatives by blood or by marriage up to the fourth degree in the collateral line;c. spouses and registered partners;d. coheirs and legatees from succession until completion of the division of estate or allocation of the legacy;e. remaindermen and remainderwomen and residuary legatees in accordance with article 488 of the swiss civil code2 (cc);f. persons living in a permanent life partnership with a portfolio manager or trustee.2 family ties are deemed to exist insofar as portfolio managers manage assets or trustees manage in-house funds in favour of persons who have family ties with one another, if the portfolio managers or trustees are directly or indirectly controlled by:a. third parties who have family ties with these persons;b. a trust, a foundation or a similar legal construct set up by a person with family ties.3 paragraph 2 also applies insofar as, in addition to the persons with family ties, institutions with a public or not-for-profit purpose are also beneficiaries.2 sr 210art. 5 employee participation schemes (art. 2 para. 2 let. b finia)employee participation schemes are deemed to be plans which:a. represent a direct or indirect investment in the company of the employer or in another company which by virtue of a majority of votes or by some other means is under uniform management with the company of the employer (group); andb. are directed at employees who at the time of the offer are not under notice.art. 6 legally regulated mandates (art. 2 para. 2 let. d finia)legally regulated mandates are in particular:a. an advance care directive in accordance with articles 360-369 cc3;b. a representative deputyship to manage assets in accordance with article 395 cc;c. a general deputyship in accordance with article 398 cc;d. an executorship in accordance with articles 517 and 518 cc;e. an estate administration in accordance with articles 554 and 555 cc;f. an official liquidation in accordance with articles 593-596 cc;g. a representation of heirs in accordance with article 602 paragraph 3 cc;h. a bankruptcy administration in accordance with articles 237 paragraph 2 and article 240 of the federal act of 11 april 18894 on debt enforcement and bankruptcy (deba);i. an administrative receivership in accordance with article 295 deba;j. enforcement tasks under an ordinary composition agreement in accordance with article 314 paragraph 2 deba;k. an appointment as liquidator under a composition agreement with assignment of assets in accordance with article 317 deba;l. an appointment as investigating agent in accordance with article 36 of the financial market supervision act of 22 june 20075 (finmasa);m. a restructuring mandate in accordance with article 28 paragraph 3 of the banking act of 8 november 19346 (banka), article 67 paragraph 1 finia and article 88 paragraph 1 of the financial market infrastructure act of 19 june 20157 (finmia);n. a bankruptcy liquidation in accordance with article 33 paragraph 2 banka, article 67 paragraph 1 finia, article 137 paragraph 3 of the collective investment schemes act of 23 june 20068 (cisa), article 88 paragraph 1 finmia and article 53 paragraph 3 of the insurance supervision act of 17 december 20049 (isa);o. a liquidation in accordance with article 23quinquies paragraph 1 banka, article 66 paragraph 2 finia, article 134 cisa, article 87 paragraph 2 finmia and article 52 isa.3 sr 2104 sr 281.15 sr 956.16 sr 952.07 sr 958.18 sr 951.319 sr 961.01art. 7 exemption (art. 2 finia)where there are legitimate grounds for so doing, the swiss financial market supervisory authority (finma) may fully or partially exempt managers of collective assets from the provisions of the finia and the present ordinance if:a. the protective purpose of the finia is not impaired; andb. the management of collective assets has been delegated to them solely by the following persons:1. authorised parties in accordance with article 2 paragraph 1 letters c and d as well as paragraph 2 letters f-i finia,2. authorised parties in accordance with article 13 paragraph 2 letters b-d cisa10, or3. foreign companies which with regard to organisation and investor rights are subject to rules that are equivalent to the provisions of the finia and the cisa.10 sr 951.31art. 8 significant group companies (art. 4 para. 2 finia)the functions of a group company are significant with respect to the activities which require authorisation if they are necessary for the continuation of important business processes, in particular in the areas:a. liquidity management;b. treasury;c. risk management;d. master data administration and accounting;e. personnel;f. information technology;g. trading and settlement;h. legal and compliance.section 2 common provisions art. 9 authorisation application and duty to obtain authorisation (art. 5 and 7 finia)1 the financial institution shall submit an authorisation application to finma. the application shall contain all information and documents required to assess it, specifically information and documents on:a. the organisation, in particular on corporate governance and control as well as on risk management (articles 9, 20, 21 and 33 finia);b. the place of management (article 10 finia);c. the guarantee (article 11 finia);d. tasks and the delegation of such tasks (articles 14, 19, 26, 27, 34, 35 and 44 finia);e. minimum capital and collateral (articles 22, 28, 36 and 45 finia);f. capital (articles 23, 29, 37 and 46 finia);g. the ombudsman's office (article 16 finia);h. the supervisory organisation and the audit firm (articles 61-63 finia).2 insurance companies as defined in the isa11 are exempt from the duty to obtain authorisation as a manager of collective assets.3 exemption from the duty to obtain authorisation as a trustee from finma can be granted to trustees which act exclusively as trustees for trusts which were established by the same person or in favour of the same family and which are held and monitored by a financial institution which possesses authorisation in accordance with article 5 paragraph 1 or article 52 paragraph 1 finia.11 sr 961.01art. 10 change in facts (art. 8 para. 2 finia)changes of material significance for financial institutions in accordance with article 8 paragraph 2 finia are in particular:a. changes in organisational and partnership documents;b. changes in the persons responsible for administration and management;c. changes in minimum capital and capital adequacy, in particular falling short of minimum requirements;d. facts which are likely to call into question the good reputation or the guarantee of irreproachable business conduct on the part of the financial institution or of the persons entrusted with management tasks as well as of owners of a qualified participation, specifically the initiation of criminal proceedings;e. facts which call into question prudent and sound business activity on the part of the financial institution owing to the influence of owners of a qualified participation.art. 11 form for submission (art. 5, 7 and 8 finia)1 finma may determine the form for submission, specifically for the following documents:a. applications for authorisation from financial institutions and necessary documents;b. reports of changes in accordance with article 8 finia and necessary documents.2 it may designate a third party as recipient of submitted documents.art. 12 organisation (art. 9 finia)1 financial institutions must define their organisation in their organisational principles.2 they must describe their area of business in factually and geographically precise terms in the principal documents. the business area and its geographical extent must be commensurate with the financial possibilities as well as with the operational organisation.3 financial institutions must have personnel in place who are appropriately and suitably qualified to perform their business activities.4 risk management must encompass all business activities and be organised in such a way that all the main risks can be identified, assessed, controlled and monitored.art. 13 guarantee (art. 11 finia)1 the application for authorisation for a new financial institution must contain in particular the following information and documentation on the persons responsible for administration and management in accordance with article 11 paragraphs 1 and 2 finia as well as on the owners of a qualified participation in accordance with article 11 paragraph 3 finia:a. natural persons:1. details of nationality, place of residence, qualified participations in the financial institution or in other companies and pending court and administrative proceedings,2. a curriculum vitae signed by the relevant person,3. references,4. an extract from the register of convictions and the debt collection register or a corresponding attestation;b. companies:1. the articles of association, 2. an extract from the commercial register or a corresponding attestation,3. a description of business activities, the financial situation and, if applicable, the group structure,4. details of completed and pending court or administrative proceedings.2 the envisaged activity at the financial institution as well as the nature of the intended investments must also be taken into account when assessing the good reputation, the guarantee of irreproachable business conduct and the required specialist qualifications of the persons responsible for administration and management.3 owners of a qualified participation must make a declaration to finma stating whether they hold the participation in question for their own account or on a fiduciary basis for third parties, and whether they have granted options or similar rights with respect to this participation.4 securities firms must submit to finma within 60 days of the end of the financial year a list of all persons who hold a qualified participation in them. this list shall contain details on the identity and percentage holding of all qualified participants as at the relevant closing date, as well as any changes relative to the prior-year closing date. in addition, the information and documentation set out in paragraph 1 is to be submitted for any qualified participants being reported for the first time.5 persons connected through business ties or in any other manner who jointly hold at least 10% of the share capital or votes of the financial institution or persons jointly significantly influencing the business activities of the financial institution in another manner are deemed to be a qualified participant in accordance with article 11 paragraph 4 finia.art. 14 public offer of securities on the primary market (art. 12 finia)1 the question of what constitutes a public offer is determined on the basis of article 3 letters g and h of the financial services act of 15 june 201812 (finsa).2 offers to schemes and persons in accordance with article 65 paragraphs 2 and 3 are not deemed public.12 sr 950.1art. 15 delegation of tasks (art. 14 para. 1 finia)1 tasks in accordance with article 14 paragraph 1 finia are deemed delegated if financial institutions appoint a service provider to independently and permanently perform in full or in part a material task, thereby changing the circumstances underlying the authorisation.2 material tasks are deemed to be:a. for portfolio managers and trustees: tasks in accordance with article 19 finia;b. for managers of collective assets: tasks in accordance with article 26 finia;c. for fund management companies: tasks in accordance with article 32, article 33 paragraph 4 and article34 finia;d. for securities firms: tasks in accordance with articles 41 and 44 finia.art. 16 delegable tasks (art. 14 para. 1 finia)1 financial institutions may delegate to third parties only tasks in accordance with article 14 paragraph 1 finia which do not need to be within the decision-making remit of the body responsible for management or for governance, supervision and control.2 delegation must not impair the appropriateness of the operational organisation.3 the operational organisation is no longer deemed to be appropriate if a financial institution:a. does not have the necessary personnel resources and specialist knowledge to select, instruct and monitor the third party and manage the associated risks, orb. does not have the necessary rights to issue instructions to or control the third party.art. 17 delegation of tasks: responsibility and procedures (art. 14 para. 1 finia)1 the financial institutions remain responsible for the fulfilment of supervisory duties and when delegating tasks shall safeguard clients' interests.2 they shall agree with the third party in writing or in another form demonstrable via text which tasks are to be delegated. the following in particular are to be laid down in the agreement:a. the authorities and responsibilities;b. any powers of sub-delegation;c. the third party's duty to render account;d. the financial institutions' rights of control.3 financial institutions shall lay down in their organisational principles the tasks delegated as well as details of the possibility of sub-delegation.4 delegation is to be defined such that the financial institution, its internal auditors, the audit firm, the supervisory organisation and finma can inspect and review the delegated task.art. 18 international business (art. 15 finia)1 the notification which a financial institution is required to submit to finma before engaging in activities abroad must contain all the information and documents needed to assess such activities, specifically:a. a business plan describing in particular the nature of the planned transactions and the organisational structure;b. the name and address of the office abroad;c. the names of the persons responsible for administration and management;d. the auditing firm;e. the name and address of the supervisory authority in the foreign state in which the registered office or domicile is located.2 furthermore, the financial institution shall notify finma of:a. the discontinuation of business activities abroad;b. any material change in business activities abroad;c. a change in audit firm;d. a change in the supervisory authority in the foreign state in which the registered office or domicile is located.chapter 2 financial institutions section 1 portfolio managers and trustees art. 19 commerciality (art. 3 and 17 finia)1 portfolio managers and trustees are deemed to pursue their activities on a commercial basis and, within the meaning of anti-money laundering legislation, on a professional basis if they:a. thereby generate gross earnings of more than chf 50,000 per calendar year;b. establish business relationships with more than 20 contractual partners per calendar year, each of which relationships is not limited to a once-only activity, or they maintain at least 20 such relationships per calendar year; orc. have unlimited power of disposal over assets belonging to others, which assets exceed chf 5 million at any given time.2 activities for schemes and persons in accordance with article 2 paragraph 2 letters a, b, d and e finia are not factored into the assessment of commerciality.3 paragraphs 1 and 2 do not apply to portfolio managers in accordance with article 24 paragraph 2 finia.art. 20 additional authorisation (art. 6 finia)1 portfolio managers also wishing to act as trustees require additional authorisation for this.2 trustees also wishing to act as portfolio managers require additional authorisation for this.art. 21 entitlement to be subject to supervision by a supervisory organisation (art. 7 para. 2 finia)1 portfolio managers and trustees are entitled to be subject to supervision by a supervisory organisation if their internal rules and their operational organisation ensure that the supervisory requirements are satisfied.2 a supervisory organisation can make subjection to supervision dependent on portfolio managers and trustees being required to maintain special statutory professional confidentiality.art. 22 change in facts (art. 8 finia)1 portfolio managers and trustees shall notify the supervisory organisation of any changes in the facts on which its authorisation is based. the supervisory organisation shall periodically forward the changes to finma.2 if authorisation is required in accordance with article 8 paragraph 2 finia, finma will as part of its assessment hear the supervisory organisation.art. 23 organisation (art. 9 finia)1 two authorised signatories must sign jointly. article 20 paragraph 2 finia remains reserved.2 portfolio managers and trustees must be able to be represented by a person who has their place of residence in switzerland. this person must be a member of the body responsible for management or of the body responsible for governance, supervision and control in accordance with paragraph 3. article 20 paragraph 2 finia remains reserved.3 with reservation as to article 20 paragraph 2 finia, finma may require the portfolio manager or trustee to appoint a body responsible for governance, supervision and control the majority of whose members are not members of the body responsible for management if:a. it has ten or more full-time positions or annual gross earnings of more than chf 5 million; andb. the nature and scope of its activities so demand.art. 24 tasks (art. 19 finia)1 the portfolio manager shall ensure that the assets entrusted to it for management are held in safekeeping, segregated per client, with a bank pursuant to the banka13, a securities firm pursuant to the finia, a trading facility for distributed ledger technology securities (dlt trading facility) in accordance with the finmia14 or other institution that is subject to supervision equivalent to that in switzerland.152 it shall manage the assets on the basis of authorisation given in writing or in another form demonstrable via text. the authorisation must be limited to administrative acts. if the portfolio manager is entrusted with the provision of further services which require more far-reaching authorisations, it shall document the basis of these activities.3 portfolio managers shall take measures to avoid a break-off of contact with clients and to prevent client relationships from becoming dormant. if a business relationship becomes dormant, the portfolio manager shall take suitable steps to ensure that dormant assets are delivered to beneficiaries.4 paragraph 2 applies by analogy to trustees. moreover, trustees must, within the framework of the law applicable to the trust:a. act in the best possible interests of beneficiaries and with the required level of skill, care and diligence;b. take appropriate organisational precautions to avoid conflicts of interest or disadvantages for beneficiaries as a result of conflicts of interest.5 if the rendering of additional services increases the risks to which portfolio managers and trustees are exposed, this must be taken into account within the scope of supervision (articles 61 and 62 finia).13 sr 952.014 sr 958.115 amended by no i 7 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400).art. 25 qualified managers (art. 20 finia)1 a qualified manager is deemed to satisfy the requirements for training and professional experience at the time of assuming management duties if she or he can furnish evidence of the following:a. five years of professional experience:1. in the case of portfolio managers, in portfolio management for third parties,2. in the case of trustees, within the framework of trusts; andb. training of at least 40 hours:1. in the case of portfolio managers, in portfolio management for third parties,2. in the case of trustees, within the framework of trusts.2 where there are legitimate grounds for so doing, finma may grant exemptions from these requirements.3 portfolio managers and trustees shall engage in regular continuing professional development to maintain the skills acquired.4 they shall take the necessary precautions to ensure the continuation of business operations in the event that the qualified manager is prevented from acting or dies. if third parties from outside the company are appointed, the clients must be informed accordingly. in all other respects, article 14 finia shall apply.art. 26 risk management and internal control (art. 9 and 21 finia)1 portfolio managers and trustees shall set out guidelines for the basic principles of risk management and define their risk tolerance.2 risk management and internal control are not required to be independent of revenue-based activities if the portfolio manager or trustee:a. is a company which has five or fewer full-time positions or annual gross earnings of less than chf 2 million; andb. adheres to a non-high-risk business model.3 the thresholds in accordance with paragraph 2 letter a must be achieved in two of three past business years or be provided for in the business planning.4 if the portfolio manager or trustee has a body responsible for governance, supervision and control in accordance with article 23 paragraph 3 and generates annual gross earnings of more than chf 10 million, finma may also require that internal auditors who are independent of management be appointed where the nature and scope of activity so dictate.art. 27 minimum capital (art. 22 para. 1 finia)1 the minimum capital requirements of companies limited by shares and of partnerships limited by shares must be met with share and participation capital, those of limited liability companies must be met with nominal capital, and those of cooperatives must be met with cooperative capital.2 the minimum capital requirements of partnerships and sole proprietorships must be met with:a. the capital accounts;b. the limited partnership contributions;c. the assets of partners with unlimited liability.3 the capital accounts and assets of partners with unlimited liability may only be counted towards the minimum capital requirement if a declaration is provided to the effect that:a. in the event of liquidation, bankruptcy or probate proceedings, such accounts and assets shall be subordinate to the claims of all other creditors; andb. the portfolio manager or trustee undertakes:1. neither to net such accounts and assets with its own claims nor to secure them with its own assets,2. without the prior consent of the supervisory organisation, not to reduce any of the capital components as defined in paragraph 2 letters a and c to the extent that the minimum capital requirement is no longer met.4 the declaration in accordance with paragraph 3 is irrevocable. it must be made in writing or in another form demonstrable via text and filed with the supervisory organisation.5 finma may permit partnerships and sole proprietorships to provide, instead of minimum capital, collateral in the form of a bank guarantee or a cash deposit in a blocked account with a bank, said collateral being equivalent to the minimum capital in accordance with article 22 paragraph 1 finia.art. 28 level of capital adequacy (art. 23 finia)1 the level of capital adequacy stipulated in article 23 finia must be maintained at all times.2 the following are fixed costs in accordance with article 23 paragraph 2 finia:a. personnel expenses;b. operating business expenses;c. depreciation of investment assets;d. expenses for valuation adjustments, provisions and losses.3 the portion of personnel expenses which is exclusively dependent on the business result or in relation to which no legal entitlement exists is to be deducted from personnel expenses.4 where there are legitimate grounds for so doing, finma may ease requirements.art. 29 qualifying capital (art. 23 finia)1 legal entities may count the following as qualifying capital:a. the paid-up share and participation capital in the case of a company limited by shares and a partnership limited by shares, the nominal capital in the case of a limited liability company and the cooperative capital in the case of a cooperative;b. the general statutory and other reserves;c. retained earnings;d. the net profit for the current financial year after deduction of the estimated share in the profit distribution, provided an audit review or an audit pursuant to the co16 of the interim or annual accounts confirms the assurances stipulated;e. hidden reserves, provided they are assigned to a separate account and designated as capital and their qualifiability as such is confirmed on the basis of the audit in accordance with article 62 finia.2 partnerships and sole proprietorships may count the following as qualifying capital:a. the capital accounts and assets of partners with unlimited liability if the conditions under article 27 paragraph 3 are satisfied;b. the limited partnership contribution.3 portfolio managers and trustees may also count as qualifying capital any loans granted to them, including bonds with a maturity of at least five years, if a declaration is provided to the effect that:a. in the event of liquidation, bankruptcy or probate proceedings, such loans shall be subordinate to the claims of all other creditors; andb. the portfolio manager or trustee undertakes neither to net such loans with its own claims nor to secure them with its own assets.4 the declaration in accordance with paragraph 3 is irrevocable. it must be made in writing or in another form demonstrable via text and filed with the supervisory organisation.16 sr 220art. 30 deductions applied when calculating the level of capital adequacy (art. 23 finia)the following shall be deducted when calculating the level of capital adequacy:a. the loss carried forward and the loss for the current financial year;b. any unsecured valuation adjustments and provisions for the current financial year;c. in the case of loans in accordance with article 29 paragraph 3: 20% of the original nominal amount per year for the last five years prior to repayment;d. intangible assets (including start-up and organisational costs as well as goodwill) with the exception of software;e. in the case of a company limited by shares and a partnership limited by shares: the shares which they hold in the company at their own risk;f. in the case of a limited liability company: the capital contribution which it holds in the company at its own risk;g. the carrying amount of participations.art. 31 collateral (art. 22 para. 2 and 23 finia)1 collateral is deemed to be appropriate if the applicable provisions on capital are complied with.2 insofar as it covers the risks entailed by the business model, professional indemnity insurance may be counted 50% towards qualifying capital.3 finma shall regulate the details of professional liability insurance, in particular with regard to term, notice period, the amount of insurance cover, the professional liability risks to be covered and the reporting duties.art. 32 accounting (art. 9, 22 and 23 finia)1 portfolio managers and trustees are subject to the accounting regulations of the co17. article 957 paragraphs 2 and 3 co are not applicable.2 where portfolio managers and trustees are subject to specific, more stringent accounting standards, such standards take precedence.17 sr 220art. 33 internal documentation (art. 9 finia)internal documentation of the portfolio managers and trustees must allow the audit firm, the supervisory organisation and finma to form a reliable picture of the business activities.section 2 managers of collective assets art. 34 calculation of thresholds (art. 24 para. 1 and 2 finia)1 the following apply to calculation of the thresholds for collective investment schemes managed by the manager of collective assets in accordance with article 24 paragraph 2 letter a finia:a. assets managed include all swiss and foreign collective investment schemes managed by the same manager irrespective of whether it manages them directly or via delegation or via a company with which it is connected through:1. a single management;2. a relationship of common control; or3. a significant direct or indirect participation.b. the value of the assets is calculated on at least a quarterly basis, under due consideration of any leverage effect.c. for collective investment schemes that were established more than 12 months previously, the threshold may be calculated on the basis of the average value of the assets over the last four quarters.d. the value of the collective investment schemes pursuant to article 24 paragraph 2 letter a item 2 finia is calculated on the basis of the capital commitments or the nominal value of the collective investment schemes concerned, provided the price of the investments underlying such schemes is not obtained through trading on a regulated market.2 the following apply to calculation of the thresholds for the assets of occupational pension schemes managed by the manager of collective assets within the meaning of article 24 paragraph 2 letter b finia:a. assets of the following occupational pension schemes shall be included:1. registered and non-registered occupational pension schemes;2. employer-sponsored welfare funds;3. investment foundations;4. pillar 3a foundations;5. vested benefits foundations.b. the manager shall calculate on a quarterly basis whether the threshold of chf 100 million has been reached.c. the occupational pension scheme shall calculate annually whether the threshold of 20% has been reached in the mandatory segment. it shall inform the manager of the value calculated.3 threshold values in accordance with article 24 paragraph 2 letters a and b finia shall not be added together.4 finma regulates the details for calculating the thresholds and the leverage effect in accordance with paragraphs 1 and 2.art. 35 procedure in the event that thresholds are exceeded (art. 24 para. 1 and 2 finia)1 if a manager exceeds a threshold in accordance with article 24 paragraph 2 finia, it shall notify finma to that effect within 10 days.2 the manager must submit to the latter an application for authorisation pursuant to article 24 paragraph 1 finia within 90 days if, during this period, they have not made changes to their business model which make a renewed exceeding of the thresholds appear unlikely.3 if changes are made to the business model within the meaning of paragraph 2 during an ongoing authorisation procedure, the authorisation procedure will be rendered unnecessary.art. 36 authorisation as manager of collective assets (art. 24 para. 3 finia)finma shall grant a portfolio manager in accordance with article 24 paragraph 2 finia authorisation in accordance with article 24 paragraph 3 finia if:a. it has its registered office in switzerland;b. the conditions of authorisation in accordance with article 24 paragraph 1 finia are satisfied; andc. swiss or applicable foreign law provides that the management of collective assets may only be delegated to a supervised manager of collective assets.art. 37 organisation (art. 9 finia)1 two authorised signatories must sign jointly.2 managers of collective assets must be able to be represented by a person who has their place of residence in switzerland. this person must be a member of the body responsible for management or of the body responsible for governance, supervision and control.3 the body responsible for management must comprise at least two persons.4 managers of collective assets must appoint a special body responsible for governance, supervision and control.5 where there are legitimate grounds for so doing, finma may allow departures from these requirements; it may grant exemptions in particular from the duty in accordance with paragraph 4 where the nature and scope of activity so dictate, in particular if the company has ten or fewer full-time positions or annual gross earnings of less than chf 5 million.art. 38 body responsible for governance, supervision and control (art. 9 finia)1 the majority of the members of the body responsible for governance, supervision and control may not be members of the body responsible for management.2 the chair may not at the same time hold the office of chair of the body responsible for management.3 at least one third of members must be independent of the persons who hold a qualified participation in the manager of collective assets and in companies of the same conglomerate or group. managers of collective assets which are part of a financial group subject to consolidated supervision by finma are exempted.4 where there are legitimate grounds for so doing, finma may allow departures from these requirements.art. 39 tasks (art. 26 finia)1 the receipt and transmission of orders in the name of and on behalf of clients in relation to financial instruments is deemed to be an administrative activity in accordance with article 26 paragraph 3 finia which a manager of collective assets can perform within the scope of its tasks in accordance with article 26 finia. article 35 finia remains reserved.2 a manager of collective assets which also offers personalised asset management in accordance with article 6 paragraph 4 in conjunction with article 17 paragraph 1 finia may not invest the investor's assets, whether in full or in part, in units of collective investment schemes that it manages, unless the client has given their general consent beforehand.3 if the rendering of additional services increases the risks to which managers of collective assets are exposed, this must be taken into account within the scope of supervision (articles 61 and 63 finia).art. 40 delegation of tasks (art. 14 and 27 finia)1 whether a delegation of investment decisions is deemed to have the necessary authorisation in accordance with article 14 paragraph 1 finia is determined in accordance with article 24 finia. foreign managers of collective assets must be subject to authorisation and supervision which is at least equivalent.2 where foreign law requires an agreement on cooperation and the exchange of information with the foreign supervisory authorities, investment decisions may only be delegated to managers of collective assets abroad if such an agreement is in place between finma and the foreign supervisory authorities relevant for the respective investment decisions.art. 41 risk management and internal control (art. 9 finia)1 managers of collective assets must have an appropriately defined risk management system in place as well as an effective internal control structure to ensure in particular compliance with legal and internal provisions.2 they shall set out guidelines for the basic principles of risk management and define their risk tolerance.3 they will keep the functions of risk management and compliance functionally and hierarchically separate from the operational business units, in particular from the function of investment decisions (portfolio management).4 the body responsible for the governance, supervision and control of the manager of collective assets is charged with establishing, securing and monitoring the internal control system (ics). this body also defines risk tolerance.5 the body responsible for management implements the corresponding requirements stipulated by the body for governance, supervision and control, it develops suitable guidelines, procedures and processes, and reports periodically to the body responsible for governance, supervision and control.6 paragraphs 4 and 5 do not apply to managers of collective assets which are granted an exemption in accordance with article 37 paragraph 5.7 if a body responsible for governance, supervision and control has been appointed in accordance with article 37 paragraph 4, finma may also require that internal auditors who are independent of management be appointed where the nature and scope of activity so dictate.8 where there are legitimate grounds for so doing, finma may depart from these requirements.9 finma shall regulate the details.art. 42 minimum capital (art. 28 para. 1 and 3 finia)1 the minimum capital of managers of collective assets must amount to at least chf 200,000 and be paid up in full. this amount must be maintained at all times.2 the minimum capital requirements of companies limited by shares and of partnerships limited by shares must be met with share and participation capital, those of limited liability companies must be met with nominal capital.3 the minimum capital requirements of partnerships must be met with:a. the capital accounts;b. the limited partnership contributions;c. the assets of partners with unlimited liability.4 the capital accounts and assets of partners with unlimited liability may only be counted towards the minimum capital requirement if a declaration is provided to the effect that:a. in the event of liquidation, bankruptcy or probate proceedings, such accounts and assets shall be subordinate to the claims of all other creditors; andb. the manager of collective assets undertakes:1. neither to net such accounts and assets with its own claims nor to secure them with its own assets,2. without the prior consent of the audit firm, not to reduce any of the capital components as defined in paragraph 3 letters a and c to the extent that the minimum capital requirement is no longer met.5 the declaration in accordance with paragraph 4 is irrevocable. it must be made in writing or in another form demonstrable via text and filed with the audit firm.6 if a manager of collective assets for foreign collective investment schemes conducts the fund business within the meaning of article 26 paragraph 2 finia, finma can stipulate a higher minimum capital requirement.art. 43 collateral (art. 28 para. 2 and 3 finia)1 finma may permit partnerships to provide, instead of minimum capital, collateral in the form of a bank guarantee or a cash deposit in a blocked account with a bank, said collateral being equivalent to the minimum capital in accordance with article 42.2 where there are legitimate grounds for so doing, finma may stipulate a different minimum amount.art. 44 level of capital adequacy (art. 29 finia)1 the capital stipulated in article 29 finia must be maintained at all times and amount to at least one quarter of the fixed costs reported in the most recent annual accounts and no more than chf 20 million, including capital in accordance with paragraph 2.2 managers of collective assets must:a. hold capital amounting to 0.01% of the total collective assets managed by the manager of collective assets; orb. take out professional liability insurance.3 finma shall regulate the details of professional liability insurance, in particular with regard to term, notice period, the amount of insurance cover, the professional liability risks to be covered and the reporting duties.4 fixed costs in accordance with paragraph 1 are:a. personnel expenses;b. operating business expenses;c. depreciation of investment assets;d. expenses for valuation adjustments, provisions and losses.5 the portion of personnel expenses which is exclusively dependent on the business result or in relation to which no legal entitlement exists is to be deducted from personnel expenses.6 where there are legitimate grounds for so doing, finma may ease requirements.art. 45 qualifying capital (art. 29 finia)1 legal entities may count the following as qualifying capital:a. the paid-up share and participation capital in the case of a company limited by shares and a partnership limited by shares, and the nominal capital in the case of a limited liability company;b. the general statutory and other reserves;c. retained earnings;d. the net profit for the current financial year after deduction of the estimated share in the profit distribution, provided an audit review or an audit pursuant to the co18 of the interim or annual accounts confirms the assurances stipulated;e. hidden reserves, provided they are assigned to a separate account and designated as own capital and their qualifiability as such is confirmed on the basis of the audit in accordance with article 63 finia.2 partnerships may count the following as qualifying capital:a. the capital accounts and assets of partners with unlimited liability if the conditions under article 42 paragraph 4 are satisfied;b. the limited partnership contribution.3 managers of collective assets may also count as qualifying capital any loans granted to them, including bonds with a maturity of at least five years, if a declaration is provided to the effect that:a. in the event of liquidation, bankruptcy or probate proceedings, such loans shall be subordinate to the claims of all other creditors; andb. they have undertaken neither to net such loans with their own claims nor to secure them with their own assets.4 the declaration in accordance with paragraph 3 is irrevocable. it must be made in writing or in another form demonstrable via text and filed with the audit firm.5 own capital in accordance with paragraphs 1 and 2 must amount to at least 50% of total capital required.18 sr 220art. 46 deductions applied when calculating the level of capital adequacy (art. 29 finia)the following shall be deducted when calculating the level of capital adequacy:a. the loss carried forward and the loss for the current financial year;b. any unsecured valuation adjustments and provisions for the current financial year;c. in the case of loans in accordance with article 45 paragraph 3: 20% of the original nominal amount per year for the last five years prior to repayment;d. intangible assets (including start-up and organisational costs as well as goodwill) with the exception of software;e. in the case of a company limited by shares and of a partnership limited by shares: the shares which they hold in the company at their own risk;f. in the case of a limited liability company: the capital contribution which it holds in the company at its own risk;g. the carrying amount of participations.art. 47 accounting and annual report (art. 9, 28 and 29 finia)1 managers of collective assets are subject to the accounting regulations of the co19. where managers of collective assets are subject to specific, more stringent accounting standards, such regulations take precedence.2 the manager of collective assets shall submit to finma the annual report and the full report for the body responsible for governance, supervision and control within 30 days of receiving approval from the body responsible for management. the manager of collective assets shall append to the annual report a list of the prescribed and available capital as at the balance sheet date.3 paragraph 2 does not apply to managers of collective assets which are granted an exemption in accordance with article 37 paragraph 5.19 sr 220art. 48 internal documentation (art. 9 finia)internal documentation of the managers of collective assets must allow the audit firm and finma to form a reliable picture of the business activities.section 3 fund management companies art. 49 independent management of investment funds (art. 32 finia)1 the independent management of investment funds in its own name and for the account of investors by the fund management company comprises in particular:a. decisions on the issue of units, on investments and on their valuation;b. calculation of the net asset value;c. determination of the issue and redemption prices as well as distributions of profit;d. assertion of all rights pertaining to the investment fund.2 institutions which engage solely in administration activities for externally managed sicavs pursuant to cisa20 manage investment funds independently and as fund management companies require authorisation in accordance with article 5 paragraph 1 in conjunction with article 32 finia.20 sr 951.31art. 50 head office in switzerland (art. 33 para. 1 finia)the head office of the fund management company is deemed to be in switzerland if the following conditions are met:a. the non-transferable and inalienable duties of the board of directors in accordance with article 716a co21 are performed in switzerland.b. for each of the investment funds managed by the fund management company, in minimum the following tasks are performed in switzerland: 1. decisions on the issue of units;2. decisions on investment policy and on the valuation of investments;3. valuation of investments;4. determination of issue and redemption prices;5. determination of distributions of profit;6. determination of the content of the prospectus and the key information document, of the annual or the semi-annual report, as well as of further publications intended for investors;7. keeping of accounts.21 sr 220art. 51 organisation (art. 9 and 33 finia)1 fund management companies shall as a rule have at least three full-time positions with authority to sign.2 two authorised signatories must sign jointly.3 the body responsible for management must comprise at least two persons.4 fund management companies must appoint a special body responsible for governance, supervision and control.5 where there are legitimate grounds for so doing, finma may allow relaxations of these requirements or it may impose more stringent requirements.art. 52 body responsible for governance, supervision and control (art. 9 and 33 finia)1 the body responsible for governance, supervision and control must comprise at least three members. 2 the majority of the members of this body may not also be members of the body responsible for management.3 the chair may not at the same time hold the office of chair of the body responsible for management.4 at least one third of members must be independent of the persons who hold a qualified participation in the fund management company and in companies of the same group. fund management companies which are part of a financial group subject to consolidated supervision by finma are exempted.5 where there are legitimate grounds for so doing, finma may allow relaxations of these requirements or it may impose more stringent requirements.art. 53 independence (art. 33 para. 3 finia)1 simultaneous membership of the body responsible for governance, supervision and control of the fund management company and that of the custodian bank is permitted.2 simultaneous membership of the body responsible for management of the fund management company and that of the custodian bank is not permitted.3 the majority of the members of the body responsible for governance, supervision and control of the fund management company must be independent of the persons at the custodian bank who are tasked with the duties in accordance with article 73 cisa22. persons at the custodian bank at management level tasked with duties in accordance with article 73 cisa are not deemed to be independent.4 none of the authorised signatories of the fund management company may at the same time be responsible at the custodian bank for duties in accordance with article 73 cisa.22 sr 951.31art. 54 conduct of fund business (art. 33 para. 4 finia)1 in addition to the tasks specified in articles 32 and 33 paragraph 4 finia as well as in accordance with article 49, fund business specifically entails:a. the representation of foreign collective investment schemes;b. the acquisition of participations in companies whose main purpose is the collective investment scheme business;c. the keeping of unit accounts.2 the fund management company may only perform these activities and any further services in accordance with article 34 finia if its articles of association so provide.3 article 26 paragraph 2 finia applies by analogy to the conduct of fund business for foreign collective investment schemes.art. 55 tasks (art. 34 finia)1 fund management companies shall keep their own assets separate from managed assets at all times.2 they shall ensure that the valuation of investments, portfolio management and trading and settlement are kept separate both functionally and in terms of personnel.3 a fund management company which also offers personalised asset management in accordance with article 6 paragraph 3 in conjunction with article 17 paragraph 1 finia may not invest the investor's assets, whether in full or in part, in units of collective investment schemes that it manages, unless the client has given their general consent beforehand.4 where there are legitimate grounds for so doing, finma may allow exemptions or it may order the separation of further functions.art. 56 delegation of tasks (art. 14 and 35 finia)1 whether a delegation of investment decisions is deemed to have the necessary authorisation in accordance with article 14 paragraph 1 finia is determined in accordance with article 24 finia. foreign managers of collective assets must be subject to authorisation and supervision which is at least equivalent.2 where foreign law requires an agreement on cooperation and the exchange of information with the foreign supervisory authorities, investment decisions may only be delegated to managers of collective assets abroad if such an agreement is in place between finma and the foreign supervisory authorities relevant for the respective investment decisions.art. 57 risk management and internal control (art. 9 finia)1 fund management companies must have an appropriately defined risk management system in place as well as an effective internal control structure to ensure in particular compliance with legal and internal provisions.2 they shall set out guidelines for the basic principles of risk management and define their risk tolerance.3 they will keep the functions of risk management and compliance functionally and hierarchically separate from the operational business units, in particular from portfolio management.4 the body responsible for the governance, supervision and control of the fund management company is charged with establishing, securing and monitoring the ics. this body also defines risk tolerance.5 the body responsible for management implements the corresponding requirements stipulated by the body for governance, supervision and control, it develops suitable guidelines, procedures and processes, and reports at appropriate intervals to the body responsible for governance, supervision and control.6 where the nature and scope of activity so justify, finma may require the appointment of internal auditors who are independent of management.7 where there are legitimate grounds for so doing, it may depart from these requirements.8 it shall regulate the details.art. 58 minimum capital (art. 36 finia)the minimum capital of fund management companies must amount to at least chf 1 million and be paid up in full. this amount must be maintained at all times.art. 59 level of capital adequacy (art. 37 finia)1 the level of capital adequacy stipulated in article 37 finia must be maintained at all times. they must amount to no more than chf 20 million, including the capital in accordance with paragraph 5.2 they will be calculated as follows in percentages of the total assets of the collective investment schemes managed by the fund management company:a. 1% for that portion of the total assets not exceeding chf 50 million;b. % for that portion of the total assets exceeding chf 50 million, but not exceeding chf 100 million;c. % for that portion of the total assets exceeding chf 100 million, but not exceeding chf 150 million;d. % for that portion of the total assets exceeding chf 150 million, but not exceeding chf 250 million;e. % for that portion of the total assets exceeding chf 250 million.3 where the fund management company renders further services in accordance with article 34 finia, the operational risks arising from such transactions are calculated using the basic indicator approach as defined in article 92 of the capital adequacy ordinance of 1 june 201223 (cao).4 if the fund management company is entrusted with the administration and portfolio management of the assets of a sicav, its total assets must be included in the calculation of capital in accordance with paragraph 2.5 if the fund management company is solely entrusted with the administration of a sicav, it must hold additional capital of 0.01% of the total assets of the sicav.23 sr 952.03art. 60 qualifying capital (art. 37 finia)1 fund management companies may count the following as qualifying capital:a. the paid-up share and participation capital;b. the general statutory and other reserves;c. retained earnings;d. the net profit for the current financial year after deduction of the estimated profit distribution, provided an audit review of the interim accounts including a complete income statement is available;e. hidden reserves, provided they are assigned to a separate account and designated as capital and their qualifiability as such is confirmed on the basis of the audit in accordance with article 63 finia.2 fund management companies may also count as qualifying capital any loans granted to them, including bonds with a maturity of at least five years, if a declaration is provided to the effect that:a. in the event of liquidation, bankruptcy or probate proceedings, such loans shall be subordinate to the claims of all other creditors; andb. the fund management company undertakes neither to net such loans with its own claims nor to secure them with its own assets.3 the declaration in accordance with paragraph 2 is irrevocable. it must be made in writing or in another form demonstrable via text and filed with the audit firm.4 capital in accordance with paragraph 1 must amount to at least 50% of total capital required.art. 61 deductions applied when calculating the level of capital adequacy (art. 37 finia)the following shall be deducted when calculating the level of capital adequacy:a. the loss carried forward and the loss for the current financial year;b. the unsecured valuation adjustments and provisions for the current financial year;c. in the case of loans in accordance with article 60 paragraph 2: 20% of the original nominal amount per year for the last five years prior to repayment;d. intangible assets (including start-up and organisational costs as well as goodwill) with the exception of software;e. own shares held by the fund management company at its own risk;g. the carrying amount of participations.art. 62 accounting and annual report (art. 9, 33, 36 und 37 finia)1 fund management companies are subject to the accounting regulations of the co24. where fund management companies are subject to specific, more stringent accounting standards, such regulations take precedence.2 the fund management company shall submit to finma the annual report and the full report for the body responsible for governance, supervision and control within 30 days of receiving approval from the body responsible for management. the fund management company shall append to the annual report a list of the prescribed and available capital as at the balance sheet date.24 sr 220art. 63 internal documentation (art. 9 and 33 finia)internal documentation of the fund management companies must allow the audit firm and finma to form a reliable picture of the business activities.art. 64 change of fund management company (art. 39 finia)article 27 cisa25 und article 41 of the collective investment schemes ordinance of 22 november 200626 apply by analogy to a change of fund management company.25 sr 951.3126 sr 951.311section 4 securities firms art. 65 commerciality (art. 3 and 41 finia)1 securities firms within the meaning of article 41 letter a finia are deemed to pursue their activities on a commercial basis if they directly or indirectly manage accounts or hold securities in safekeeping for more than 20 clients.2 the following are not deemed to be clients within the meaning of article 41 letter a finia:a. domestic and foreign banks and securities firms or other companies under state supervision;b. shareholders or partners holding a qualifying participation and persons with whom they have business or family ties;c. institutional investors with professional treasury operations.3 activities for schemes and persons in accordance with article 2 paragraph 2 letters a, b, d and e finia are not factored into the assessment of commerciality.4 the proper functioning of the financial market is deemed potentially jeopardised within the meaning of article 41 letter b item 1 finia if the total volume of executed trades in securities exceeds chf 5 billion per calendar year in switzerland.5 any party admitted as a direct participant of a trading venue is deemed to be operating as a member of a trading venue within the meaning of article 41 letter b item 2 finia.6 a securities firm shall publicly quote prices within the meaning of article 41 letter c finia if the prices according to article 3 letters g and h finsa27 are part of an offer to the public. offers to schemes and persons in accordance with paragraphs 2 and 3 are not deemed public.7 fund management companies are not deemed to be securities firms.27 sr 950.1art. 66 organisation (art. 9 finia)1 securities firms must be able to be represented by a person who has their place of residence in switzerland. this person must be a member of the body responsible for management or of the body responsible for governance, supervision and control.2 the body responsible for management must comprise at least two persons.3 firms trading for the account of clients and firms acting as market makers within the meaning of article 41 letters a and c finia must appoint a special body responsible for governance, supervision and control. its members may not be members of the body responsible for management.4 where there are legitimate grounds for so doing, finma may allow relaxations of these requirements or it may impose more stringent requirements.art. 67 tasks (art. 44 finia)1 within the frame of their tasks in accordance with article 44 finia, securities firms shall ensure an effective internal separation between the functions of trading, asset management and settlement. where there are legitimate grounds for so doing, finma may allow exemptions or it may order the separation of further functions.2 if they do not operate primarily in the financial sector, firms trading for the account of clients and firms acting as market makers within the meaning of article 41 letters a and c finia must keep securities trading activities legally separate.3 in all other respects, article 14 applies.art. 68 risk management and internal control (art. 9 finia)1 securities firms must have an appropriately defined risk management system in place as well as an effective internal control structure to ensure in particular compliance with legal and internal provisions.2 they shall set out guidelines for the basic principles of risk management and define their risk tolerance.3 they will keep the functions of risk management and compliance functionally and hierarchically separate from the operational business units, in particular from the function of trading.4 firms trading for the account of clients and firms acting as market makers within the meaning of article 41 letters a and c finia shall appoint internal auditors who are independent of management. internal auditors must be provided with sufficient resources and have unlimited audit rights.5 where there are legitimate grounds for so doing, finma may allow relaxations of these requirements or it may impose more stringent requirements.art. 69 minimum capital and collateral (art. 45 finia)1 the minimum capital of securities firms must amount to at least chf 1.5 million and be paid up in full. this amount must be maintained at all times.2 in the case of companies formed using a contribution in kind, the value of the assets contributed and the extent of liabilities must be verified by a licensed audit firm. this also applies to the conversion of an existing company into a securities firm.3 in the case of securities firms in the form of a partnership, capital is deemed to be:a. the capital accounts; andb. the assets of partners with unlimited liability.4 assets in accordance with paragraph 3 may only be counted towards the minimum capital requirement if a declaration is provided to the effect that:a. in the event of liquidation, bankruptcy or probate proceedings, such assets shall be subordinate to the claims of all other creditors; andb. the securities firm undertakes:1. neither to net such assets with its own claims nor to secure them with its own assets,2. without the prior consent of the audit firm, not to reduce any of the capital components to the extent that the minimum capital requirement is no longer met.5 the declaration in accordance with paragraph 4 is irrevocable. it must be made in writing or in another form demonstrable via text and filed with the audit firm.6 finma may allow securities firms in the form of a partnership to provide, instead of minimum capital in accordance with paragraphs 3 and 4, collateral of at least chf 1.5 million, for example in the form of a bank guarantee or a cash deposit in a blocked account with a bank.7 where there are legitimate grounds for so doing, finma can stipulate a higher minimum capital requirement.art. 70 capital and risk diversification (art. 46 finia)1 securities firms which themselves do not hold accounts in accordance with article 44 paragraph 1 letter a finia must maintain at all times capital amounting to at least one quarter of the fixed costs reported in the most recent annual accounts and no more than chf 20 million.2 fixed costs are deemed to be:a. personnel expenses;b. operating business expenses;c. depreciation of investment assets;d. expenses for valuation adjustments, provisions and losses.3 the portion of personnel expenses which is exclusively dependent on the business result or in relation to which no legal entitlement exists is to be deducted from personnel expenses.4 securities firms which themselves hold accounts in accordance with article 44 paragraph 1 letter a finia must comply with the provisions of the cao28.28 sr 952.03art. 70a29 eligible capital (art. 46 finia)1 securities firms may include the following as capital in accordance with article 70 paragraphs 1 to 3:paid-up share capital plus, in the case of partnerships, alternative capital instruments;disclosed reserves;retained earnings;the quarterly profits after deduction of the estimated profit distribution amount;subordinated bonds that are only repayable with the consent of finma.2 the capital under paragraph 1 letters a to c can be included in full.3 70% of the quarterly profits may be included after deducting the estimated profit distribution, subject to the existence of a complete income statement in accordance with finma's implementing provisions based on article 42 of the banking ordinance of 30 april 201430 or of a complete income statement in accordance with an international standard recognised by finma, even if the income statement has not been audited. where justified, finma can require an attestation.4 the following must be deducted in full from the eligible capital under paragraph 1 letters a to d:the loss carried forward and the loss for the current financial year;the value of any participations in the context of the individual entity calculation;goodwill, including any goodwill included in the valuation of significant interests in financial sector entities outside the scope of consolidation, and intangible assets;deferred tax assets (dtas) that depend on future profitability, whereby offsetting against corresponding deferred tax liabilities within the same geographical and material tax jurisdiction is permitted.5 if the capital under paragraph 1 letters a to d exceeds chf 1.5 million after the deductions under paragraph 4, 40% of the subordinated bonds may be included for the excess amount.29 inserted by no i 7 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400).30 sr 952.02art. 71 liquidity (art. 46 finia)1 securities firms which themselves do not hold accounts in accordance with article 44 paragraph 1 letter a finia must invest their resources such that sufficient liquidity is guaranteed at all times.2 securities firms which themselves hold accounts in accordance with article 44 paragraph 1 letter a finia must comply with the provisions of the liquidity ordinance of 30 november 201231.31 sr 952.06art. 72 accounting (art. 45-48 finia)the provisions on accounting contained in the banking ordinance of 30 april 201432 apply by analogy.32 sr. 952.02art. 73 internal documentation (art. 9 finia)internal documentation of the securities firms must allow the audit firm and finma to form a reliable picture of the business activities.art. 74 record-keeping duty (art. 50 finia)1 the securities firm must keep a record of all orders received by it and all transactions in securities executed by it.2 the record-keeping duty also applies to orders and transactions in derivatives whose underlying instruments are securities admitted to trading on a trading venue or dlt trading facility33.3 it applies not only to transactions for own account, but also to transactions executed on behalf of clients.4 finma shall regulate which information is necessary and what form it is to be recorded in.33 term in accordance with no i 7 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400). this amendment has been taken into account only in the provisions mentioned in the as.art. 75 reporting duty (art. 51 finia)1 the securities firm shall report all transactions it executes involving securities admitted to trading on a trading venue or dlt trading facility. in particular, the following must be reported:a. the designation and number of the securities purchased or sold;b. the volume, date and time of the transaction;c. the price;d. the details necessary to identify the beneficial owner.2 the reporting duty also applies to transactions in derivatives whose underlying instruments are securities admitted to trading on a trading venue or dlt trading facility.3 it applies not only to transactions for own account, but also to transactions executed on behalf of clients.4 the following transactions executed abroad do not have to be reported:a. transactions in securities admitted to trading on a trading venue or dlt trading facility in switzerland and in derivatives with such securities as their underlying instruments, provided the information in question is communicated to the trading venue or dlt trading facility on the basis of an agreement in accordance with article 32 paragraph 3 finmia34 or within the framework of an exchange of information between finma and the competent foreign supervisory authority if:1. said transactions are executed by the branch of a swiss securities firm or by a foreign admitted participant, and2. the branch or the foreign participant is authorised to trade by the relevant foreign supervisory authority and is required to report in the corresponding state or in its state of domicile;b. transactions in foreign securities admitted to trading on a trading venue or dlt trading facility in switzerland and in derivatives with such securities as their underlying instruments, which transactions are executed on a recognised foreign trading venue or dlt trading facility.5 third parties may be involved in reporting.34 sr 958.1section 5 branches art. 76 foreign financial institutions (art. 52 para. 1 finia)1 a foreign financial institution is any company organised in accordance with foreign legislation and which:a. possesses authorisation abroad as a financial institution;b. in the company name, in the description of its business purpose or in commercial documents uses terms in accordance with article 13 paragraph 2 finia or a term of similar meaning; orc. operates a financial institution within the meaning of article 2 paragraph 1 finia.2 if the foreign financial institution is effectively managed from switzerland or if it executes its transactions exclusively or predominantly in or from switzerland, it must be organised in accordance with swiss legislation and be subject to the provisions governing domestic financial institutions.art. 77 duty to obtain authorisation and authorisation conditions (art. 52 para. 1 and 53 finia)1 the foreign financial institution must have:a. authorisation and supervision at least equivalent to the authorisation and supervision requested for the branch in switzerland;b. collateral which is comparable to that in accordance with:1. articles 22 and 23 finia in the case of foreign financial institutions which manage assets or act as a trustee (article 52 paragraph 1 letter a finia),2. articles 28, 29, 36 and 37 finia in the case of foreign financial institutions which perform fund business, portfolio management for collective investment schemes or portfolio management for occupational pension schemes (article 52 paragraph 1 letter b finia),3. articles 45-47 finia in the case of foreign financial institutions which trade securities, execute transactions or manage client accounts (article 52 paragraph 1 letters c-e finia).2 the branch must:a. comply with the standards of the finsa35 if it provides financial services in accordance with article 3 letter c finsa;b. comply with the conditions in accordance with article 20 finia in the case of foreign financial institutions which manage assets or act as a trustee (article 52 paragraph 1 letter a finia);c. be subject to supervision:1. in accordance with articles 61 and 62 finia in the case of foreign financial institutions which manage assets or act as a trustee,2. in accordance with articles 61 and 63 finia in the case of foreign financial institutions in accordance with article 52 paragraph 1 letters b-e finia.3 the foreign financial institution may only apply for entry of the branch in the commercial register when finma has granted said financial institution authorisation to establish the branch.35 sr 950.1art. 78 multiple branches (art. 52 para. 1 and 53 finia)1 if a foreign financial institution establishes multiple branches in switzerland, it must:a. obtain authorisation for each one;b. designate one among them which is responsible for relations:1. with finma and the supervisory organisation in the case of article 52 paragraph 1 letter a finia,2. with finma in the case of article 52 paragraph 1 letters b-e finia.2 these branches must jointly meet the conditions of the finia and the present ordinance. an audit report is sufficient.art. 79 annual and interim accounts of branches (art. 52 para. 1 and 53 finia)1 branches may draw up their annual and interim accounts in accordance with the provisions which apply to the foreign financial institution, provided they satisfy international standards of accounting.2 claims and liabilities must be stated separately:a. in respect of the foreign financial institution;b. in respect of companies active in the financial sector or real estate firms if:1. the foreign financial institution forms an economic unit with them, or2. it is to be assumed that the foreign financial institution is de jure or de facto obliged to provide assistance to group companies.3 paragraph 2 also applies to off-balance-sheet business.4 a branch shall send its annual and interim accounts:a. to the supervisory organisation for submission to finma in the case of article 52 paragraph 1 letter a finia;b. to finma in the case of article 52 paragraph 1 letters b-e finia.5 publication is not required.art. 80 audit report (art. 52 para. 1 and 53 finia)1 the audit firm shall send its audit report:a. to the supervisory organisation for submission to finma in the case of article 52 paragraph 1 letter a finia;b. to finma in the case of article 52 paragraph 1 letters b-e finia.2 it shall provide a copy to the branch manager responsible.3 the branch will send the copy of the audit report to the unit of the foreign financial institution which is responsible for the business activities of the branch.art. 81 closure of a branch (art. 52 para. 1 and 53 finia)the foreign financial institution shall obtain the approval of finma before closing a branch.section 636 representations 36 amended by no i 7 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400). (art. 58 para. 1 and 2 and 59 finia)art. 82 1 the representative office of a foreign financial institution that provides financial services in accordance with article 3 letter c of the finsa37 must:a. comply with the provisions of the finsa;b. enter its client advisers in a register of advisers in accordance with article 28 of the finsa if they do not exclusively provide their services in switzerland to professional or institutional clients in accordance with article 4 of the finsa. 2 the prohibition on establishing a representative office of a foreign fund management company in accordance with article 58 paragraph 2 of the finia38 applies exclusively to the office's activities in relation to the administration and management of investment funds.37 sr 950.138 sr 954.1chapter 3 supervision section 1 portfolio managers and trustees art. 83 domestic group companies (art. 61 para. 1 and 2 finia)1 for domestic portfolio managers and trustees which form part of a financial group finma can provide that ongoing supervision is performed exclusively within the framework of group supervision. this is conditional on the group company being closely integrated into the risk management, internal control and internal auditing structures of the financial group.2 finma shall publish a list of the group companies monitored by it in accordance with paragraph 1.art. 84 ongoing supervision (art. 61 para. 2 and 62 finia)1 the supervisory organisation shall verify on an ongoing basis whether the entities under its supervision specifically:a. satisfy the requirements of the finia;b. observe the duties pursuant to the anti-money laundering act of 10 october 199739 (amla);c. observe the duties pursuant to the finsa40 if they provide financial services in accordance with article 3 letter c finsa;d. observe the duties pursuant to the cisa41 if they perform activities falling under the cisa.2 finma shall provide the supervisory organisations with guidelines for auditing and supervision. in particular, it shall set down for the supervisory organisations a system of risk assessment as well as minimum requirements to be met by the supervision concept. it shall consult with the supervisory organisations beforehand.3 audit actions and their findings shall be recorded in audit reports. audit reports shall be published in an official language. exemptions through audit firms in accordance with article 43k finmasa42 require the consent of the supervisory organisation.4 if the supervisory organisation supervises a financial institution whose activity requires a higher authorisation level on exceeding thresholds, the supervisory organisation will monitor compliance with these thresholds and notify finma and the financial if they are exceeded.5 the issuance of rulings is reserved to finma. finma shall intervene in the ongoing supervision by the supervisory organisation if this is necessary to enforce the financial market acts in accordance with article 1 paragraph 1 finmasa.39 sr 955.040 sr 950.141 sr 951.3142 sr 956.1art. 85 coordination of supervisory activities (art. 5 and 62 finia)with respect to the supervision of portfolio managers and trustees, finma and the supervisory organisations will coordinate their supervisory activities in order to avoid duplication.art. 86 appointment of audit firms (art. 62 para. 1 finia)where the supervisory organisation does not itself conduct the audit of supervised entities, it will ensure that:a. the appointed audit firm is correctly mandated and authorised in accordance with article 43k finmasa43; b. the appointed audit firm implements the guidelines provided by finma;c. the areas audited and the corresponding depths of audit of risk assessments are commensurate with its supervision concept; andd. it is informed immediately of any irregularities.43 sr 956.1art. 87 audit frequency (art. 62 para. 2 and 3 finia)1 when defining the audit frequency and the intensity of supervision, the supervisory organisation shall be guided by the risks associated with the activity of those supervised and the risks associated with their organisation.2 in years in which no regular audit takes place, the supervisory authority shall collect standardised data on the risks associated with those supervised.3 it shall assess the self-declared data collected and take further measures where necessary.4 finma shall set down for, and in consultation with, the supervisory organisation guidelines for conducting an assessment in accordance with paragraphs 1-3.section 2 managers of collective assets, fund management companies, securities firms, financial groups and financial conglomerates art. 88 auditing (art. 61 para. 3 and 63 finia)1 the audit firm shall verify whether the entities under its supervision specifically:a. satisfy the requirements of the finia;b. observe the duties pursuant to the amla44;c. observe the duties pursuant to the finsa45 if it provides financial services in accordance with article 3 letter c finsa;d. observe the duties pursuant to the cisa46 if they perform activities falling under the cisa.2 supervised entities for which the audit firm submits an annual risk analysis are exempted from the duty to report on their business activity's compliance in accordance with article 63 paragraph 3 finia.44 sr 955.045 sr 950.146 sr 951.31art. 89 cooperation between audit firms (art. 63 finia)the audit firms of supervised entities which cooperate in accordance with article 14, 27 or 35 finia must themselves cooperate closely.section 3 measures under insolvency law (art. 67 finia)art. 90 article 24 banka47 applies by analogy to fund management companies and securities firms.47 sr 952.0chapter 4 final provisions art. 91 repeal and amendment of other legislative instruments (art. 73 finia)the repeal and amendment of other legislative instruments are set out in the annex.art. 92 transitional provisions for portfolio managers and trustees (art. 74 finia)1 portfolio managers and trustees which until entry into force of the finia were supervised by finma as financial intermediaries directly subordinated to it pursuant to the amla48 are no longer required to be affiliated to a self-regulatory organisation in accordance with article 24 amla if, within one year of entry into force of the finia, they:a. receive confirmation from a supervisory organisation that they are subject to supervision in accordance with article 7 paragraph 2 finia; andb. submit an authorisation application to finma.2 they shall submit a report on their business activity's compliance with the provisions of the amla:a. to the supervisory organisation prior to being subject to supervision in accordance with article 7 paragraph 2 finia; orb. to the self-regulatory organisation prior to affiliation accordance with article 14 amla.48 sr 955.0art. 93 further transitional provisions (art. 74 finia)1 article 5 paragraph 2 finia is not applicable to financial institutions which on entry into force of the finia are already entered in the commercial register.2 financial institutions which provide services in accordance with the finsa49 must be affiliated to the ombudsman's office within six months of the federal department of finance recognising or establishing for them an ombudsman's office in accordance with article 84 finsa. the period is deemed met on submission of the application.3 financial institutions that have their registered office abroad and by reason of a branch or representation in switzerland already hold authorisation are not required to submit a new application for authorisation. they must satisfy the legal requirements within one year of entry into force.4 financial institutions that have their registered office abroad and by reason of a branch or representation in switzerland are newly required to obtain authorisation pursuant to the finia shall report to finma within six months of entry into force. they must satisfy the legal requirements and submit an application for authorisation within three years of entry into force. they may continue their activities until a decision on authorisation is made.5 article 77 paragraph 3 is not applicable to branches which on entry into force of the finia are already entered in the commercial register.6 exemptions granted by finma based on article 18 paragraph 3 cisa50 in the version of 28 september 201251 to managers of collective investment schemes remain valid under article 7 of the present ordinance.49 sr 950.150 sr 951.3151 as 2013 585art. 94 commencement this ordinance enters into force on 1 january 2020. annex (art. 91)repeal and amendment of other legislative instruments ithe stock exchange ordinance of 2 december 199652 is repealed.iithe legislative instruments below are amended as follows:.5352 [as 1997 85 2044 art. 2, 2004 2781, 2005 4849 no iii, 2006 4307 annex 7 no 2, 2008 5363 annex no 9, 2012 5441 annex 6 no 3, 2013 1111, 2014 1269 annex 2 no 6 2321 annex 4 no 2 4295 annex no 4, 2015 5413 annex 1 no 12, 2017 3715 no iii]53 the amendments may be consulted under as 2019 4633.

955.0english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.federal acton combating money laundering andterrorist financing(anti-money laundering act, amla)1of 10 october 1997 (status as of 1 january 2022)1 amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).the federal assembly of the swiss confederation,based on articles 95 and 98 of the federal constitution2,3and having considered the federal council dispatch dated 17 june 19964,decrees:2 sr 1013 amended by no i of the fa of 21 june 2013, in force since 1 nov. 2013 (as 2013 3493; bbl 2012 6941).4 bbl 1996 iii 1101chapter 1 general provisions art. 15 subject matter this act regulates the combating of money laundering as defined in article 305bis of the swiss criminal code6 (scc), the combating of terrorist financing as defined in article 260quinquies paragraph 1 scc, and the due diligence required in financial transactions.5 amended by no i 4 of the fa of 3 oct. 2008 on the implementation of the revised recommendations of the financial action task force, in force since 1 feb. 2009 (as 2009 361; bbl 2007 6269).6 sr 311.0art. 2 scope of application 1 this act applies to: a. financial intermediaries;b. natural persons and legal entities that deal in goods commercially and in doing so accept cash (dealers).72 financial intermediaries are:a.8 banks as defined in article 1a of the banking act of 8 november 19349 (banka) and the persons defined in article 1b banka;abis.10 portfolio managers and trustees as defined in article 2 paragraph 1 letters a and b of the financial institutions act of 15 june 201811 (finia), and trade assayers as defined in article 42bis of the precious metals control act of 20 june 193312;b.13 fund management companies as defined in article 2 paragraph 1 letter d finia;bbis.14 investment companies with variable capital, limited partnerships for collective investment and investment companies with fixed capital in accordance with the collective investment schemes act of 23 june 200615, as well as the managers of collective assets in accordance with article 2 paragraph 1 letter c finia;c.16 insurance institutions as defined in the insurance supervision act of 17 december 200417 that deal in direct life insurance or offer or distribute shares in collective investment schemes;d.18 securities firms in accordance with article 2 paragraph 1 letter e finia;dbis.19 central counterparties and central securities depositories in accordance with the financial market infrastructure act of 19 june 201520 (finmia);dter.21 payment systems that require authorisation from the swiss financial market supervisory authority (finma) in accordance with article 4 paragraph 2 finmia;dquater.22 trading facilities for dlt securities in accordance with article 73a finmia (dlt trading facilities);e.23 casinos as defined in the gambling act of 29 september 201724 (gambla);f.25 promoters of large-scale games under the gambla.3 financial intermediaries are also persons who on a professional basis accept or hold on deposit assets belonging to others or who assist in the investment or transfer of such assets; they include in particular persons who:a. carry out credit transactions (in particular in relation to consumer loans or mortgages, factoring, commercial financing or financial leasing);b. provide services related to payment transactions, in particular by carrying out electronic transfers on behalf of other persons, or who issue or manage means of payment such as credit cards and travellers' cheques;c. trade for their own account or for the account of others in banknotes and coins, money market instruments, foreign exchange, precious metals, commodities and securities (stocks and shares and value rights) as well as their derivatives;d.26 .e.27 .f. make investments as investment advisers;g. hold securities on deposit or manage securities.4 this act does not apply to:a. the swiss national bank;b. tax-exempt occupational pension institutions;c. persons who provide their services solely to tax-exempt occupational pension institutions;d. financial intermediaries within the meaning of paragraph 3 who provide their services solely to financial intermediaries within the meaning of paragraph 2 or to foreign financial intermediaries who are subject to equivalent supervision.7 amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).8 amended by annex no ii 15 des financial institutions act of 15 june 2018, in force since 1 jan. 2019 (as 2018 5247; bbl 2015 8901).9 sr 952.010 inserted by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).11 sr 954.112 sr 941.3113 amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).14 inserted by annex no ii 9 des collective investment schemes act of 23 june 2006 (as 2006 5379; bbl 2005 6395). amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).15 sr 951.3116 amended by annex no ii 9 of the collective investment schemes act of 23 june 2006, in force since 1 jan. 2007 (as 2006 5379; bbl 2005 6395).17 sr 961.0118 amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).19 inserted by annex no 12 of the financial market infrastructure act of 19 june 2015 (as 2015 5339; bbl 2014 7483). amended by no i 8 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).20 sr 958.121 inserted by annex no 12 of the financial market infrastructure act of 19 june 2015 (as 2015 5339; bbl 2014 7483). amended by no i 8 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).22 inserted by no i 8 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).23 inserted by annex no 4 of the gambling act of 18 dec. 1998 (as 2000 677; bbl 1997 iii 145). amended by annex no ii 8 of the gambling act of 29 sept. 2017, in force since 1 jan. 2019 (as 2018 5103; bbl 2015 8387).24 sr 935.5125 inserted by annex no ii 8 of the gambling act of 29 sept. 2017, in force since 1 jan. 2019 (as 2018 5103; bbl 2015 8387).26 repealed by annex no ii 8 of the insurance supervision act of 17 dec. 2004, with effect from 1 jan. 2006 (as 2005 5269; bbl 2003 3789).27 repealed by annex no ii 15 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 2a28 definitions 1 politically exposed persons in terms of this act are:a. individuals who are or have been entrusted with prominent public functions by a foreign country, such as heads of state or of government, senior politicians at national level, senior government, judicial, military or political party officials at national level, and senior executives of state-owned corporations of national significance (foreign politically exposed persons);b. individuals who are or have been entrusted with prominent public functions at national level in switzerland in politics, government, the armed forces or the judiciary, or who are or have been senior executives of state-owned corporations of national significance (domestic politically exposed persons);c. individuals who are or have been entrusted with a prominent function by an intergovernmental organisation or international sports federations, such as secretaries general, directors, deputy directors and members of the board or individuals who have been entrusted with equivalent functions, (politically exposed persons in international organisations)2 the family members and close associates of politically exposed persons are individuals who are closely connected to persons under paragraph 1 either through their family or for social or professional reasons.3 the beneficial owners of an operating legal entity are the natural persons who ultimately control the legal entity in that they directly or indirectly, alone or in concert with third parties, hold at least 25 per cent of the capital or voting rights in the legal entity or otherwise control it. if the beneficial owners cannot be identified, the most senior member of the legal entity's executive body must be identified.4 domestic politically exposed persons are no longer regarded as being politically exposed in terms of this act when 18 months have elapsed since they relinquished their position. the general duties of due diligence for financial intermediaries are reserved.5 an international sports federation in terms of paragraph 1 letter c is the international olympic committee and the non-governmental organisations that it recognised that regulate one or more official sports at global level.28 inserted by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).chapter 2 duties29 29 amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605). section 1 financial intermediaries duty of due diligence30 30 amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605). art. 3 verification of the identity of the customer 1 when establishing a business relationship, the financial intermediary must verify the identity of the customer on the basis of a document of evidentiary value. where the customer is a legal entity, the financial intermediary must acknowledge the provisions regulating the power to bind the legal entity, and verify the identity of the persons who enter into the business relationship on behalf of the legal entity.312 in the case of cash transactions with a customer whose identity has not yet been identified, the duty to verify identity applies only if one transaction, or two or more transactions that appear to be connected, involve a considerable financial value.3 insurance institutions must verify the identity of the customer if the amount of a single premium, the regular premium or the total of the premiums involves a considerable financial value.4 if in cases under paragraphs 2 or 3 there is any suspicion of money laundering or terrorist financing, the identity of the customer must be verified even if the relevant amounts have not been reached.325 finma, the federal gaming board (fgb), the federal department of justice and police (fdjp), the federal customs administration (fca)33 and the self-regulatory organisations shall determine what constitutes a considerable financial value within the meaning of paragraphs 2 and 3 in their respective fields and adjust such values as required.3431 second sentence inserted by no i 4 of the fa of 3 oct. 2008 on the implementation of the revised recommendations of the financial action task force, in force since 1 feb. 2009 (as 2009 361; bbl 2007 6269).32 amended by no i 4 of the fa of 3 oct. 2008 on the implementation of the revised recommendations of the financial action task force, in force since 1 feb. 2009 (as 2009 361; bbl 2007 6269).33 now the federal office for customs and border security (focbs).34 amended by no i 8 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).art. 435 establishing the identity of the beneficial owner 1 the financial intermediary must identify the beneficial owner with the due diligence required in the circumstances. if the customer is a listed company or a subsidiary over which a listed company has majority control, the identity of the beneficial owner need not be established.2 the financial intermediary must obtain a written declaration from the customer as to the identity of the individual who is the beneficial owner if:a. the customer is not the beneficial owner or if there is any doubt about the matter;b. the customer is a domiciliary company or an operating legal entity; orc. a cash transaction of considerable financial value in terms of article 3 paragraph 2 is being carried out.3 in the case of collective accounts or collective deposits, the financial intermediary must require the customer to provide a complete list of the beneficial owners and to give notice of any change to the list immediately. 35 amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).art. 5 repetition of the verification of the identity of the customer or the establishment of the identity of the beneficial owner 1 if doubt arises in the course of the business relationship as to the identity of the customer or of the beneficial owner, the verification of identity or establishment of identity in terms of articles 3 and 4 respectively must be repeated.2 in the case of an insurance policy that may be surrendered, the insurance institution must also re-establish the identity of the beneficial owner if, in the event of a claim or the surrender of the policy, the person entitled to benefit is not the same person identified at the time that the insurance contract was concluded.art. 636 special duties of due diligence 1 the financial intermediary is required to ascertain the nature and purpose of the business relationship wanted by the customer. the extent of the information that must be obtained, the hierarchical level at which the decision to enter into or continue a business relationship must be taken and the regularity of checks are determined by the risk represented by the customer.2 the financial intermediary must clarify the economic background and the purpose of a transaction or of a business relationship if:a. the transaction or the business relationship appears unusual, unless its legality is clear;b.37 there are indications that assets are the proceeds of a felony or an aggravated tax misdemeanour under article 305bis number 1bis scc38 or are subject to the power of disposal of a criminal or terrorist organisation (art. 260ter scc) or serve the financing of terrorism (art. 260quinquies para. 1 scc);c. the transaction or the business relationship carries a higher risk;d.39 the data on a customer, a beneficial owner or an authorised signatory in a business relationship or transaction are identical or very similar to the data provided to the financial intermediary by finma under article 22a paragraph 2 letter a, by a supervisory organisation under article 22a paragraph 2 letter b, by a self-regulatory organisation under article 22a paragraph 2 letter c, or by the fgb40 under article 22a paragraph 3.3 business relationships with foreign politically exposed persons and their family members or close associates in terms of article 2a paragraph 2 are deemed in every case to be business relationships with a higher risk.4 business relationships with domestic politically exposed persons and politically exposed persons in international organisations and their family members or close associates in terms of article 2a paragraph 2 are deemed when combined with one or more further risk criteria to be business relationships with a higher risk.36 amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).37 amended by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).38 sr 311.039 amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).40 name corrected by the federal assembly drafting committee on 31 jan. 2020, published on 18 feb. 2020 (as 2020 501). this modification has been made in the provisions mentioned in the asart. 7 duty to keep records 1 the financial intermediary must keep records of transactions carried out and of clarifications required under this act in such a manner that other specially qualified persons are able to make a reliable assessment of the transactions and business relationships and of compliance with the provisions of this act.2 the financial intermediary must retain the records in such a manner as to be able to respond within a reasonable time to any requests made by the prosecution authorities for information or for the seizure of assets.3 after the termination of the business relationship or after completion of the transaction, the financial intermediary must retain the records for a minimum of ten years.art. 7a41 assets of low value the financial intermediary may dispense with complying with the duties of due diligence (art. 3-7) if the business relationship only involves assets of low value and there is no suspicion of money laundering or terrorist financing.41 inserted by no i 4 of the fa of 3 oct. 2008 on the implementation of the revised recommendations of the financial action task force, in force since 1 feb. 2009 (as 2009 361; bbl 2007 6269).art. 8 organisational measures financial intermediaries must take the measures that are required to prevent money laundering and terrorist financing in their field of business.42 they must in particular ensure that their staff receive adequate training and that checks are carried out.42 amended by no i 4 of the fa of 3 oct. 2008 on the implementation of the revised recommendations of the financial action task force, in force since 1 feb. 2009 (as 2009 361; bbl 2007 6269).section 1a43 dealers' duties of due diligence 43 inserted by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605). art. 8a 1 dealers under article 2 paragraph 1 letter b must fulfil the following duties if they accept more than 100,000 francs in cash in the course of a commercial transaction:a. verification of the identity of the customer (art. 3 para. 1);b. establishing the identity of the beneficial owner (art. 4 para. 1 and 2 let. a and b);c. duty to keep records (art. 7).2 they must clarify the economic background and purpose of a transaction if:a. it appears unusual, unless its legality is clear;b.44 there are indications that assets are the proceeds of a felony or an aggravated tax misdemeanour under article 305bis number 1bis scc45 or are subject to the power of disposal of a criminal or terrorist organisation (art. 260ter scc) or serve the financing of terrorism (art. 260quinquies para. 1 scc).3 dealers are subject to the duties under paragraphs 1 and 2 even if the cash payment is made in two or more instalments and the individual instalments are less than 100,000 francs, but when added together exceed this amount.4 they are not subject to the duties if the payments that exceed 100,000 francs are made through a financial intermediary.5 the federal council shall specify the details of the duties under paragraphs 1 and 2 and stipulate how they are to be fulfilled.44 amended by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).45 sr 311.0section 2 duties in the event of a suspicion of money laundering art. 9 duty to report 1 a financial intermediary must immediately file a report with the money laundering reporting office switzerland (the reporting office) as defined in article 23 if it:a. knows or has reasonable grounds to suspect that assets involved in the business relationship: 1.46 are connected to an offence in terms of article 260ter or 305bis scc47, 2.48 are the proceeds of a felony or an aggravated tax misdemeanour under article 305bis number 1bis scc,3.49 are subject to the power of disposal of a criminal or terrorist organisation, or 4. serve the financing of terrorism (art. 260quinquies para. 1 scc);b. terminates negotiations aimed at establishing a business relationship because of a reasonable suspicion as defined in letter a;c.50 knows or has reason to assume based on the clarifications carried out under article 6 paragraph 2 letter d that the data passed on by finma, the fgb, a supervisory organisation or a self-regulatory organisation relating to a person or organisation corresponds to the data of a customer, a beneficial owner or an authorised signatory in a business relationship or transaction.511bis a dealer must immediately file a report with the reporting office if it knows or has reasonable grounds to suspect that cash payments made in the course of a commercial transaction:a.52 are connected to an offence under article 260ter or 305bis scc;b. are the proceeds of a felony or an aggravated tax misdemeanour under article 305bis number 1bis scc;c.53 are subject to the power of disposal of a criminal organisation; or d.54 serve the financing of terrorism (art. 260quinquies para. 1 scc).551ter the name of the financial intermediary or dealer must appear in any report in accordance with paragraph 1. the identity of the financial intermediary's or dealer's staff who are in charge of the case may be made anonymous in the report, provided it is guaranteed that the reporting office and the competent prosecution authority are able to contact them without delay.562 lawyers and notaries are not subject to the duty to report insofar as they are bound in their activities by professional secrecy in terms of article 321 scc.46 amended by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).47 sr 311.048 amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).49 amended by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).50 inserted by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force (as 2015 1389; bbl 2014 605) amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).51 amended by no i 4 of the fa of 3 oct. 2008 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 feb. 2009 (as 2009 361; bbl 2007 6269).52 amended by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).53 amended by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).54 inserted by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).55 inserted by no i 4 of the fa of 3 oct. 2008 on the implementation of the revised recommendations of the financial action task force (as 2009 361; bbl 2007 6269). amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).56 inserted by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).art. 9a57 customer orders relating to the reported assets during the analysis conducted by the reporting office under article 23 paragraph 2, the financial intermediary shall execute customer orders relating to the assets reported under article 9 paragraph 1 letter a of this act or under article 305ter paragraph 2 scc58.57 inserted by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).58 sr 311.0art. 1059 freezing of assets 1 the financial intermediary shall freeze the assets entrusted to it that are related to the report under article 9 paragraph 1 letter a of this act or under article 305ter paragraph 2 scc60 as soon as the reporting office informs it that it has forwarded the report to the prosecution authority.1bis it shall without delay freeze the assets entrusted to it that are related to the report under article 9 paragraph 1 letter c.2 it shall continue to freeze the assets until it receives a ruling from the competent prosecution authority, but at most for five working days from the date on which the reporting office gives notice of forwarding the report under paragraph 1 or on which it filed the report with the reporting office under paragraph 1bis.59 amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).60 sr 311.0art. 10a61 prohibition of information 1 the financial intermediary is prohibited from informing the persons concerned or third parties that it has filed a report under article 9 of this act or under article 305ter paragraph 2 scc62. the self-regulatory organisation to which the financial intermediary is affiliated is not regarded as a third party. the same applies to finma and the fgb in relation to the financial intermediaries under their supervision.632 if the financial intermediary itself is unable to freeze the assets, it may inform the financial intermediary that is able to do so and which is subject to this act.3 it may also inform another financial intermediary subject to this act that a report has been submitted under article 9, provided this is required in order to comply with duties under this act and provided both financial intermediaries:64a. provide joint services for one customer in connection with the management of that customer's assets on the basis of a contractual agreement to cooperate; orb. are part of the same corporate group.4 the financial intermediary who has been informed on the basis of paragraph 2 or 3 is subject to the prohibition of information in paragraph 1.5 the dealer is prohibited from informing the persons concerned or third parties that it has filed a report under article 9.656 the prohibition on providing information under paragraphs 1 and 5 does not apply to protecting personal interests in the context of a civil action or criminal or administrative proceedings.6661 inserted by no i 4 of the fa of 3 oct. 2008 on the implementation of the revised recommendations of the financial action task force, in force since 1 feb. 2009 (as 2009 361; bbl 2007 6269).62 sr 311.063 amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).64 amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).65 inserted by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).66 inserted by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).art. 1167 exclusion of criminal and civil liability 1 any person who in good faith files a report under article 9 of this act or who freezes assets in accordance with article 10 may not be prosecuted for a breach of official, profession or trade secrecy or be held liable for breach of contract.2 this exclusion of prosecution and liability also applies to financial intermediaries that file a report under article 305ter paragraph 2 scc68 or to self-regulatory organisations that file a report under article 27 paragraph 4.67 amended by no i 4 of the fa of 3 oct. 2008 on the implementation of the revised recommendations of the financial action task force, in force since 1 feb. 2009 (as 2009 361; bbl 2007 6269).68 sr 311.0section 369 provision of information 69 inserted by no i of the fa of 21 june 2013, in force since 1 nov. 2013 (as 2013 3493; bbl 2012 6941). art. 11a 1 if the reporting office requires additional information in order to analyse a report that it has received in accordance with article 9 of this act or article 305ter paragraph 2 scc70, the financial intermediary making the report must on request provide such information that is in its possession.2 if, based on this analysis, it becomes apparent that in addition to the financial intermediary making the report, other financial intermediaries are or were involved in a transaction or business relationship, the financial intermediaries involved must on request provide the reporting office with all related information that is in their possession.2bis if, on the basis of the analysis of information from a foreign reporting office, it becomes apparent that financial intermediaries subject to this act are or have been involved in a transaction or business relationship in connection with this information, the financial intermediaries involved must, on request, disclose to mros all related information to the extent that it is available to them.713 the reporting office shall specify a deadline for the provision of information by the financial intermediaries concerned under paragraphs 1-2bis.724 the financial intermediaries are subject to the prohibition of information under article 10a paragraph 1.5 the exclusion of criminal and civil liability under article 11 applies by analogy.70 sr 311.071 inserted by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).72 amended by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).chapter 3 supervision section 1 general provisions art. 1273 responsibility the following bodies shall supervise compliance by financial intermediaries with the duties set out in chapter 2:74a.75 for financial intermediaries under article 2 paragraph 2 letters a to dquater, finma;b.76 for financial intermediaries under article 2 paragraph 2 letter e, the fgb;bbis.77 under article 2 paragraph 2 letter f: the intercantonal supervisory and executive authority under article 105 gambla78;c.79 for financial intermediaries under article 2 paragraph 3, the recognised self-regulatory organisations (art. 24).73 amended by annex no 17 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207; bbl 2006 2829).74 amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).75 amended by no i 8 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).76 amended by annex no ii 8 of the gambling act of 29 sept. 2017, in force since 1 jan. 2019 (as 2018 5103; bbl 2015 8387).77 inserted by annex no ii 8 of the gambling act of 29 sept. 2017, in force since 1 jan. 2019 (as 2018 5103; bbl 2015 8387).78 sr 935.5179 amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 1380 80 repealed by annex no 17 of the financial market supervision act of 22 june 2007, with effect from 1 jan. 2009 (as 2008 5207; bbl 2006 2829).art. 1481 licensing and affiliation requirement 1 financial intermediaries within the meaning of article 2 paragraph 3 must be affiliated to a self-regulatory organisation.2 a financial intermediary within the meaning of article 2 paragraph 3 is entitled to affiliate to a self-regulatory organisation if:a. the financial intermediary guarantees compliance with its duties in accordance with this act by means of its internal regulations and organisationb. the financial intermediary enjoys a good reputation and guarantees compliance with its duties in accordance with this actc. the persons responsible for its administration and management also meet the requirements of letter b; andd. its qualified participants enjoy a good reputation and guarantee that their influence is not detrimental to prudent and sound business operations.3 the self-regulatory organisation may make affiliation conditional on the financial intermediary operating in specific sectors.81 amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 1582 dealers' duty to verify 1 dealers who must fulfil the duties of due diligence under article 8a shall appoint an audit firm to verify that they are complying with their duties under chapter two.2 auditors under article 5 or audit firms under article 6 of the auditor oversight act of 16 december 200583 which have the required technical expertise and experience may be appointed as the audit firm.3 the dealers are obliged to provide the audit firm with all the information and documents required to conduct the audit.4 the audit firm shall verify compliance with the duties under this act and prepare a report thereon for the attention of the responsible management bodies of the dealer audited.5 if a dealer fails to comply with its duty to report, the audit firm shall immediately file a report with the reporting office if it has reasonable grounds to suspect that:84a.85 an offence under article 260ter or 305bis scc86 has been committed;b. assets are the proceeds of a felony or an aggravated tax misdemeanour under article 305bis number 1bis scc;c.87 assets are subject to the power of disposal of a criminal or terrorist organisation; ord.88 assets serve the financing of terrorism (art. 260quinquies para. 1 scc).82 amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605). 83 sr 221.30284 amended by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).85 amended by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).86 sr 311.087 amended by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).88 inserted by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).section 289 duty to report of the supervisory authorities and the supervisory organisation90 89 amended by annex no 17 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207; bbl 2006 2829).90 amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901). art. 16 1 finma, the fgb, the intercantonal supervisory and executive authority under article 105 gambla91 and the supervisory organisation in accordance with article 43a of the financial market supervision act of 22 june 200792shall immediately submit a report to the reporting office if they have reasonable grounds to suspect that:93a.94 a criminal offence under article 260ter, 305bis or 305ter scc95 has been committed;b.96 assets are the proceeds of a felony or an aggravated tax misdemeanour under article 305bis number 1bis scc; c.97 assets are subject to the power of disposal of a criminal or terrorist organisation; ord.98 assets serve the financing of terrorism (art. 260quinquies para. 1 scc).2 this duty applies only if the financial intermediary or the self-regulatory organisation has not already submitted a report.3 the supervisory organisation shall submit a copy of the report to finma at the same time.9991 sr 935.5192 sr 956.193 amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901). corrected by the fa drafting committee on 31 jan. 2020, published on 18 feb. 2020 (as 2020 501).94 amended by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).95 sr 311.096 amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).97 amended by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).98 inserted by no i 4 of the fa of 3 oct. 2008 on the implementation of the revised recommendations of the financial action task force, in force since 1 feb. 2009 (as 2009 361; bbl 2007 6269).99 inserted by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).section 3100 supervision of financial intermediaries under article 2 paragraph 2 100 amended by annex no 17 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207; bbl 2006 2829).art. 17101 in the absence of recognised self-regulation, the duties of due diligence defined in chapter 2 and their fulfilment shall be regulated by:a.102 finma for financial intermediaries under article 2 paragraph 2 letters a-dquater;b. the fgb for financial intermediaries under article 2 paragraph 2 letter e;c.103 the fdjp for financial intermediaries under article 2 paragraph 2 letter f.101 amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901). corrected by the federal assembly drafting committee on 24 sept. 2019 (as 2019 5065).102 amended by no i 8 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).103 amended by no i 8 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).section 3a supervision of financial intermediaries under article 2 paragraph 3104 104 inserted by annex no 17 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207; bbl 2006 2829).art. 18 duties of finma105 1 finma shall have the following duties in terms of its supervision of the financial intermediaries under article 2 paragraph 3:106a. it recognises the self-regulatory organisations or withdraws such recognition;b.107 it supervises the self-regulatory organisations;c. it approves the regulations issued by the self-regulatory organisations in accordance with article 25 and any amendments thereto;d. it ensures that the self-regulatory organisations enforce their regulations;e. and f.108 .2 .1093 in order to preserve professional secrecy, self-regulatory organisations shall arrange for inspections under this act (amla inspections) to be carried out on lawyers by lawyers and on notaries by notaries.1104 the lawyers and notaries instructed to carry out amla inspections must meet the following requirements:a. lawyer's or notary's practising certificate; b. guarantee of that inspections will be carried out properly; c. proof of the relevant knowledge of amla, practical experience and continuing professional development; d. independence from the member being checked.111105 amended by annex no 17 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207; bbl 2006 2829).106 amended by annex no 17 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207; bbl 2006 2829).107 amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).108 repealed by annex no ii 15 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).109 repealed by annex no 7 of the fa of 20 june 2014 (consolidation of oversight of audit companies), with effect from 1 jan. 2015 (as 2014 4073; bbl 2013 6857).110 amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).111 inserted by annex no 7 of the fa of 20 june 2014 (consolidation of oversight of audit companies), in force since 1 jan. 2015 (as 2014 4073; bbl 2013 6857).art. 18a112 public directory 1 finma shall maintain a directory of the financial intermediaries under article 2 paragraph 3 that are affiliated to a self-regulatory organisation. this directory shall be publicly accessible online.2 finma shall make the data available via remote access.112 inserted by annex no 17 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207; bbl 2006 2829).art. 19113 113 repealed by annex no 17 of the financial market supervision act of 22 june 2007, with effect from 1 jan. 2009 (as 2008 5207; bbl 2006 2829).art. 19a114 114 inserted by annex no 17 of the financial market supervision act of 22 june 2007 (as 2008 5207; bbl 2006 2829). repealed by annex no ii 15 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 19b115 115 inserted by annex no 17 of the financial market supervision act of 22 june 2007, (as 2008 5207; bbl 2006 2829). repealed by annex no 7 of the fa of 20 june 2014 (consolidation of oversight of audit companies), with effect from 1 jan. 2015 (as 2014 4073; bbl 2013 6857).art. 20116 116 repealed by annex no ii 15 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 21 and 22117 117 repealed by annex no 17 of the financial market supervision act of 22 june 2007, with effect from 1 jan. 2009 (as 2008 5207; bbl 2006 2829).section 3b118 passing on data on terrorist activities 118 inserted by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605). art. 22a 1 the federal department of finance (fdf) shall pass on to finma and the fgb data that it has received from another state and which has been published by that state on persons and organisations that have been placed on a list in the state concerned due to terrorist activities or their support for terrorist activities on the basis of resolution 1373 (2001)119 of the un security council.2 finma shall pass on the data received from the fdf to:a.120 the financial intermediaries under its supervision in accordance with article 2 paragraph 2 letters a and b-dquater;b.121 the supervisory organisations for the attention of the financial intermediaries in accordance with article 2 letter abis that are subject to their ongoing supervision;c. the self-regulatory organisations for the attention of the financial intermediaries affiliated to them.3 the duty to pass on data under paragraph 2 letter a also applies to the fgb.4 the fdf shall not pass any data on to finma or the fgb if, after consulting the federal department of foreign affairs, the federal department of justice and police, the federal department of defence, civil protection and sport and the federal department of economic affairs, education and research, it must assume that human rights or principles of the rule of law would be violated.119 > english > security council > security council resolutions > 2001 > 5/res/1373 (2001)120 amended by no i 8 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).121 amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).section 4 money laundering reporting office switzerland (the reporting office) art. 23 1 the federal office of police122 shall manage the money laundering reporting office switzerland (the reporting office).2 the reporting office shall examine and analyse the reports received. if necessary, it shall obtain additional information in accordance with article 11a.123.3 it shall maintain its own data processing system in relation to money laundering.4 it must notify the responsible prosecution authority immediately if it has reasonable grounds to suspect that: a.124 an offence as defined in articles 260ter number 1, 305bis or 305ter scc125 has been committed;b.126 assets are the proceeds of a felony or an aggravated tax misdemeanour under article 305bis number 1bis scc;c.127 assets are subject to the power of disposal of a criminal or terrorist organisation; or d. assets serve the financing of terrorism (art. 260quinquies para. 1 scc).1285 the reporting office shall inform the financial intermediary concerned within 20 working days whether it will pass on the report under article 9 paragraph 1 letter a to a prosecution authority or not.1296 it shall inform the financial intermediary concerned whether it will pass the report under article 305ter paragraph 2 scc to a prosecution authority or not.130122 the title of this administrative entity has been amended in application of art. 16 para. 3 of the publication o of 17 nov. 2004 (as 2004 4937).123 amended by no i of the fa of 21 june 2013, in force since 1 nov. 2013 (as 2013 3493; bbl 2012 6941).124 amended by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).125 sr 311.0126 amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).127 amended by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).128 amended by no i 4 of the fa of 3 oct. 2008 on the implementation of the revised recommendations of the financial action task force, in force since 1 feb. 2009 (as 2009 361; bbl 2007 6269).129 inserted by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).130 inserted by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).section 5 self-regulatory organisations art. 24 recognition 1 organisations are recognised as self-regulatory organisations if they:a. have regulations in accordance with article 25;b. supervise their affiliated financial intermediaries with regard to compliance with their duties in terms of chapter 2; andc. provide the guarantee of irreproachable business conduct and ensure that the persons and audit firms they instruct to carry out inspections:1311. possess the required specialist knowledge,2. provide the required guarantees that inspections will be carried out properly, and3. are independent of the management and administration of financial intermediaries being inspected;d.132 ensure that the audit firms they instruct to carry out inspections and lead auditors fulfil the requirements under article 24a.2 the self-regulatory organisations of the licensed transport undertakings under the public transport act of 20 march 2009133 must be independent of their respective managements.134art. 24a135 licensing of audit firms and lead auditors1 the self-regulatory organisation shall grant the audit firms and lead auditors the necessary licence and supervise their activity.2 the audit firm shall be licensed if:a. it is licensed as an auditor by the federal audit oversight authority in accordance with article 6 of the auditor oversight act of 16 december 2005136;b. it is adequately organised for this audit; andc. it does not perform any other activity requiring authorisation under the financial market acts in accordance with article 1 paragraph 1 of the financial market supervision act of 22 june 2007137 (finmasa).3 the lead auditor shall be licensed to lead audits in accordance with paragraph 1 if he or she:a. is licensed as an auditor by the federal audit oversight authority in accordance with article 5 of the auditor oversight act;b. has the necessary specialist knowledge and the necessary practical experience for performing audits in accordance with paragraph 1.4 article 17 of the auditor oversight act applies by analogy to the self-regulatory organisation's withdrawal of the licence granted to audit firms and lead auditors in accordance with paragraph 1, as well as to its issuing of a reprimand.131 amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).132 inserted by annex no 7 of the fa of 20 june 2014 (consolidation of oversight of audit companies) (as 2014 4073; bbl 2013 6857). amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).133 sr 745.1134 amended by annex no ii 3 of the postal services organisation act of 17 dec. 2010, in force since 1 oct. 2012 (as 2012 5043; bbl 2009 5265).135 inserted by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).136 sr 221.302137 sr 956.1art. 25 regulations 1 self-regulatory organisations must issue regulations.2 the regulations shall specify the duties of diligence of their affiliated financial intermediaries within the meaning of chapter 2 and stipulate how these duties must be fulfilled.3 they shall further stipulate:a. the requirements for the affiliation and exclusion of financial intermediaries;b. how compliance with the duties in terms of chapter 2 is monitored;c. appropriate penalties.art. 26 lists 1 the self-regulatory organisations must maintain lists of their affiliated financial intermediaries and of persons to whom they refuse affiliation.2 they must notify finma of these lists and of any amendments thereto.138138 amended by annex no 17 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207; bbl 2006 2829).art. 26a139 swiss group companies 1 finma may provide for financial intermediaries in accordance with article 2 paragraph 3 that are swiss group companies of a financial intermediary in accordance with article 2 paragraph 2 letters a-dquater that proof of compliance with the obligations specified in chapter 2 may be provided in the audit report for the group.1402 finma shall publish a list of group companies in accordance with paragraph 1.139 inserted by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).140 amended by no i 8 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).art. 27141 exchange of information and duty to notify 1 the self-regulatory organisations and finma may mutually exchange any information or documents that they require in order to fulfil their duties.2 the self-regulatory organisations shall notify finma of:a. terminations of memberships;b. decisions on the refusal of affiliation;c. decisions to exclude and the reasons therefor;d. the opening of sanctions proceedings that may end in exclusion.3 they shall provide finma with a report at least once each year on their activities in terms of this act together with a list of decisions on sanctions issued during the period covered by the report.4 they shall submit a report immediately to the reporting office if they have reasonable grounds to suspect that:a.142 a criminal offence under article 260ter or 305bis of the swiss criminal code143 has been committed;b.144 assets are the proceeds of a felony or an aggravated tax misdemeanour under article 305bis number 1bis scc; c.145 assets are subject to the power of disposal of a criminal or terrorist organisation; ord.146 assets serve the financing of terrorism (art. 260quinquies para. 1 scc).5 the duty under paragraph 4 does not apply if a report has already been filed by a financial intermediary affiliated to a self-regulatory organisation.141 amended by annex no 17 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207; bbl 2006 2829).142 amended by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).143 sr 311.0144 amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).145 amended by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).146 inserted by no i 4 of the fa of 3 oct. 2008 on the implementation of the revised recommendations of the financial action task force, in force since 1 feb. 2009 (as 2009 361; bbl 2007 6269).art. 28147 withdrawal of recognition 1 finma shall not withdraw recognition from a self-regulatory organisation under article 37 of the financial market supervision act of 22 june 2007148 without prior warning.2 if a self-regulatory organisation has its recognition withdrawn, its affiliated financial intermediaries must submit a request for affiliation with another self-regulatory organisation within two months.1493 and 4 .150147 amended by annex no 17 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207; bbl 2006 2829).148 sr 956.1149 amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).150 repealed by annex no ii 15 of the financial institutions act of 15 june 2018, with effect from 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).chapter 4 administrative assistance section 1 cooperation among domestic authorities art. 29 exchange of information among authorities151 1 finma, the fgb, the intercantonal supervisory and executive authority under article 105 gambla152 and the reporting office may provide each other with any information or documents required for the enforcement of this act.1532 the federal, cantonal and communal authorities shall if requested by the reporting office or the central offices of the federal criminal police pass on to the reporting office or the said central offices all the data required for the analyses in relation to combating money laundering, its predicate offences, organised crime or the financing of terrorism. the data includes in particular financial information and other sensitive personal data and personality profiles obtained in criminal, administrative criminal and administrative proceedings, including those from pending proceedings.1542bis the reporting office may provide, on a case by case basis, the authorities referred to in paragraph 2 with information in individual cases provided the authorities use the information exclusively for combating money laundering, its predicate offences, organised crime or the financing of terrorism. article 30 paragraphs 2-5 applies by analogy.1552ter the reporting office may only pass on information from foreign reporting offices with their express consent to the authorities referred to in paragraph 2 for the purposes mentioned in paragraph 2bis.1563 the reporting office shall inform finma, the fgb and the intercantonal supervisory and executive authority under article 105 gambla of the decisions of the cantonal prosecution authorities.157151 inserted by no i 4 of the fa of 3 oct. 2008 on the implementation of the revised recommendations of the financial action task force, in force since 1 feb. 2009 (as 2009 361; bbl 2007 6269).152 sr 935.51153 amended by annex no ii 8 of the gambling act of 29 sept. 2017, in force since 1 jan. 2019 (as 2018 5103; bbl 2015 8387).154 amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).155 inserted by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).156 inserted by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).157 amended by annex no ii 8 of the gambling act of 29 sept. 2017, in force since 1 jan. 2019 (as 2018 5103; bbl 2015 8387).art. 29a158 prosecution authorities 1 the prosecution authorities shall notify the reporting office without delay of any pending proceedings connected with articles 260ter, 260quinquies paragraph 1, 305bis and 305ter paragraph 1 scc159.160 they shall provide the reporting office without delay with judgements and decisions on the closure of proceedings, including the grounds therefor.2 they shall also notify the reporting office without delay of rulings that they have issued on the basis of a report from the reporting office.3 they may provide finma, the fgb and the intercantonal supervisory and executive authority under article 105 gambla161 with any information and documents that they require in order to fulfil their duties, provided that this is not prejudicial to the criminal proceedings.1624 finma, the fgb and the intercantonal supervisory and executive authority under article 105 gambla shall coordinate any intervention in relation to a financial intermediary with the competent prosecution authorities.163 they shall consult with the competent prosecution authorities before passing on any information or documents received.158 inserted by no i 4 of the fa of 3 oct. 2008 on the implementation of the revised recommendations of the financial action task force, in force since 1 feb. 2009 (as 2009 361; bbl 2007 6269).159 sr 311.0160 amended by annex no ii 6 of the fedd of 25 sept. 2020 on the approval and implementation of the council of europe convention on the prevention of terrorism and its additional protocol and the strengthening of criminal justice instruments for combating terrorism and organised crime, in force since 1 july 2021 (as 2021 360; bbl 2018 6427).161 sr 935.51162 amended by annex no ii 8 of the gambling act of 29 sept. 2017, in force since 1 jan. 2019 (as 2018 5103; bbl 2015 8387).163 amended by annex no ii 8 of the gambling act of 29 sept. 2017, in force since 1 jan. 2019 (as 2018 5103; bbl 2015 8387).section 2 cooperation with foreign authorities art. 30164 cooperation with foreign reporting offices 1 the reporting office may pass on the personal data and other information that are in its possession or that it may obtain under this act to a foreign reporting office provided that office:a. guarantees that it will use the information solely for the purpose of analysis in the context of combating money laundering and its predicate offences, organised crime or terrorist financing;b. guarantees that it will reciprocate on receipt of a similar request from switzerland;c. guarantees that official and professional secrecy will be preserved;d. guarantees that it will not pass on the information received to third parties without the express consent of the reporting office; ande. will comply with the conditions and restrictions imposed by the reporting office.2 it may pass on the following information in particular:a.165the name of the financial intermediary or the dealer, provided the anonymity is preserved of the person making the report or who has complied with a duty to provide information under this act;b. account holders, account numbers and account balances;c. beneficial owners; d. details of transactions.3 information is passed on in the form of a report.4 the reporting office may consent to information being passed on by the foreign reporting office to a third authority provided the latter guarantees that:a. it will use the information solely:1. for the purpose of analysis in the context of combating money laundering and its predicate offences, organised crime or terrorist financing, or 2. to institute criminal proceedings relating to money laundering and its predicate offences, organised crime or terrorist financing or to obtain evidence in response to a request for mutual assistance relating to such criminal proceedings;b. they will not use the information to prosecute offences that are not offences predicate to money laundering under swiss law;c. they will not use the information in evidence; and d. they will preserve official or professional secrecy.5 if the request to pass on the information to a foreign third authority concerns a matter that is the subject of criminal proceedings in switzerland, the reporting office shall first obtain the consent of the public prosecutor's office responsible for the proceedings.6 the reporting office is entitled to make more detailed arrangements on the modalities of cooperation with foreign reporting offices.164 amended by no i of the fa of 21 june 2013, in force since 1 nov. 2013 (as 2013 3493; bbl 2012 6941).165 amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).art. 31166 refusal to provide information a request for information from a foreign reporting office shall not be granted if:a. the request has no connection with switzerland;b. the request requires the application of procedural compulsion or other measures or acts for which swiss law stipulates mutual assistance procedures or another procedure regulated in special legislation or an international treaty;c. national interests or public security and order will be prejudiced.166 amended by no i of the fa of 21 june 2013, in force since 1 nov. 2013 (as 2013 3493; bbl 2012 6941).art. 31a167 applicable provisions of the federal act of 7 october 1994 on central offices of the federal criminal police unless this act provides otherwise in relation to data processing and administrative assistance provided by the reporting office, the first and fourth sections of the federal act of 7 october 1994168 on the central offices of the federal criminal police apply by analogy.167 inserted by no i of the fa of 21 june 2013, in force since 1 nov. 2013 (as 2013 3493; bbl 2012 6941).168 sr 360art. 32 cooperation with foreign prosecution authorities169 1 the cooperation of the reporting office with foreign prosecution authorities is governed by article 13 paragraph 2 of the federal act of 7 october 1994170 on the central offices of the federal criminal police.2 .1713 the name of the person who made the report on behalf of the financial intermediary or the dealer or who complied with the duty to provide information under article 11a may not be passed on by the reporting office to foreign prosecution authorities.172169 amended by no i of the fa of 21 june 2013, in force since 1 nov. 2013 (as 2013 3493; bbl 2012 6941).170 sr 360171 repealed by no i of the fa of 21 june 2013, with effect from 1 nov. 2013 (as 2013 3493; bbl 2012 6941).172 inserted by no i 4 of the fa of 3 oct. 2008 on the implementation of the revised recommendations of the financial action task force (as 2009 361; bbl 2007 6269). amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).chapter 5 processing of personal data art. 33 principle the processing of personal data is governed by the federal act of 19 june 1992173 on data protection.173 sr 235.1art. 34 data collections in connection with the duty to report 1 financial intermediaries must maintain separate data collections containing all the documents connected with the report filed.2 data from these data collections may be passed on only to finma, the fgb, the intercantonal supervisory and executive authority under article 105 gambla174, the supervisory organisation, self-regulatory organisations, the reporting office and the prosecution authorities.1753 the right to information of persons concerned in accordance with article 8 of the federal act of 19 june 1992176 on data protection shall be suspended from the filing of a report under article 9 paragraph 1 of this act or under article 305ter paragraph 2 scc177 until the time when the reporting office informs the financial intermediary under article 23 paragraph 5 or 6 and for as long as assets are frozen in accordance with article 10.1784 the data must be destroyed five years after the report is filed.174 sr 935.51175 amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901). corrected by the federal assembly drafting committee on 31 jan. 2020, published on 18 feb. 2020 (as 2020 501).176 sr 235.1177 sr 311.0178 amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).art. 35 processing by the reporting office 1 the processing of personal data by the reporting office is governed by the federal act of 7 october 1994179 on the central offices of the federal criminal police. the right of private individuals to information is governed by article 8 of the federal act of 13 june 2008180 on federal police information systems.1812 they may on pass on data from these data files to finma, the fgb, the intercantonal supervisory and executive authority under article 105 gambla182, self-regulatory organisations, the reporting office and prosecution authorities.183179 sr 360180 sr 361181 amended by annex 1 no 9 of the fa of 13 june 2008 on federal police information systems, in force since 5 dec. 2008 (as 2008 4989; bbl 2006 5061).182 sr 935.51183 amended by annex no ii 8 of the gambling act of 29 sept. 2017, in force since 1 jan. 2019 (as 2018 5103; bbl 2015 8387).art. 35a184 verification 1 in order to fulfil its duties, the reporting office may by means of a computerised access procedure verify whether a person reported or notified to it is listed in any of the following databases:a. the national police index;b. the central migration information system;c. the automated register of convictions;d. the state security information system;e. the person, file and case management system used in the field of mutual assistance in criminal matters.2 the right of access for further information is governed by the provisions applicable to the information system concerned.184 inserted by annex 1 no 9 of the fa of 13 june 2008 on federal police information systems, in force since 5 dec. 2008 (as 2008 4989; bbl 2006 5061).chapter 6 criminal provisions and procedure art. 36185 185 repealed by annex no 17 of the financial market supervision act of 22 june 2007, with effect from 1 jan. 2009 (as 2008 5207; bbl 2006 2829).art. 37186 violation of the duty to report 1 any person who fails to comply with the duty to report in terms of article 9 shall be liable to a fine not exceeding 500,000 francs.2 if the offender acts through negligence, he or she shall be liable to a fine not exceeding 150,000 francs.3 .187186 amended by annex no 17 of the financial market supervision act of 22 june 2007, in force since 1 jan. 2009 (as 2008 5207; bbl 2006 2829).187 repealed by annex no 12 of the financial market infrastructure act of 19 june 2015, with effect from 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 38188 violation of the duty to verify 1 any dealer that wilfully violates its duty under article 15 to appoint an audit firm, shall be liable to a fine not exceeding 100,000 francs.2 if it acts through negligence, it shall be liable to a fine not exceeding 10,000 francs.188 amended by no i 7 of the fa of 12 dec. 2014 on the implementation of the 2012 revision of the recommendations of the financial action task force, in force since 1 jan. 2016 (as 2015 1389; bbl 2014 605).art. 39 and 40189 189 repealed by annex no 17 of the financial market supervision act of 22 june 2007, with effect from 1 jan. 2009 (as 2008 5207; bbl 2006 2829).chapter 7 final provisions art. 41190 implementation 1 the federal council shall issue the provisions required for the implementation of this act.2 it may authorise finma, the fgb, the fdjp and the fca191 to issue implementing provisions on matters of limited importance and in particular on matters of a primarily technical nature.192190 amended by no i 4 of the fa of 3 oct. 2008 on the implementation of the revised recommendations of the financial action task force, in force since 1 jan. 2010 (as 2009 361 6401; bbl 2007 6269).191 now the focbs.192 amended by no i 8 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).art. 42193 transitional provision to the amendment of 15 june 2018 1 financial intermediaries as defined in article 2 paragraph 3 which at the time of the entry into force of the amendment to this act of 15 june 2018 have finma authorisation in accordance with article 14 must join a recognised self-regulatory organisation. they must submit their request within one year. they may continue to perform their activity until a decision has been made concerning their request.2 the final provisions of the pmca194 apply to trade assayers and group companies subject to the pmca.195193 amended by annex no ii 15 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).194 sr 941.31195 amended by no i of the fa of 19 march 2021, in force since 1 jan. 2022 (as 2021 656; bbl 2019 5451).art. 43 amendment of current legislation relevant to the french text onlyart. 44 referendum and commencement 1 this act is subject to an optional referendum.2 the federal council determines the date on which this act comes into force.commencement date: 1 april 1998196196 fcd of 16 march 1998.

956.1english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.federal acton the swiss financial market supervisory authority(financial market supervision act, finmasa)of 22 june 2007 (status as of 1 january 2022) 2021 656the federal assembly of the swiss confederation,based on articles 95 and 98 of the federal constitution1,and having considered the federal council dispatch dated 1 february 20062,decrees:1 sr 1012 bbl 2006 2829title 1 general provisions3 3 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901). art. 1 subject matter 1 the confederation shall create an authority for the supervision of the financial markets in accordance with the following acts (the financial market acts):a. mortgage bond act of 25 june 19304;b. federal act on contracts of insurance of 2 april 19085;c. collective investment schemes act of 23 june 20066;d. banking act of 8 november 19347;e.8 financial institutions act of 15 june 20189;f. anti-money laundering act of 10 october 199710;g. insurance supervision act of 17 december 200411;h.12 financial market infrastructure act of 19 june 201513;i.14 financial services act of 15 june 201815.2 this act establishes the organisation and the supervisory instruments of this authority.4 sr 211.423.45 sr 221.229.16 sr 951.317 sr 952.08 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).9 sr 954.110 sr 955.011 sr 961.0112 inserted by annex no 13 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).13 sr 958.114 inserted by annex no 4 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).15 sr 950.1art. 2 relationship with the financial market acts 1 this act applies unless the financial market acts provide otherwise.2 international treaties concluded within the context of international withholding tax and their associated international agreements, specifically in relation to transnational audits and market access, take precedence over this act and financial market legislation.1616 inserted by art. 46 of the fa of 15 june 2012 on international withholding tax, in force since 20 dec. 2012 (as 2013 27; bbl 2012 4943).art. 3 supervised persons and entities the following are subject to financial market supervision:a. persons and entities that under the financial market acts require to be licensed recognised, or registered by the financial market supervisory authority; andb. collective capital investments;c.17 .17 repealed by annex no 8 of the fa of 20 june 2014 (consolidation of oversight through audit companies), with effect from 1 jan. 2015 (as 2014 4073; bbl 2013 6857).art. 418 objectives of financial market supervision in accordance with the financial market acts, financial market supervision has the objectives of protecting creditors, investors, and insured persons as well as ensuring the proper functioning of the financial market. it thus contributes to sustaining the reputation, competitiveness and sustainability of switzerland's financial centre.18 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2019 (as 2018 5247; bbl 2015 8901).title 2 financial market supervisory authority19 19 inserted by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901). chapter 1 general provisions20 20 inserted by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901). art. 521 legal form, seat and name 1 the authority that supervises the financial market is a public law institution with its own legal personality and official seat in bern.2 its name is the swiss financial market supervisory authority (finma).3 it organises itself according to the principles of good corporate governance and economic management. it keeps its own accounts.21 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2019 (as 2018 5247; bbl 2015 8901).art. 6 tasks 1 finma carries out its supervision according to the financial market acts and this act.2 it fulfils the international tasks that are related to its supervisory activity.art. 7 principles of regulation 1 finma exercises its regulatory powers by issuing: a. ordinances, where so provided in the financial market legislation; andb. circulars on the application of the financial market legislation.2 it issues ordinances and circulars only to the extent required for the purposes of supervision, limiting itself as far as possible to the definition of principles. in doing so, it takes account of overriding federal law and in particular of:22a. the costs that the supervised persons and entities incur due to regulation; b. the effect that regulation has on competition, innovative ability and the international competitiveness of switzerland's financial centre;c.23 the different sizes, complexities, structures, business activities and risks of the supervised persons and entities; andd. the international minimum standards.3 it supports self-regulation and may recognise and implement the same as a minimum standard within terms of its supervisory powers.4 it provides for a transparent regulatory process and the appropriate participation of the parties concerned.5 it issues guidelines on the implementation of these principles. in doing so, it acts in agreement with the federal department of finance (fdf)24.22 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).23 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).24 name in accordance with annex no 4 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901). this amendment has been made throughout the text.chapter 2 organisation section 1 management bodies and staff art. 8 management bodies the management bodies of finma are:a. the board of directors;b. the management board;c. the auditor.art. 9 board of directors 1 the board of directors is the strategic management body of finma. it has the following tasks:a. it determines the strategic objectives of finma and submits them to the federal council for approval.b. it decides on matters of substantial importance.c. it issues the ordinances delegated to finma and decides on the circulars.d. it supervises the management board.e. it establishes an internal audit unit and provides for internal controls.f. it draws up the annual report and submits it to the federal council for approval prior to publication.g. it appoints the chief executive officer, subject to approval by the federal council.h. it appoints the members of the management board.i. it issues the organisational regulations and the guidelines on information activities.j. it approves the budget.2 it comprises seven to nine expert members, who are independent of the supervised persons and entities. the board of directors is appointed for a term of office of four years; each member may be reappointed twice.3 the federal council appoints the board of directors. in doing so, it must ensure the appropriate representation of both genders. it appoints the chair and the vice-chair. it determines the level of remuneration. article 6a of the federal personnel act of 24 march 200025 applies by analogy.4 the chair may not carry out any other economic activity nor hold any federal or cantonal office unless this is in the interest of the fulfilment of the tasks of finma.5 the federal council removes members of the board of directors and approves the decision of the board of directors to terminate the employment of the chief executive officer if the requirements for holding office are no longer fulfilled.25 sr 172.220.1art. 10 management board 1 the management board is the operational management body. it is headed by a chief executive officer.2 it has the following tasks in particular:a. it issues rulings in accordance with the organisational regulations.b. it prepares the files and materials on which the board of directors bases its decisions and reports to it regularly, and in the case of special events immediately.c. it carries out all the tasks that are not assigned to another management body.3 the organisational regulations regulate the details.art. 11 supervision areas 1 finma is divided into supervision areas. the organisational regulations regulate the details.2 the federal council and the board of directors ensure the appropriate representation of the various supervision areas on the board of directors and the management board.art. 12 auditor the federal audit office is the external auditor and provides the board of directors and the federal council with a report on the result of its audit.art. 1326 staff 1 the employment of finma staff is governed by public law.2 article 6a of the federal personnel act of 24 march 200027 applies by analogy.3 the occupational pension scheme for the staff is governed by the legislation on the federal pension fund. 4 the board of directors regulates in an ordinance:a. the employment of personnel and in particular salaries, additional benefits, working hours, duty of loyalty and termination of employment;b. the composition, election and organisation of the joint committee for the finma pension fund.5 the board of directors shall submit the ordinance to the federal council for approval.art. 13a28 data processing1 finma shall process, in hard copy or in one or more information systems, the data on its employees necessary for performing the tasks in accordance with this act, particularly for:a. creating, executing and terminating an employment relationship;b. personnel and wage management;c. personnel development;d. performance appraisal; e. reintegration measures in the event of illness and accident.2 it may process the following data pertaining to its employees necessary for performing the tasks set out in paragraph 1, including sensitive personal data and personality profiles:a. personal details;b. state of health details with regard to working ability;c. performance and potential information, as well as data on personal and professional development;d. data required within the framework of participation in the implementation of social security law;e. case files and authorities' decisions associated with work.3 it shall issue implementing regulations with regard to:a. the architecture, organisation and operation of the information system(s);b. the processing of data, particularly gathering, storage, archiving and destruction;c. data processing authorisations;d. the data categories under paragraph 2;e. data protection and security.26 amended by annex no 4 of the fa of 14 dec. 2012, in force since 1 july 2013 (as 2013 1493; bbl 2011 6703).27 sr 172.220.128 inserted by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 14 official secrecy 1 the staff and the management bodies must observe secrecy on official matters.2 the duty of secrecy continues to apply after termination of employment or membership of a management body of finma.3 the staff and the individual members of the management bodies of finma may not without authorisation from finma disclose in evidentiary hearings and in court proceedings as parties, witnesses or expert witnesses matters that have come to their knowledge in the course of their duties and that relate to their official tasks.4 official secrecy applies to all finma agents (audit agents, investigating agents, restructuring agents, liquidators, administrators in bankruptcy).2929 amended by annex no 8 of the fa of 20 june 2014 (consolidation of oversight through audit companies), in force since 1. jan. 2015 (as 2014 4073; bbl 2013 6857).section 2 funding and financial budget art. 15 funding 1 finma levies fees for supervisory proceedings in individual cases and for services. in addition, it levies an annual supervision charge on the supervised persons and entities for each supervision area to cover the costs incurred by finma that are not covered by the fees.2 the supervision charge is assessed according to the following criteria:a.30 .abis.31 for supervised persons and entities under article 1a of the banking act of 8 november 193432, article 2 paragraph 1 letter e of the financial institutions act of 15 june 201833 and the mortgage bond act of 25 june 193034, on the basis of the balance sheet total and securities turnover; for supervised persons and entities under article 2 paragraph 1 letters c and d of the financial institutions act on the basis of the amount of assets managed, the gross earnings and the size of the undertaking; for supervised persons and entities under article 1b of the banking act, on the basis of the balance sheet total and the gross earnings.ater.35 for supervised persons and entities under the financial market infrastructure act of 19 june 201536, on the basis of the balance sheet total and securities turnover, or gross earnings if no securities are transacted.b. for supervised persons and entities under the collective investment schemes act of 23 june 200637, on the basis of the amount of assets managed, the gross earnings and the size of the undertaking.c. for insurance institutions under the insurance supervision act of 17 december 200438, on the basis of their share of the total premium income for all insurance institutions; for insurance agents under article 43 paragraph 1 of the insurance supervision act of 17 december 2004, on the basis of their number and the size of the undertaking.d.39 for self-regulatory organisations under the anti-money laundering act of 10 october 199740 (amla), on the basis of the gross earnings and number of members;e.41 for a supervisory organisation in accordance with title 3, the share accounted for by its supervised persons and entities with regard to the total number of supervised persons and entities of all supervisory organisations is decisive; the supervision fee also covers the costs that finma incurs that are caused by supervised persons and entities and which are not covered by other charges.3 the federal council may provide for the apportionment of the supervision fee into a fixed basic fee and a variable supplementary fee.4 it regulates the details, and in particular:a. the assessment principles;b. the supervision areas under paragraph 1; andc. the apportionment of the costs to be financed by the supervision charge among the supervision areas.30 obsolete. see art. 75 para. 5 of the financial institutions act of 15 june 2018 (sr 954.1).31 inserted by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).32 sr 952.033 sr 954.134 sr 211.423.435 originally: let. abis. inserted by annex no 13 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).36 sr 958.137 sr 951.3138 sr 961.0139 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).40 sr 955.041 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 16 reserves finma shall within a reasonable time form reserves for the exercise of its supervisory activity in an amount equivalent to one annual budget.art. 17 treasury 1 the federal finance administration manages the liquid assets of finma as part of its central treasury.2 it grants finma loans on market terms in order to guarantee its liquidity.3 the federal finance administration and finma determines the details of their cooperation by mutual agreement.art. 18 accounting 1 the financial statements of finma disclose in full its assets and liabilities, earnings and costs. 2 they follow the general principles of materiality, intelligibility, consistency and gross presentation and comply with the generally recognised standards.3 the accounting and valuation rules derived from the accounting standards must be disclosed.art. 19 liability 1 the liability of finma, its management bodies, its staff and finma agents is governed by the government liability act of 14 march 195842, subject to paragraph 2 below.432 finma and its agents are liable only if:a. they have committed a breach of fundamental duties; andb. loss or damage is not due to a breach of duty by a supervised person or entity.42 sr 170.3243 amended by annex no 8 of the fa of 20 june 2014 (consolidation of oversight through audit companies), in force since 1. jan. 2015 (as 2014 4073; bbl 2013 6857).art. 20 tax exemption 1 finma is exempt from any taxation by the confederation, the cantons or the communes.2 the federal legislation on:a. value added tax;b. withholding tax;c. stamp duties,is reserved.section 3 independence and supervision art. 21 1 finma carries out its supervisory activity autonomously and independently.2 at least once each year, it reviews the strategy for its supervisory activity and current issues of financial centre policy with the federal council.3 it deals with the federal council via the fdf.4 the national council and the council of states are responsible for its superintendence.section 4 information for the general public and data processing art. 22 information for the general public 1 finma informs the general public at least once each year about its supervisory activity and supervisory practices.2 it does not provide information on individual proceedings, unless there is a particular need to do so from a supervisory point of view and in particular if the information is necessary:a. for the protection of market participants or the supervised persons and entities;b. to correct false or misleading information; orc. to safeguard the reputation of switzerland's financial centre.3 where finma has provided information on individual proceedings, it must also provide immediate notice of the closure of the proceedings. this may be dispensed with at the request of the party concerned.4 finma takes account of the personality rights of those concerned in all its information activities. personal data may be published in electronic or printed form.art. 23 data processing and public directory 1 as part of its supervisory activity under this act and the financial market acts, finma processes personal data, including particularly sensitive personal data and personality profiles. it regulates the details.2 it maintains a directory of the supervised persons and entities. this directory is accessible to the public in electronic form.chapter 3 supervisory instruments section 1 audit art. 2444 principle 1 in accordance with the financial market acts (art. 1 para. 1), finma carries out the audit either itself or arranges for it to be carried out:a. by licensed audit companies appointed by the supervised persons and entities and der federal audit oversight authority under article 9a des auditor oversight act of 16 december 200545; orb. audit agents in accordance with article 24a.2 the audit relates in particular to the risks that supervised persons and entities may pass on to creditors, investors, insured persons or to the proper function of the financial markets. duplication of auditing work must be avoided as far as possible.3 article 730b paragraph 2 of the code of obligations46 applies by analogy to the preservation of confidentiality by audit companies.4 in relation to audits under paragraph 1 letter a, the federal council regulates the main aspects of the content and conduct of the audit and the form of the report. it may authorise finma to issue implementing provisions on technical matters.5 the supervised persons and entities bear the costs of the audit.44 amended by annex no 8 of the fa of 20 june 2014 (consolidation of oversight through audit companies), in force since 1. jan. 2015 (as 2014 4073; bbl 2013 6857).45 sr 221.30246 sr 220art. 24a47 audit agents 1 finma may instruct an independent and suitably qualified person to conduct audits of supervised persons and entities.2 it specifies the duties of the audit agent in the appointment order.3 the supervised persons and entities bear the agent's costs.47 inserted by annex no 8 of the fa of 20 june 2014 (consolidation of oversight through audit companies), in force since 1. jan. 2015 (as 2014 4073; bbl 2013 6857).art. 2548 duties of the audited supervised persons and entities 1 where an audit company is appointed or if finma appoints an audit agent, the supervised persons and entities must provide them with all information and documents that are required to carry out their tasks.2 the supervised person or entity must notify finma of its choice of audit company.48 amended by annex no 8 of the fa of 20 june 2014 (consolidation of oversight through audit companies), in force since 1. jan. 2015 (as 2014 4073; bbl 2013 6857).art. 2649 49 repealed by annex no 8 of the fa of 20 june 2014 (consolidation of oversight through audit companies), with effect from 1 jan. 2015 (as 2014 4073; bbl 2013 6857).art. 27 reporting and measures 1 the audit company provides finma with a report on its audits. the audit company provides the supreme management body of the audited supervised person or entity with a copy of the report.50 2 if it identifies violations of supervisory provisions or other irregularities, it shall give the audited supervised person or entity an appropriate period to restore compliance with the law. if the period is not complied with, it informs finma.3 in the case of serious violations of supervisory provisions or serious irregularities, the audit company notifies finma immediately.50 amended by annex no 8 of the fa of 20 june 2014 (consolidation of oversight through audit companies), in force since 1. jan. 2015 (as 2014 4073; bbl 2013 6857).art. 28 supervision of the audit companies 1 .512 finma and the federal audit oversight authority provide each other with all the information and documents that each need to enforce the relevant legislation.5251 repealed by annex no 8 of the fa of 20 june 2014 (consolidation of oversight through audit companies), with effect from 1 jan. 2015 (as 2014 4073; bbl 2013 6857).52 amended by annex no 8 of the fa of 20 june 2014 (consolidation of oversight through audit companies), in force since 1. jan. 2015 (as 2014 4073; bbl 2013 6857).art. 28a53 appointment and change of the audit company 1 two different audit companies must be instructed for the audit under the licensing procedure and the other audits.2 in justified cases, finma may require the supervised person or entity to change audit company.3 finma shall notify the federal audit oversight authority before ordering a change under paragraph 2.53 inserted by annex no 8 of the fa of 20 june 2014 (consolidation of oversight through audit companies), in force since 1. jan. 2015 (as 2014 4073; bbl 2013 6857).section 2 further supervisory instruments art. 29 duty to provide information and to report 1 the supervised persons and entities, their audit companies and auditors as well as persons or companies that are qualified investors or that have a substantial participation in the supervised persons and entities must provide finma with all information and documents that it requires to carry out its tasks.2 the supervised persons and entities and the audit companies that conduct audits of them must also immediately report to finma any incident that is of substantial importance to the supervision.5454 amended by annex no 8 of the fa of 20 june 2014 (consolidation of oversight through audit companies), in force since 1. jan. 2015 (as 2014 4073; bbl 2013 6857).art. 30 notice of the opening of proceedings where there are indications of violations of supervisory provisions and if finma opens proceedings, it notifies the parties of this.art. 31 restoration of compliance with the law 1 where a supervised person or entity violates the provisions of this act or of a financial market act or if there are any other irregularities, finma shall ensure the restoration of compliance with the law.2 where the rights of clients appear to be jeopardised, finma may require the supervised persons or entities to provide collateral.5555 inserted by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 32 declaratory ruling and substitute performance56 1 where the proceedings reveal that the supervised person or entity has seriously violated supervisory provisions, but there is no longer a need to order measures to restore compliance with the law, finma may issue a declaratory ruling.2 if an enforceable ruling from finma is not observed within the set deadline after a prior warning, finma may perform the required act itself or have it performed at the expense of the defaulting party.5756 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).57 inserted by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 33 prohibition from practising a profession 1 if finma detects a serious violation of supervisory provisions, it may prohibit the person responsible from acting in a management capacity at any person or entity subject to its supervision.2 the prohibition from practising a profession may be imposed for a period of up to five years.art. 33a58 prohibition from performing an activity1 where the following persons seriously violate the provisions of the financial market acts, the implementing provisions or in-house directives, finma may prohibit such persons from trading in financial instruments or acting as a client adviser for a fixed period, or permanently in the case of repeated offences:a. employees of a supervised entity responsible for trading in financial instruments;b. employees of a supervised entity acting as client advisers.2 if the prohibited activity also covers an activity in an area under the supervision of another supervisory authority, this authority is to be consulted and informed of the decision.58 inserted by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 34 publication of the supervisory ruling 1 where there is a serious violation of supervisory provisions, finma may publish in electronic or printed form its final ruling once it takes full legal effect, and disclose the relevant personal data.2 notice of publication must be contained in the ruling itself.art. 35 confiscation 1 finma may confiscate any profit that a supervised person or entity or a responsible person in a management position has made through a serious violation of the supervisory provisions.2 the foregoing provision applies by analogy if a supervised person or entity or a responsible person in a management position has prevented a loss through a serious violation of supervisory provisions.3 where the extent of the assets to be confiscated cannot be ascertained or requires a disproportionate effort to be ascertained, finma may make an estimate.4 the right to confiscate prescribes after seven years.5 criminal law confiscation under articles 70-72 of the criminal code59 takes precedence over confiscation under this provision.6 the confiscated assets go to the confederation unless they are paid to the parties suffering loss.59 sr 311.0art. 36 investigating agents 1 finma may appoint an independent and suitably-qualified person to investigate circumstances relevant for supervisory purposes at a supervised person or entity or to implement supervisory measures that it has ordered (an investigating agent).2 it specifies the duties of the investigating agent in the appointment order. it determines the extent to which the investigating agent may act in the place of the management bodies of the supervised person or entity.3 the supervised person or entity must allow the investigating agent access to its premises and provide him or her with all the information and documents that the investigating agent requires to fulfil his or her duties.4 the costs of the investigating agent are borne by the supervised person or entity. it must if so instructed by finma make an advance payment to cover costs.art. 37 revocation of licence, withdrawal of recognition60 1 finma shall revoke the licence of a supervised person or entity, or withdraw its recognition if it no longer fulfils the requirements for its activity or seriously violates the supervisory provisions.612 on revocation, withdrawal or cancellation, the supervised person or entity loses its right to carry out its activity. the other consequences of revocation, withdrawal or cancellation are governed by the applicable financial market acts.3 these consequences apply by analogy if a supervised person or entity carries out its activity without a licence, recognition, or registration.60 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).61 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).section 3 cooperation with domestic authorities art. 38 prosecution authorities 1 finma and the competent prosecution authority shall exchange the information that they require in the context of their collaboration and in order to fulfil their tasks. they shall use the information received exclusively to fulfil their respective tasks.622 they coordinate their investigations, as far as is practicable and required.3 where finma obtains knowledge of common law felonies and misdemeanours or of offences against this act or the financial market acts, it shall notify the competent prosecution authorities.62 amended by annex no 13 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 3963 other domestic authorities 1 finma is authorised to provide other domestic supervisory authorities and the swiss national bank with non-public information that they need to fulfil their tasks.1bis finma and the supervisory authority under the health insurance oversight act of 26 september 201464 shall coordinate their supervisory activities. they shall inform each other as soon as they become aware of events that are of significance to the other supervisory authority.652 finma may also exchange non-public information on certain financial market participants with the fdf where this helps maintain the stability of the financial system.6663 amended by annex no 13 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).64 sr 832.1265 inserted by annex no 4 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).66 amended by annex no 4 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).art. 40 grounds for refusal finma may refuse to disclose information that is not publicly accessible or to hand over files to prosecution authorities and other domestic authorities where:a. the information and the files solely serve the purpose of forming internal opinions;b. their disclosure or handover would prejudice ongoing proceedings or the fulfilment of its supervisory activity;c. it is not compatible with the aims of financial market supervision or with its purpose.art. 41 disputes at the request of any of the authorities concerned, the federal administrative court rules on disputes relating to the cooperation between finma on the one hand and prosecution authorities or other domestic authorities on the other.art. 41a67 communication of judgments1 the cantonal civil courts and the federal supreme court shall provide finma free of charge with a full copy of their judgment in relation to disputes between a supervised person or entity and creditors, investors or insured parties.2 finma shall forward to the supervisory organisation the judgments concerning the supervisory organisation's supervised persons and entities.67 inserted by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).section 4 cooperation with foreign bodies68 68 amended by annex no 13 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483). art. 4269 administrative assistance 1 in order to implement the financial market acts, finma may ask foreign financial market supervisory authorities to provide information.2 it may transmit non-public information to foreign financial market supervisory authorities only if:a. this information is used exclusively to implement financial market law, or is forwarded to other authorities, courts or bodies for this purpose;b. the requesting authorities are bound by official or professional secrecy, notwithstanding provisions on the public nature of proceedings and the notification of the general public about such proceedings.3 paragraphs 1 and 2 apply by analogy to the exchange of information between finma and foreign authorities, courts and bodies involved in the restructuring and resolution of authorised parties.4 the administrative assistance shall be carried out swiftly. finma shall observe the principle of proportionality. the transmission of information concerning persons who are manifestly uninvolved in the matter being investigated is not permitted.5 finma may, in agreement with the federal office of justice, authorise the forwarding of information to prosecution authorities for purposes other than those mentioned in paragraph 2 letter a, provided that mutual legal assistance in criminal matters is not excluded.69 amended by annex no 13 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 42a70 administrative assistance proceedings 1 if finma does not yet have the information to be transmitted, it may request it from the information holders. the persons called on to provide information may refuse to answer questions by virtue of article 16 of the administrative procedure act of 20 december 196871.2 subject to paragraphs 3 to 6, the administrative procedure act applies to information regarding individual clients which is to be transmitted by finma.3 finma may refuse the right of access to the correspondence with foreign authorities. article 28 of the administrative procedure act remains reserved.4 finma may exceptionally refrain from informing the clients concerned before transmitting the information if the purpose of the administrative assistance and the effective fulfilment of the requesting authority's tasks would be compromised by prior notification. in such cases, the clients concerned shall be informed afterwards.5 in the cases detailed in paragraph 4, finma shall inform the information holders and the authorities notified of the request about the postponement of notification. these may not provide information about the request until the clients in question have been informed.6 the decision of finma on the transmission of information to the foreign financial market supervisory authority may be challenged by the client before the federal administrative court within ten days. article 22a of the administrative procedure act does not apply. in the cases detailed in paragraph 4, the request may only cite a declaration of unlawfulness.70 inserted by annex no 13 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).71 sr 172.021art. 42b72 cooperation with international organisations and bodies 1 in order to fulfil its tasks in accordance with article 6, finma may participate in multilateral initiatives of international organisations and bodies which give rise to the exchange of information.2 in the case of multilateral initiatives which have far-reaching implications for the swiss financial centre, participation in the exchange of information shall take place in agreement with the fdf.3 when participating, finma may transmit non-public information to international organisations and bodies only if:a. this information is used exclusively to fulfil tasks associated with the development of and compliance with regulatory standards or to analyse systemic risks;b. confidentiality is ensured.4 finma shall agree the precise intended use and any forwarding of the information transmitted with the international organisations and bodies. paragraph 3 remains reserved.72 inserted by annex no 13 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 42c73 transmission of information by supervised parties 1 supervised parties may transmit non-public information to the foreign financial market supervisory authorities responsible for them and to other foreign entities responsible for supervision provided:a. the conditions set out in article 42 paragraph 2 are fulfilled;b. the rights of clients and third parties are preserved.2 furthermore, they may transmit non-public information related to the transactions of clients and supervised parties to foreign authorities and to entities acting on the authorities' behalf if the rights of clients and third parties are preserved.3 the transmission of information that is of substantial importance in accordance with article 29 paragraph 2 must be reported to finma beforehand. 4 finma may reserve administrative assistance channels. 5 it may make the transmission, publication or forwarding of files in the context of supervision subject to its approval if this is in the interest of its task fulfilment and is not in conflict with overriding private or public interests.73 inserted by annex no 13 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 43 cross-border audits 1 in order to implement the financial market acts, finma may itself carry out direct audits of supervised persons and entities abroad or have such audits carried out by audit agents.742 it may permit foreign financial market supervisory authorities to carry out direct audits of supervised parties provided:a. these authorities are responsible for the supervision of the audited supervised party as part of home country supervision or are responsible for supervising the activity of the audited supervised party in their territory; andb. the conditions for administrative assistance set out in article 42 paragraph 2 are fulfilled.753 information may be collected through cross-border direct audits only if it is required for the supervisory activity of the foreign financial market supervisory authority. this includes in particular information on whether an institution throughout its group structure:a. is appropriately organised;b. records, limits and monitors in an appropriate manner the risks inherent in its business operations;c. is managed by persons who guarantee proper business conduct;d. fulfils the own funds and risk diversification regulations on a consolidated basis; ande. properly complies with its reporting duties vis--vis the supervisory authorities.763bis if during direct audits in switzerland foreign financial market supervisory authorities wish to consult information linked directly or indirectly to the asset management, securities trading or deposit business for individual clients, finma shall collect this information itself and transmit it to the requesting authorities. the same applies to information which directly or indirectly relates to individual investors in collective investment schemes. article 42a applies.77 3ter finma may, for the purposes detailed in paragraph 3, allow the foreign financial market supervisory authority which is responsible for the consolidated supervision of the audited supervised party to consult a limited number of individual client dossiers. the dossiers must be selected randomly on the basis of predefined criteria.784 finma may accompany the foreign authorities responsible for financial market supervision on their direct audits in switzerland or arrange for them to be accompanied by an audit company or an audit agent. the supervised persons and entities concerned may request such accompaniment.795 establishments organised under swiss law must provide the foreign financial market supervisory authorities and finma with the information required to carry out the direct audits or the information that finma requires to provide the administrative assistance, and must permit the inspection of their books.6 establishments are defined as:a. subsidiaries, branch offices and representative offices of supervised persons and entities or of foreign institutions; andb. other companies, provided their activity is included by a financial market supervisory authority in the consolidated supervision.74 amended by annex no 13 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).75 amended by annex no 13 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).76 amended by annex no 13 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).77 inserted by annex no 13 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).78 inserted by annex no 13 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).79 amended by annex no 8 of the fa of 20 june 2014 (consolidation of oversight through audit companies), in force since 1. jan. 2015 (as 2014 4073; bbl 2013 6857).title 380 supervision of portfolio managers and trustees81 80 inserted by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).81 amended by annex 1 no 4 of the fa of 19 march 2021, in force since 1 jan. 2022 (as 2021 656; bbl 2019 5451).chapter 1 general provisions art. 43a supervisory organisation1 the ongoing supervision of portfolio managers and trustees under article 16 of the financial institutions act of 15 june 201882 is performed by one or more supervisory organisations with their registered office in switzerland.83 2 the supervisory organisation shall require authorisation from finma before commencing its supervisory activity and shall be supervised by finma. 3 the supervisory organisation may also supervise financial intermediaries under article 2 paragraph 3 of the anti-money laundering act of 10 october 199784 (amla) with regard to compliance with their duties under amla, provided they are recognised as a self-regulatory organisation in accordance with article 24 amla.4 if the supervisory organisation is also active in accordance with paragraph 3 as a self-regulatory organisation, it shall ensure that this is evident to others at all times.art. 43b continuous supervision 1 the supervisory organisation shall continuously monitor whether portfolio managers and trustees in accordance with article 17 of the financial institutions act of 15 june 201885 are in compliance with the financial market legislation to which they are subject.862 where the supervisory organisation detects violations of supervisory provisions or other irregularities, it shall give the audited supervised person or entity an appropriate period to restore compliance with the law. if the period is not complied with, it informs finma.3 the federal council shall determine the main aspects and content of the continuous supervision. in doing so, it shall take account of the differing size and business risks of the supervised person or entity. it may authorise finma to issue implementing provisions on technical matters.85 sr 954.186 amended by annex 1 no 4 of the fa of 19 march 2021, in force since 1 jan. 2022 (as 2021 656; bbl 2019 5451).82 sr 954.183 amended by annex 1 no 4 of the fa of 19 march 2021, in force since 1 jan. 2022 (as 2021 656; bbl 2019 5451).84 sr 955.0chapter 2 authorisation art. 43c principle1 finma shall grant the supervisory organisation authorisation if the provisions of this chapter are complied with.2 it shall approve the supervisory organisation's articles of association and organisational regulations, as well as the appointment of the persons entrusted with its administration and management.3 prior authorisation or approval from finma must be obtained in the case of changes to circumstances requiring authorisation and documents requiring approval.4 if two or more supervisory organisations are established, the federal council may issue rules for the coordination of their activities and the subjection of the supervised persons and entities to a given supervisory organisation. art. 43d organisation 1 the supervisory organisation must effectively be managed from switzerland.2 it must have appropriate management rules and be organised in such a manner that it can fulfil its duties in accordance with this act. 3 it must have the financial and personnel resources necessary to perform its tasks.4 it must have a management board as the operational body. art. 43e guarantee of irreproachable business conduct and independence1 the supervisory organisation and the persons responsible for its management must provide a guarantee of irreproachable business conduct.2 moreover, the persons responsible for administration and management must enjoy a good reputation and have the specialist qualifications required for their functions.3 a majority of the persons charged with administration must be independent of the supervised persons and entities.4 the members of the management board must be independent of the persons and entities supervised by the supervisory organisation.5 the persons entrusted with supervision must be independent of the persons and entities they supervise. the tasks of a supervisory organisation under this act and those of a self-regulatory organisation under amla87 may be managed by the same persons and carried out by the same staff.art. 43f funding and reserves1 the supervisory organisation shall finance its supervisory in individual cases and when providing services from contributions paid by the supervised persons and entities. 2 the supervisory organisation shall form reserves within a reasonable time for the exercise of its supervisory activity in an amount equivalent to one annual budget.3 the confederation may grant the supervisory organisation a loan on market terms in order to guarantee its liquidity until the reserves in accordance with paragraph 2 have been formed in full.art. 43g liability article 19 applies by analogy to the supervisory organisation.87 sr 955.0chapter 3 supervision of the supervisory organisation art. 43h principles1 the supervisory organisation shall periodically inform finma about its supervisory activity. 2 finma shall verify whether the supervisory organisation meets the requirements under chapter 2 of this title and whether it is performing its supervisory tasks.3 the supervisory organisation must furnish finma with all the information and documents that finma requires to supervise the supervisory organisation.art. 43i measures1 finma shall take the necessary measures if the supervisory organisation does not meet the requirements under chapter 2 of this title or does not perform its supervisory tasks. 2 finma may dismiss persons who no longer fulfil the guarantee of irreproachable business conduct.3 if no other measure proves effective, finma may liquidate the supervisory organisation and transfer the supervisory activity to another supervisory organisation as a measure of last resort. 4 if there are indications of irregularities and the supervisory organisation does not take the measures required to restore compliance with the law, finma may:a. conduct an audit of the supervised person or entity;b. appoint an audit agent in accordance with article 24a; orc. make use of supervisory instruments in accordance with articles 29-37.chapter 4 data processing art. 43j article 23 applies by analogy.chapter 5 supervisory instruments of the supervisory organisation art. 43k auditing1 the supervisory organisation may carry out the audit of its supervised persons and entities itself or arrange for it to be carried out by an audit company that:a. is licensed as an auditor by the federal audit oversight authority in accordance with article 6 of the auditor oversight act of 16 december 200588;b. is adequately organised for this audit; andc. does not perform any other activity requiring authorisation under the financial market acts.2 for audits conducted by an audit company in accordance with paragraph 1, a lead auditor must be appointed who:a. is licensed by the federal audit oversight authority as an auditor in accordance with article 5 of the audit oversight act;b. possesses the required specialist knowledge and practical experience to conduct the audit in accordance with paragraph 1.3 articles 24 paragraphs 2-5 and 24a-28a apply by analogy.4 if so ordered by the supervisory organisation, the supervised persons and entities must make an advance payment to cover costs.art. 43l duty to provide information and to report 1 the supervised persons and entities, their audit companies and auditors as well as persons or companies that are qualified investors or that have a substantial participation in the supervised persons and entities must provide finma with all information and documents that it requires to carry out its tasks.2 the supervised persons and entities and the audit companies that conduct audits of them must also immediately report to finma any incident that is of substantial importance to the supervision.88 sr 221.302title 4 criminal provisions89 89 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901). art. 44 activity without authorisation, recognition, a licence, registration or affiliation with a self-regulatory organisation90 1 any person who wilfully without authorisation, recognition, a licence, registration or affiliation with a self-regulatory organisation in accordance with article 24 paragraph 1 of the amla91 carries out an activity that requires authorisation, recognition, a licence, registration or affiliation with a self-regulatory organisation under the financial market acts is liable to a custodial sentence of up to three years or to a monetary penalty.922 where the offender acts through negligence, he or she is liable to a fine of up to 250 000 francs.3 .9390 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).91 sr 955.092 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).93 repealed by annex no 13 of the financial market infrastructure act of 19 june 2015, with effect from 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 45 provision of false information 1 any person who wilfully provides finma, an audit company, a supervisory organisation a self-regulatory organisation, or an agent with false information is liable to a custodial sentence of up to three years or to a monetary penalty.942 where the offender acts through negligence, he or she is liable to a fine of up to 250 000 francs.3 .9594 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).95 repealed by annex no 13 of the financial market infrastructure act of 19 june 2015, with effect from 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 46 violations of obligations by agents96 1 any person who as an agent wilfully and seriously violates the supervisory provisions by:97 a.98 falsely stating essential information in the report or withholding essential information;b. failing to make a mandatory report to finma; orc. failing to make an order under article 27 to the audited supervised person or entity,is liable to a custodial sentence of up to three years or to a monetary penalty.2 where the offender acts through negligence, he or she is liable to a fine of up to 250 000 francs.3 .9996 amended by annex no 8 of the fa of 20 june 2014 (consolidation of oversight through audit companies), in force since 1. jan. 2015 (as 2014 4073; bbl 2013 6857).97 amended by annex no 8 of the fa of 20 june 2014 (consolidation of oversight through audit companies), in force since 1. jan. 2015 (as 2014 4073; bbl 2013 6857).98 amended by annex no 8 of the fa of 20 june 2014 (consolidation of oversight through audit companies), in force since 1. jan. 2015 (as 2014 4073; bbl 2013 6857).99 repealed by annex no 13 of the financial market infrastructure act of 19 june 2015, with effect from 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 47 audit of annual financial statements 1 any person who wilfully:a.100 fails to have the annual financial statements required by the financial market acts audited by a licensed audit company or to have an audit carried out that has been ordered by finma or a supervisory organisation;b. fails to fulfil his or her obligations vis--vis the audit company or the agent,is liable to a custodial sentence of up to three years or to a monetary penalty.2 where the offender acts through negligence, he or she is liable to a fine of up to 250 000 francs.3 .101100 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).101 repealed by annex no 13 of the financial market infrastructure act of 19 june 2015, with effect from 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 48 non-compliance with rulings102 any person who wilfully fails to comply with a legally enforceable ruling issued by finma containing notice of the penalties under this article or with a decision of the appeal courts is liable to a fine of up to 100 000 francs.102 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 49 offences in business operations the ascertainment of the criminally liable persons may be dispensed with and instead the business operation may be ordered to pay the fine (art. 7 of the fa of 22 march 1974103 on administrative criminal law) where:a. the ascertainment of the persons who are criminally liable under article 6 of the federal act of 22 march 1974 on administrative criminal law requires investigative measures that are disproportionate in comparison with the penalty incurred; andb. a fine of a maximum of 50 000 francs is under consideration for the violations of the criminal provisions of this act or the financial market acts.103 sr 313.0art. 50 jurisdiction 1 for violations of the criminal provisions of this act or the financial market acts, the federal act of 22 march 1974104 on administrative criminal law applies, unless this act or the financial market acts provides otherwise. the authority responsible for prosecution and judgement is the fdf.2 where proceedings before the courts are requested or if the fdf is of the view that the requirements for a custodial sentence or a custodial measure are met, the offence is subject to federal jurisdiction. in such a case, the fdf shall refer the files to the office of the attorney general of switzerland for proceedings before the federal criminal court. the referral is deemed to be the bringing of charges articles 73-83 of the federal act of 22 march 1974 on administrative criminal law apply by analogy.3 the representatives of the office of the attorney general of switzerland and of the fdf are not required to appear in person at the trial.104 sr 313.0art. 51 unification of prosecution 1 in a criminal case, if both the jurisdiction of the fdf and federal or cantonal jurisdiction apply, the fdf may order that the prosecution be unified under the prosecution authority already dealing with the case, provided there is a close factual relation, the case is not yet pending before the competent court and unification will not unreasonably delay the ongoing proceedings.2 the appeals chamber of the federal criminal court decides on any disputes between the fdf and the office of the attorney general of switzerland or the cantonal authorities.art. 52 statute of limitations the prosecution of offences under this act and under the financial market acts become time barred after seven years.title 5 procedure and right of appeal105 105 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901). art. 53 administrative procedure the procedure is governed by the provisions of the federal act of 20 december 1968106 on administrative procedure.106 sr 172.021art. 54 right of appeal 1 the contesting of finma rulings is governed by the provisions on the administration of federal justice.2 finma is entitled to appeal to the federal supreme court.title 6 final provisions107 107 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901). chapter 1 implementation108 108 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901). art. 55109 implementing provisions 1 the federal council shall issue the implementing provisions. in doing so, it shall observe the principles of regulation in article 7 paragraph 2 and base its regulation on the majority of the supervised persons or entities at the time. the foregoing is subject to more stringent requirements, in particular with regard to risks to the stability of the financial system.2 the federal council may authorise finma in matters of limited importance, and in particular in predominantly technical matters, to issue implementing provisions to this act and to the financial market acts.109 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 56 implementation finma is responsible for the implementation of this act and of the financial market acts.chapter 2 amendment of other legislative instruments110 110 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901). art. 57 the amendment of current legislation is regulated in the annex.chapter 3 transitional provisions111 111 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901). art. 58112 transitional provision to the amendment of 15 june 2018 applications for authorisation under article 43c paragraph 1 must be submitted no later than six months after the amendment of 15 june 2018 comes into force. finma shall issue a decision on the application within six months of receipt.112 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 59 transfer of employment relationships 1 the employment relationships of the staff of the federal banking commission, of the federal office of private insurance and of the anti-money laundering control authority shall be transferred in accordance with article 58 paragraph 1 to finma and shall be continued in accordance with this act.2 there is no right to the continuation of any function, field of work or position within the organisational system; however, staff have a right to their current salary for a period of one year.3 job application procedures will be carried out only if it proves necessary as a result of reorganisation or where there is more than one candidate.4 finma shall endeavour to carry out restructuring activities in a socially acceptable manner.art. 60 responsible employer 1 finma is the responsible employer for persons in receipt of a pension:a. who are allocated to the federal banking commission, the federal office of private insurance or the anti-money laundering control authority; andb. who have begun to draw an old age, invalidity or survivor's pension from the occupational pension scheme with the federal pension fund before the commencement of this act.2 where any incapacity to work, the cause of which subsequently leads to invalidity, begins before the commencement of this act and the related pension begins to be drawn after its commencement, finma is also the responsible employer.chapter 4 referendum and commencement113 113 amended by annex no ii 16 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901). art. 61 1 this act is subject to an optional referendum.2 the federal council determines the date on which this act comes into force.commencement date:114articles 4, 7, 8, 9 paragraph 1 letters a-e and g-j as well as paragraphs 2-5, articles 10-14, 17-20, 21 paragraphs 3 and 4, 53-55, 58 paragraph 2 second sentence, 59 paragraphs 2-4; annex number 4 (federal administrative court act), heading before article 31 and 33 letter b: 1 february 2008other provisions: 1 january 2009114 as 2008 5205annex (art. 57)amendment of current law the federal acts below are amended as follows:.115115 the amendments may be consulted under as 2008 5207.

957.1 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.federal acton intermediated securities(federal intermediated securities act, fisa)of 3 october 2008 (status as of 1 february 2021)the federal assembly of the swiss confederation,based on articles 98 paragraph 1 and 122 paragraph 1 of the federal constitution1,and having considered the federal council dispatch dated 15 november 20062,decrees:1 sr 1012 bbl 2006 9315chapter 1 purpose, scope and definitions art. 1 subject-matter and purpose 1 this act regulates the custody of certificated and uncertificated securities by custodians and their transfer.2 it ensures the protection of property rights of investors. it contributes to legal certainty in international contexts, to the efficient settlement of securities transactions and to the stability of the financial system.art. 2 scope of application 1 this act applies to intermediated securities that are credited to a securities account by a custodian. 2 it does not affect any provision regarding the registration of registered shares in the share register. art. 3 intermediated securities 1 intermediated securities within the meaning of this act are personal or corporate rights of a fungible nature against an issuer which3:a. are credited to a securities account; andb. may be disposed of by the account holder in accordance with the provisions of this act.1bis an intermediated security within the meaning of this act shall also be deemed to be any financial instrument held in custody in accordance with foreign law and any right to such a financial instrument, if it has a comparable function in accordance with such foreign law.42 intermediated securities are effective against the custodian and any third party; they are beyond the reach of other creditors of the custodian.3 footnote not relevant to the english text.4 inserted by annex no 14 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 4 custodians 1 a custodian within the meaning of this act maintains securities accounts in the name of persons or groups of persons.2 the following are deemed to be custodians:a. banks within the meaning of the banking act of 8 november 19345;b.6 securities firms within the meaning of article 41 of the financial institutions act of 15 june 20187;c.8 fund management companies within the meaning of article 32 of the financial institutions act, insofar as they maintain unit accounts;d.9 central securities depositories within the meaning of article 61 of the financial market infrastructure act of 19 june 201510;e. the swiss national bank within the meaning of the national bank act of 3 october 200311;f.12 swiss post within the meaning of the postal services organisation act of 17 december 201013; andg.14 dlt trading facilities under articles 73a to 73f of the financial market infrastructure act of 19 june 201515 in relation to immobilised ledger-based securities under articles 973d to 973i of the code of obligations16.3 foreign banks, foreign securities firms and other foreign financial institutions, as well as central securities depositories and other financial intermediaries that maintain securities accounts in the course of their business activity are also deemed custodians.175 sr 952.06 amended by annex no ii 17 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).7 sr 954.18 amended by annex no ii 17 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).9 amended by annex no 14 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).10 sr 958.111 sr 951.1112 amended by no i 9 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 feb. 2021 (as 2021 33; bbl 2020 233).13 sr 783.114 inserted by no i 9 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 feb. 2021 as 2021 33; bbl 2020 233).15 sr 958.116 sr 22017 amended by annex no ii 17 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 5 definitions in this act:a. sub-custodian means a custodian which maintains securities accounts for other custodians;b. account holder means a person or group of persons in whose name a custodian maintains a securities account;c. investor means an account holder other than a custodian, or a custodian holding intermediated securities for its own account;d. qualified investor means a custodian; an insurance company subject to prudential supervision; a public-law entity, a pension fund or a company with professional treasury management;e. certificated securities in collective custody means certificated securities within the meaning of article 973a of the code of obligations18;f. global certificate means a certificated security within the meaning of article 973b of the code of obligations;g.19 uncertificated securities means rights within the meaning of article 973c of the code of obligations;h.20 ledger-based securities means rights within the meaning of article 973d of the code of obligations.18 sr 22019 amended by no i 9 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 feb. 2021 (as 2021 33; bbl 2020 233).20 inserted by no i 9 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 feb. 2021 (as 2021 33; bbl 2020 233).chapter 2 creation, extinction and conversion of intermediated securities art. 6 creation 1 intermediated securities are created:a. when a custodian accepts certificated securities for collective custody and credits them to one or more securities accounts;b. when a custodian accepts a global certificate for custody and credits the respective rights to one or more securities accounts; c.21 when a custodian registers uncertificated securities in the main register and credits the respective rights to one or more securities accounts; ord.22 when ledger-based securities are transferred to a custodian and the respective rights are credited to one or more securities accounts.2 for each issue of uncertificated securities, a single custodian shall maintain the main register. the main register shall provide details of the issue, the quantity, and the nominal value of the uncertificated securities issued; it shall be public.233 on being transferred to a custodian, the ledger-based securities shall be immobilised in the securities ledger.2421 amended by no i 9 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 feb. 2021 (as 2021 33; bbl 2020 233).22 inserted by no i 9 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 feb. 2021 (as 2021 33; bbl 2020 233).23 amended by no i 9 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 feb. 2021 (as 2021 33; bbl 2020 233).24 inserted by no i 9 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 feb. 2021 (as 2021 33; bbl 2020 233).art. 7 conversion 1 unless otherwise provided by the terms of issue or the issuer's articles of association, an issuer may, at any time and without the account holder's consent, convert certificated securities in collective custody, global certificates or uncertificated securities held or registered as a basis for intermediated securities into another form.25 it shall bear the conversion cost.2 insofar as provided by the terms of issue or the issuer's articles of association, an account holder may at any time require the issuer to deliver certificated securities in the quantity and of the kind corresponding to intermediated securities credited to the account holder's securities account based on a global certificate or uncertificated securities.26 the account holder shall bear the cost of this conversion unless the terms of issue or the issuer's articles of association provide otherwise.3 the custodian shall ensure that the conversion of the securities does not alter the total number of the personal and corporate rights issued.25 amended by no i 9 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 feb. 2021 (as 2021 33; bbl 2020 233).26 amended by no i 9 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 feb. 2021 (as 2021 33; bbl 2020 233).art. 8 extinction and delivery in general27 1 an account holder may at any time require the custodian to deliver certificated securities in the quantity and of the kind corresponding to intermediated securities credited to the account holder's securities account provided that:a. certificated securities are held by the custodian or a sub-custodian; orb. the account holder is entitled to delivery of certificated securities under article 7 paragraph 2.2 the account holder shall be entitled to the delivery of certificated securities in accordance with the custom and usage of the market on which the securities are traded. 3 the custodian shall ensure that the delivery to the account holder occurs only after the corresponding securities have been debited to the latter's securities account.27 amended by no i 4 of the fa of 21 june 2019 on the implementation of the recommendations of the global forum on transparency and the exchange of information for tax purposes, in force since 1 nov. 2019 (as 2019 3161; bbl 2019 279).art. 8a28 delivery of bearer shares in companies limited by shares without listed equity securities in the case of companies limited by shares without listed equity securities whose bearer shares are organised as intermediated securities, the custodian designated by the company in accordance with article 697j paragraph 5 of the code of obligations29 shall ensure that the securities are only delivered:a. on the custodian ceasing its duties30: to the custodian in switzerland designed as the replacement by the company;b. on the conversion of the bearer shares into registered shares: to the company;c. on the destruction of the bearer shares: to the company.28 inserted by no i 4 of the fa of 21 june 2019 on the implementation of the recommendations of the global forum on transparency and the exchange of information for tax purposes, in force since 1 nov. 2019 (as 2019 3161; bbl 2019 279).29 sr 22030 corrected by the federal assembly drafting committee (art. 58 para. 1 parla; sr 171.10).chapter 3 sub-custody and availability of intermediated securities art. 9 authorisation for sub-custody 1 a custodian may hold intermediated securities, certificated securities, uncertificated securities and ledger-based securities with a sub-custodian in switzerland or abroad.31 the account holder's consent is not required.2 the account holder's express consent is nonetheless required where the foreign sub-custodian is not subject to adequate regulatory supervision.31 amended by no i 9 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 feb. 2021 (as 2021 33; bbl 2020 233).art. 10 effects 1 a custodian credits to the securities account of its account holder the intermediated securities credited to its own securities account with a sub-custodian.2 if the custody of securities with a sub-custodian is not governed by this act, the credit confers upon the account holder rights that are at least equal to the rights acquired by the custodian with the sub-custodian.art. 11 available intermediated securities 1 each custodian shall hold with itself or with a sub-custodian intermediated securities (available securities) in a quantity and of a kind at least equal to the total of intermediated securities credited to the securities accounts of its account holders (credited securities).2 if the total number of available securities is less than the total number of credited securities, the custodian shall without delay acquire intermediated securities to the extent of the shortfall.3 the following are deemed to be available securities:a. intermediated securities credited to a securities account held by the custodian with a sub-custodian;b.32 certificated securities, ledger-based securities or global certificates that the custodian holds directly, or uncertificated securities entered in its main register; andc. readily available rights to delivery of intermediated securities from other custodians during the regulatory or customary settlement period for the corresponding market, provided that this period does not exceed eight days. 32 amended by no i 9 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 feb. 2021 (as 2021 33; bbl 2020 233).art. 12 segregation of own securities and account holder securities 1 if a custodian holds its own intermediated securities and that of its account holders in separate securities accounts with a sub-custodian, the intermediated securities of the account holders and their claims for delivery of intermediated securities shall not be affected by: a. a set-off agreement between the custodian and the sub-custodian to which the account holder is not a party; b. any right of pledge, retention, or foreclosure of the sub-custodian or of another person to which the account holder has not consented. 2 the custodian may dispose of an account holder's intermediated securities only after having them transferred to its own account by exercising its right of use. 3 any agreement to the contrary shall be invalid. chapter 4 rights deriving from the custody of intermediated securities section 1 general rights of account holders art. 13 principle 1 the creation of intermediated securities does not affect the rights of investors against the issuer.2 unless otherwise provided by this act, account holders may exercise their rights only through their custodian.art. 14 seizure and attachment 1 where intermediated securities are seized, attached, or subjected to any other interim measure against the account holder, such measure shall be executed exclusively in the hands of the custodian maintaining the securities account to which the account holder's intermediated securities are credited.2 any seizure, attachment, or other interim measure executed against an account holder in the hands of a sub-custodian shall be void.art. 15 instructions 1 a custodian shall carry out the account holder's instructions to dispose of intermediated securities pursuant to the contract between both parties.2 the custodian shall not be obliged or entitled to verify the legal grounds for the instruction.3 the account holder may revoke an instruction until the point in time provided in the contract with the custodian or in the applicable rules of the securities clearing and settlement system. an instruction shall in any case become irrevocable once the custodian has debited the account holder's securities account.art. 16 statement an account holder may at any time require its custodian to draw up a statement of the intermediated securities credited to its securities account. this statement is not a certificated security.section 2 rights of account holders in the event of a custodian's liquidation art. 17 exclusion from custodian's estate 1 if a custodian is subject to proceedings for compulsory liquidation, the liquidator shall exclude from the custodian's estate up to the number of intermediated securities credited to securities account maintained by the custodian for its account holders:a. intermediated securities credited to a securities account that the custodian holds with a sub-custodian;b.33 certificated securities, ledger-based securities or global certificates that the custodian holds directly, or uncertificated securities entered in its main register; andc. readily available claims of the custodian to receive delivery of intermediated securities from third parties resulting from spot transactions, expired futures transactions, hedging transactions, or issues on behalf of account holders.2 if the custodian does not hold its own securities and that of its account holders in separate securities accounts with a sub-custodian, the securities credited to those accounts shall be presumed to belong to the custodian's account holders.3 the liquidator of a custodian shall satisfy claims of sub-custodians arising out of the custody of the intermediated securities or the financing of their acquisition. 4 intermediated securities and claims for delivery of intermediated securities excluded from the custodian's estate shall be:a. transferred to the custodian designated by the account holder; orb.34 delivered to the account holder in the form of certificated securities; orc.35 transferred to the account holder in the form of ledger-based securities.5 claims of the custodian under article 21 are reserved.33 amended by no i 9 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 feb. 2021 (as 2021 33; bbl 2020 233).34 amended by no i 9 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 feb. 2021 (as 2021 33; bbl 2020 233).35 amended by no i 9 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 feb. 2021 (as 2021 33; bbl 2020 233).art. 18 exclusion from sub-custodian's estate if a sub-custodian is subject to proceedings for compulsory liquidation, the custodian shall seek the exclusion of its account holders' intermediated securities from the sub-custodian's estate.art. 19 shortfall 1 if the intermediated securities excluded from the custodian's estate are not sufficient to satisfy the account holders in full, intermediated securities of the same kind held by the custodian for its own account shall also be excluded insofar as necessary, even where such intermediated securities have been held separately from the account holders' intermediated securities. 2 if the account holders are still not fully satisfied, they shall bear the shortfall in proportion to the number of intermediated securities of the missing kind credited to their respective securities accounts. they shall have a corresponding claim for compensation against the custodian.art. 20 finality of instructions an instruction issued by a custodian which is a participant in a securities clearing or settlement system shall be legally binding and effective against third parties even in the event of debt enforcement proceedings against that custodian, provided that:a. the instruction was entered into the system before the commencement of such proceedings; orb. it was entered into the system after the commencement of such proceedings and carried out on the day of commencement, if the system operator can prove that it was not aware, and should not have been aware, of the commencement of such proceedings.section 3 rights of a custodian in intermediated securities art. 21 right of retention and foreclosure 1 a custodian shall be entitled to retain and foreclose on intermediated securities credited to a securities account, provided a debt owed by the account holder is due and arises from the custody of the intermediated securities or the financing of their acquisition.2 the right of retention and foreclosure shall cease when the custodian credits the intermediated securities to the account of another account holder.art. 22 right of use 1 an account holder may authorise its custodian to dispose of its intermediated securities in its own name and on its own account, in particular to grant a security interest in the same. 2 unless the account holder is a qualified investor, authorisation must be granted in writing. it may not be included in general terms and conditions.art. 23 return of collateral 1 if an account holder has granted a security interest to a custodian, and the custodian has exercised a right of use by creating a security interest, the custodian shall return to the account holder intermediated securities in the same quantity and of the same kind no later than the due date for the performance of the secured obligation.2 these intermediated securities shall be subject to the same security interest as the original security interest, and shall be treated as if they had been provided at the same time as the original security interest.3 to the extent provided by the security agreement with the account holder, the custodian may realise the intermediated securities in accordance with article 31 instead of returning them.art. 23a36 passing on of information the custodian designated by a company limited by shares under article 697i paragraph 4 or article 697j paragraph 3 of the code of obligations37 must ensure that on request downstream custodians pass on the following information:a. the first name and surname or business name and address of the shareholder; andb. the first name and surname and address of the beneficial owner.36 inserted by no i 8 of the federal act of 12 dec. 2014 on the implementation of the revised recommendations 2012 of the financial action task force, in force since 1 july 2015 (as 2015 1389; bbl 2014 605).37 sr 220chapter 5 disposition of intermediated securities and effectiveness against third parties section 1 disposition of intermediated securities art. 24 credit38 1 a disposition of intermediated securities may be effected by:a. an instruction from the account holder to its custodian to transfer the intermediated securities; andb. a credit of the intermediated securities to the acquirer's securities account.2 the disposition shall be complete when the necessary credit has been made and has become effective against third parties. if the full legal rights are transferred as a result of the disposition, the transferor shall lose its rights in the intermediated securities.39 3 the foregoing is without prejudice to the provisions governing acquisition by virtue of universal succession or debt enforcement.4 this article does not affect restrictions on the transfer of registered shares. any other restriction is be ineffective against the transferee or third parties.38 amended by annex no 14 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).39 amended by annex no 14 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 2540 control agreement 1 an act of disposal for intermediated securities may also be created, and becomes effective against third parties when the account holder and the custodian agree irrevocably that the custodian must carry out instructions from the acquirer without any further consent or cooperation on the part of the account holder.2 the act of disposal may relate to:a. specific intermediated securities;b. all intermediated securities credited to a securities account; orc. a proportion of the intermediated securities credited to a securities account up to a specified value.40 amended by annex no 14 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 2641 agreement with the custodian 1 the account holder may dispose of intermediated securities in favour of the custodian by concluding an agreement with it. the act of disposal shall be effective against third parties upon conclusion of the agreement.2 article 25 paragraph 2 applies.41 amended by annex no 14 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).section 2 reversal art. 27 reversal of a debit 1 a debit to a securities account must be reversed if:a. it was made without instructions;b. it was made on the basis of an instruction that:1. is void, 2. was not issued by the account holder or the latter's agent,3. was revoked in due time by the account holder, or 4. was voided on the ground of mistake, erroneous transmission, fraud or duress; article 26 of the code of obligations42 is reserved;c. the credit of intermediated securities to the acquirer's securities account does not correspond to the instruction or is not executed within the customary settlement period.2 in the event of a reversal under paragraph 1 letter a or b, the account holder must prove that the instruction was defective. there is no right to reversal if the custodian proves that it did not know the defect in the instruction and could not be expected to know such defect despite the application of reasonable measures and procedures.3 the reversal shall place the account holder in the same position as if the debit had never been made. claims for damages under the provisions of the code of obligations are reserved.4 claims based on this article become time-barred three years after the defect is discovered, or at the latest ten years after the date on which debit was made.435 an account holder who is a qualified investor may derogate from this article by entering into an agreement with the custodian.42 sr 22043 amended by annex no 29 of the fa of 15 june 2018 (revision of the law of prescription), in force since 1 jan. 2020 (as 2018 5343; bbl 2014 235).art. 28 reversal of a credit 1 a custodian may reverse a credit of intermediated securities to a securities account if: a. the corresponding debit was reversed; orb. the credit does not correspond to the instruction.2 the account holder shall be notified of the reversal.3 a credit may not be reversed where intermediated securities of the same kind are no longer credited to that securities account or where third parties acting in good faith have acquired rights in those intermediated securities. in such cases the custodian shall have a claim for damages unless the account holder has disposed of the securities in good faith or had no reason to expect a demand for restitution when disposing of them. 4 claims based on this article become time-barred three years after the defect is discovered, or at the latest ten years after the date on which the credit was made.445 an account holder who is a qualified investor may derogate from this article by entering into an agreement with the custodian.44 amended by annex no 29 of the fa of 15 june 2018 (revision of the law of prescription), in force since 1 jan. 2020 (as 2018 5343; bbl 2014 235).section 3 effectiveness against third parties art. 29 protection of the bona fide purchaser 1 a person who acquires intermediated securities under articles 24, 25 or 26 for value and in good faith shall be protected in respect of the acquisition even where:a. the transferor had no power or authority to transfer the intermediated securities; orb. the credit of intermediated securities to the transferor's securities account was reversed.2 an acquirer who is not so protected is under a duty to make restitution of intermediated securities in the same quantity and of the same kind pursuant to the provisions of the code of obligations45 on unjust enrichment. the rights of third parties are not affected. the foregoing is without prejudice to other claims based on the code of obligations.3 where the acquirer who is bound to make restitution of the securities becomes subject to proceedings for compulsory liquidation, the beneficiary may require intermediated securities in the same quantity and of the same kind to be excluded from the acquirer's estate to the extent that it contains such intermediated securities.4 claims based on this paragraph 2 become time barred three years after the holder of the debited account becomes aware of its rights and of the identity of its debtor, or at the latest ten years after the debit date. article 60 paragraph 2 of the swiss code of obligations is reserved.465 where the conditions for reversal of a credit under article 28 are met, the acquirer may not object to the reversal on the basis of this article.45 sr 22046 amended by annex no 29 of the fa of 15 june 2018 (revision of the law of prescription), in force since 1 jan. 2020 (as 2018 5343; bbl 2014 235).art. 30 priorities 1 where intermediated securities or interests in intermediated securities are disposed of pursuant to provisions of this act, the disposition first in time shall prevail over further dispositions.2 if the custodian has entered into an agreement with the account holder under article 25 paragraph 1 without notifying the acquirer expressly of its rights created earlier, its right shall be deemed to be subordinated to the right of the acquirer.473 .484 the foregoing is without prejudice to agreements to modify the priorities of rights over intermediated securities, but such agreements are effective only as between the parties bound by them.47 amended by annex no 14 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).48 repealed by annex no 14 of the financial market infrastructure act of 19 june 2015, with effect from 1 jan. 2016 (as 2015 5339; bbl 2014 7483).chapter 6 realisation of collateral art. 31 power to realise collateral 1 the secured party may realise intermediated securities in which a security interest has been created according to the terms and conditions stipulated in the security agreement by:a. selling the intermediated securities and offsetting the proceeds against the secured debt; orb. appropriating the intermediated securities whose value can be determined objectively and offsetting their value against the secured debt.492 this power is not affected by the commencement of debt enforcement, reorganisation or protective proceedings in respect of the provider of the security interest.3 the custodian is not bound or entitled to verify whether the conditions for realisation of the intermediated securities are fulfilled.4 the foregoing is without prejudice to the liability of the beneficiary of a security interest who realises intermediated securities where the conditions for realisation are not fulfilled. 49 amended by annex no 14 of the financial market infrastructure act of 19 june 2015, in force since 1 jan. 2016 (as 2015 5339; bbl 2014 7483).art. 32 notice and accounts 1 the secured party shall give notice to the provider of the security interest before realisation. a provider of a security interest who is a custodian or a qualified investor may waive the notice requirement.2 the secured party shall account to the provider of the security interest and remit to the latter any excess proceeds of the realisation.chapter 7 liability art. 33 1 a custodian shall be liable for the loss caused to an account holder in relation to the custody or transfer of intermediated securities, pursuant to the provisions of the code of obligations50, unless otherwise provided in this article.2 a custodian which is authorised to hold intermediated securities with a sub-custodian shall be liable for any failure to exercise due care in the selection and instruction of the sub-custodian and in verifying its continued compliance with the selection criteria. 3 a custodian may waive its liability under paragraph 2 if the account holder has expressly designated the sub-custodian contrary to the custodian's advice.4 a custodian shall be liable, as if they were its own, for the acts of a sub-custodian which: a. independently and over a long period of time administers and settles all securities transactions on behalf of the custodian; or b. is part of the same economic entity as the custodian.5 agreements to the contrary shall be valid only as between custodians or when made in favour of investors. 50 sr 220chapter 8 final provisions art. 34 amendments to existing law amendments to existing law are contained in the annex hereto.art. 35 transitional provisions 1 issuers of uncertificated securities credited to securities accounts maintained by a custodian shall have the main registry set up by a custodian within six months from the effective date of this act and have the uncertificated securities registered therein.2 if, before this act comes into force, certificated securities in collective deposit, global certificates, or uncertificated securities held by a custodian are disposed of in a manner that fails to comply with the requirements of this act, the right thus created shall prevail over any right created after the commencement date of the act provided that the beneficiary effects the book entries required by the act or causes them to be effected within 12 months after the commencement date hereof.art. 36 referendum and commencement 1 this act is subject to an optional referendum.2 the federal council shall set the commencement date.commencement date:51 1 january 2010art. 470 para. 2bis of the code of obligations (no 3 of annex): 1 october 200951 fcd of 6 may 2009.annex (art. 34)amendment of current legislation the federal acts below are amended as follows:.5252 the amendments may be consulted under as 2009 3577.

958.1english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.federal act on financial market infrastructures and market conduct in securities and derivatives trading(financial market infrastructure act, finmia)of 19 june 2015 (status as of 1 august 2021)the federal assembly of the swiss confederation,based on articles 95 and 98 paragraphs 1 and 2 of the federal constitution1,and having considered the federal council dispatch dated 3 september 20142,decrees:1 as 2015 5339 sr 1012 bbl 2014 7483title 1 general provisions art. 1 subject matter and purpose 1 this act governs the organisation and operation of financial market infrastructures, and the conduct of financial market participants in securities and derivatives trading.2 it aims to ensure the proper functioning and transparency of securities and derivatives markets, the stability of the financial system, the protection of financial market participants and equal treatment of investors.art. 2 definitions for the purposes of this act, the following terms shall have the following meanings:a. financial market infrastructure:1. a stock exchange (art. 26 let. b);2 a multilateral trading facility (art. 26 let. c);3. a central counterparty (art. 48);4. a central securities depository (art. 61);5. a trade repository (art. 74);5a.3 a trading facility for dlt securities (dlt trading facility; art. 73a);6. a payment system (art. 81).b.4 securities: standardised certificated and uncertificated securities, in particular uncertificated securities in accordance with article 973c of the code of obligations5 (co) and ledger-based securities in accordance with article 973d of the co, as well as derivatives and intermediated securities, which are suitable for mass trading.bbis.6 distributed ledger technology securities (dlt securities): securities in the form of:1. ledger-based securities (art. 973d co); or2. other uncertificated securities that are held in distributed electronic registers and use technological processes to give the creditors, but not the obligor, power of disposal over the uncertificated security.c. derivatives or derivatives transactions: financial contracts whose value depends on one or several underlying assets and which are not cash transactions.d. participant: any person making direct use of financial market infrastructure services.e. indirect participant: any person making use of financial market infrastructure services indirectly via a participant.f. listing: the admission of a security to trading on a stock exchange in accordance with a standardised procedure whereby the stock exchange's requirements regarding issuers and securities are being verified.g. clearing: processing steps between the conclusion and the settlement of a transaction, in particular:the entry, reconciliation and confirmation of the transaction data;the assumption of obligations by a central counterparty or other risk mitigation measures;the netting of transactions;the reconciliation and confirmation of outstanding payments and securities transfers.h. settlement: fulfilment of the obligations entered into upon conclusion of the transaction, namely by transferring funds or securities.i. public takeover offers: offers to purchase or exchange shares, participation certificates, profit-sharing certificates or other participation rights (equity securities) which are made publicly to the holders of shares or other equity securities.j.7 insider information: confidential information whose disclosure would significantly affect the prices of securities admitted to trading on a trading venue or dlt trading facility which has its registered office in switzerland.3 inserted by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).4 amended by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).5 sr 2206 inserted by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).7 amended by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).art. 3 group parent companies and significant group companies 1 the following are subject to articles 88 to 92 provided they are not subject to the bankruptcy jurisdiction of the swiss financial market supervisory authority (finma) within the scope of the supervision of the individual institution:a. group parent companies of a financial group which have their registered office in switzerland;b. those group companies which have their registered office in switzerland and perform significant functions for activities which require authorisation (significant group companies).2 the federal council shall set the criteria for assessing significance.3 finma shall identify significant group companies and keep a publicly accessible list of said companies.title 2 financial market infrastructures chapter 1 common provisions section 1 authorisation conditions and duties for all financial market infrastructures art. 4 duty to obtain authorisation 1 financial market infrastructures require authorisation from finma.2 a payment system requires authorisation from finma only if this is necessary for the proper functioning of the financial market or the protection of financial market participants and if the payment system is not operated by a bank.3 financial market infrastructures operated by the swiss national bank (snb) or on its behalf are not subject to finma authorisation and supervision within the scope of this activity.4 the financial market infrastructure may be entered in the commercial register only after finma has issued the authorisation.art. 5 authorisation conditions anyone who meets the conditions set out in this section and the supplementary conditions that apply to individual financial market infrastructures is entitled to authorisation.art. 6 additional requirements for systemically important financial market infrastructures systemically important financial market infrastructures (art. 22) have to meet the requirements set out in section 2 in addition to the conditions detailed in article 5.art. 7 changes in facts 1 the financial market infrastructure shall notify finma of any changes in the facts on which its authorisation or approval is based.2 if the changes are of material significance, the financial market infrastructure must obtain prior authorisation or approval from finma in order to pursue its activity.3 this provision applies by analogy to recognised foreign financial market infrastructures.art. 8 organisation 1 the financial market infrastructure must be a legal entity under swiss law and have its registered office and head office in switzerland.2 it must establish appropriate corporate management rules and be organised in such a way that it can fulfil its statutory duties. in particular, it must designate specific bodies responsible for its business management, on the one hand, and for its overall management, supervision and control on the other, and define the scope of these bodies' respective powers in such a way as to ensure proper and independent supervision of business management. it shall set out the relevant tasks and authorities in its articles of incorporation and organisational regulations.3 it shall identify, measure, control and monitor its risks and organise an effective internal control system. in particular, it shall establish an internal audit function that is independent of the business management body and a compliance department that is separate from operating business units.art. 9 guarantee of irreproachable business conduct 1 the financial market infrastructure and the persons responsible for its administration and management must provide the guarantee of irreproachable business conduct.82 moreover, the persons responsible for the administration and management of the financial market infrastructure must enjoy a good reputation and have the specialist qualifications required for their functions.3 qualified participants in a financial market infrastructure must also enjoy a good reputation and ensure that their influence is not detrimental to prudent and sound business activity. 4 persons who directly or indirectly hold at least 10% of the share capital or votes or who can significantly influence its business activity in another manner are deemed to be qualified participants in a financial market infrastructure.5 each person must notify finma before directly or indirectly acquiring or disposing of a qualified participation in accordance with paragraph 4 in a financial market infrastructure organised under swiss law. this notification duty also applies if a qualified participation is increased or reduced in such a way as to reach, exceed or fall below the thresholds of 20%, 33% or 50% of the share capital or votes.6 the financial market infrastructure shall notify finma of the persons who meet the conditions of paragraph 5 as soon as it becomes aware of the same. it must submit a list of its qualified participants to finma at least once a year.8 german text only amended by annex no ii 18 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 10 ancillary services 1 a legal entity may operate only one financial market infrastructure. the foregoing does not apply to the operation of a multilateral trading facility by a stock exchange.2 the provision of ancillary services subject to authorisation or approval by virtue of article 1 of the financial market supervision act of 22 june 20079 (financial market legislation) must be authorised or approved by finma and must be in compliance with the additional authorisation conditions.3 if the provision of ancillary services not subject to authorisation or approval by virtue of financial market legislation increases the risks of a financial market infrastructure, finma may require organisational measures or the establishment of additional own funds and sufficient liquidity.9 sr 956.1art. 11 outsourcing 1 if a financial market infrastructure wishes to outsource essential services such as risk management, prior approval must be obtained from finma. finma must consult the snb beforehand if the financial market infrastructure in question is considered systemically important by the snb.2 the financial market infrastructure shall set out the reciprocal rights and duties in a written agreement with the service provider.3 if a financial market infrastructure outsources services, it shall remain responsible for compliance with the duties arising from this act.art. 12 minimum capital 1 the minimum capital of the financial market infrastructure must be fully paid up.2 the federal council shall set the amount of the minimum capital.art. 13 business continuity 1 a financial market infrastructure must have an appropriate strategy to be able to maintain or restore operations in good time in the event of disruptions.2 if a financial market infrastructure holds participants' assets and positions, it must establish appropriate procedures to ensure that these assets and positions can be transferred or settled immediately in the event of the withdrawal or return of authorisation.art. 14 it systems 1 a financial market infrastructure shall operate it systems which:a. ensure fulfilment of the duties arising from this act and are appropriate for its activities;b. provide for effective emergency arrangements; andc. ensure the continuity of its business activity.2 it shall provide for measures to protect the integrity and confidentiality of information regarding its participants and their transactions.art. 15 financial groups 1 if a financial market infrastructure is part of a financial group, finma may make its authorisation contingent upon the existence of appropriate consolidated supervision by a financial market supervisory authority.2 two or more companies are deemed to be a financial group pursuant to this act if:a. at least one of them operates as a financial market infrastructure;b. they operate primarily in the financial sector; andc. they form an economic unit or other circumstances suggest that one or more of the companies under individual supervision is de jure or de facto obliged to provide assistance to group companies.3 the provisions of the banking act of 8 november 193410 apply by analogy.10 sr 952.0art. 16 protection against confusion and deception 1 the name of the financial market infrastructure must not lead to confusion or deception.2 the terms stock exchange, multilateral trading facility, mtf, central counterparty, ccp, securities settlement system, sss, central securities depository, csd, trade repository", tr, dlt trading system, dlt trading facility and dlt exchange may be used in connection with the provision of financial services only to designate a corresponding financial market infrastructure subject to this act.1111 amended by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).art. 17 international business a financial market infrastructure must notify finma before:a. establishing, acquiring or closing a foreign subsidiary, branch or representative office;b. acquiring or surrendering a qualified participation in a foreign company.art. 18 fair and open access 1 a financial market infrastructure shall ensure fair and open access to its services.2 it may restrict access to its services: a. if this increases safety or efficiency and this effect cannot be achieved with other measures; or b. if the features of the potential participant could jeopardise the business operations of the financial market infrastructure or its participants.art. 19 documentation and retention duties financial market infrastructures shall keep records of the services provided, the procedures and processes applied and the activities carried out, and shall retain all records for ten years.art. 20 prevention of conflicts of interest financial market infrastructures shall take effective organisational measures to identify, prevent, settle and monitor conflicts of interest.art. 21 publication of essential information 1 a financial market infrastructure shall regularly publish all essential information for participants, issuers and the general public, specifically:a. information about its organisation;b. the participation conditions;c. the rights and duties of participants and issuers.2 it shall take account of recognised international standards in doing so.section 2 special requirements for systemically important financial market infrastructures art. 22 systemically important financial market infrastructures and business processes 1 central counterparties, central securities depositories, payment systems and those dlt trading facilities that provide central custody, clearing or settlement services are deemed to be systemically important:12a. if their non-availability, arising in particular from technical or operational problems or financial difficulties, can lead to serious losses, liquidity shortfalls or operational problems for financial intermediaries or other financial market infrastructures, or can cause serious disruptions on financial markets; or b. if individual participants' payment or delivery difficulties can spill over to other participants or linked financial market infrastructures and can cause these serious losses, liquidity shortfalls or operational problems, or can cause serious disruptions on financial markets.2 a business process of a financial market infrastructure in accordance with paragraph 1 is systemically important:a. if its non-availability can cause serious losses, liquidity shortfalls or operational problems for financial intermediaries or other financial market infrastructures, or can cause serious disruptions on financial markets; andb. if participants cannot substitute the business process at short notice.12 amended by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).art. 23 special requirements 1 systemically important financial market infrastructures must fulfil special requirements in order to protect against the risks they pose to the stability of the financial system.2 the special requirements must take account of recognised international standards. they can relate to the contractual bases, the means of payment used, risk management, business continuity and it systems.3 the snb shall regulate the details in an ordinance.4 the snb may, after consulting finma, waive the obligation to meet the special requirements for a systemically important financial market infrastructure registered abroad which comes under snb oversight in accordance with article 19 paragraph 2 of the swiss national bank act of 3 october 200313 (nba):if it is subject to equivalent supervision and oversight abroad; andif the competent supervisory and oversight authorities cooperate with the snb in accordance with article 21 paragraph 2 of the nba14.13 sr 951.1114 now: in accordance with art. 21 let. b nba.art. 24 recovery and resolution plan 1 a systemically important financial market infrastructure shall draw up a recovery plan that sets out the measures it will use to ensure its stability on a sustainable basis in the event of a crisis and be able to maintain its systemically important business processes. 2 finma shall draw up a resolution plan that describes how the restructuring or winding-up of a systemically important financial market infrastructure that it has ordered can be carried out. it shall consult the snb about the resolution plan. 3 a financial market infrastructure shall provide finma with the recovery plan and the information necessary for drawing up a resolution plan.4 it shall implement the resolution plan measures in a preparatory manner if this is necessary for the uninterrupted maintenance of systemically important business processes.section 3 authorisation procedure art. 25 1 finma shall inform the snb of authorisation requests submitted by central counterparties, central securities depositories, payment systems and those dlt trading facilities that provide central custody, clearing or settlement services.152 after consulting finma, the snb shall designate by way of an order the systemically important financial market infrastructures and their systemically important business processes in accordance with article 22. it shall also define by way of an order which special requirements in accordance with article 23 the individual systemically important financial market infrastructures have to fulfil and shall assess their compliance.3 if a systemically important financial market infrastructure fulfils the special requirements, finma shall grant authorisation if the other authorisation conditions are also met.4 finma shall approve a systemically important financial market infrastructure's stabilisation plan in accordance with article 24 after consulting the snb.5 if the snb concludes that a financial market infrastructure is not systemically important, it shall inform finma. if the general authorisation conditions are met, finma shall grant authorisation.6 the procedure applies by analogy to requests for recognition submitted by foreign central counterparties.15 amended by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).chapter 2 trading venues, organised trading facilities and power exchanges section 1 trading venues art. 26 definitions for the purposes of this act:a. trading venue means a stock exchange or a multilateral trading facility;b. stock exchange means an institution for multilateral securities trading where securities are listed, whose purpose is the simultaneous exchange of bids between several participants and the conclusion of contracts based on non-discretionary rules;c. multilateral trading facility means an institution for multilateral securities trading whose purpose is the simultaneous exchange of bids between several participants and the conclusion of contracts based on non-discretionary rules without listing securities.art. 27 self-regulation 1 the trading venue shall establish under finma supervision its own regulatory and supervisory organisation which is appropriate for its activity.2 the regulatory and supervisory tasks delegated to the trading venue must be carried out by independent bodies. the directors of these bodies must:a. provide the guarantee of irreproachable business conduct;b. enjoy a good reputation; and c. have the specialist qualifications required for their functions.3 the selection of the directors under paragraph 2 requires the approval of finma.4 the trading venue shall submit its regulations and their amendments to finma for approval.art. 28 organisation of trading 1 the trading venue shall issue regulations for the organisation of orderly and transparent trading.2 it shall register all of its orders and transactions in chronological order, as well as the transactions reported to it. in particular, it shall indicate the time, the identity of the participants, the securities traded and their number or nominal value, as well as their price.art. 29 pre- and post-trade transparency 1 the trading venue shall publish the bid and offer prices for shares and other securities in real time, as well as the sizes of the trading positions at these prices (pre-trading transparency).2 moreover, it shall immediately publish information on the transactions carried out on the trading venue and on the transactions conducted outside of the trading venue reported to it for all securities admitted to trading (post-trading transparency). in particular, the price, volume and time of the transactions must be published.3 taking account of recognised international standards and legal developments abroad, the federal council shall determine:a. the other securities subject to pre-trade transparency;b. exceptions with regard to pre- and post-trade transparency, particularly in relation to securities transactions involving large volumes or that are executed by the snb.art. 30 guarantee of orderly trading 1 a trading venue which operates a technical platform must have a trading facility which guarantees orderly trading even in the event of intense trading activity.2 it shall take effective measures to prevent disruptions to its trading facility.art. 31 supervision of trading 1 the trading venue shall supervise price formation and the transactions conducted on the trading venue so that insider trading, price and market manipulation and other violations of statutory and regulatory provisions can be detected. for this purpose, it shall also review the transactions conducted outside of the trading venue that are reported to it or are brought to its attention in any other way.2 in the event of suspected violations of the law or other irregularities, the body responsible for supervising trading (trading supervisory body) shall notify finma. if the violations of the law involve criminal offences, it shall also inform the competent prosecution authority without delay.3 finma, the competent prosecution authority, the takeover board and the trading supervisory body shall exchange information which they require within the context of their collaboration and in order to carry out their tasks. they shall use the information received solely to carry out their respective tasks.art. 32 collaboration between trading supervisory bodies 1 swiss supervisory bodies for various trading venues shall regulate the free, reciprocal exchange of trading data by agreement, provided that on the trading venues in question:a. identical securities are admitted to trading; orb. securities are admitted to trading which influence the pricing of securities that are admitted to trading on the other trading venue.2 they shall use the data received solely to carry out their respective tasks.3 swiss trading supervisory bodies may agree to the reciprocal exchange of information with foreign trading supervisory bodies, provided that:a. the conditions set out in paragraph 1 are fulfilled; andb. the foreign trading supervisory body in question is subject to a legal duty of confidentiality.art. 33 suspension of trading 1 when a stock exchange suspends trading in a security listed on it at the initiative of the issuer or due to extraordinary circumstances, it shall immediately publish its decision.2 if trading in a security is suspended, it shall also be suspended on all of the other trading venues where the security in question is admitted to trading.art. 34 admission of participants 1 the trading venue shall issue regulations on the admission, duties and exclusion of participants, thereby observing in particular the principle of equal treatment.2 the following may be admitted as participants in a stock exchange or a multilateral trading facility:a.16 securities firms in accordance with article 2 letter d of the financial institutions act of 15 june 201817 (finia);b. other parties supervised by finma in accordance with article 3 of the financial market supervision act of 22 june 200718 (finmasa), provided that the trading venue ensures that they fulfil equivalent technical and operational conditions to securities firms;19c. foreign participants authorised by finma in accordance with article 40;d. the snb.16 amended by annex no ii 18 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).17 sr 954.118 sr 956.119 term in accordance with annex no ii 18 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901). this modification has been made throughout the text.art. 35 admission of securities by a stock exchange 1 the stock exchange shall issue regulations on the admission of securities to trading, and particularly for the listing of securities.2 the regulations shall take account of recognised international standards and in particular shall contain provisions on:a.20 the requirements that apply to the securities and the issuers and the duties of the issuer, its representatives and third parties in connection with the listing or admission of securities to trading;b. the publication of information on which investors rely for assessing the characteristics of securities and the quality of the issuer;c. the duties of the issuer, its representatives and third parties for the entire duration of the listing or admission of securities to trading;d. the obligation, regarding the admission of equity securities and bonds, to comply with articles 7 and 821 of the federal act of 16 december 200522 on the licensing and oversight of auditors (aoa).2bis the prospectus requirement is governed exclusively by articles 35-57 of the financial services act of 15 june 201823.243 the stock exchange shall monitor compliance with the regulations and impose the sanctions provided for contractually in the event of violations.20 amended by annex no 5 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).21 art. 8 para. 1 let. b and d never came into force.22 sr 221.30223 sr 950.124 inserted by annex no 5 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).art. 36 admission of securities by a multilateral trading facility 1 the multilateral trading facility shall issue regulations on the admission of securities to trading. in particular, it shall set out therein the requirements for the securities and the issuers or third parties in connection with admission to trading.252 it shall monitor compliance with the regulations and impose the sanctions provided for contractually in the event of violations.3 the prospectus requirement is governed exclusively by articles 35-57 of the financial services act of 15 june 201826.2725 amended by annex no 5 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).26 sr 950.127 inserted by annex no 5 of the financial services act of 15 june 2018, in force since 1 jan. 2020 (as 2019 4417; bbl 2015 8901).art. 37 appeal body 1 the trading venue shall appoint an independent appeal body to which application may be made:a. when a participant is refused admission;b. when a security is refused admission;c. when a participant is excluded;d. when a security is delisted.2 it shall govern the organisation of the appeal body and its procedures.3 the organisation, the procedural rules and the appointment of the members of the appeal body require the approval of finma.4 an action may be brought before the civil court after the appeal procedure has been conducted.art. 38 record-keeping duty of participants the participants admitted to a trading venue shall keep a record of the orders and transactions they carry out, providing all the details necessary for overseeing and supervising their activity.art. 39 reporting duty of participants 1 the participants admitted to a trading venue must report all of the information necessary for transparent securities trading.2 finma shall determine which information is to be reported to whom and in what form.3 the snb is not subject to the reporting obligation within the framework of carrying out its public duties.art. 40 authorisation of foreign participants 1 finma shall grant authorisation to a foreign participant wishing to participate in a swiss trading venue but which has no registered office in switzerland:a. if it is subject to appropriate regulation and supervision;b. if it observes a code of conduct and record-keeping and reporting duties equivalent to the duties set out in swiss regulations; c. if it ensures that its activities are separate from the activities of any authorised swiss units; andd. if the competent supervisory authorities:1. do not have any objections to the participant's activity in switzerland,2. provide finma with administrative assistance.2 finma may reject authorisation if the state in which the foreign participant has its registered office does not grant swiss participants actual access to its markets or does not offer them the same competitive opportunities as those granted to domestic trading participants. any deviating international commitments are reserved.3 a foreign participant that already participates in a swiss trading venue shall inform finma if it wishes to participate in another swiss trading venue. in this case, the foreign supervisory authority has to confirm that it has no objection to the expansion of the foreign participant's activity in switzerland.4 finma authorisation is not required for participation in monetary policy transactions with the snb. art. 41 recognition of foreign trading venues 1 trading venues domiciled abroad must obtain recognition from finma before granting swiss participants supervised by finma direct access to their facilities.2 finma shall grant recognition:a. if the foreign trading venue is subject to appropriate regulation and supervision; andb. if the competent foreign supervisory authorities:1. do not have any objections to the cross-border activity of the foreign trading venue,2. guarantee that they will inform finma if they detect violations of the law or other irregularities on the part of swiss participants, and3. provide finma with administrative assistance.3 a foreign trading venue is deemed recognised if finma finds that:a. the state in which the trading venue has its registered office regulates and supervises its trading venues adequately; andb. the conditions in paragraph 2 letter b are met. 4 finma may refuse recognition if the state in which the foreign trading venue has its registered office does not grant swiss trading venues actual access to its markets or does not offer them the same competitive opportunities as those granted to domestic trading venues. any deviating international commitments are reserved.section 2 organised trading facilities art. 42 definition an organised trading facility is an establishment for:a. multilateral trading in securities or other financial instruments whose purpose is the exchange of bids and the conclusion of contracts based on discretionary rules;b. multilateral trading in financial instruments other than securities whose purpose is the exchange of bids and the conclusion of contracts based on non-discretionary rules;c. bilateral trading in securities or other financial instruments whose purpose is the exchange of bids. art. 43 duty to obtain authorisation or recognition 1 anyone who operates an organised trading facility requires authorisation as a bank, securities dealer or dlt trading facility, or authorisation or recognition as a trading venue.282 no authorisation is required for the operation of an organised trading facility within a financial group if this is conducted via a legal entity that:a. is controlled directly by a financial market infrastructure; andb. is subject to consolidated finma supervision.28 amended by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).art. 44 organisation and prevention of conflicts of interest anyone who operates an organised trading facility must:a. do this separately from the other business activities;b. take effective organisational measures to identify, prevent, settle and monitor conflicts of interest;c. ensure that client interests are comprehensively protected when conducting proprietary transactions on the organised trading facility operated by him.art. 45 guarantee of orderly trading 1 anyone who operates an organised trading facility must ensure that this guarantees orderly trading even in the event of intense trading activity.2 this person shall take effective measures to prevent disruptions to the trading facility.art. 46 trading transparency 1 anyone who operates an organised trading facility shall publish information on the transactions carried out on the trading facility, in particular the price, volume and time of the transactions.2 taking recognised international standards and foreign legal developments into account, the federal council shall regulate exemptions to this publication duty, particularly in relation to securities transactions involving large volumes or that are executed by the snb.3 it may make provision, in line with recognised international standards, for extending the publication duty to pre-trading transparency.section 3 power exchanges art. 47 1 the federal council may adopt provisions which deviate from this act for exchanges where electricity derivatives are traded and for trading on such exchanges in order to take account of the specific features of the electricity market, particularly so as to safeguard the public interest in a secure power supply.2 it may empower finma to issue provisions, in agreement with the federal electricity commission, in areas with a restricted scope, namely those that are primarily technical. chapter 3 central counterparties section 1 general provisions art. 48 definition a central counterparty is an entity based on uniform rules and procedures that interposes itself between the counterparties to a securities transaction or other contract involving financial instruments, thereby becoming the buyer to every seller and the seller to every buyer.art. 49 collateral 1 the central counterparty shall require its participants to provide appropriate collateral, particularly in the form of initial margins, variation margins and default fund contributions.2 this collateral shall be calculated at least in such a way that:a. a participant's variation margins cover the current credit exposures based on realised market price movements;b. a participant's initial margins will, with a high degree of confidence, cover the potential credit exposures arising for a central counterparty upon the participant's default based on expected market price movements;c. the initial margins, variation margins and default fund contributions will be sufficient to cover the loss resulting under extreme but plausible market conditions from the default of the participant to which the central counterparty has its greatest exposure.3 the central counterparty shall accept only liquid collateral with low credit and market risks. it shall value the collateral prudently.art. 50 fulfilment of payment obligations 1 the central counterparty and its participants shall fulfil their mutual payment obligations by transferring sight deposits held with a central bank.2 if this is impossible or impractical, they shall use a means of payment which carries low credit and liquidity risks. the central counterparty shall minimise these risks and monitor them on an ongoing basis.art. 51 capital adequacy and risk diversification 1 individually and on a consolidated basis, the central counterparty must have adequate capital and diversify its risk appropriately.2 the federal council shall set the amount of the capital based on the business activity and the risks, and shall determine the risk diversification requirements.art. 52 liquidity 1 the central counterparty must have sufficient liquidity:a. to fulfil its payment obligations in all currencies under extreme but plausible market conditions, even in the event of the default of the participant to which it has its greatest exposure; andb. to be able to duly execute its services and activities.2 it shall invest its financial resources solely in cash or in liquid financial instruments with a low market and credit risk.art. 53 procedure in the event of the default of a participant 1 the central counterparty shall take measures to limit the credit and liquidity risks in the event of a participant's default. 2 to cover any losses in the event of a participant's default, it shall use collateral and capital in the following order:a. margins of the defaulting participant;b. default fund contributions of the defaulting participant;c. dedicated capital of the central counterparty;d. default fund contributions of non-defaulting participants.3 it shall issue rules governing how more extensive losses are to be covered. it may not:a. use the initial margins of non-defaulting participants to cover losses caused by the default of another participant;b. use the collateral of indirect participants to cover losses caused by the default of a participant or other indirect participant; orc. use an indirect participant's funds in excess of the margin requirement deposited with it in accordance with article 59 paragraph 3 to cover losses caused by the default of a participant or other indirect participant.art. 54 segregation 1 the central counterparty must: a. separate its own assets, receivables and liabilities from the collateral, receivables and liabilities of its participants; andb. separate a participant's collateral, receivables and liabilities from those of other participants.2 it shall offer its participants the possibility of:a. separating their own collateral, receivables and liabilities from those of indirect participants;b. keeping and recording the collateral, receivables and liabilities of indirect participants together (omnibus customer accounts) or separately (individual customer accounts).art. 55 portability 1 the central counterparty shall ensure that, in the event of a participant's default, the collateral and positions held by the participant on behalf of an indirect participant can be transferred to another participant indicated by the indirect participant.2 a participant shall be considered to be in default if:a. it does not meet the admission requirements concerning the participant's financial capacity by the deadline set by the central counterparty; orb. compulsory winding-up proceedings were initiated against it for the purposes of general execution.section 2 interoperability agreements art. 56 non-discriminatory access 1 central counterparties may conclude an agreement on the interoperable clearing of financial transactions (interoperability agreement).2 a central counterparty is obliged to accept the request of another central counterparty concerning the conclusion of an interoperability agreement, unless the conclusion of such an agreement would jeopardise the security and efficiency of clearing. art. 57 approval 1 the conclusion of an interoperability agreement is subject to approval by finma.2 the interoperability agreement shall be approved if:a. the respective rights and duties of the central counterparties are governed;b. the central counterparties have appropriate procedures and instruments for managing the risks arising from the interoperability agreement; c. the central counterparty will cover the credit and liquidity risks arising from the interoperability agreement by immediately demanding appropriate collateral from the other central counterparty;d. the central counterparties are authorised or recognised by finma;e. the authorities responsible for supervising and overseeing the foreign central counterparty collaborate with the competent swiss authorities.3 if a central counterparty involved in the interoperability agreement is systemically important, finma shall obtain the snb's agreement before granting its approval.4 if a central counterparty involved in an interoperability agreement extends its activity to a new trading venue without this entailing new risks, the interoperability agreement does not require re-approval. section 3 participants art. 58 publication of prices a central counterparty's participants which render a central counterparty accessible to indirect participants shall publish the prices of the services they provide in connection with clearing.art. 59 segregation 1 a central counterparty's participant shall separate the collateral, receivables and liabilities of indirect participants from its own assets and positions with the central counterparty and in its own accounts.2 it shall offer indirect participants the possibility of keeping and recording the collateral, receivables and liabilities together with those of other indirect participants (omnibus customer accounts) or separately (individual customer accounts).3 if an indirect participant opts for individual client segregation, the participant must deposit all funds in excess of the indirect participant's margin requirement with the central counterparty and distinguish them from the margin of other indirect participants.4 a central counterparty's participant shall publish the costs and specifics concerning the level of protection granted by the type of account management under paragraph 2.section 4 recognition of foreign central counterparties art. 60 1 a central counterparty registered abroad must obtain finma recognition before it:a. grants supervised swiss participants direct access to its facilities;b. provides services for a swiss financial market infrastructure;c. enters into an interoperability agreement with a swiss central counterparty.2 finma shall grant recognition:a. if the foreign central counterparty is subject to appropriate regulation and supervision; andb. if the competent foreign supervisory authorities:1. do not have any objections to the cross-border activity of the foreign central counterparty,2. guarantee that they will inform finma if they detect violations of the law or other irregularities on the part of swiss participants, and3. provide finma with administrative assistance.3 finma may refuse recognition if the state in which the foreign central counterparty has its registered office does not grant swiss central counterparties actual access to its markets or does not offer them the same competitive opportunities as those granted to domestic central counterparties. any deviating international commitments are reserved.4 it may exempt a foreign central counterparty from the obligation to obtain recognition provided this does not adversely affect the protective purpose of this act.chapter 4 central securities depositories section 1 general provisions art. 61 definitions 1 a central securities depository is the operator of a central custodian or a securities settlement system.2 a central custodian is an entity for the central custody of securities and other financial instruments based on uniform rules and procedures.3 a securities settlement system is an entity for the clearing and settlement of transactions in securities and other financial instruments based on uniform rules and procedures.art. 62 principles for the custody, recording and transfer of securities 1 the central securities depository shall ensure the proper and lawful custody, recording and transfer of securities.2 it shall prohibit its participants from overdrawing their securities accounts for securities held in central custody with it.3 it shall check on a daily basis whether the number of an issuer's securities issued with it is equal to the number of securities recorded in the participants' securities accounts.4 it shall specify the time:a. after which a securities transfer order is irrevocable and may no longer be changed;b. when a securities transfer is settled.5 it shall transfer securities in real time if possible, but at the latest at the end of the value day.art. 63 settlement deadlines 1 the central securities depository shall set the deadlines for participants to settle their securities transactions in its system. in doing so, it shall take account in particular of international practices and its participants' needs.2 it shall enable its participants to settle transactions within the deadlines it sets. 3 it shall monitor whether transactions are settled within the allocated deadlines. it shall impose the contractually agreed sanctions in the event of late settlement.art. 64 collateral 1 the central securities depository shall use appropriate measures to cover risks arising from the granting of credit.2 it shall accept only liquid collateral with low credit and market risks. it shall value the collateral prudently.art. 65 fulfilment of payment obligations 1 the central securities depository shall enable the settlement of payments in connection with securities held in custody or recorded with it by transferring sight deposits held with a central bank.2 if this is impossible or impractical, it shall use a means of payment which carries no or only low credit and liquidity risks. it shall minimise these risks and monitor them on an ongoing basis.art. 66 capital adequacy and risk diversification 1 individually and on a consolidated basis, the central securities depository must have adequate capital and diversify its risk appropriately.2 the federal council shall set the amount of the capital based on the business activity and the risks, and shall determine the risk diversification requirements.art. 67 liquidity 1 the central securities depository must have sufficient liquidity:a. to fulfil its payment obligations in all currencies under extreme but plausible market conditions, even in the event of the default of the participant to which it has its greatest exposure; andb. to be able to duly execute its services and activities.2 it shall invest its financial resources solely in cash or in liquid financial instruments with a low market and credit risk.art. 68 procedure in the event of the default of a participant the central securities depository shall provide for measures to limit the credit and liquidity risks that arise in the event of a participant's default.art. 69 segregation 1 the central securities depository must:a. separate its own assets from the securities of its participants; andb. separate a given participant's securities from those of other participants.2 it shall offer its participants the possibility of:a. separating their own securities from those of indirect participants;b. keeping and recording the securities of indirect participants together (omnibus customer accounts) or separately (individual customer accounts).section 2 links between central securities depositories art. 70 definition links between central securities depositories are understood as meaning agreements:a. between central securities depositories regarding the mutual execution of payment and transfer orders (interoperability links);b. regarding the direct or indirect participation of a central securities depository in another central securities depository (access links).art. 71 approval 1 the establishment of the following links between central securities depositories requires the approval of finma:a. interoperability agreements; b. access agreements in which a central securities depository provides services for the other party that it does not provide for other participants.2 approval is granted if the central securities depositories:a. apply rules, procedures and controls which allow them to identify, limit and monitor the risks arising from their agreement for their own protection and that of their participants;b. check their records are correct by comparing them; andc. set out in a written agreement their rights and duties, as well as the rights and duties of their participants if appropriate.3 if a central securities depository involved in a link between central securities depositories is systemically important, finma must obtain the snb's agreement before granting approval.art. 72 reporting the establishment of access links in which a central securities depository provides the same services for the other party as it provides for other participants must be reported to finma.section 3 segregation by participants art. 73 1 a central securities depository's participant shall separate the securities, receivables and liabilities of indirect participants from its own assets, receivables and liabilities with the central securities depository and in its own accounts.2 it shall offer indirect participants the possibility of keeping and recording securities, receivables and liabilities together with those of other indirect participants (omnibus customer accounts) or separately (individual customer accounts).3 if an indirect participant opts for individual client segregation, the participant must deposit all funds in excess of the individual participant's margin requirement with the central securities depository and distinguish them from the margin payments of other indirect participants.4 a central securities depository's participant shall publish the costs and specifics concerning the level of protection granted by the type of account management under paragraph 2.chapter 4a29 dlt trading facilities 29 inserted by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).art. 73a definitions 1 a dlt trading facility is a commercially operated institution for multilateral trading of dlt securities whose purpose is the simultaneous exchange of bids between several participants and the conclusion of contracts based on non-discretionary rules and which meets at least one of the following criteria:a. it admits participants in accordance with article 73c paragraph 2 letter e.b. it holds dlt securities in central custody based on uniform rules and procedures.c. it clears and settles transactions in dlt securities based on uniform rules and procedures.2 the criterion of a commercial basis is deemed satisfied by an independent economic activity pursued on a permanent, for-profit basis.art. 73b applicability of certain requirements for trading venues dlt trading facilities are subject to the following requirements for trading venues:a. self-regulation (art. 27);b. organisation of trading (art. 28);c. pre- and post-trade transparency (art. 29);d. guarantee of orderly trading (art. 30);e. supervision of trading (art. 31);f. collaboration between trading supervisory bodies (art. 32);g. suspension of trading (art. 33 para. 2);h. appeal body (art. 37).art. 73c admission of participants and their duties 1 the following may be admitted as participants in a dlt trading facility:a. securities firms as defined in article 41 of the finia30;b. other parties supervised by finma in accordance with article 3 of the finmasa31 as well as parties supervised by a foreign authority, provided that the dlt trading facility ensures that they fulfil equivalent technical and operational conditions to securities firms;c. the snb;d. the bank for international settlements;e. other natural persons and legal entities, provided that they declare that they are participating in their own name and for their own account.2 participants domiciled in switzerland must provide finma with all information and documents that it requires to carry out its tasks. the dlt trading facility must ensure that foreign-domiciled participants provide the relevant information and documents if finma so requires.3 the provisions on the record-keeping duty (art. 38) and the reporting duty (art. 39) of participants also apply to participants in a dlt trading facility. the federal council may make exceptions for participants under paragraph 1 letter e.4 the federal council shall regulate the details regarding the admission, duties and exclusion of participants.5 the dlt trading facility shall issue regulations on the admission, duties and exclusion of participants, thereby observing in particular the principle of equal treatment.6 it shall monitor compliance with the regulations and impose the sanctions provided for contractually in the event of violations. 30 sr 954.131 sr 956.1art. 73d admission of dlt securities and other assets 1 the dlt trading facility shall issue regulations on the admission of dlt securities to trading and to the other services it provides. in particular, it shall set out therein the requirements to be met by the dlt securities and the issuers or third parties in connection with the admission. the duty to publish a prospectus is governed exclusively by articles 35-57 of the financial services act of 15 june 201832.2 a dlt trading facility that, in addition to dlt securities, admits other assets to trading or to its other services shall issue regulations on the admission of such assets.3 the federal council may:a. require that dlt securities be admitted to dlt trading facilities only if they meet certain minimum requirements, in particular as regards their integrity and the availability of public information;b. specify which dlt securities and other assets must not be admitted to dlt trading facilities in order to protect financial market participants or the stability or integrity of the financial system.4 the dlt trading facility shall monitor compliance with the regulations and impose the sanctions provided for contractually in the event of violations.32 sr 950.1art. 73e additional requirements 1 for dlt trading facilities that are open to participants under article 73c paragraph 1 letter e, the federal council may set requirements for the protection of these participants in addition to the requirements under articles 73b-73d.2 for dlt trading facilities that provide central custody, clearing and settlement services, the federal council shall set requirements in addition to those under articles 73a-73d, in particular with regard to:a. the central custody, clearing and settlement of dlt securities;b. collateral;c. capital adequacy;d. risk diversification;e. ancillary services;f. liquidity;g. procedure in the event of a participant's default;h. segregation.3 the federal council shall base the requirements under paragraph 2 on the requirements for central securities depositories (arts. 61-73).4 where necessary in order to take account of technology-specific risks, the federal council may authorise finma to draw up the requirements under paragraph 2.5 the competence of the snb to specify special requirements for systemically important dlt trading facilities by virtue of article 23 is reserved.art. 73f easing of requirements for small dlt trading facilities 1 for reasons of proportionality and while taking into account the protective purpose of this act, the federal council may ease the requirements for small dlt trading facilities under articles 6-21, 27-33 and 37, in particular the requirements on:a. separation of the bodies responsible for business management from those responsible for overall management, supervision and control (art. 8);b. the provision of ancillary services not subject to authorisation or approval by virtue of the financial market legislation (art. 10);c. the independence of the self-regulatory organisation (art. 27 para. 2) and of the appeal body (art. 37 para. 1).2 dlt trading facilities are deemed to be small if they pose a low risk in terms of the protection of financial market participants and the proper functioning and stability of the financial system, in particular because the number of participants, the trading volume, the volume of custody assets or the clearing and settlement volume is limited. the federal council shall set thresholds.3 dlt-handelssysteme, die erleichterungen nach diesem artikel erhalten, sind verpflichtet, dies gegenber ihren kundinnen und kunden offenzulegen. der bundesrat regelt die details.chapter 5 trade repositories section 1 general provisions art. 74 definition a trade repository is an entity which collects, manages and retains in a centralised manner the data on derivatives transactions reported to it in accordance with article 104.art. 75 data retention the trade repository shall record the reported data and retain it for at least ten years after the contract was due. art. 76 publication of data 1 the trade repository shall regularly publish the open positions, transaction volumes and values by derivatives category in aggregated and anonymised form on the basis of the reported data. 2 it may publish further data provided it is aggregated and anonymised.art. 77 data access for swiss authorities 1 the trade repository shall grant the following authorities free access to the data they require to perform their tasks:a. finma;b. the snb;c. other swiss financial market supervisory authorities;d. the federal electricity commission.2 the federal council shall regulate access to data concerning central bank transactions, taking account of recognised international standards.art. 78 data access for foreign authorities 1 the trade repository shall grant a foreign financial market supervisory authority free access to the data it requires to perform its tasks if an agreement regarding cooperation between the competent swiss and foreign supervisory authorities confirms fulfilment of the following conditions: a. the foreign financial market supervisory authority is subject to a statutory confidentiality duty.b. forwarding of the data by the foreign financial market supervisory authority to other foreign authorities is permitted only if, on transfer to a criminal authority, mutual assistance in accordance with the mutual assistance act of 20 march 198133 is possible.c. the swiss authorities mentioned in article 77 paragraph 1 have immediate access to trade repositories in the state of the foreign financial market supervisory authority.2 the federal council shall regulate access to data concerning central bank transactions, taking account of recognised international standards.33 sr 351.1art. 79 data transmission to private individuals 1 the trade repository may transmit data to private individuals in aggregated and anonymised form. 2 the transmission of data to private individuals regarding their own transactions is permitted without restriction. section 2 recognition of foreign trade repositories art. 80 1 a trade repository registered abroad must obtain recognition from finma before accepting reports in accordance with article 104.2 finma shall grant recognition:a. if the foreign trade repository is subject to appropriate regulation and supervision; andb. if the competent foreign supervisory authorities:1. do not have any objections to the cross-border activity of the foreign trade repository,2. guarantee that they will inform finma if they detect violations of the law or other irregularities on the part of swiss participants,3. confirm to the competent swiss financial market supervisory authority that the conditions set out in article 78 paragraph 1 letters b and c are fulfilled.3 a trade repository is deemed recognised if finma finds that:a. the state in which the foreign trade repository has its registered office regulates and supervises its trade repositories adequately; andb. the conditions in accordance with paragraph 2 letter b are met.4 finma may refuse recognition if the state in which the foreign trade repository has its registered office does not grant swiss trade repositories actual access to its markets or does not offer them the same competitive opportunities as those granted to the trade repositories of the state in question. any deviating international commitments are reserved.chapter 6 payment systems art. 81 definition a payment system is an entity that clears and settles payment obligations based on uniform rules and procedures.art. 82 duties the federal council may define specific duties for payment systems, namely in terms of capital adequacy, risk diversification and liquidity, if this is necessary for implementing recognised international standards. the competence of the snb to specify special requirements for systemically important payment systems by virtue of article 23 is reserved.chapter 7 supervision and oversight art. 83 responsibilities 1 finma is the supervisory authority. systemically important financial market infrastructures are also subject to oversight by the snb.2 finma shall supervise compliance with the authorisation conditions and duties insofar as this task is not covered by the snb by virtue of the oversight of the special requirements in accordance with article 23.3 finma and the snb shall jointly carry out their supervisory and oversight activities regarding systemically important financial market infrastructures, regularly exchange information and avoid overlaps in the execution of their tasks. when cooperating with foreign supervisory and oversight authorities, they shall coordinate the discharge of their duties and their communication.art. 84 auditing 1 financial market infrastructures and financial groups must instruct an audit firm licensed by the federal audit oversight authority in accordance with article 9a paragraph 1 aoa34 to conduct an audit in accordance with article 24 of the finmasa35. 2 they must have their annual accounts, and if applicable their consolidated accounts, audited by an audit firm subject to state oversight in accordance with the ordinary auditing principles set out in the code of obligations (co)36.3 finma may audit financial market infrastructures directly.34 sr 221.30235 sr 956.136 sr 220art. 85 suspension of voting rights finma may suspend the voting rights attached to shares or units held by qualified participants in order to enforce article 9 paragraphs 3 and 5.art. 86 voluntary authorisation return 1 a financial market infrastructure which wishes to return its authorisation must present a liquidation plan to finma for approval.2 the liquidation plan must contain details on:a. the settlement of financial obligations; b. the funds made available for this purpose;c. the person responsible.3 a financial market infrastructure is released from supervision by finma when it has fulfilled the duties set out in the liquidation plan.art. 87 authorisation withdrawal 1 as a complement to article 37 finmasa37, finma may withdraw authorisation or recognition from a financial market infrastructure if it:a. does not use the authorisation within twelve months; b. has not provided services permitted solely with the authorisation during the preceding six months;c. does not comply with the liquidation plan.2 the withdrawal of authorisation shall cause the dissolution of the legal entity. finma shall designate the liquidator and oversee its activity. the insolvency law provisions in accordance with chapter 8 remain reserved.37 sr 956.1chapter 8 insolvency law provisions art. 88 insolvency measures 1 articles 24 to 37 and 37d to 37g, with the exception of article 37g paragraph 4bis of the banking act of 8 november 193438 apply by analogy for financial market infrastructures unless this act contains provisions to the contrary.392 in the case of systemically important financial market infrastructures, finma shall consult the snb before taking insolvency measures.38 sr 952.039 amended by annex no 3 of the fa of 16 march 2018, in force since 1 jan. 2019 (as 2018 3263; bbl 2017 4125).art. 89 system protection 1 insofar as this is possible and to the extent that they are concerned, finma shall inform central counterparties, central securities depositories, payment systems and those dlt trading facilities that provide comparable central custody, clearing or settlement services, in switzerland and abroad, of the insolvency measures it intends to take against a participant and which limit the participant's power of disposal. it shall also inform them of the precise time of entry into effect of the measures.402 the orders given to a central counterparty, central securities depository, payment system or a dlt trading facility that provides comparable central custody, clearing or settlement services by a participant against which such an insolvency measure has been taken shall be legally enforceable and binding on third parties if:41a. they were introduced before the measure was ordered and were unalterable in accordance with the rules of the financial market infrastructure; orb. they were executed on the business day defined by the rules of the financial market infrastructure during which the measure was ordered and the financial market infrastructure proves that it was not and should not have been aware of the measure being ordered.3 paragraph 2 applies if:a. the financial market infrastructure is authorised in switzerland;b. the foreign financial market infrastructure is recognised or supervised in switzerland and grants swiss participants direct access to its facilities; orc. the participation agreement is subject to swiss law.4 paragraph 2 applies by analogy to:a. financial market infrastructures in accordance with article 4 paragraph 3;b. payment systems that are operated by banks.40 amended by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).41 amended by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).art. 90 primacy of agreements in the event of participant insolvency 1 insolvency measures that are ordered against a central counterparty's participant have no effect on previously concluded agreements between the central counterparty and the participant regarding:a. the offsetting of receivables, including the agreed method and valuation;b. the direct realisation of collateral in the form of securities or other financial instruments whose value can be determined objectively;c. the transfer of receivables and liabilities, and collateral in the form of securities, or other financial instruments whose value can be determined objectively.2 following the netting or realisation carried out by the central counterparty in accordance with paragraph 1 letters a and b, the participant's remaining entitlements shall be segregated in favour of its clients and indirect participants.3 measures to the contrary ordered within the scope of the postponement of the termination of contracts by finma are reserved.art. 91 primacy of agreements in the event of insolvency of an indirect participant 1 insolvency measures that are ordered against a central counterparty's indirect participant have no effect on previously concluded agreements pursuant to article 90 paragraph 1 letters a to c between the participant and the indirect participant.2 following the netting or realisation carried out by the participant within the meaning of article 90 paragraph 1 letters a and b, the indirect participant's remaining entitlements shall be segregated in favour of its clients and indirect participants.3 paragraphs 1 and 2 shall also apply to insolvency measures against the indirect participant of another indirect participant.4 measures to the contrary ordered within the scope of the postponement of the termination of contracts by finma are reserved.art. 92 postponement of the termination of contracts if finma postpones the termination of contracts and the exercise of rights to terminate them, it shall take account of the implications for the financial markets and the secure and orderly operation of the affected financial market infrastructure, its participants and other financial market infrastructures associated with it.title 3 market conduct chapter 1 derivatives trading section 1 general provisions art. 93 scope 1 subject to the provisions set out below, this chapter applies to financial and non-financial counterparties which have their registered office in switzerland.2 the term financial counterparties means:a. banks in accordance with article 1 paragraph 1 of the banking act of 8 november 193442;b.43 securities firms in accordance with article 41 finia44;c. insurance and reinsurance companies in accordance with article 2 paragraph 1 letter a of the federal act of 17 december 200445 on the supervision of insurance companies;d. parent companies of a financial or insurance group or financial or insurance conglomerate;e.46 managers of collective assets and fund management companies in accordance with article 2 paragraph 1 letters c and d finia;f. collective investment schemes in accordance with the collective investment schemes act;g. occupational pension schemes and investment foundations in accordance with articles 48 to 53k of the federal act of 25 june 198247 on occupational old age, survivors' and invalidity pension provision.3 non-financial counterparties are companies that are not financial counterparties.4 the following establishments shall be subject only to the reporting duty in accordance with article 104:a. multilateral development banks; b. organisations, including social security institutions, belonging to the confederation, cantons or communes or for which the confederation, canton or commune in question is liable and provided that they are not financial counterparties.5 the federal council may subject swiss branches of foreign financial market participants to the provisions of this chapter if they are not subject to any equivalent regulations.42 sr 952.043 amended by annex no ii 18 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).44 sr 954.145 sr 961.0146 amended by annex no ii 18 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).47 sr 831.40art. 94 exemptions 1 this chapter does not apply to:a. the confederation, cantons and communes;b. the snb; c. the bank for international settlements. 2 the federal council may, for reasons of proportionality and taking account of recognised international standards, exclude other public sector bodies or financial market participants from the scope of this chapter in whole or in part.3 the following are not considered to be derivatives in accordance with this chapter:a. structured products such as capital-protected products, capped return products and certificates;b. securities lending and borrowing;c. derivatives transactions relating to goods that:1. must be physically delivered,2. cannot be settled in cash at a party's discretion, and3. are not traded on a trading venue or an organised trading facility.4 the federal council may exclude derivatives from the provisions of this chapter if this is in keeping with internationally recognised standards. art. 95 fulfilment of duties under foreign law the duties set out in this chapter shall be deemed fulfilled if:a. they are fulfilled under foreign law recognised as being equivalent by finma; b. a foreign financial market infrastructure recognised by finma was used to execute the transaction.art. 96 intra-group flow of information counterparties may exchange with their group companies and branches abroad all data necessary for immediate fulfilment of the duties arising from this chapter.section 2 clearing via a central counterparty art. 97 clearing duty 1 counterparties must clear transactions in derivatives in accordance with article 101 that were not conducted via a trading venue (otc derivatives transactions) through a central counterparty authorised or recognised by finma.2 this duty does not apply to transactions with small counterparties or for transactions between such counterparties.3 a counterparty may assume that its counterparty's declaration concerning its characteristics is correct insofar as there are no indications to the contrary.4 in order to complement the duty detailed in article 112, the federal council may order that all derivatives transactions conducted via a trading venue or organised trading facility must be cleared by a central counterparty authorised or recognised by finma.5 finma may allow clearing by an unrecognised central counterparty in individual cases, provided this does not adversely affect the protective purpose of this act.art. 98 small non-financial counterparties 1 a non-financial counterparty is deemed to be small if all of the rolling averages for its gross positions in relevant outstanding otc derivatives transactions calculated over 30 working days are below the thresholds. 2 if one of the average gross positions of an existing small non-financial counterparty calculated in accordance with paragraph 1 exceeds the relevant threshold, said counterparty will no longer be deemed small four months after the threshold is exceeded. 3 derivatives transactions intended to reduce risks are not factored into the calculation of the average gross position if they are directly associated with the business activity, liquidity management or asset management of the counterparty or group.art. 99 small financial counterparties 1 a financial counterparty is deemed to be small if the rolling average for its gross position in all outstanding otc derivatives transactions calculated over 30 working days is below the threshold.2 if an existing small financial counterparty's average gross position in accordance with paragraph 1 exceeds the threshold, said counterparty will no longer be deemed small four months after the threshold is exceeded.art. 100 thresholds 1 thresholds apply by derivatives category to non-financial counterparties' average gross positions in outstanding otc derivatives transactions.2 a single threshold shall apply to the average gross positions in all outstanding otc derivatives transactions of financial counterparties.3 if the counterparty is part of a fully consolidated group, all of the intra-group otc derivatives transactions concluded by the counterparty or by other counterparties shall also be factored into the calculation of the average gross positions.4 the federal council shall determine:a. for non-financial counterparties, the level of the thresholds for each derivatives category and how they are calculated;b. which derivatives transactions of non-financial counterparties are not to be taken into account when calculating the thresholds;c. the threshold for financial counterparties.art. 101 derivatives concerned 1 finma determines the derivatives which must be cleared via a central counterparty. in so doing, it considers:a. their degree of legal and operational standardisation;b. their liquidity;c. their trading volumes;d. the availability of pricing information in the given category;e. the counterparty risks associated with them.2 it shall take account of recognised international standards and foreign legal developments. it may phase in the introduction of the clearing duty by derivatives category.3 no clearing duty may be imposed for:a. derivatives that are not cleared by any authorised or recognised central counterparty;b. currency swaps and forward transactions, provided they are settled on a payment versus payment basis.art. 102 cross-border transactions the duty to clear through a central counterparty also applies if the foreign counterparty of the swiss counterparty subject to this duty would be subject to the clearing duty if it had its registered office in switzerland. art. 103 intra-group transactions derivatives transactions do not have to be cleared via a central counterparty:a. if the two counterparties are included in the same full consolidation basis; b. if the two counterparties are subject to appropriate centralised risk evaluation, measurement and control procedures; andc. if the transactions do not aim to circumvent the clearing duty.section 3 reporting to a trade repository art. 104 reporting duty 1 derivatives transactions must be reported to a trade repository authorised or recognised by finma.2 the following shall be obliged to report:a. in the case of transactions between a financial and a non-financial counterparty: the financial counterparty;b. in the case of transactions between two financial counterparties:1. the financial counterparty which is not small in accordance with article 99,2. the selling counterparty in the case of a transaction between two financial counterparties or between two small financial counterparties;c. the counterparty which has its registered office in switzerland if the foreign counterparty does not report.3 in the event of a transaction between non-financial counterparties, paragraph 2 letters b and c applies by analogy. a transaction between small non-financial counterparties does not have to be reported.4 if the transaction is cleared centrally, the report is submitted by the central counterparty. if a recognised foreign central counterparty does not submit reports, the reporting duty shall remain with the counterparties. 5 third parties may be involved in reporting.6 if there is no trade repository, the federal council shall indicate the body to which the report is to be submitted.art. 105 timing and content of reports 1 the report is to be submitted at the latest on the working day following the conclusion, amendment or termination of the derivatives transaction.2 for each transaction, the following must be reported as a minimum:a. the identity of the counterparties, particularly their business name and seat;b. the type of transaction;c. the maturity date;d. the nominal value;e. the price;f. the settlement date;g. the currency.3 the federal council may make provision for the reporting of other details and governs the reporting format.4 reports to a recognised foreign trade repository may include further details. if these consist of personal data, the approval of the person in question is to be obtained.art. 106 retention of supporting documents counterparties must retain the supporting documents for their derivatives transactions in accordance with the provisions of article 958f co48.48 sr 220section 4 risk mitigation art. 107 duties 1 otc derivatives transactions which do not have to be cleared by a central counterparty authorised or recognised by finma are subject to the duties set out in this section.2 these duties do not apply to:a. derivatives transactions with counterparties in accordance with article 93 paragraph 4 and article 94 paragraph 1;b.49 currency swaps and currency forward transactions, provided they are settled on a payment versus payment basis;c. derivatives transactions voluntarily cleared by a central counterparty authorised or recognised by finma.3 the federal council may make provision for further complete or partial exemptions for reasons of proportionality and taking account of recognised international standards. 49 amended by annex no ii 18 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 108 operational and counterparty risk mitigation counterparties shall record, observe and mitigate operating risks and counterparty risks associated with derivatives transactions in accordance with article 107 paragraph 1. in particular, they must:a. confirm the contractual terms of derivatives transactions in a timely manner;b. have procedures for reconciling portfolios and managing the associated risks, except for when the counterparty is a small non-financial counterparty;c. have procedures for identifying and resolving disputes between parties at an early stage;d. regularly, but at least twice per year, perform portfolio compression where this is appropriate to mitigate their counterparty risk and provided they have 500 or more non-centrally cleared otc derivatives transactions outstanding.art. 109 valuation of outstanding transactions 1 counterparties must value derivatives at current prices (mark to market) on a daily basis.2 this duty does not apply to transactions with small counterparties.3 where market conditions prevent marking to market, marking to model shall be used. the valuation models must be appropriate and recognised in practice.4 non-financial counterparties may involve third parties for the valuation.art. 110 exchange of collateral 1 counterparties, with the exception of small non-financial counterparties, shall exchange appropriate collateral. 2 they must be capable of segregating the collateral from their own assets in an appropriate manner. 3 agreements regarding the direct realisation of collateral exchanged in accordance with paragraph 1 whose value can be determined objectively shall remain in force even in foreclosure proceedings and in the case of insolvency measures against the protection seller. 4 the federal council shall regulate the requirements for the exchange of collateral.art. 111 intra-group transactions no collateral has to be exchanged:a. if the two counterparties are included in the same full consolidation basis; b. if the two counterparties are subject to appropriate centralised risk evaluation, measurement and control procedures;c. if there are no legal or factual impediments to the prompt transfer of own funds or the repayment of liabilities; andd. if the transactions do not aim to circumvent the duty to exchange collateral.section 5 trading via trading venues and organised trading facilities art. 112 duty 1 counterparties must trade all derivatives in accordance with article 113 via:a. a trading venue that is authorised or recognised by finma; orb. the operator of an organised trading facility that is authorised or recognised by finma.2 this duty does not apply to transactions with small counterparties or for transactions between such counterparties.art. 113 derivatives concerned 1 finma determines the derivatives which must be traded via a trading venue or a trading facility in accordance with article 112 paragraph 1. in so doing, it considers:a. their degree of legal and operational standardisation;b. their liquidity;c. their trading volumes;d. the availability of pricing information in the given category;e. the counterparty risks associated with them.2 it shall take account of recognised international standards and foreign legal developments. it may phase in the introduction of the duty to trade via a trading venue or a trading facility, according to derivative category.3 no duty to trade in accordance with article 112 may be imposed for:a. derivatives not admitted to trading by a relevant trading venue or trading facility;b. currency swaps and forward transactions, provided they are settled on a payment versus payment basis.art. 114 cross-border transactions the duty to trade derivatives in accordance with article 112 also applies if the foreign counterparty of the swiss counterparty subject to the duty would be subject to the same duty if it had its registered office in switzerland.art. 115 intra-group transactions the duty to trade in accordance with article 112 does not apply if:a. the two counterparties are included in the same full consolidation basis; b. the two counterparties are subject to appropriate centralised risk evaluation, measurement and control procedures; andc. the transactions do not aim to circumvent the duty.section 6 auditing art. 116 responsibilities 1 the auditors in accordance with articles 727 and 727a co50 shall verify the counterparties' compliance with the provisions of this chapter within the framework of their audits.2 the auditing of supervised parties is governed by the financial market acts.3 provisions on the supervision and overall supervision of occupational old age, survivors' and invalidity pension provision are reserved.50 sr 220art. 117 reports and notifications 1 the audit companies of supervised parties shall report to finma.2 the duty to notify in accordance with article 728c paragraphs 1 and 2 co51 applies to auditors of non-supervised parties in the event of infringements with regard to duties under this chapter.3 if the company fails to take appropriate measures despite the auditors' notification, the auditors shall report the infringements to the federal department of finance. 51 sr 220chapter 2 position limits for commodity derivatives art. 118 position limits 1 the federal council may introduce limits on the size of net positions which a person may hold in commodity derivatives insofar as this is necessary for orderly pricing and settlement as well as for convergence between prices on the derivatives market and on the underlying market. in doing so, it shall take account of recognised international standards and legal developments abroad.2 it governs the following for position limits:a. the calculation of net positions;b. the exemptions for positions which are held for a non-financial counterparty and which serve to reduce the risks directly associated with its business activity, liquidity management or asset management;c. the reporting duties required for the transparency of commodity derivatives trading.3 finma shall set position limits for the individual commodity derivatives.art. 119 supervision 1 the trading venue shall supervise open positions in order to enforce position limits. it may request each participant to:a. grant it access to all information required for enforcing the position limits;b. liquidate or reduce positions if the position limits have been exceeded.2 paragraph 1 applies by analogy to operators of organised trading facilities and their clients.chapter 3 disclosure of shareholdings art. 120 notification duty 1 anyone who directly or indirectly or acting in concert with third parties acquires or disposes of shares or acquisition or sale rights relating to shares of a company with its registered office in switzerland whose equity securities are listed in whole or in part in switzerland, or of a company with its registered office abroad whose equity securities are mainly listed in whole or in part in switzerland, and thereby reaches, falls below or exceeds the thresholds of 3%, 5%, 10%, 15%, 20%, 25%, 33%, 50% or 66% of the voting rights, whether exercisable or not, must notify this to the company and to the stock exchanges on which the equity securities are listed.2 financial intermediaries who acquire or dispose of shares or acquisition or sale rights on behalf of third parties are not subject to this notification duty.3 anyone who has the discretionary power to exercise the voting rights associated with equity securities in accordance with paragraph 1 is also subject to the notification duty.4 the following shall be deemed equivalent to an acquisition or disposal:a. the initial listing of equity securities;b. the conversion of participation certificates or profit-sharing certificates into shares;c. the exercise of conversion or acquisition rights; d. changes in the share capital; ande. the exercise of sale rights.5 all procedures that can ultimately confer the voting right to equity securities also constitute an indirect acquisition. this does not apply in the case of powers of attorney granted solely for the purposes of representation at a general meeting.art. 121 notification duty for organised groups a group organised pursuant to an agreement or otherwise must comply with the notification duty laid down in article 120 as a group and shall disclose:a. its total holdings;b. the identity of its members;c. the nature of the agreement;d. the representation.art. 122 communication to finma if a company or stock exchange has reason to believe that a shareholder is in violation of the notification duty, it shall inform finma of such fact.art. 123 powers of finma 1 finma shall issue provisions on:a. the scope of the notification duty;b. the treatment of acquisition and disposal rights;c. the calculation of voting rights;d. the time frame within which the notification duty has to be fulfilled;e. the time frame within which a company has to publish changes to its ownership structure in accordance with article 120.2 finma may, for good cause, make provision for exemptions to or easing of the notification or publication duty, particularly if the transactions:a. are of a short-term nature;b. are not associated with any intention to exercise the voting right; orc. are conditional.3 anyone who intends to acquire securities can obtain a ruling from finma as to whether or not they will be subject to the notification duty.art. 124 duty of the company to inform the company must publish the information which it receives in respect of changes in the voting rights.chapter 4 public takeover offers art. 125 scope 1 the provisions of this chapter and article 163 apply to public takeover offers relating to equity securities of companies (target companies): a. with their registered office in switzerland whose equity securities are at least partly listed on a stock exchange in switzerland; b. with their registered office abroad whose equity securities are at least in part mainly listed in switzerland.2 if both swiss and foreign law are simultaneously applicable to a public takeover offer, the provisions of swiss law may be relinquished if:a. the application of swiss law would lead to a conflict with the foreign law; andb. the protection provided by the foreign law to investors is equivalent to that provided by swiss law.3 companies may, prior to their equity securities being admitted to official listing on a stock exchange in accordance with paragraph 1, state in their articles of incorporation that an offeror shall not be bound by the obligation to make a public takeover offer in accordance with articles 135 and 163.4 a company may at any time adopt a provision in accordance with paragraph 3 in its articles of incorporation, provided that this does not prejudice the interests of shareholders within the meaning of article 706 co52.52 sr 220art. 126 takeover board 1 after consulting the stock exchanges, finma shall appoint a board for public takeover offers (takeover board). this board shall consist of expert representatives of securities firms, listed companies and investors. the organisational structure and procedures of the takeover board shall be submitted to finma for approval.2 the provisions which are issued by the takeover board in accordance with this act shall require the approval of finma.3 the takeover board shall check compliance with the provisions applicable to public takeover offers in individual cases.4 it shall report to finma once a year on its activities.5 the takeover board may levy fees on the parties involved in takeover proceedings. the federal council shall govern the fees. in doing so, it shall take account of the value of the transactions and the degree of difficulty of the proceedings.6 the stock exchanges shall bear the costs that are not covered by the fees.art. 127 duties of the offeror 1 the offeror must publish the offer in a prospectus containing true and complete information.2 the offeror must treat all holders of equity securities of the same class equally.3 the offeror's duties shall apply for all who act in concert with it.art. 128 review of the offer 1 the offeror shall, prior to publication, submit the offer to an audit firm licensed by the federal audit oversight authority in accordance with article 9a paragraph 1 aoa53 or to a securities firm for review.2 the reviewing entity shall check whether the offer is in compliance with the law and the implementing provisions.53 sr 221.302art. 129 right of withdrawal of the seller the seller may withdraw a contract or rescind an executed sale if these were concluded or executed on the basis of a prohibited offer.art. 130 announcement of the result of the offer and extension of the offer period 1 the offeror must publish the result of the offer upon expiry of the offer period.2 if the conditions of the offer are met, the offeror must extend the offer period for those holders of shares and other equity securities who have not yet accepted the offer.art. 131 additional provisions the takeover board shall set out additional provisions relating to:a. the announcement of an offer prior to its publication;b. the contents and the publication of the prospectus as well as the conditions to which an offer can be subjected;c. the rules of fairness applicable to public takeover offers;d. the review of the offer by an audit firm licensed by the federal audit oversight authority in accordance with article 9a paragraph 1 aoa54 or a securities firm;e. the offer period and any extension thereof, the conditions under which the offer may be withdrawn or modified and the period within which a seller may withdraw;f. actions in concert with third parties;g. its procedures.54 sr 221.302art. 132 duties of target companies 1 the board of directors of the target company (art. 125 para. 1) shall submit a report to the holders of equity securities setting out its position in relation to the offer. the information in the report must be true and complete. the board of directors of the target company shall publish the report.2 from the moment the offer is published until the result is announced, the board of directors of the target company shall not enter into any legal transactions which would have the effect of significantly altering the assets or liabilities of the company. decisions taken by the general meeting of shareholders are not subject to this restriction and may be implemented irrespective of whether they were adopted before or after publication of the offer.3 the takeover board shall issue provisions on: a. the report to be issued by the board of directors of the target company; b. any measures which are aimed in an improper manner at frustrating an offer or preventing it from being successful.art. 133 competing offers 1 in the event of competing offers, the holders of equity securities in the target company must be free to choose which offer they accept.2 the takeover board shall issue provisions relating to competing offers and their effect on the first offer.art. 134 notification duty 1 the offeror or anyone who directly, indirectly or in concert with third parties holds a stake of at least 3% of the voting rights, whether exercisable or not, of the target company or, as the case may be, of another company whose equity securities are being offered in exchange must, from the time the offer is published until the expiry of the offer period, notify the takeover board and the stock exchanges on which the securities are listed of any acquisition or disposal of equity securities of such company.2 a group organised pursuant to an agreement or otherwise shall be subject to this notification duty solely as a group.3 the takeover board may subject to the same duty anyone who, from the time the offer is published until the expiry of the offer period, acquires or disposes of, directly, indirectly or acting in concert with third parties, a certain percentage of the equity securities of the target company or of another company whose equity securities are being offered in exchange.4 if a company or stock exchange has reason to believe that a shareholder is in violation of the notification duty, it shall inform the takeover board of such fact.5 the takeover board shall issue rules on the scope, form and time allowed for notification and on the percentage relevant for the application of paragraph 3.art. 135 duty to make an offer 1 anyone who directly, indirectly or acting in concert with third parties acquires equity securities which, added to the equity securities already owned, exceed the threshold of 33% of the voting rights of a target company, whether exercisable or not, must make an offer to acquire all listed equity securities of the company. target companies may raise this threshold to 49% of voting rights in its articles of incorporation.2 the price offered must be at least as high as the higher of the following two amounts:a. the stock exchange price;b. the highest price that the offeror has paid for equity securities of the target company in the preceding twelve months.3 if the target company has issued several classes of equity securities, there must be an appropriate relationship among the prices offered for the various classes of equity securities.4 finma shall issue provisions on the duty to make an offer. the takeover board shall have the right to put forward proposals.5 if there are sufficient indications that a person has not met the duty to make an offer, the takeover board may take the following measures until the duty to make an offer has been clarified or, as appropriate, the duty to make an offer has been fulfilled:a. suspend the voting rights and associated rights of this person; andb. prohibit this person from acquiring further shares or acquisition or disposal rights relating to shares of the target company, be it directly, indirectly or acting in concert with third parties.art. 136 exemptions from the duty to make an offer 1 in justified cases, the takeover board may grant exemptions from the duty to make an offer, particularly in the following cases:a. where the transfer of voting rights occurs within a group organised pursuant to an agreement or otherwise. in such a case, only the group as such shall be subject to the duty to make an offer;b. where the threshold is exceeded as a result of a decrease in the total number of voting rights of the company;c. where the threshold is exceeded only temporarily;d. where the securities have been acquired without consideration or on exercise of pre-emptive rights pursuant to a share capital increase;e. where the securities have been acquired for reorganisation purposes.2 the duty to make an offer does not apply if the voting rights have been acquired as a result of a donation, succession or partition of an estate, matrimonial property law or execution proceedings.art. 137 cancellation of outstanding equity securities 1 an offeror who holds more than 98% of the voting rights of the target company on expiry of the offer period may, within three months, petition the court to cancel the outstanding equity securities. for this purpose, the offeror must initiate an action against the company. the remaining shareholders may participate in these proceedings.2 the company shall reissue such equity securities and allot them to the offeror either against payment of the offer price or fulfilment of the exchange offer in favour of the holders of the equity securities which have been cancelled.art. 138 tasks of the takeover board 1 the takeover board shall issue the decisions necessary for the enforcement of the provisions of this chapter and its implementing provisions and shall monitor compliance with the statutory and regulatory provisions. it may publish the decisions.2 persons and companies subject to a notification duty in accordance with article 134, and persons and companies who are entitled to party status in accordance with article 139 paragraphs 2 and 3 must provide all the information and surrender any documents to the takeover board which the latter requires to perform its tasks.3 if the takeover board becomes aware of violations of the provisions of this chapter or of other irregularities, it shall ensure that an orderly situation is restored and that the irregularities are remedied.4 if the takeover board becomes aware of any general felonies or misdemeanours or infringements of this act, it shall promptly notify the competent prosecution authorities.art. 139 proceedings before the takeover board 1 subject to the following exemptions, the proceedings of the takeover board are governed by the provisions of the federal act of 20 december 196855 on administrative procedure.2 in proceedings with regard to public takeover offers, the following have party status:a. the offeror;b. the persons who act in concert with the offeror; andc. the target company.3 shareholders holding at least 3% of the voting rights of the target company, whether exercisable or not, also qualify as parties if they claim such status from the takeover board.4 the statutory provisions on legal holidays do not apply to proceedings of the takeover board regarding public takeover offers.5 the submission of legal documents by fax or by electronic means is permitted in correspondence with the takeover board and is recognised with regard to compliance with time limits.55 sr 172.021art. 140 appeal proceeding before finma 1 an appeal against decisions of the takeover board may be lodged with finma within a period of five trading days.2 the appeal must be made in writing to finma and be substantiated. in the event of an appeal, the takeover board will forward its files to finma.3 article 139 paragraphs 1, 4 and 5 apply to the proceeding for appeals lodged with finma.art. 141 appeal proceeding before the federal administrative court 1 an appeal against finma rulings regarding public takeover offers may be lodged with the federal administrative court in accordance with the federal act of 17 june 200556 on the federal administrative court.2 the appeal must be lodged within ten days of notification of the decision. it has no suspensive effect.3 the statutory provisions on legal holidays do not apply to proceedings regarding public takeover offers before the federal administrative court.56 sr 173.32chapter 5 insider trading and market manipulation art. 142 exploitation of insider information 1 any person who has insider information and who knows or should know that it is insider information or who has a recommendation that he or she knows or should know is based on insider information shall behave inadmissibly when he or she:a.57 exploits it to acquire or dispose of securities admitted to trading on a trading venue or dlt trading facility which has its registered office in switzerland or to use derivatives of such securities;b. discloses it to another;c.58 exploits it to recommend to another to acquire or dispose of securities admitted to trading on a trading venue or dlt trading facility which has its registered office in switzerland or to use derivatives of such securities.2 the federal council shall issue provisions regarding the admissible use of insider information, in particular in connection with:a. securities transactions in preparation of a public takeover offer;b. a special legal status on the part of the recipient of the information.57 amended by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).58 amended by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).art. 143 market manipulation 1 a person behaves inadmissibly when he or she:a. publicly disseminates information which he or she knows or should know gives false or misleading signals regarding the supply, demand or price of securities admitted to trading on a trading venue or dlt trading facility which has its registered office in switzerland;b. carries out transactions or acquisition or disposal orders which he or she knows or should know give false or misleading signals regarding the supply, demand or price of securities admitted to trading on a trading venue or dlt trading facility which has its registered office in switzerland.592 the federal council shall issue provisions regarding admissible conduct, in particular in connection with:a. securities transactions for price stabilisation purposes;b. buyback programmes for a company's own securities.59 amended by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).chapter 6 instruments for market supervision art. 144 suspension of voting rights and purchase ban if there are sufficient indications that a person has not met the notification duty in accordance with articles 120 and 121, finma may, until the notification duty has been clarified and, as appropriate, the notification duty has been fulfilled:a. suspend the voting rights and associated rights of this person; andb. prohibit this person from acquiring further shares or acquisition or sale rights relating to shares of the company in question, be it directly, indirectly or acting in concert with third parties.art. 145 supervisory instruments in accordance with the finmasa the supervisory instruments detailed in article 29 paragraphs 1, 30, 32, 34 and 35 finmasa60 apply to all persons who contravene articles 120, 121, 124, 142 or 143 of this act.60 sr 956.1art. 146 duty to provide information persons subject to a notification duty in accordance with article 134, as well as persons who in accordance with article 139 paragraphs 2 and 3 can have the status of party, must provide all information and surrender any documents to finma which the latter requires to perform its tasks.title 4 criminal provisions and final provisions chapter 1 criminal provisions art. 147 violation of professional secrecy 1 a custodial sentence not exceeding three years or a monetary penalty shall be imposed on any person who wilfully:a. discloses a secret entrusted to them in their capacity as a director or officer, employee, agent or liquidator of a financial market infrastructure or of which they have become aware in said capacity;b. attempts to induce a violation of professional secrecy;c. discloses to other persons a secret disclosed to them in violation of letter a or exploits such a secret for their own benefit or for the benefit of others.2 a custodial sentence not exceeding five years or a monetary penalty shall be imposed on any person who obtains a pecuniary advantage for themselves or another person through an action as detailed in paragraph 1 letter a or c .3 a fine not exceeding 250,000 francs shall be imposed on any person who commits the foregoing acts through negligence.614 any person who violates professional secrecy remains liable to prosecution after termination of the official or employment relationship or exercise of the profession.5 the federal and cantonal provisions relating to the duty to testify and the duty to provide information to the authorities are reserved.61 amended by annex no ii 18 of the financial institutions act of 15 june 2018, in force since 1 jan. 2020 (as 2018 5247, 2019 4631; bbl 2015 8901).art. 148 violation of the provisions on protection against confusion and deception and notification duties a fine not exceeding chf 500,000 shall be imposed on any person who wilfully:a. violates the provision on protection against confusion and deception (art. 16);b. fails to provide the supervisory authorities with the prescribed notifications in accordance with articles 9 and 17, or does so incorrectly or too late.art. 149 violation of the record-keeping and disclosure duties a fine not exceeding chf 500,000 shall be imposed on any person who wilfully:a. violates the record-keeping duty set out in article 38;b. violates the disclosure duty in accordance with article 39.art. 150 violation of duties regarding derivatives trading a fine not exceeding chf 100,000 shall be imposed on any person who wilfully:a. violates the clearing duty set out in article 97;b. violates the reporting duty cited in article 104;c. violates the risk mitigation duties cited in articles 107 to 110;d. violates the duty cited in article 112.art. 151 breach of notification duties 1 a fine not exceeding chf 10 million shall be imposed on any person who wilfully:a. violates the notification duty cited in article 120 or 121;b. as the owner of a qualified participation in a target company, fails to disclose the acquisition or sale of equity securities of that company (art. 134).2 a fine not exceeding chf 100,000 shall be imposed on persons who commit the foregoing acts through negligence.art. 152 breach of the duty to make an offer a fine not exceeding chf 10 million shall be imposed on any person who wilfully fails to comply with a legally binding duty to make an offer (art. 135).art. 153 breach of duties by the target company 1 a fine not exceeding chf 500,000 shall be imposed on any person who wilfully:a. fails to submit the mandatory report to the holders of equity security setting out his or her position in relation to the offer or fails to publish such a report (art. 132 para. 1);b. includes untrue or incomplete information in such report (art. 132 para. 1).2 a fine not exceeding chf 150,000 shall be imposed on persons who commit the foregoing acts through negligence.art. 154 exploitation of insider information 1 a custodial sentence not exceeding three years or a monetary penalty shall be imposed on any person who as a body or a member of a managing or supervisory body of an issuer or of a company controlling or controlled by them, or as a person who due to their holding or activity has legitimate access to insider information, if they gain a pecuniary advantage for themselves or for another with insider information by:a.62 exploiting it to acquire or dispose of securities admitted to trading on a trading venue or dlt trading facility which has its registered office in switzerland or to use derivatives of such securities;b. disclosing it to another;c.63 exploiting it to recommend that another acquire or dispose of securities admitted to trading on a trading venue or dlt trading facility which has its registered office in switzerland or to use derivatives of such securities.2 any person who through an act set out in paragraph 1 gains a pecuniary advantage exceeding one million francs shall be liable to a custodial sentence not exceeding five years or a monetary penalty.3 any person who gains a pecuniary advantage for themselves or for another by exploiting insider information or a recommendation based on insider information disclosed or given to them by a person referred to in paragraph 1 or acquired through a felony or misdemeanour in order to acquire or dispose of securities admitted to trading on a trading venue or dlt trading facility which has its registered office in switzerland or in order to use derivatives of such securities shall be liable to a custodial sentence not exceeding one year or to a monetary penalty.644 any person who is not a person referred to in paragraphs 1 to 3 and yet who gains a pecuniary advantage for themselves or for another by exploiting insider information or a recommendation based on insider information in order to acquire or dispose of securities admitted to trading on a trading venue or dlt trading facility which has its registered office in switzerland or to use derivatives of such securities shall be liable to a fine.6562 amended by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).63 amended by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).64 amended by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).65 amended by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).art. 155 price manipulation 1 a custodial sentence not exceeding three years or a monetary penalty shall be imposed on any person who, with the intention of gaining a pecuniary advantage for themselves or for another, substantially influences the price of securities admitted to trading on a trading venue or dlt trading facility which has its registered office in switzerland in that they:66a. disseminate false or misleading information against their better knowledge;b. effect acquisitions and sales of such securities directly or indirectly for the benefit of the same person or persons connected for this purpose.2 any person who through activities set out in paragraph 1 gains a pecuniary advantage of more than one million francs shall be liable to a custodial sentence not exceeding five years or a monetary penalty.66 amended by no i 10 of the fa of 25 sept. 2020 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 33, 399; bbl 2020 233).art. 156 jurisdiction 1 prosecution and adjudication of acts under articles 154 and 155 are subject to federal jurisdiction. it is not permitted to transfer jurisdiction for prosecution and adjudication to the cantonal authorities.2 the cantons are responsible for the prosecution and adjudication of acts under article 147.chapter 2 final provisions section 1 implementation art. 157 1 the federal council is responsible for implementation of this act.2 it shall issue the implementing provisions.section 2 amendment of other legislative instruments art. 158 the amendment of other legislative instruments is set out in the annex.section 3 transitional provisions art. 159 financial market infrastructures 1 financial market infrastructures with authorisation or recognition at the time this act enters into force must submit a new request for authorisation or recognition within one year of this act coming into force. the authorisation or recognition procedure shall be limited to examination of the new requirements. the financial market infrastructures may continue their activity until the decision on their request is issued.2 financial market infrastructures which are now subject to this act shall report to finma within six months of this act entering into force. within one year of its entry into force, they must satisfy the requirements of this act and submit an authorisation or recognition request to finma. they may continue their activity until the authorisation or recognition decision is issued.3 in special cases, finma may extend the deadlines set out in paragraphs 1 and 2.art. 160 foreign participants on a trading venue foreign participants on a trading venue which at the time of this act's entry into force have finma authorisation as a foreign stock exchange member do not require new authorisation. they must meet the requirements of this act within one year of its entry into force.art. 161 interoperability agreements interoperability agreements existing at the time this act enters into force do not require re-approval by finma.art. 162 derivatives trading the federal council shall determine which derivatives transactions still outstanding at the time this act enters into force shall be subject to the notification and risk mitigation duties.art. 163 duty to make an offer 1 anyone who, on 1 february 1997, directly, indirectly or acting in concert with third parties held securities which granted him or her more than 33% but less than 50% of the voting rights of a target company must make an offer for all listed equity securities of the company if he or she acquires equity securities and thereby exceeds the threshold of 50% of the voting rights.2 paragraph 1 also applies to holdings which were covered by the provisions on public takeover offers for the first time on 1 may 2013.section 4 referendum and commencement art. 164 1 this act is subject to an optional referendum.2 the federal council shall determine the commencement date, subject to paragraph 3.3 it shall bring articles 112 to 115 (duty to trade via a trading venue or organised trading facility) into force only if and when international developments so require.commencement date: 1 january 201667art. 112-115: 1 august 20176867 fcd of 25 nov. 2015.68 o of 5 july 2017 (as 2017 3713).annex (art. 158)amendment of other legislative instruments the legislative instruments below are amended as follows:.6969 the amendments may be consulted under as 2015 5339.

958.11english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinance on financial market infrastructures and market conduct in securities and derivatives trading(financial market infrastructure ordinance, finmio)of 25 november 2015 (status as of 1 october 2021)the swiss federal councilbased on the financial market infrastructure act of 19 june 20151 (finmia),ordains:1 sr 958.1title 1 general provisions art. 1 subject matter (art. 1 and 157 finmia)this ordinance governs specifically:a. the authorisation conditions and duties for financial market infrastructures;b. the duties of financial market participants in derivatives trading;c. the disclosure of shareholdings;d. public takeover offers;e. the exceptions that apply with regard to the ban on insider trading and market manipulation.art. 2 definitions (art. 2 lit. b and c finmia)1 securities are deemed to be standardised and suitable for mass trading if they are publicly offered for sale in the same structure and denomination or are placed with more than 20 clients, insofar as they have not been created especially for individual counterparties.22 derivatives are deemed to comprise financial contracts whose price is derived specifically from:a. assets such as shares, bonds, commodities and precious metals;b. reference values such as currencies, interest rates and indices.3 the following are not deemed to be derivatives:a. spot transactions;b. derivatives transactions relating to electricity and gas which:1. are traded on an organised trading facility,2. must be physically delivered, and3. cannot be settled in cash at a party's discretion;c. derivatives transactions relating to climatic variables, freight rates, inflation rates or other official economic statistics that are settled in cash only in the event of a default or other termination event.4 spot transactions are deemed to be transactions that are settled either immediately or following expiry of the deferred settlement deadline within two business days. spot transactions are also deemed to be:transactions that are settled with a longer settlement deadline in accordance with the market norm for the currency pair in question;b. purchases or sales of securities, irrespective of their currency, which are paid for by the deadline prescribed by the regulator or by a deadline that is customary in the market;c. transactions that are continuously extended without there being a legal obligation or without such an extension between the parties being usual.2 amended by no i 10 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400).art. 3 significant group companies (art. 3 para. 2 finmia)the functions of a group company are significant with respect to the activities which require authorisation if they are necessary for the continuation of important business processes, in particular in the areas of liquidity management, treasury, risk management, master data administration and accounting, personnel, information technology, trading and settlement, and legal and compliance.title 2 financial market infrastructures chapter 1 common provisions section 1 authorisation conditions and duties for all financial market infrastructures art. 4 authorisation application (art. 4 and 5 finmia)1 the financial market infrastructure shall submit an authorisation application to the swiss financial market supervisory authority (finma). this shall contain all the information necessary for assessing it, specifically information on:a. the business area (art. 6);b. the place of management (art. 7);c. corporate governance (art. 8);d. risk management (art. 9);e. guarantee of irreproachable business conduct (art. 10);f. minimum capital (art. 13);g. capital adequacy and risk diversification (art. 48, 49, 56, 57 and 69);h. the audit firm (art. 71).2 the financial market infrastructure shall attach along with its authorisation application the necessary documentation, namely its articles of association or partnership agreements and regulations.art. 5 changes in facts (art. 7 finmia)1 the financial market infrastructure shall notify finma in particular of:a. any amendments to the articles of association or partnership agreements and regulations;b. any material change in the business activity of a subsidiary, branch or representation abroad;c. any change in audit firm or in the competent foreign supervisory authority with respect to any subsidiary, branch or representation abroad.2 it may only report any changes in its articles of association to the commercial register and put any changes in regulations into effect following finma's approval of the changes in question.art. 6 business area (art. 8 para. 2 finmia)1 the financial market infrastructure must describe its area of business in factually and geographically precise terms in the articles of association, partnership agreements or regulations.2 the business area and its geographical extent must be in harmony with the financial market infrastructure's financial capabilities and administrative organisation.art. 7 place of management (art. 8 paras. 1 and 2 finmia)1 the financial market infrastructure must effectively be managed from switzerland. an exception is made here for general directives and decisions within the context of group supervision if the financial market infrastructure forms part of a financial group that is subject to appropriate consolidated supervision by a foreign financial market supervisory authority.2 the persons entrusted with managing the financial market infrastructure must be resident in a place from which they can effectively exercise such management.art. 8 corporate governance (art. 8 para. 2 finmia)1 the financial market infrastructure must have an organisational structure and an organisational basis that set out the tasks, responsibilities, powers and accountability of the following bodies:a. body for business management;b. body for governance, supervision and control;c. internal audit function.2 the body for governance, supervision and control must comprise at least three members. these may not belong to the bodies described in paragraph 1 letters a and c.3 the body for governance, supervision and control shall set out the basic risk management principles and determine the risk tolerance of the financial market infrastructure. this body shall have its work evaluated regularly.4 the financial market infrastructure shall define, implement and maintain a compensation policy that promotes sound and effective risk management and does not create incentives to relax risk standards.5 it must have mechanisms in place that allow it to establish the needs of participants with regard to the services provided by the financial market infrastructure.art. 9 risk management (art. 8 para. 3 finmia)1 with regard to risk management, the financial market infrastructure must have a concept for the integrated identification, measurement, management and monitoring of risks, particularly with respect to:a. legal risks;b. credit and liquidity risks;c. market risks;d. operational risks;e. settlement risks;f. reputational risks;g. general business risks.2 it must have instruments in place and create incentives in order to ensure that participants can continuously manage and limit the risks arising for themselves or for the financial market infrastructure.3 insofar as the financial market infrastructure has indirect participants and these are identifiable, it must also identify, measure, control and monitor the risks posed to the financial market infrastructure by these parties.4 the internal documentation of the financial market infrastructure on passing a resolution and the monitoring of transactions associated with the risks should be designed in such a way that allows the audit firm to make a reliable assessment with respect to the business activity.5 the financial market infrastructure shall ensure an effective internal control system which, among other things, guarantees compliance with legal and internal company rules and regulations (compliance function).6 the internal audit function must submit a report to the body with responsibility for governance, supervision and control or to one of its committees. it must have sufficient resources as well as unrestricted audit rights.art. 10 guarantee of irreproachable business conduct (art. 9 paras. 2 and 3 finmia)1 the authorisation application for a new financial market infrastructure must contain the following information and documentation in particular on the members of the board and executive management in accordance with article 9 paragraph 2 finmia and on the owners of a qualified participation in accordance with article 9 paragraph 3 finmia:a. natural persons:1. details on nationality, domicile, qualified participations in other companies and any pending court or administrative proceedings,2. a curriculum vitae signed by the relevant person,3. references,4. an extract from the register of criminal convictions;b. companies:1. the articles of association,2. an extract from the commercial register or an attestation to this effect,3. a description of business activities, the financial situation and, if applicable, the group structure,4. details on completed and pending court or administrative proceedings.2 persons holding a qualified participation must make a declaration to finma stating whether they hold the participation in question for their own account or on a fiduciary basis for a third party, and whether they have granted options or similar rights with respect to this participation.3 the financial market infrastructure must submit to finma within 60 days of the end of the financial year a list of all qualified participants in the financial market infrastructure. this list shall contain details on the identity and participation rate of all qualified participants as at the relevant closing date, as well as any changes relative to the prior-year closing date. in addition, the information and documentation set out in paragraph 1 is to be submitted for any qualified participants being reported for the first time.art. 11 outsourcing (art. 11 finmia)1 an outsourcing situation in accordance with article 11 paragraph 1 finmia is deemed to exist if the financial market infrastructure has commissioned a service provider to independently and permanently provide an essential service for the financial market infrastructure in accordance with article 12.2 the following aspects in particular are to be addressed in the agreement with the service provider:a. the service to be outsourced and the services of the service provider;b. the responsibilities and the reciprocal rights and duties, particularly the financial market infrastructure's rights of inspection, instruction and control;c. the security requirements that must be fulfilled by the service provider;d. the service provider's adherence to the financial market infrastructure's business confidentiality and, insofar as legally protected data is provided to the service provider, the service provider's adherence to professional confidentiality;e. the rights of inspection and access of the internal audit function, the external audit firm, finma and - in the case of systemically important financial market infrastructures - the swiss national bank (snb).3 the financial market infrastructure must exercise care in the selection, instruction and controlling of the service provider. it shall integrate the outsourced service into its internal control system and monitor the services rendered by the service provider on an ongoing basis.4 outsourcing to foreign countries requires appropriate technical and organisational measures to ensure the observance of professional confidentiality and data protection in accordance with swiss law. contracting parties of a financial market infrastructure whose data is to be sent to a service provider abroad must be informed about this.5 the financial market infrastructure, its internal audit function, the external audit firm, finma and - in the case of systemically important financial market infrastructures - the snb must be able to inspect and review the outsourced service.6 paragraphs 1 to 5 do not apply if a central securities depository outsources some of its services or activities to a technical platform that connects securities settlement systems by way of providing a public service. this kind of outsourcing must be governed by means of a dedicated regulatory and operational framework, which requires the approval of finma.art. 12 essential services (art. 11 para. 1 finmia)1 essential services are deemed to be services that are necessary for the continuation of important business processes, in particular in the areas of liquidity management, treasury, risk management, master data administration and accounting, personnel, information technology, and legal and compliance.2 the following services are also deemed to be essential:a. in the case of trading venues:1. all activities conducted with the aim of ensuring fair, efficient and orderly trading,2. the operating of matching and market data distribution systems;b. in the case of central counterparties:1. contractually entering into securities transactions or other contracts involving financial instruments between two participants or between one participant and another central counterparty,2. the establishment of mechanisms relating to the planning for and protection against outages of participants or interoperably associated central counterparties, or relating to the segregation of the positions of indirect participants and clients of participants or to the transfer of positions to other participants;c. in the case of central securities depositories:1. the operation of a central custodian or securities settlement system,2. the initial recording of securities in a securities account,3. the reconciliation of holdings;d. in the case of trade repositories:1. the collection, management and retention of the reported data,2. the publication of reported data,3. the granting of access to reported data;e. in the case of payment systems:1. the acceptance and execution of participants' payment orders,2. the management of clearing accounts;f.3 in the case of trading facilities for distributed ledger technology securities (dlt trading facilities) that do not provide services in accordance with article 73a paragraph 1 letter b or c of the finmia:1. all activities conducted with the aim of ensuring fair, efficient and orderly trading,2. the operating of matching and market data distribution systems;g.4 in the case of dlt trading facilities that provide services in accordance with article 73a paragraph 1 letter b or c of the finmia:1. the services under letter f,2. the central custody of dlt securities or the clearing and settlement of transactions in dlt securities,3. the initial recording of dlt securities in a securities account,4. the reconciliation of holdings.3 inserted by no i 10 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400).4 inserted by no i 10 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400).art. 13 minimum capital (art. 12 finmia)1 the minimum capital shall amount to:a.5 for trading venues: chf 1 million;b. for central counterparties: chf 10 million;c. for central securities depositories: chf 5 million;d. for trade repositories: chf 500,000;e. for payment systems: chf 1.5 million;f.6 for dlt trading facilities that do not provide services in accordance with article 73a paragraph 1 letter b or c of the finmia: chf 1 million;g.7 for dlt trading facilities that provide services in accordance with article 73a paragraph 1 letter b or c of the finmia: chf 5 million.1bis for trading venues and dlt trading facilities, where justified, finma can stipulate a minimum amount that is up to 50% higher.82 in the event of non-cash capital contributions, the value of the assets brought in and the amount of the liabilities shall be reviewed by a licensed audit firm. this also applies when an existing company is transformed into a financial market infrastructure.5 amended by no i 10 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400).6 inserted by no i 10 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400).7 inserted by no i 10 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400).8 inserted by no i 10 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400).art. 14 business continuity (art. 13 finmia)1 the strategy detailed in article 13 paragraph 1 finmia must be enshrined in the company organisation and should regulate in particular:the tasks, responsibilities and powers;b. the frequency of the review of the business impact analysis in accordance with paragraph 2;c. reporting, communication and training.2 the financial market infrastructure shall prepare a business impact analysis which sets out the recovery point objective and the recovery time objective for the business processes that are necessary for operations.3 it shall set out the options for the recovery of the business processes that are necessary for operations.4 the strategy detailed in article 13 paragraph 1 finmia must be approved by the body responsible for governance, supervision and control.art. 15 it systems (art. 14 finmia)1 the it systems must be set up in such a way that:the requirements of information availability, integrity and confidentiality can be appropriately fulfilled with respect to the business activity in question;reliable access control is possible;c. arrangements are in place for identifying security deficiencies and being able to respond to them appropriately.2 the financial market infrastructure shall take appropriate measures to ensure that business-relevant data can be recovered in the event of loss.art. 16 international business (art. 17 finmia)1 the report that a financial market infrastructure must submit to finma prior to commencing activity abroad must contain all the necessary information and documentation for evaluating the activity in question, namely:a. a business plan that describes in particular the nature of the planned businesses and the organisational structure;b. the address of the office abroad;c. the names of the members of the board and executive management;d. the audit firm;e. the supervisory authority in the host country.2 the financial market infrastructure must also notify finma of:a. any discontinuation of business activity abroad;b. any material change in the business activity abroad;c. any change of audit firm;d. any change of supervisory authority in the host country.art. 17 fair and open access (art. 18 finmia)1 fair access is deemed not to be guaranteed in particular if excessively high or objectively unjustified requirements are made, or if excessive prices are demanded for use of the services offered. fee structures should not be conducive to disorderly market conditions.2 the financial market infrastructure may make access conditional upon fulfilment of operational, technical, financial and legal requirements.3 if it restricts access for reasons of efficiency, finma shall consult the competition commission as part of its assessment.art. 18 prevention of conflicts of interest (art. 20 finmia)if the disadvantaging of participants through conflicts of interest cannot be excluded with organisational measures, this should be disclosed to participants.art. 19 publication of essential information (art. 21 finmia)the financial market infrastructure shall regularly publish in addition to the information required under article 21 finmia:a. the rules and procedures that apply to the operation of the financial market infrastructure, including the rights and duties of the financial market infrastructure and participants;b. the fees and prices that apply to the services provided by the financial market infrastructure, including the conditions for the granting of discounts;c. the risks for participants associated with the services provided;d. the criteria for the suspension and exclusion of a participant;e. the rules and procedures that apply in the event of a default or outage of a participant;f. the rules and procedures required in order to keep the collateral, receivables and liabilities of participants and indirect participants segregated from one another, and the rules and procedures required for this collateral, receivables and liabilities to be both recorded and transferred;g. the aggregated transaction volumes and amounts;h. the number, nominal value and currency of issue of the securities held in central custody;i. other information in accordance with recognised international standards.section 2 special requirements for systemically important financial market infrastructures art. 20 recovery and resolution plan (art. 24 finmia)1 the recovery plan and the resolution plan must take into account the regulations of foreign supervisory authorities and central banks for stabilisation, restructuring and winding-up.2 the recovery plan shall in particular describe the measures to be taken and the resources required for their implementation. it must be approved by the body responsible for governance, supervision and control.3 the financial market infrastructure shall describe, upon submission of the plan, what measures it is preparing or has already implemented to improve its resolvability both in switzerland and abroad (art. 21).4 it shall submit to finma annually, and by the end of the second quarter of the year, the recovery plan and the information required for the resolution plan. the same documents should also be submitted if changes make a reworking necessary or if finma demands such a submission.5 finma shall grant the financial market infrastructure an appropriate period for the preparatory implementation of the measures envisaged in the resolution plan.art. 21 measures to improve resolvability (art. 24 para. 1 finmia)the measures to improve the financial market structure's resolvability can encompass in particular:a. structural improvements and unbundling by means of:1. amendments to the legal structure to create business-aligned legal entities,2. the creation of legally independent service units,3. the elimination or minimisation of de facto compulsory government support, particularly by creating an independent management structure,4. the reduction of geographical or balance sheet asymmetries;b. financial unbundling to contain risks of contagion by means of:1. the reduction of capital participations between legal entities at the same level,2. restrictions on the granting of unsecured loans and guarantees between legal entities at the same level within the financial group,3. the creation of an incentive structure that gives rise to the highest possible degree of market-consistent intra-group financing;c. operational unbundling to safeguard data and ensure continuation of important operational services by means of:1. ensuring access to and use of data resources, databases and it resources,2. the separation or permanent outsourcing of key functions,3. access to and continued use of systems essential to business operations.chapter 2 trading venues and organised trading facilities section 1 definitions art. 22 multilateral trading (art. 26 and 42 finmia)trading is deemed to be multilateral if it unites the interests of multiple participants in the acquisition and sale of securities or other financial instruments within the trading facility with a view to concluding a contract.art. 23 non-discretionary rules (art. 26 and 42 finmia)rules are deemed to be non-discretionary if they grant the trading venue or the operator of an organised trading facility no discretion in the amalgamation of offers.section 2 trading venues art. 24 regulatory and supervisory organisation (art. 27 finmia)1 an appropriate regulatory and supervisory organisation shall encompass the following bodies in particular:a body that fulfils regulatory tasks;b.9 a body that fulfils supervisory tasks;a body responsible for the admission of securities to trading;an appeal body.2 the body that fulfils the regulatory tasks of the trading venue must be independent of the business management of the trading venue and largely independent of the participants and issuers, both organisationally and with respect to personnel. it must have sufficient organisational, personnel and financial resources.102bis the body that fulfils the supervisory tasks of the trading venue must be independent of the business management of the trading venue and independent of the participants and issuers, both organisationally and with respect to personnel. it must have sufficient organisational, personnel and financial resources.113 both issuers and investors must be appropriately represented in the body responsible for the admission of securities to trading.4 the trading venue shall set out in its regulations the tasks and powers of the various bodies, as well as the representation of issuers and investors in the body that is responsible for the admission of securities to trading.9 amended by no i 10 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400).10 amended by no i 10 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400).11 inserted by no i 10 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400).art. 25 approval of regulations (art. 27 para. 4 finmia)1 when approving regulations, finma shall review in particular whether these:ensure transparency and the equal treatment of investors; andb. ensure the proper functioning of the securities markets.2 finma may consult the competition commission before making its decision. the latter shall give its opinion on whether the regulations are neutral in terms of competition and are conducive to anti-competitive arrangements or not.art. 26 organisation of trading (art. 28 finmia)the trading venue shall establish procedures in order that the relevant data on securities transactions can be confirmed on the same day that transactions are executed.art. 27 pre-trade transparency (art. 29 paras. 1 and 3 lit. b finmia)1 the trading venue shall publish the information communicated via its trading facilities on pre-trade transparency for shares throughout normal trading hours.2 for each share, the five best bid and offer prices as well as the volume of orders are to be published.3 paragraphs 1 and 2 also apply for actionable indications of interest.4 the trading venue may make provision for exceptions in its regulations for:a. reference price systems, as long as the reference prices are widely published and viewed by participants as reliable;b. systems that exist only to formalise transactions already negotiated;c. orders held in an order management facility of the trading venue pending disclosure;d. orders that are large in scale compared with normal market size.art. 28 post-trade transparency (art. 29 paras. 2 and 3 lit. b finmia)1 the trading venue shall publish the information on post-trade transparency with respect to transactions executed via the trading venue in accordance with its regulations.2 post-trade information with respect to transactions that were carried out on the trading venue outside of normal business hours are to be published by the trading venue prior to the start of trading on the trading day following execution of the transaction in question.3 paragraph 1 also applies to transactions that were conducted outside of the trading venue insofar as they were carried out during the course of the trading day on the most important market for the securities in question or during the normal trading hours of the trading venue. otherwise, the information is to be published immediately prior to the beginning of the ordinary trading hours of the trading venue, or at the latest prior to the start of the next trading day on the most important market for these securities.4 the trading venue may make provision for later publication in its regulations in the case of:a. large-volume transactions in accordance with article 27 paragraph 4 letter d;b. transactions:1. which are above a size specific to the securities in question,2. for which a liquidity provider would be exposed to inappropriate risks, and3. for which consideration has been given as to whether the contracting parties are retail or wholesale investors;c. transactions in securities for which no liquid market exists.art. 29 exceptions to pre-trade and post-trade transparency (art. 29 para. 3 lit. b finmia)1 securities transactions are not subject to the provisions on pre-trade and post-trade transparency if they are carried out as part of public tasks and not for investment purposes, namely on the part of:a. the confederation, cantons or communes;b. the snb;c. the bank for international settlements (bis);d. multilateral development banks in accordance with article 63 paragraph 2 letter c of the capital adequacy ordinance of 1 june 201212 (cao).2 securities transactions carried out by the following parties may be excluded from the provisions on pre-trade and post-trade transparency as long as the transactions are carried out as part of public tasks and not for investment purposes, and as long as reciprocal rights are granted and an exception does not stand in contradiction to the legislative purpose:a. foreign central banks;b. the european central bank (ecb);c. official bodies or state departments that are responsible for or involved in administering the national debt;d. the european financial stability facility (efsf);e. the european stability mechanism (esm).3 the federal department of finance (fdf) shall publish a list of the bodies covered by paragraph 2.4 the trading venue is to be informed in cases where transactions are carried out as part of public tasks and not for investment purposes.12 sr 952.03art. 30 guarantee of orderly trading (art. 30 finmia)1 the trading venue shall set transparent rules and procedures for fair, efficient and orderly trading, as well as objective criteria for the effective execution of orders. it must have measures in place to ensure the robust management of technical processes and the operation of its systems.2 it must possess effective systems, procedures and arrangements to ensure in particular that its trading facilities:a. are robust and equipped with sufficient capacity to deal with peak volumes of orders and announcements;b. are in a position to ensure orderly trading under conditions of severe market stress;c. are subject to effective emergency measures so that the restoration of business operations can be guaranteed in the event of disruptions to its trading facilities;d. reject orders that exceed pre-determined volume and price thresholds or are clearly erroneous;e. are in a position to suspend or restrict trading temporarily if there are significant short-term price movements with respect to a security on that market or a related market;f. are in a position to cancel, amend or correct any transaction in exceptional cases; andg. are regularly reviewed with a view to ensuring that the requirements under letters a to f are met.3 it must enter into an agreement, in writing or in another form that that allows for its proof by text, with all participants holding a special function, in particular participants that pursue a market-making strategy in the trading venue. it shall maintain systems and procedures that ensure that these participants comply with the regulations.134 it may also prescribe in its regulations that participants must flag up short-selling positions in its trading facility.13 amended by annex 1 no ii 14 of the financial institutions ordinance of 6 nov. 2019, in force since 1 jan. 2020 (as 2019 4633).art. 31 algorithmic trading and high-frequency trading (art. 30 finmia)1 the trading venue must be able to identify the following:a. orders generated by algorithmic trading;b. the different algorithms used for the creation of orders;c. the participants' dealers who initiated these orders in the trading facility.2 it shall require participants that pursue algorithmic trading to flag the orders generated in this manner, record all entered orders, including order cancellations, and in particular to possess effective precautions and risk controls that ensure that their systems:a. are robust and equipped with sufficient capacity to deal with peak volumes of orders and announcements;b. are subject to appropriate trading thresholds and upper limits;c. do not cause or contribute to any disruptions in the trading venue;d. are effective for preventing violations of articles 142 and 143 finmia;e. are subject to appropriate tests of algorithms and control mechanisms, including precautions to:1. limit the proportion of unexecuted trading orders relative to the number of transactions that can be entered into the system by a participant,2. slow down the flow of orders if there is a risk of the capacity of the system being reached, and3. limit and enforce the minimum tick size that may be executed on the trading venue.3 in order to take account of the additional burden on system capacity, the trading venue may make provision for higher fees for:a. the placement of orders that are later cancelled;b. participants placing a high proportion of cancelled orders;c. participants with:1. an infrastructure intended to minimise delays in order transfer,2. a system that can decide on order initiation, generation, routing or execution, and3. a high intraday number of price offers, orders or cancellations.art. 32 supervision of trading (art. 31 para. 2 finmia)1 the trading supervisory body must have appropriate systems and resources to carry out its tasks.2 the functioning of the trading supervisory systems must also be guaranteed without restriction even in the event of high data volumes.3 the trading supervisory body shall monitor trading in such a way that forms of conduct in accordance with articles 142 and 143 finmia can be identified irrespective of whether they are attributable to manual, automated or algorithmic trading.art. 33 admission of securities by a stock exchange (art. 35 finmia)1 the stock exchange shall guarantee that all securities admitted to trading and all listed securities can be traded in a fair, efficient and orderly manner.2 in the case of derivatives, it shall ensure in particular that the way in which derivatives trading is structured facilitates orderly pricing.3 the stock exchange shall take the necessary measures to review the securities listed and admitted to trading for their fulfilment of the admission and listing requirements.art. 34 admission of securities by a multilateral trading facility (art. 36 finmia)1 the multilateral trading facility shall guarantee that all securities admitted to trading can be traded in a fair, efficient and orderly manner.2 in the case of derivatives, it shall ensure in particular that the way in which derivatives trading is structured facilitates orderly pricing.3 the multilateral trading facility shall take the necessary measures to review the securities admitted to trading for their fulfilment of the admission requirements.art. 35 appeal body (art. 37 paras. 1 to 3 finmia)1 the appeal body shall be independent in its adjudication and bound only by the law.2 the members may not belong to the body responsible for the admission of securities to trading, nor may they be in an employment relationship or any other contractual relationship with the trading venue that could lead to conflicts of interest.3 the provisions of the federal supreme court act of 17 june 200514 on recusal apply to the members of the independent appeal body.4 the regulations concerning the independent appeal body shall contain guidelines with respect to composition, election, organisation and proceedings before the appeal body.14 sr 173.110art. 36 record-keeping duty of participants (art. 38 finmia)1 the participants admitted to a trading venue shall keep a record of all orders they receive and all securities transactions they execute.2 the record-keeping duty also applies to orders and transactions in derivatives whose underlying instruments are securities admitted to trading on a trading venue. 3 the record-keeping duty applies not only to transactions on own account, but also to transactions executed on behalf of a client.4 finma shall regulate what information is necessary and in what form it must be recorded.art. 37 reporting duty of participants (art. 39 finmia)1 the participants admitted to a trading venue shall report all transactions they execute involving securities admitted to trading on a trading venue. in particular, the following must be reported:a. the name and number of purchased or sold securities;b. the volume, date and time of the transaction;c. the price; and d. the details necessary to identify the beneficial owner.2 the reporting duty also applies to transactions in derivatives whose underlying instruments are securities admitted to trading on a trading venue. 3 the reporting duty applies not only to transactions on own account, but also to transactions executed on behalf of a client.4 the following transactions executed abroad do not have to be reported: a. transactions in securities admitted to trading on a trading venue in switzerland and in derivatives with such securities as their underlying instruments, provided the information in question is regularly communicated to the trading venue on the basis of an agreement in accordance with article 32 paragraph 3 finmia or within the framework of an exchange of information between finma and the competent foreign supervisory authority if:1. they were executed by the branch of a swiss securities firm15 or by a foreign admitted participant, and2. the branch or the foreign participant is authorised to trade by the relevant foreign supervisory authority and is obliged to submit a report in the corresponding state or in its state of domicile;b. transactions in foreign securities admitted to trading on a trading venue in switzerland and in derivatives with such securities as their underlying instruments that are executed on a recognised foreign trading venue.5 third parties may be involved in reporting.15 term in accordance with annex 1 no ii 14 of the financial institutions ordinance of 6 nov. 2019, in force since 1 jan. 2020 (as 2019 4633). this amendment has been made throughout the text.section 3 organised trading facilities art. 38 authorisation and recognition conditions (art. 43 para. 1 finmia)the authorisation and recognition conditions that apply to the operator of an organised trading facility are based on the financial market acts pursuant to article 1 paragraph 1 of the financial market supervision act of 22 june 200716.16 sr 956.1art. 39 organisation and prevention of conflicts of interest (art. 44 finmia)1 the operator of an organised trading facility shall issue regulations on the organisation of trading and monitor compliance with the statutory and regulatory provisions, as well as the trading process.2 it shall keep a chronological record of all orders and transactions carried out through the organised trading facility.3 in the event of agreements being made according to discretionary rules, identical client orders may be matched only if best execution can be guaranteed. exceptions are permissible only if the clients concerned have expressly waived any claim to best possible execution.art. 40 guarantee of orderly trading (art. 45 finmia)the operator of an organised trading facility shall set transparent rules and procedures for fair, efficient and orderly trading, as well as objective criteria for the effective execution of orders. it must have measures in place to ensure the robust management of technical processes and the operation of its systems in accordance with article 30 paragraphs 2 to 4.art. 41 algorithmic trading and high-frequency trading (art. 45 finmia)in order to prevent disruptions to its trading facility, the operator of an organised trading facility must take effective measures in accordance with article 31.art. 42 pre-trade transparency (art. 46 paras. 2 and 3 finmia)1 in the case of multilateral trading and bilateral trading where a liquid market exists, articles 27 and 29 apply by analogy.2 in the case of bilateral trading where no liquid market exists, price quotes on demand shall suffice.art. 43 post-trade transparency for securities (art. 46 paras. 1 and 2 finmia)1 in the case of multilateral trading, article 28 paragraphs 1 and 4 as well as article 29 apply by analogy.2 in the case of bilateral trading, aggregated publication at the end of the trading day shall suffice.chapter 3 central counterparties art. 44 function (art. 48 finmia)the central counterparty shall ensure, in particular, the standardised recording of all details of the transactions cleared by it, the positions of the participants and its reports to trade repositories.art. 45 organisation, business continuity and it systems (art. 8, 13 and 14 finmia)1 the central counterparty must appoint a risk committee that includes representatives of the participants, of the indirect participants and members of the body for governance, supervision and control. this committee shall advise the central counterparty on all matters that could have an impact on the risk management of the central counterparty.2 the central counterparty shall arrange procedures, capacity planning and sufficient capacity reserves so that, in the event of a disruption, its systems can still process all transactions still open by the close of trading.art. 46 collateral (art. 49 finmia)1 if predefined thresholds are exceeded, the central counterparty shall call in initial margins and variation margins at least once a day.2 it shall avoid concentration risks in the collateral and shall ensure that it can have prompt access to the collateral.3 it shall make provision for procedures by means of which it can review the models and parameters on which its risk management is based, and shall conduct these reviews on a regular basis.4 if the central counterparty holds its own assets or the collateral and assets of participants with third parties, it shall minimise the associated risks. in particular, it shall hold the collateral and assets with creditworthy financial intermediaries which, insofar as possible, are subject to supervision.art. 47 exchange-of-value settlement (art. 50 finmia)the central counterparty shall enable participants to eliminate their principal risk by ensuring that the settlement of one obligation occurs if and only if the settlement of the other obligation is guaranteed.art. 48 capital adequacy (art. 51 finmia)1 the central counterparty must hold total capital in the amount 8.0% (minimum capital requirement) to underpin credit risks, non-counterparty-related risks, market risks and operational risks in accordance with article 42 cao17. finma may demand additional capital in accordance with article 45 cao. titles 1 to 3 cao apply to the calculation.182 the dedicated capital in accordance with article 53 paragraph 2 letter c finmia shall amount to at least 25% of the required capital set out in title 3 cao.3 the central counterparty shall hold further capital in order to cover the costs of a voluntary cessation of business or restructuring. in the case of systemically important central counterparties, this capital must suffice to implement the plan set out in article 72, but must at least be sufficient to cover ongoing operating expenditure for six months.4 in special cases, finma can ease the requirements set out in the paragraphs 1 to 3 or impose more rigorous requirements.5 the central counterparty must have a plan that sets out how further capital is to be procured if its capital no longer fulfils the requirements set out in paragraphs 1 to 4. the plan must be approved by the body responsible for governance, supervision and control.6 if its capital falls short of 110% of the requirements set out in paragraphs 1 to 4, the central counterparty shall immediately inform finma and its audit firm, and shall provide finma with a plan that sets out how the threshold can once again be adhered to.17 sr 952.0318 amended by attachment no 2 to the o of 11 may 2016, in force since 1 july 2016 (as 2016 1725).art. 49 risk diversification (art. 51 finmia)the central counterparty shall monitor credit risks vis--vis an individual counterparty or a group of associated counterparties based on the calculation principles set out in section 4 of chapter 1 of title 4 cao19.19 sr 952.03art. 50 liquidity (art. 52 finmia)1 the following are deemed to constitute liquidity in a currency as set out in article 52 paragraph 1 finmia:a. cash balances in this currency with a central bank or a creditworthy financial institution;b. cash balances in other currencies that can be converted into this currency in a timely manner through foreign exchange transactions;c. contractually committed and approved unsecured lines of credit in this currency with a creditworthy financial institution that can be used without any further credit decision;d. collateral in accordance with article 49 finmia and assets that can be converted into cash in this currency in a timely manner through sales;e. collateral in accordance with article 49 finmia and assets that can be converted into cash in this currency in a timely manner by means of contractually committed and secured lines of credit or contractually committed repo lines with central banks or creditworthy financial institutions.2 the central counterparty shall regularly review compliance with the requirements set out in article 52 paragraph 1 finmia under various stress scenarios. in doing so, it shall apply collateral discounts (haircuts) to the liquidity that would be appropriate even under extreme but plausible market conditions. it shall diversify its sources of liquidity.3 the investment strategy of the central counterparty must be in harmony with its risk management strategy. it must avoid concentration risks.art. 51 portability (art. 55 finmia)1 portability is ensured if:a. the transfer is enforceable in the relevant jurisdictions; andb. the other participant has an obligation towards the indirect participant to assume the latter's collateral and positions.2 if a transfer cannot take place by the deadline set by the central counterparty, the central counterparty may take all precautions in accordance with its regulations to actively manage the risks with respect to the positions in question, including the liquidation of assets and collateral of the participant in default who holds this for the account of an indirect participant or its clients.chapter 4 central securities depositories art. 52 organisation (art. 8 finmia)1 the central securities depository shall set up a user committee for every securities settlement system operated by it, on which the issuers and participants in these securities settlement systems are represented. 2 the user committee shall advise the central securities depository in key matters affecting issuers and participants.art. 53 principles for the custody, recording and transfer of securities (art. 62 finmia)central securities depositories that use a common settlement infrastructure shall establish identical times for:a. the entry of payment and transfer orders into the system of the common settlement infrastructure; b. the irrevocability of payment and transfer orders.art. 54 collateral (art. 64 finmia)1 the central securities depository must have sufficient collateral in order to fully cover its current credit exposure.2 it shall avoid concentration risks in the collateral and shall ensure that it can have prompt access to the collateral.3 it shall make provision for procedures by means of which it can review the models and parameters on which its risk management is based, and shall conduct these reviews on a regular basis.4 if it holds its own assets or the collateral and assets of participants with third parties, it shall minimise the associated risks. in particular, it shall hold the collateral and assets with creditworthy financial intermediaries which, insofar as possible, are subject to supervision.art. 55 exchange-of-value settlement (art. 65 finmia)the central securities depository shall enable participants to eliminate their principal risk by ensuring that the settlement of one obligation occurs if and only if the settlement of the other obligation is guaranteed.art. 56 capital adequacy (art. 66 finmia)1 the central securities depository must hold total capital in the amount 8.0% (minimum capital requirement) to underpin credit risks, non-counterparty-related risks, market risks and operational risks in accordance with article 42 cao20. finma may demand additional capital in accordance with article 45 cao. titles 1 to 3 cao apply to the calculation.212 for all other matters, article 48 paragraphs 3 to 6 apply by analogy.20 sr 952.0321 amended by attachment no 2 to the ordinance of 11 may 2016, in force since 1 july 2016 (as 2016 1725).art. 57 risk diversification (art. 66 finmia)the central securities depository shall monitor credit risks vis--vis an individual counterparty or a group of associated counterparties based on the calculation principles set out in section 4 of chapter 1 of title 4 cao22.22 sr 952.03art. 58 liquidity (art. 67 finmia)1 the following are deemed to constitute liquidity in a currency as set out in article 67 paragraph 1 finmia:a. cash balances in this currency with a central bank or a creditworthy financial institution;b. cash balances in other currencies that can be converted into this currency in a timely manner through foreign exchange transactions;c. contractually committed and approved unsecured lines of credit in this currency with a creditworthy financial institution that can be used without any further credit decision;d. collateral in accordance with article 64 finmia and assets that can be converted into cash in this currency in a timely manner through sales;e. collateral in accordance with article 64 finmia and assets that can be converted into cash in this currency in a timely manner by means of contractually committed and secured lines of credit or contractually committed repo lines with central banks or creditworthy financial institutions.2 the central securities depository shall regularly review compliance with the requirements set out in article 67 paragraph 1 finmia under various stress scenarios. in doing so, it shall apply collateral discounts (haircuts) to the liquidity that would be appropriate even under extreme but plausible market conditions. it shall diversify its sources of liquidity.3 the investment strategy of the central securities depository must be in harmony with its risk management strategy. it must avoid concentration risks.chapter 4a23 dlt trading facilities 23 inserted by no i 10 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400). section 1 definitions art. 58a multilateral trading and non-discretionary rules (art. 73a para. 1 finmia)the definitions for multilateral trading and non-discretionary rules under articles 22 and 23 apply by analogy to dlt trading facilities. art. 58b commercial activity (art. 73a para. 2 finmia)1 a dlt trading facility is operating commercially if it:a. thereby generates gross earnings of more than chf 50,000 per calendar year;b. per calendar year, has a business relationship with more than 20 participants in accordance with article 73c paragraph 1 letter e of the finmia (private participants) or with at least one participant in accordance with article 73c paragraph 1 letters a to d of the finmia; orc. has unlimited power of disposal over third-party dlt securities that exceed chf 5 million at any given time.2 if a threshold under paragraph 1 is exceeded, the dlt trading facility must report this to finma within 10 days. it must submit an application for authorisation as provided for in the finmia to finma within 60 days.3 provided the protective purpose of the finmia is not affected, finma may prohibit the applicant from exercising the activities reserved to a dlt trading facility until the decision is made on the application for authorisation.section 2 requirements art. 58c applicability of certain requirements for trading venues (art. 73b finmia)1 unless otherwise specified in this section, articles 24 to 32 and article 35 apply by analogy to dlt trading facilities.2 instead of the option under article 30 paragraph 2 letter f to cancel, amend or correct any transaction in exceptional cases, a dlt trading facility must have a mechanism in place that achieves an economically equivalent effect.art. 58d record-keeping and reporting duty (art. 73c para. 3 finmia)1 private participants are exempt from the record-keeping duty under article 38 of the finmia and the reporting duty under article 39 of the finmia.2 articles 36 and 37 of this ordinance apply by analogy to the other participants.art. 58e admission and exclusion of participants (art. 73c paras. 4 and 5 finmia)1 the dlt trading facility shall regulate in the regulations in accordance with article 73c paragraph 5 of the finmia whether and which private participants will be admitted. 2 the granting of non-discriminatory access in accordance with article 18 of the finmia is not binding for private participants. art. 58f admission of dlt securities and other assets (art. 73d finmia)1 the dlt trading facility shall regulate in the regulations in accordance with article 73d of the finmia which dlt securities and other assets will be admitted to its services. it may specify the admitted dlt securities and assets individually in the regulations or define them according to their type and function.2 if the dlt trading facility admits derivatives designed as dlt securities, only products without fair value or leverage components may be admitted to trading. 3 dlt securities and other assets which significantly hinder the implementation of the provisions of the anti-money laundering act of 10 october 199724, or which could adversely affect the stability and integrity of the financial system may not be admitted. finma can define these dlt securities and assets in more detail.4 the dlt trading facility shall make provision in the regulations for revoking the admission of dlt securities and other assets.5 the requirements under article 34 apply by analogy.24 sr 955.0art. 58g minimum requirements for the admission of dlt securities and regular auditing (art. 73d para. 3 finmia)1 dlt securities may be admitted by the dlt trading facility if the distributed ledger meets at least the requirements under article 973d paragraph 2 of the co25.2 if the distributed ledger is not operated by the relevant dlt trading facility itself, the facility shall audit the ledger before admitting the relevant dlt securities and regularly thereafter, but at least once a year, for compliance with the requirements under paragraph 1.3 it shall inform its participants of the audits performed and of the findings.25 sr 220art. 58h disclosures on transactions (art. 73d finmia)1 the dlt trading facility shall monitor all transactions conducted on its systems with admitted dlt securities. it shall disclose this data free of charge to all approved dlt trading facilities.2 if the dlt securities admitted for trading on the dlt trading facility are based on securities which are also admitted for trading on a swiss trading venue, the dlt trading facility shall disclose to that trading venue, free of charge, all transactions with these dlt securities.3 the trading venues and dlt trading facilities shall use this data exclusively to fulfil their tasks in the area of trade monitoring.4 finma may regulate the details of these disclosures.art. 58i duty of information (art. 73e para. 1 finmia)1 dlt trading facilities with private participants shall provide them with the associated prospectus or key information document for each dlt security admitted to the dlt trading facility.2 they shall inform these participants of the following aspects of the distributed ledger for the relevant dlt securities:a. its governance; andb. its technical risks, specifically the risk of loss.3 moreover, they shall immediately publish information on the transactions in other assets carried out on the dlt trading facility, in particular the price, the volume and the time of the transactions.art. 58j other requirements relating to services in the area of central custody, clearing or settlement (art. 73e para. 2 finmia)1 unless otherwise specified in this section, the requirements for central securities depositories under articles 62 to 73 of the finmia and 52 to 58 of this ordinance apply by analogy for dlt trading facilities that provide services in accordance with article 73a paragraph 1 letter b or c of the finmia.2 the segregation in accordance with article 69 of the finmia may take place in the distributed ledger underlying the dlt securities or in the systems of the dlt trading facility.3 a dlt trading facility may also enable the settlement of payments in another manner than that provided for in article 65 paragraph 1 of the finmia if it involves a finma-supervised institution for the purpose.4 for a dlt trading facility, liquidity in a currency in accordance with article 67 paragraph 1 of the finmia also includes cryptobased assets, insofar as the payment obligation is to be fulfilled in the same virtual currency.5 in derogation from article 52, the dlt trading facility does not have to set up a user committee.section 3 special requirements for small dlt trading facilities art. 58k small dlt trading facilities (art. 73f finmia)1 a dlt trading facility is deemed to be small if the following thresholds are undercut in relation to dlt securities:a. annual trading volume: chf 250 million;b. custody volume: chf 100 million; andc. annual settlement volume: chf 250 million.2 if a threshold is reached or exceeded, the dlt trading facility must report this to finma within 10 days. it must submit a modified application for authorisation as provided for in the finmia to finma within 90 days.3 the trading facility shall no longer be deemed to be small after 90 days from the time at which a threshold is reached or exceeded. the dlt trading facility may, however, continue to apply the eased requirements for small dlt trading facilities until finma makes its decision on the authorisation application.4 where this serves the protective purpose of the finmia, finma may prohibit the dlt trading facility from admitting further participants until the decision is made on the application for authorisation.art. 58l easing of requirements for small dlt trading facilities (art. 73f finmia)1 in derogation from the finmia and from this ordinance, the following eased requirements apply for small dlt trading facilities:a. in derogation from article 8 paragraph 2 second sentence of the finmia and article 8 paragraph 2 second sentence of this ordinance, it is sufficient if the majority of the members of the bodies responsible for overall management, supervision and control are not members of the body responsible for business management.b. if the provision of ancillary services not subject to authorisation or approval by virtue of financial market legislation increases the risks of a dlt trading facility, finma may require exclusively organisational measures (art. 10 para. 3 of the finmia). if the dlt trading facility also operates an organised trading facility (art. 43 of the finmia), finma may require additional capital and sufficient liquidity.c. the business continuity requirements may also be met by having another authorisation holder take over the operation of the dlt trading facility in the event of disruptions (art. 13 para. 1 of the finmia). the strategy and business impact analysis in accordance with article 14 of this ordinance may make provision for the operation of the dlt trading facility to be transferred to a third party.d. the regulatory tasks delegated to the dlt trading facility may also be carried out by a non-independent body (art. 27 para. 2 of the finmia).e. an independent appeal body is not necessary (art. 37 of the finmia).f. an internal audit is not necessary (art. 8 para. 1 lit. c of this ordinance).2 for small dlt trading facilities that provide services in accordance with article 73a paragraph 1 letter b or c of the finmia, the following eased requirements apply in addition, in derogation from the finmia:a. the capital requirements do not apply (art. 66 of the finmia).b. the liquidity requirements do not apply (art. 67 of the finmia).art. 58m duty of information for small dlt trading facilities (art. 73f finmia)before establishing a business relationship, small dlt trading facilities shall inform their clients, in writing or in another form demonstrable by text, of the specific eased requirements which the small dlt trading facility is applying.art. 58n minimum capital for small dlt trading facilities (art. 73f finmia)for small dlt trading facilities, the minimum capital requirement is:a. chf 500,000 if they do not provide services in accordance with article 73a paragraph 1 letter b or c;b. 5% of the dlt securities in custody, but at least chf 500,000 if they provide services in accordance with article 73a paragraph 1 letter b or c.art. 58o prohibition on lending (art. 73f finmia)small dlt trading facilities may not grant loans.chapter 5 trade repositories art. 59 ancillary services (art. 10 finmia)if the trade repository offers ancillary services, it must provide these in a way that is operationally segregated from its essential services.art. 60 data retention (art. 75 finmia)1 the trade repository must do the following with respect to the reported data:a. record it immediately and completely;b. save it both online and offline;c. copy it to an appropriate extent.2 it shall record all changes to the reported data, providing information on: a. at whose request the change was made;b. the reasons for the change;c. the time the change was made;d. and providing a clear description of the change.art. 61 publication of data (art. 76 finmia)1 the trade repository shall publish at least weekly the open positions, transaction volumes and values for the following derivative categories:a. commodity derivatives;b. credit derivatives;c. currency derivatives;d. equity derivatives;e. interest rate derivatives;f. other derivatives.2 the data must be easily accessible for the public.3 it should not be possible to draw conclusions with respect to a contracting party on the basis of the data published.art. 62 data access for swiss authorities (art. 77 finmia)1 the trade repository shall grant the following authorities access to the data, whereby paragraph 2 remains reserved:a. finma: all transaction data;b. the snb: all transaction data;c. the swiss takeover board: derivative transaction data with a connection to takeover proceedings;d. the federal audit oversight authority: derivative transaction data that it requires in specific supervisory proceedings involving audit firms;e. the competition commission: derivative transaction data with a connection to proceedings in the field of competition;f. the electricity commission: transaction data on derivatives whose underlying instrument relates to electricity.2 the trade repository shall reject enquiries concerning transactions and positions of central banks.art. 63 data access for foreign authorities (art. 78 finmia)1 the trade repository shall grant foreign financial market supervisory authorities access to transaction data solely for the purposes of enforcing financial market law under their responsibility.2 the trade repository shall reject enquiries concerning transactions and positions of central banks.art. 64 procedure (art. 77 and 78 finmia)1 the access of authorities shall be structured in line with the communication protocols, data exchange standards and reference data that are commonplace at the international level.2 the authorities must take suitable measures to ensure that only the employees who directly require the data for exercising their activities gain access to the data.3 the trade repository shall provide the authorities with a form for their enquiries in which the following information is required:a. details of the authority;b. reason for the data enquiry and relevance to its mandate;c. legal basis for the data enquiry;d. a description of the data it is requesting;e. an illustration of the measures it has taken to ensure the confidentiality of data received.4 from foreign authorities, it shall additionally request confirmation that an agreement is in place between the foreign and swiss authorities in accordance with article 78 paragraph 1 finmia.5 the trade repository shall keep a record of information on data access.art. 65 data transmission to private individuals (art. 79 finmia)1 the trade repository shall provide private individuals with a form for their enquiries in which the following information is required:a. personal details;b. reason for the data enquiry;c. a description of the data being requested.2 it should not be possible to draw conclusions with respect to another contracting party on the basis of the data transferred.chapter 6 payment systems art. 66 clearing and settlement principles (art. 82 finmia)1 the payment system shall ensure the proper and lawful clearing and settlement of payment obligations.2 it shall specify the time:a. after which a payment order is irrevocable and may no longer be changed;b. when a payment is settled.3 payment systems that use a common settlement infrastructure shall establish identical times for:a. the entry of payment orders into the system of the common settlement infrastructure; b. the irrevocability of payment orders.4 the payment system shall settle payments in real time if possible, but at the latest at the end of the value day.art. 67 collateral (art. 82 finmia)1 the payment system shall use appropriate measures to cover risks arising from the granting of credit.2 it shall accept only liquid collateral with low credit and market risks. it shall value the collateral prudently.3 it shall avoid concentration risks in the collateral and shall ensure that it can have prompt access to the collateral.4 it shall make provision for procedures by means of which it can review the models and parameters on which its risk management is based, and shall conduct these reviews on a regular basis.5 if it holds its own assets or the collateral and assets of participants with third parties, it shall minimise the associated risks. in particular, it shall hold the collateral and assets with creditworthy financial intermediaries which, insofar as possible, are subject to supervision.art. 68 fulfilment of payment obligations (art. 82 finmia)1 the payment system shall enable the settlement of payments by transferring sight deposits held with a central bank.2 if this is impossible or impractical, it shall use a means of payment which carries no or only low credit and liquidity risks. it shall minimise these risks and monitor them on an ongoing basis.3 where exchange-of-value settlement is concerned, the payment system shall enable participants to eliminate their principal risk by ensuring that the settlement of one obligation occurs if and only if the settlement of the other obligation is guaranteed.art. 69 capital adequacy (art. 82 finmia)in the case of systemically important payment systems, the capital must suffice to implement the plan set out in article 72, but must at least be sufficient to cover ongoing operating expenditure for six months.art. 70 liquidity (art. 82 finmia)1 the payment system must have sufficient liquidity in accordance with article 58 paragraph 1:a. to fulfil its payment obligations in all currencies under extreme but plausible market conditions, even in the event of the default of the participant to which it has its greatest exposure; andb. to be able to duly execute its services and activities.2 it shall invest its financial resources solely in cash or in liquid financial instruments with a low market and credit risk.3 it shall regularly review compliance with the requirements set out in paragraph 1 under various stress scenarios. in doing so, it shall apply collateral discounts (haircuts) to the liquidity that would be appropriate even under extreme but plausible market conditions. it shall diversify its sources of liquidity.4 the investment strategy of the payment system must be in harmony with its risk management strategy. it must avoid concentration risks.chapter 7 supervision and oversight art. 71 auditing (art. 84 para. 1 finmia)1 the audit firm of the financial market infrastructure shall review whether the latter fulfils the relevant duties as set forth in legislation, this ordinance and its own contractual basis.2 the audit firm of the trading venue shall coordinate its audit with the latter's trading supervisory body and shall pass on its audit reports to this body.art. 72 voluntary authorisation return (art. 86 finmia)1 systemically important financial market infrastructures shall draw up a plan as to how their systemically important business processes are to be terminated in an orderly way in the event of a voluntary cessation of business. the orderly wind-down plan shall take into account the period of time required for the participants to sign up to an alternative financial market infrastructure. it must be approved by the body responsible for governance, supervision and control.2 paragraph 1 also applies if the cessation of a systemically important business process does not lead to the return of the authorisation.chapter 8 insolvency law provisions art. 73 system protection (art. 89 finmia)1 the orders of participants include in particular instructions that:a. directly affect the settlement of payments or securities transactions; orb. serve the purpose of providing the financing or collateral required under the system's rules.2 a payment or transfer order may not be revoked either by a participant in the system or by a third party from the time set out in article 62 paragraph 4 letter a finmia and article 66 paragraph 2 letter a of this ordinance.art. 74 primacy of agreements in the event of insolvency (art. 90 and 91 finmia)1 the offsetting agreements shall include in particular netting provisions as well as the default agreements contained in bilateral or framework agreements.2 the transfer of receivables and liabilities is understood to mean in particular the assignment, cancellation, refounding via agreement and the closure of a position and subsequent reopening of an equivalent position.3 in the event of a transfer of a position, any collateral in the form of securities or other assets whose value can be determined objectively are automatically transferred, insofar as they were passed on within the transaction chain, to the taking-over participant.art. 75 postponement of the termination of contracts (art. 92 finmia)1 the following contracts in particular may be postponed:a. contracts on the purchase, sale, repurchase and lending of securities and book-entry securities and on trading in options on securities and book-entry securities;b. contracts on the purchase and sale with future delivery of commodities and on trading in options on commodities or on commodity deliveries;c. contracts on the purchase, sale or transfer of goods, services, rights or interest at a price and future date determined in advance (futures trades/forward trading);d. contracts on swap transactions relating to currencies, precious metals, loans and securities, book-entry securities, commodities and their indices.2 the financial market infrastructure shall ensure that new agreements or amendments to existing agreements which are subject to foreign law or envisage a foreign jurisdiction are agreed only if the counterparty recognises a postponement of the termination of agreements in accordance with article 30a banka.title 3 market conduct chapter 1 derivatives trading section 1 general art. 76 collective investment schemes (art. 93 para. 2 lit. e and f finmia)whether a collective investment scheme counts as a financial counterparty or as a small financial counterparty is determined on the basis of the otc derivatives transactions carried out for its own account in accordance with article 99 finmia, regardless of whether it can be ascribed legal personality or not.art. 77 companies (art. 93 para. 3 finmia)1 under the finmia, a company is deemed to be any legal entity entered in the commercial register.2 also classified as companies are foreign companies engaged in economic activities that are legal entities according to the law applicable to them, as well as trusts and similar constructs.art. 78 branches (art. 93 para. 5 finmia) if finma determines that a swiss branch of a foreign counterparty is subject to regulation that does not correspond to the statutory requirements to a significant extent, it can subject the derivatives transactions carried out by the branch in question to articles 93 to 117 finmia on derivatives trading.art. 79 exceptions for other public sector bodies (art. 94 para. 2 finmia)1 derivatives with the following counterparties are subject to the reporting duty set out in article 104 finmia, but not to the other derivatives trading duties:a. foreign central banks;b. the ecb;c. the efsf;d. the esm;e. official bodies or state departments that are responsible for or involved in administering the national debt; f. financial institutions set up by a central government or by the government of a subordinate regional body in order to grant promotional loans on the state's behalf on a non-competitive, non-profit-oriented basis.2 derivatives transactions with foreign central banks and with the bodies listed under paragraph 1 letter e may be exempted from the reporting duty provided reciprocity is granted. 3 the fdf shall publish a list of the foreign bodies covered by paragraph 2.art. 80 excluded derivatives (art. 94 para. 4 finmia)in addition to the derivatives listed under article 94 paragraph 3 finmia, the following derivatives are excluded from articles 93 to 117 finmia concerning derivatives trading:a. derivatives issued in the form of a security or uncertificated security; b. derivatives accepted in the form of a deposit.art. 81 fulfilment of duties under foreign law (art. 95 finmia)1 finma shall recognise foreign law as equivalent if the duties that apply for derivatives trading and the provisions on supervision are comparable with the swiss equivalent in their material impact.2 this condition is met with respect to the:a. clearing duty under article 97 finmia, if the clearing in question largely reduces the systemic and counterparty risks of standardised otc derivatives;b. reporting duty under article 104 finmia, if the report contains at least the information set out in the article 105 paragraph 2 finmia;c. the risk mitigation duty under articles 107 to 110 finmia, if the corresponding measures largely reduce the systemic and counterparty risks of non-standardised otc derivatives;d. the platform trading duty under article 112 finmia, if pre-trade and post-trade transparency in the derivatives market is appropriately improved through the trading of standardised derivatives via trading venues or organised trading facilities. 3 a swiss counterparty can fulfil its derivatives trading duties with another swiss counterparty under foreign supervisory legislation recognised by finma if the derivatives transaction in question or a counterparty to this transaction has an objective connection with this legislation. the simply choice of law does not create an objective connection.art. 82 intra-group flow of information (art. 96 finmia)if the counterparty commissions group companies and branches in switzerland and abroad with the fulfilment of its duties under articles 93 to 117 finmia, it may exchange all necessary information in this respect with these group companies and branches, including client data, without this requiring the approval of the client in question. art. 83 declaration concerning a counterparty's characteristics (art. 97 para. 3 finmia)1 the declaration of a counterparty with respect to its characteristics applies with respect to all the duties set out in this chapter.2 counterparties must inform the counterparties with which it regularly enters into derivatives transactions about any change in its status in a timely manner.art. 84 currency swaps and currency forward transactions (art. 101 para. 3, 107 para. 2, 113 para. 3 finmia)the currency swaps and currency forward transactions that are exempt from the clearing duty (art. 97 finmia), the risk mitigation duties (art. 107 to 111 finmia) and the platform trading duty (art. 112 finmia) comprise all transactions for the exchange of currencies in which real execution is guaranteed, irrespective of the clearing method.section 2 clearing via a central counterparty art. 85 commencement of duty (art. 97 and 101 para. 2 finmia)the duty to clear derivatives transactions via authorised or recognised central counterparties applies from the point at which finma publishes the clearing duty for the derivative category in question:a. after the expiry of six months: for derivatives transactions which participants in an authorised or recognised central counterparty conclude anew with one another;b. after the expiry of 12 months: for derivatives transactions which:1. participants in an authorised or recognised central counterparty conclude anew with other financial counterparties that are not small, or2. other financial counterparties that are not small conclude anew with one another;c. after the expiry of 18 months: for all other derivatives transactions concluded anew.art. 86 transactions not covered (art. 94 para. 4 and 97 para. 2 finmia)261 transactions with counterparties that are subject to the clearing duty for the first time in accordance with article 98 paragraph 2 or article 99 paragraph 2 finmia do not need to be cleared through a central counterparty if they were concluded prior to subjection to the clearing duty.2 derivatives transactions with counterparties which have their registered office or domicile in switzerland to which the derivatives trading provisions do not apply do not have to be cleared through a central counterparty.3 derivatives transactions in which a covered bond issuer or a legal entity of a cover pool for covered bonds is involved do not have to be cleared via a central counterparty if the following prerequisites are met:a. the derivatives transaction serves the sole purpose of hedging interest rate or currency risks arising from the covered bond for the cover pool.b. the derivatives transaction is not terminated in the event of restructuring or bankruptcy proceedings brought against the covered bond issuer or the legal entity of the cover pool.c. the counterparty of the covered bond issuer or of the legal entity of the cover pool is at least pari passu with the covered bond creditors, except in cases where:the counterparty is the defaulting or affected party; orthe counterparty renounces pari passu status.d. the other derivatives transactions entered into as part of the netting set are linked to the cover pool.e. the cover pool's collateral ratio is at least 102%.2726 amended by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).27 inserted by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).art. 87 derivatives transactions intended to reduce risks (art. 98 para. 3 finmia)derivatives transactions intended to reduce risks are directly associated with the business activity, liquidity management or asset management of the non-financial counterparty if they:a. serve to hedge the risks of a change in value of assets or liabilities which the non-financial counterparty or its group can reasonably be considered to hold, in keeping with its business activity;b. serve to hedge the risks to the value of assets and liabilities that result from indirect repercussions of fluctuations in interest rates, inflation rates, currency movements or credit risks;c. are recognised as hedging transactions according to an accounting standard that is recognised under article 1 of the ordinance of 21 november 201228 on recognised accounting standards; ord. are concluded as fixed hedging transactions in the context of the management of business risks (portfolio hedging or macro hedging) or are concluded according to the approximation method (proxy hedging) in keeping with recognised international standards.28 sr 221.432art. 88 thresholds (art. 100 finmia)1 the following thresholds apply to the average gross positions in outstanding otc derivatives transactions of non-financial counterparties:a. credit derivatives: chf 1.1 billion;b. equity derivatives: chf 1.1 billion;c. interest rate derivatives: chf 3.3 billion;d. currency derivatives: chf 3.3 billion;e. commodity derivatives and other derivatives: chf 3.3 billion.2 where the average gross position of all outstanding otc derivatives transactions of financial counterparties are concerned, a threshold of chf 8 billion applies at financial or insurance group level.art. 89 average gross position (art. 100 finmia)the following rules apply to the calculation of the average gross position of outstanding otc derivatives transactions:a. the latest exchange rates shall be used in the calculation.b. positions from otc derivatives transactions are factored into the calculation even if they are voluntarily cleared centrally.c. positions of fully-consolidated group companies, including those with their registered office outside switzerland, shall be factored in irrespective of the registered office of the parent company if these group companies would count as financial or non-financial counterparties in switzerland.d. adjustments to the nominal amount during the term shall be factored in if these were contractually envisaged at the start of the transaction.e. transactions in the subsequent transaction chain of hedging transactions of a non-financial counterparty likewise count as hedging transactions.f. the netting of opposing positions in derivatives is permitted insofar as these positions relate to the same underlying instrument, are denominated in the same currency and have the same maturity date. in such case, the reference interest rates for variable-interest positions, the fixed interest rates and the interest-setting reference dates must be identical.g. derivatives not covered by the clearing duty under article 101 paragraph 3 letter b finmia shall not be factored in.art. 90 cross-border transactions (art. 94 para. 2 and 102 finmia)cross-border transactions do not have to be cleared through a central counterparty if the foreign counterparty:a. has its registered office in a country whose legislation is recognised by finma as being equivalent; andb. the transactions in question are not subject to the clearing duty under the legislation of that country.art. 91 intra-group transactions (art. 103 lit. b finmia)non-financial counterparties are subject to appropriate centralised risk evaluation, measurement and control procedures if they maintain professional central treasury operations.section 3 reporting to a trade repository art. 92 duty (art. 104 finmia)1 derivatives transactions with parties that are exempted from the provisions on derivatives trading are to be reported by the counterparty subject to the legislation.2 subject to article 104 paragraph 4 finmia, centrally cleared transactions that are traded via a trading venue or an organised trading facility are to be reported by the counterparty closest to the central counterparty in the transaction chain.3 the definition of selling counterparty shall be based on conventional industry and recognised international standards, whereby agreement on another interpretation remains reserved.4 a counterparty may submit data to a trade repository in switzerland or abroad without the approval of, or without informing, its counterparty or an end client, as long as this is done in fulfilment of the duties set out in title 3 finmia, whereby article 105 paragraph 4 finmia remains reserved.art. 93 content of reports (art. 105 para. 2 finmia)reports are to contain the information set out in annex 2.section 4 risk mitigation art. 94 duties (art. 107 to 111 finmia)1 the risk mitigation duties apply only to derivatives transactions between companies.2 if finma determines that a derivatives transaction should no longer be subject to the clearing duty, it shall inform the counterparties promptly in this respect, granting them an appropriate period in which to make the necessary adjustments. art. 95 confirmation of contractual terms (art. 108 lit. a finmia)1 the contractual terms must be reciprocally confirmed at the latest within two business days of the conclusion of the otc derivatives transaction in question. 2 otc derivatives transactions concluded after 4 p.m. must be confirmed at the latest within three business days of the transaction being concluded.3 the deadlines that apply for complex transactions and small counterparties shall be extended by one business day. 4 the counterparties may agree that an otc derivatives transaction should also be considered confirmed if one of the counterparties does not raise any objection to a unilateral confirmation. art. 96 portfolio reconciliation (art. 108 lit. b finmia)1 the details for reconciling the portfolios must be agreed prior to completing an otc derivatives transaction.2 the portfolio reconciliation shall encompass the key terms of the concluded otc derivatives transactions and their valuation.3 it may also be carried out by a third party appointed by one of the counterparties.4 it must be carried out:a. every business day if there are 500 or more otc derivatives transactions outstanding between the counterparties;b. once a week if there are between 51 and 499 otc derivatives transactions outstanding between the counterparties at any point during the week;c. once a quarter if there are 50 or less otc derivatives transactions outstanding between the counterparties at any point during the quarter.5 derivatives not covered by the clearing duty under article 101 paragraph 3 letter b finmia are not factored in for purposes of determining outstanding transactions in accordance with paragraph 4.art. 97 dispute resolution (art. 108 lit. c finmia)1 the place of jurisdiction and the applicable law for any disputes must be agreed at the latest when an otc derivatives transaction is concluded.2 procedures are to be set out in the agreement:a. for the identification, recording and monitoring of disputes in connection with the recognition or valuation of the transaction and the exchange of collateral between the counterparties; the record of the dispute has to encompass at least how long the dispute has been going on for up to that point, the counterparty and the disputed amount;b. for the swift resolution of disputes and for a special process for disputes that cannot be resolved within five business days.art. 98 portfolio compression (art. 108 lit. d finmia)1 portfolio compression need not be undertaken if it would not lead to any meaningful reduction in counterparty risk and the counterparty subject to the obligation documents this at least every six months. 2 portfolio compression would not lead to any meaningful reduction in counterparty risk in particular if:a. the portfolio contains no or only a few offsettable otc derivatives transactions;b. such activity would jeopardise the effectiveness of internal risk processes and controls.3 portfolio compression also need not be undertaken if the corresponding work and expense would be disproportionate to the anticipated reduction in counterparty risk.art. 99 valuation of outstanding transactions (art. 109 finmia)1 market conditions that do not permit the valuation of otc derivatives transactions are deemed to hold sway if:a. the market in question is inactive; orb. the range of plausible fair value estimates is significant and the probabilities of the various estimates cannot be reasonably assessed.2 a market for an otc derivatives transaction is viewed as inactive if:a. the quoted prices are not automatically and regularly available; andb. the prices available do not represent market transactions that take place regularly and under standard market conditions.3 if a valuation is permissible on the basis of model prices, the model must:a. take into consideration all factors that the counterparties would take into account when determining a price, including the greatest possible use of market valuation information;b. be in line with recognised economic processes for determining the prices of financial instruments;c. be calibrated using the prices of observable latest market transactions with the same financial instrument, be reviewed with respect to its validity or be based on available and observable market data;d. be monitored and validated independently as part of internal risk management processes;e. be properly documented and approved by the management body, the executive management or a risk committee delegated by the latter, and be reviewed at least once a year.art. 10029 duty to exchange collateral (art. 110 finmia)1 if counterparties have to exchange collateral, this shall take the form of:a. an initial margin that is suitable for protecting the transaction partners from the potential risk that there could be market price changes during the closing and replacement of the position in the event of default on the part of a counterparty; andb. a variation margin that is suitable for protecting the transaction partners from the ongoing risk of market price changes following execution of the transaction.2 the duty to supply an initial margin applies only to counterparties whose aggregated month-end average gross position of otc derivatives not cleared through a central counterparty, including derivatives in accordance with article 107 paragraph 2 letter b of the finmia, is greater than chf 8 billion at group or financial or insurance group level for the months of march, april and may of the year; in this regard, intra-group transactions are not counted several times from the viewpoint of each group company.3 the duty under paragraph 2 always applies for the entirety of the subsequent calendar year.29 amended by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).art. 100a30 exceptions to the duty to exchange collateral (art. 110 finmia)1 the exchange of initial margins and variation margins may be waived if: a. the collateral to be exchanged would amount to less than chf 500,000;b. small non-financial counterparties are involved in the transaction.2 the exchange of initial margins may be waived if such margins would have to be provided for the currency components of currency derivatives where the nominal amount and interest in one currency are exchanged against the nominal amount and interest in another currency at a predefined time and according to a predefined method.3 if one of the counterparties to a derivatives transaction is a covered bond issuer or a legal entity of a cover pool for covered bonds, that counterparty may, subject to the conditions set out in article 86 paragraph 3, agree with its counterparty that:a. an exchange of initial margins will be dispensed with; orb. the covered bond issuer or the legal entity of a cover pool for covered bonds will pay no variation margins, and the counterparty will pay variation margins in cash.30 inserted by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).art. 100b31 initial margin reduction (art. 110 finmia)1 the counterparties may reduce initial margins by no more than chf 50 million.2 the amount of the initial margins of a counterparty that belongs to a financial or insurance group or a group is determined taking all of the group companies into account.3 in the case of intra-group transactions, the initial margin may be reduced by no more than chf 10 million.31 inserted by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).art. 10132 timing of initial margin calculation and payment (art. 110 finmia)1 the initial margin must be calculated for the first time within one business day of the execution of the derivatives transaction. it must be recalculated regularly, but at least every ten business days.2 if both of the counterparties are in the same time zone, the calculation is to be based on the previous day's netting set. if the two counterparties are not in the same time zone, the calculation is to be based on the netting set transactions that were executed on the previous day before 4pm in the earlier of the two time zones.3 the initial margin is to be paid on the respective calculation day according to paragraph 1. the customary timeframes apply for settlement.32 amended by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).art. 101a33 timing of variation margin calculation and payment (art. 110 finmia)1 variation margins are to be recalculated at least every business day. 2 the basis of the calculation is the valuation of the outstanding transaction in accordance with article 109 of the finmia. for all other matters, article 101 paragraph 2 is applicable by analogy.3 variation margins are to be paid on the respective calculation day according to paragraph 1. the customary timeframes apply for settlement.4 notwithstanding paragraph 3, variation margins may be paid up to two business days after the calculation day if:a. a counterparty not obliged to pay an initial margin provided additional collateral before the calculation day and the following conditions are met:1. the additional collateral was calculated taking account of a 99% one-tailed confidence interval for the valuation of the otc derivatives transactions to be secured for the relevant margin period of risk,2. the margin period of risk is at least as many days as the number of days between the calculation day and the variation margin payment day, whereby the calculation day and payment day also have to be counted; or b. the counterparties paid initial margins taking account of a margin period of risk spanning at least the following periods: 1. the period from the last variation margin payment day to the possible counterparty default, plus the days from the calculation day to the variation margin payment day, and2. the period deemed necessary to replace the otc derivatives transaction concerned or to hedge the resulting risks.33 inserted by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).art. 10234 treatment of initial margins (art. 110 finmia)1 no reciprocal offsetting may apply to initial margins. 2 initial margins paid in cash must be held with a central bank or a swiss bank independent of the paying counterparty or an independent foreign bank subject to appropriate regulation and supervision.3 initial margins not paid in cash may be held by the receiving counterparty or by a third party mandated by the counterparty. the third party may be the paying counterparty.4 the use of initial margins for other purposes is not permissible. this does not apply to the reutilisation of initial margins paid in cash by a custodial third party, provided it is contractually ensured that the reutilisation does not adversely affect the security and its usability. 5 the receiving counterparty and the custodial third party must keep the non-cash initial margins received separate from their own assets and conclude a segregation agreement. this shall prescribe in particular that: a. the initial margin payment should be immediately available to the receiving counterparty in the event of bankruptcy or default on the part of the other counterparty; andb. the counterparty making the initial margin payment should be sufficiently hedged against the possibility of bankruptcy or default on the part of the receiving party or the custodial third party.34 amended by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).art. 103 calculation of initial margins (art. 110 finmia)1 the initial margin is calculated as a percentage discount on the gross positions of the individual derivatives transactions. derivatives transactions that form the object of a netting agreement concluded between the counterparties (netting set) may be pooled.2 it shall amount to the following for each derivative category:a. 1% for interest rate derivatives with a residual term of up to two years;b. 2% for credit derivatives with a residual term of up to two years and interest rate derivatives with a residual term of two to five years;c. 4% for interest rate derivatives with a residual term of more than five years;d. 5% for credit derivatives with a residual term of two to five years;e. 6% for foreign currency derivatives;f. 10% for credit derivatives with a residual term of more than five years;g. 15% for equity, commodity and all other derivatives.3 if a transaction can be classified in more than one derivative category in accordance with paragraph 2, it shall be assigned:a. to the derivative category with the greatest risk factor insofar as this can be clearly identified in the transaction in question;b. to the derivative category with the highest percentage discount if the greatest risk factor cannot be clearly identified in the transaction in question.4 the initial margin for a netting set is calculated in accordance with annex 3.5 financial counterparties that use a market risk model approach approved by finma in accordance with article 88 cao35 for calculating positions according to risk weighting, or that use a market model approved by finma in accordance with articles 50a to 50d of the insurance oversight ordinance of 9 november 200536 for calculating solvency as part of the swiss solvency test (sst), may calculate the initial margin payment on that basis so long as no internationally harmonised standard model that is recognised throughout the industry has been established. finma shall regulate the technical criteria that the model approach or the market model must meet.6 .3735 sr 952.0336 sr 961.01137 repealed by no i of the o of 5 july 2017, with effect from 1 aug. 2017 (as 2017 3715).art. 104 admissible collateral for initial and variation margins (art. 110 finmia)1 the following count as admissible collateral:a. cash deposits, including medium-term notes or comparable instruments issued by a bank;b. high-quality debt securities issued by a central government, a central bank, a public-law entity with the right to levy taxes, the bis, the international monetary fund, the esm and multilateral development banks;c. high-quality debt securities of companies;d. high-quality mortgage bonds (pfandbriefe) and other covered debt securities;e. shares of a major index in accordance with article 4 letter b cao38, including convertible bonds;f. gold;g. money market funds;h.39 units in securities funds in accordance with article 53 of the federal act of 23 june 200640 on collective investment schemes, if:1. the units are valued daily, and2. the securities funds invest solely in assets in accordance with letters a to g or in derivatives that hedge such assets.2 collateral is deemed to be high value if it is highly liquid, has a strong track record of preserving its value even in a period of stress and can be monetised within an appropriate period.3 resecuritisation positions are not admissible as collateral.4 the collateral must be valued anew each day.38 sr 952.0339 inserted by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).40 sr 951.31art. 105 discounts on collateral (art. 110 finmia)1 the value of the collateral should be marked down by means of discounts on the market value in accordance with annex 4.2 an additional discount of 8% must be applied in cases where: a. the currency of the initial margin paid is different from the currency agreed for the termination payment;b. the currency of non-cash variation margins provided is different from the currencies agreed in the derivatives contract, the netting framework agreement or the credit support annex for variation margins.413 counterparties may ascertain the discounts that apply using their own estimates of market price and exchange rate volatility if they meet the qualitative and quantitative minimum standards in accordance with annex 5.4 they shall take measures to:a. exclude risk concentrations with respect to certain types of collateral;b. rule out the possibility that the collateral accepted was issued by the collateral provider or a company associated with the collateral provider;c. avoid key correlation risks with respect to the collateral received.41 amended by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).art. 106 cross-border transactions (art. 94 para. 2 and 107 finmia)1 the duty to exchange collateral in the case of cross-border transactions shall also apply, subject to the exemption envisaged in paragraphs 2, 2bis and 2ter, if the foreign counterparty of the swiss counterparty which has the duty to exchange collateral would also be subject to this duty if it had its registered office in switzerland.422 no collateral has to be exchanged if the foreign counterparty:a. has its registered office in a country whose legislation is recognised by finma as being equivalent; andb. does not have to exchange collateral under the legislation of that country.2bis the swiss counterparty may dispense with the payment of initial margins and variation margins to the foreign counterparty if an independent legal review showed that: a. the netting or guarantee agreements vis--vis the foreign counterparty are not definitely legally enforceable at all times; orb. agreements on the separation of collateral are not in line with internationally recognised standards.432ter it can dispense with requiring the foreign counterparty to pay initial margins and variation margins if the conditions under paragraph 2bis letter a or b are met and: a. an independent legal review showed that the acceptance of initial or variation margin payments from the foreign counterparty in accordance with the provisions of the finmia or this ordinance would not be possible; andb. the unsecured transactions concluded and outstanding after the entry into force of the duty to call for the payment of initial margins and variation margins account for less than 2.5% of all otc derivatives transactions, whereby intra-group transactions are not to be included in the calculation.443 the other risk mitigation duties that would require the involvement of the counterparty may be fulfilled unilaterally insofar as this corresponds to recognised international standards.42 amended by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).43 inserted by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).44 inserted by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).art. 107 intra-group transactions (art. 111 finmia)1 insolvency law provisions do not count as legal impediments in the sense of article 111 letter c finmia.2 furthermore, article 91 applies.section 5 trading via trading venues and organised trading facilities art. 108 commencement of duty (art. 112 finmia)the duty to trade a derivatives transaction via a trading venue or organised trading facility in accordance with article 112 finmia (platform trading duty) shall apply from the point at which finma publishes such a duty for the derivatives transaction in question:a. after the expiry of six months: for derivatives transactions which participants in an authorised or recognised central counterparty conclude anew with one another; b. after the expiry of nine months: for derivatives transactions: 1. which participants in an authorised or recognised central counterparty conclude anew with other financial counterparties, or2. which other financial counterparties that are not small conclude anew with one another;c. after the expiry of 12 months: for all other derivatives transactions concluded anew.art. 109 transactions not subject to the trading duty (art. 112 finmia)1 counterparties newly subject to the platform trading duty in accordance with article 98 paragraph 2 or article 99 paragraph 2 finmia do not have to trade transactions they concluded prior to the start of this duty via authorised or recognised trading venues or via operators of an organised trading facility. 2 derivatives transactions with counterparties in accordance with article 94 paragraph 1 finmia are not covered by the platform trading duty.art. 110 trading via foreign organised trading facilities (art. 95 and 112 finmia)the platform trading duty may be fulfilled through trading via a foreign organised trading facility if this facility is subject to foreign regulation that has been recognised by finma as being equivalent in analogous application of article 41 finmia.art. 111 cross-border transactions (art. 94 para. 2 and 114 finmia)cross-border transactions do not have to be traded through a trading venue or an organised trading facility if the foreign counterparty:a. has its registered office in a country whose legislation is recognised by finma as being equivalent;b. is not subject to the platform trading duty under the legislation of that country.art. 112 intra-group transactions (art. 94 para. 2 and 115 finmia)for intra-group transactions, article 91 applies.section 6 documentation and auditing art. 113 documentation (art. 116 finmia)1 financial and non-financial counterparties shall regulate, in writing or in another form that that allows for proof by text, the processes with which they ensure fulfilment of the duties with respect to:45a. clearing via a central counterparty (art. 97 finmia);b. determining thresholds (art. 100 finmia);c. reporting to a trade repository (art. 104 finmia); d. risk mitigation (art. 107 finmia);e. trading via trading venues and organised trading facilities (art. 112 finmia).1bis the transitional period under paragraph 1 is extended until 30 september 2022.462 non-financial counterparties which do not want to trade in derivatives may set out this resolution in writing or in another form that that allows for proof by text, in which case they are exempt from the duty set out in paragraph 1.473 financial counterparties appointed by other financial or non-financial counterparties to implement their duties shall regulate the corresponding processes in accordance with paragraph 1 by analogy.45 amended by annex 1 no ii 14 of the financial institutions ordinance of 6 nov. 2019, in force since 1 jan. 2020 (as 2019 4633).46 inserted by no i of the o of 25 aug. 2021, in force since 1 oct. 2021 (as 2021 539).47 amended by annex 1 no ii 14 of the financial institutions ordinance of 6 nov. 2019, in force since 1 jan. 2020 (as 2019 4633).art. 114 auditing and notifications (art. 116 and 117 finmia)1 in the case of non-financial counterparties, the auditor shall review whether these counterparties have taken measures, in particular to comply with the derivatives trading duties set out in article 113 paragraph 1 letters a to e. 2 when carrying out its audit, it shall take account of the principles of risk-oriented review and materiality.3 the auditor in accordance with article 727 of the swiss code of obligations48 (co) shall set out the results of its audit in a comprehensive report for the board of directors in accordance with article 728b paragraph 1 co.4 the auditor in accordance with article 727a co shall inform the responsible body of the audited company of the results of the audit.5 if the auditor identifies violations of the provisions on derivatives trading, it shall incorporate these into its report in accordance with paragraphs 3 and 4. it shall set a deadline for rectification of the reported violations.6 if the audited company has not executed any derivatives transactions during the audit period and no derivatives transactions are outstanding at the end of this period, the reports required under paragraphs 3 and 4 may be waived.7 the auditor shall report the violations to the fdf if the company does not remedy the violations in accordance with paragraph 5 by the deadline set, or if it repeats these violations.48 sr 220chapter 2 disclosure of shareholdings art. 115 (art. 120 finmia)1 the equity securities of a company having its registered office abroad are deemed to be mainly listed in switzerland if the company has to fulfil at least the same duties for its listing and maintenance of its listing on a stock exchange in switzerland as companies having their registered office in switzerland.2 the stock exchange shall publish which equity securities of companies having their registered office abroad are mainly listed in switzerland.3 companies having their registered office abroad whose equity securities are mainly listed in switzerland must publish the current total number of equity securities issued and the associated voting rights.chapter 3 public takeover offers art. 116 main listing (art. 125 para. 1 finmia)for public takeover offers, article 115 regarding main listing applies. art. 117 fees for the review of a takeover offer (art. 126 para. 5 finmia)1 the swiss takeover board shall levy a fee for reviewing the takeover offer whenever such an offer is made by any party.2 the fee is calculated as a proportion of the value of the transaction:a. 0.05% for amounts up to chf 250 million;b. 0.02% for the part between chf 250 million and chf 625 million;c. 0.01% for the part in excess of chf 625 million.3 the fee shall amount to at least chf 50,000 and a maximum of chf 250,000. in special cases, the fee may be reduced or increased by up to 50% depending on the scope and complexity of the transaction in question.4 if securities listed on the stock exchange are offered for exchange, the total amount of the offer shall be ascertained on the basis of the volume-weighted average closing price over the last 60 trading days prior to submission of the offer, or prior to the offer being reported to the swiss takeover board. for illiquid or unlisted securities, the fee shall be ascertained on the basis of the auditor's valuation.5 in special cases, in particular if the target company or a qualified shareholder causes the swiss takeover board an unusual amount of work, the swiss takeover board may also require the target company or the qualified shareholder to pay a fee. this shall amount to at least chf 20,000, but no more than the fee payable by the offeror.art. 118 fees for other decisions (art. 126 para. 5 finmia)1 the swiss takeover board shall also levy a fee if it has to make a decision in other circumstances relating to takeovers, particularly on whether or not a duty to make an offer exists. it may also levy a fee for reviewing requests for information.2 the fee shall amount to up to chf 50,000 depending on the scope and complexity of the case in question. 3 if the applicant subsequently submits a takeover offer after a committee has made a decision, the swiss takeover board may subtract this amount from the fee set out in article 117.art. 119 advance payment of fees (art. 126 para. 5 finmia)the swiss takeover board may request an advance fee payment amounting to the probable fee from each party.art. 120 calculation of voting rights in the case of the cancellation of outstanding equity securities (art. 137 para. 1 finmia)in order to determine whether the threshold of 98% in accordance with article 137 paragraph 1 finmia has been exceeded or not, the following shares shall be taken into account in addition to the shares held directly:a. those with dormant voting rights;b. those held by the offeror indirectly or in concert with third parties at the time of the application for cancellation.art. 121 proceedings for cancelling outstanding equity securities (art. 137 finmia)1 if the offeror brings an action against the company in an attempt to have the latter's outstanding equity securities cancelled, the court shall make this known to the public and inform the remaining shareholders that they may participate in the proceedings. in this respect, it shall set a timeframe of at least three months, beginning on the day of the first announcement.2 the announcement shall be published three times in the swiss official gazette of commerce. in special cases, the court may arrange for appropriate publication in another manner.3 if shareholders participate in the proceedings, they shall be independent of the defendant company in their litigious acts.4 notice of the cancellation must be published immediately in the swiss official gazette of commerce, as well as elsewhere at the court's discretion.chapter 4 exceptions to the ban on insider trading and market manipulation art. 122 subject matter (art. 142 para. 2 and 143 para. 2 finmia)the provisions of this chapter shall determine the cases in which forms of conduct that fall under article 142 paragraph 1 and article 143 paragraph 1 finmia are permissible.art. 123 buyback of own equity securities (art. 142 para. 2 and 143 para. 2 finmia)1 the buyback of own equity securities at market price as part of a public buyback offer (buyback programme) in accordance with article 142 paragraph 1 letter a and article 143 paragraph 1 finmia is permissible, subject to article 124, if:the buyback programme lasts a maximum of three years;the scope of the buyback programme does not exceed a total of 10% of the capital and voting rights and 20% of the free float of the equity securities;c. the scope of the buyback does not exceed 25% of the average daily volume traded on the regular trading line during the 30 days prior to the publication of the buyback programme;d. the purchase price is not greater than:1. the last independently achieved closing price on the regular trading line, or2. the best current independent bid price on the regular trading line, provided this is below the price referred to in item 1;e. no prices are provided during breaks in trading and during the opening or closing auction;f. sales of own equity securities during the buyback programme are made solely to fulfil employee participation programmes or meet the following conditions:1. they are reported to the stock exchange on the trading day following their execution,2. they are published by the issuer no later than the fifth trading day after their execution, and3. their scope does not exceed 5% of the average daily volume traded on the regular trading line during the 30 days prior to the publication of the buyback programme;g. the key content of the buyback programme is published by means of a buyback notice before the start of the buyback programme and remains publicly accessible for the duration of the buyback programme; andh. the individual buybacks are reported to the stock exchange as part of the buyback program no later than the fifth trading day following the buyback and are published by the issuer.2 the buyback of own equity securities at a fixed price or through the issuance of put options in accordance with article 142 paragraph 1 letter a and article 143 paragraph 1 finmia is permissible, subject to article 124, if:the buyback programme lasts for at least ten trading days;b. the scope of the buyback programme does not exceed a total of 10% of the capital and voting rights and 20% of the free float of the equity securities;c. the key content of the buyback programme is published by means of a buyback notice before the start of the buyback programme and remains publicly accessible for the duration of the buyback programme; andd. the individual buybacks are published by the issuer no later than one stock market day after the end of the buyback programme.3 in individual cases, the swiss takeover board may authorise buybacks of a larger scope than those referred to in paragraph 1 letters b and c and paragraph 2 letter b if this is compatible with the interests of investors.4 it is assumed that article 142 paragraph 1 letter a and article 143 paragraph 1 finmia are not violated if the purchase price paid on a separate trading line is a maximum of 2% higher than:a. the last closing price achieved on the regular trading line; orb. the best current bid price on the regular trading line, provided this is below the price referred to under letter a;art. 124 blackout periods (art. 142 para. 2 and 143 para. 2 finmia)1 article 123 paragraphs 1 and 2 shall not apply to the buyback of own equity securities if the buyback programme is announced or the buyback of own equity securities occurs:while the issuer postpones the announcement of a price-relevant fact in keeping with stock exchange provisions;during the ten trading days prior to the public announcement of financial results; ormore than nine months after the reference date of the last published consolidated closing accounts.2 the buyback at market price remains reserved if this is undertaken by:a securities firm that was commissioned prior to the start of the buyback programme, and the security firm's decisions are made within the parameters originally prescribed by the issuer without the latter having any further influence;a trading unit that is segregated with information barriers, insofar the issuer itself is a securities firm.3 the parameters under paragraph 2 letter a must have been set prior to publication of the buyback offer and may be adjusted once a month for the duration of the buyback programme. if the parameters are set or adjusted within one of the periods set out in paragraph 1, the buyback may be performed only after a waiting period of 90 days.art. 125 content of buyback notices (art. 142 para. 2 and 143 para. 2 finmia)the buyback notice in accordance with article 123 paragraph 1 letter g and paragraph 2 letter c must contain at least the following information:information on the issuer, in particular:1. its identity,2. the issued capital,3. its holding of its own capital,4. the shareholder participations in accordance with article 120 finmia;the nature, purpose and object of the buyback programme;the schedule.art. 126 price stabilisation after a public placement of securities (art. 142 para. 2 and 143 para. 2 finmia)securities transactions which are intended to stabilise the price of a security that has been admitted to trading on a trading venue or dlt trading facility in switzerland and which fall under article 142 paragraph 1 letter a and article 143 paragraph 1 of the finmia are permissible if:49they are carried out within 30 days of the public placement of the securities to be stabilised;b. they are executed at a price that is no higher than the issue price, or, in the case of trading with subscription or conversion rights, at a price that is no higher than the market price;c. the maximum period during which the securities transactions can be carried out and the identity of the securities firm responsible for carrying them out are published before the start of trading with the securities to be stabilised;d.50 they are reported to the trading venue or dlt trading facility at the latest on the fifth trading day following their execution and published by the issuer at the latest on the fifth trading day after the expiry of the deadline under letter a; ande.51 the issuer informs the public at the latest on the fifth trading day following the exercising of an overallotment option (greenshoe) about the timing of the exercising, as well as the number and type of the securities concerned.49 amended by no i 10 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400).50 amended by no i 10 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400).51 amended by no i 10 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400).art. 127 other permissible securities transactions (art. 142 para. 2 and 143 para. 2 finmia)1 the following securities transactions are permissible even if they fall under article 142 paragraph 1 letter a and article 143 paragraph 1 finmia:securities transactions to implement an own decision to carry out a securities transaction, in particular the purchase of securities of the target company by the potential offeror with regard to the publication of a public takeover offer, provided the decision was not taken on the basis of insider information;b. securities transactions carried out in the course of the fulfilment of public tasks rather than for investment purposes by:1. the confederation, cantons or communes,2. the snb,3. the bis, and4. multilateral development banks in accordance with article 63 paragraph 2 letter c cao52.2 paragraph 1 may also be declared applicable to securities transactions carried out by the following parties as long as the transactions are carried out in connection with public tasks and not for investment purposes, and as long as reciprocal rights are granted and an exception does not stand in contradiction to the legislative purpose: a. foreign central banks;b. the ecb;c. official bodies or state departments that are responsible for or involved in administering the national debt;d. the efsf;e. the esm.3 the fdf shall publish a list of the bodies covered by paragraph 2.52 sr 952.03art. 128 admissible communication of insider information (art. 142 para. 2 finmia)the communication of insider information to a person does not fall under article 142 paragraph 1 letter b finmia if:a. this person requires the insider information in order to fulfil his or her statutory or contractual obligations; orb. the communication is required with regard to the conclusion of a contract and the information holder:1. makes it clear to the information recipient that the insider information may not be exploited, and2. documents the disclosure of the insider information and the clarification under item 1 above.title 4 transitional and final provisions art. 12953 financial market infrastructures 1 the duties set out in article 27, article 28 paragraphs 2 to 4, article 30 paragraphs 2 and 3, article 31, article 40 second sentence, and articles 41 to 43 must be fulfilled no later than 1 january 2018.541bis the record-keeping and disclosure duties set out in article 36 paragraph 2 and article 37 paragraph 1 letter d and paragraph 2 must be fulfilled no later than 1 october 2018. facts occurring between 1 january 2018 and 30 september 2018 that come under these duties are to be recorded and retroactively reported no later than 31 december 2018.551ter foreign branches of swiss securities firms and foreign participants on a trading venue must fulfil their duties under article 36 paragraph 2 and article 37 paragraph 1 letter d and paragraph 2 no later than 1 january 2019.562 the exemption from the reporting duty set out in article 37 paragraph 4 may be claimed up to 31 december 2017 without an agreement in accordance with article 32 paragraph 3 finmia or an exchange of information between finma and the competent foreign supervisory authority.53 amended by no i of the o of 29 june 2016, in force since 1 aug. 2016 (as 2016 2703)54 amended by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).55 inserted by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).56 inserted by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).art. 130 reporting to a trade repository 1 the duty to report to a trade repository under article 104 finmia must be fulfilled at the latest:a. within six months of the first authorisation or recognition of the trade repository by finma: for derivatives transactions outstanding at this point if the person obliged to report is not a small financial counterparty or a central counterparty;b. within nine months of the first authorisation or recognition of the trade repository by finma: for derivatives transactions outstanding at this point if the person obliged to report is a small financial counterparty or a non-financial counterparty which is not small;c. by 1 january 2024: for derivatives transactions outstanding at this point in all other cases.572 the deadlines set out in paragraph 1 shall be extended by six months in each case for the reporting of derivatives transactions that are traded via trading venues or via the operator of an organised trading facility. 3 in special cases, finma may extend the timeframes set out in this article.57 amended by no i of the o of 14 sept. 2018, in force since 1 jan. 2019 (as 2018 3377).art. 131 risk mitigation duties 1 the duties that apply with respect to timely confirmation, portfolio reconciliation, dispute resolution and portfolio compression in accordance with article 108 letters a to d finmia shall apply by the following deadlines following the entry into force of this ordinance:a. after 12 months: for derivatives transactions outstanding at this point between counterparties that are not small, and for derivatives transactions outstanding at this point with a small financial counterparty;b. after 18 months: for all other derivatives transactions outstanding at this point.2 the duty to value outstanding derivatives transactions in accordance with article 109 finmia shall apply to outstanding derivatives transactions 12 months after the entry into force of this ordinance. 3 the duty to exchange collateral in accordance with article 110 of the finmia applies only to derivatives transactions concluded after the duties under paragraphs 4 and 5bis have entered into force.58 4 the duty to exchange variation margins shall apply:a. from 1 september 2016: for counterparties whose aggregated month-end average gross position of non-centrally-cleared otc derivatives at group or financial or insurance group level for the months of march, april and may 2016 is greater than chf 3,000 billion;b. from 1 september 2017: for all other counterparties.5 the duty to exchange initial margins shall apply for counterparties whose aggregated month-end average gross position of non-centrally-cleared otc derivatives at group or financial or insurance group level:a. is greater than chf 3,000 billion for each of the months of march, april and may 2016: from 1 september 2016;b. is greater than chf 2,250 billion for each of the months of march, april and may 2017: from 1 september 2017;c. is greater than chf 1,500 billion for each of the months of march, april and may 2018: from 1 september 2018;d. is greater than chf 750 billion for each of the months of march, april and may 2019: from 1 september 2019;dbis.59 is greater than chf 50 billion for each of the months of march, april and may 2020: from 1 september 2020;e.60 is greater than chf 8 billion for each of the months of march, april and may 2020: from 1 september 2021.615bis the duty to exchange collateral applies from 1 january 2024 for non-centrally cleared otc derivatives transactions that are options on individual equities, index options or similar equity derivatives such as derivatives on baskets of equities.626 finma may extend the timeframes set out in this article in order to take account of recognised international standards and foreign legal developments.58 amended by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).59 inserted by annex 1 no ii 14 of the financial institutions ordinance of 6 nov. 2019, in force since 1 jan. 2020 (as 2019 4633).60 amended by annex 1 no ii 14 of the financial institutions ordinance of 6 nov. 2019, in force since 1 jan. 2020 (as 2019 4633).61 amended by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).62 inserted by no i of the o of 5 july 2017 (as 2017 3715). amended by no i 10 of the o of 18 june 2021 on the adaptation of federal law to developments in distributed ledger technology, in force since 1 aug. 2021 (as 2021 400).art. 132 auditing the duty to have an audit performed by the auditors in accordance with article 114 shall apply 12 months following the entry into force of this ordinance.art. 13363 occupational pension schemes and investment foundations 1 for occupational pension schemes and investment foundations in accordance with articles 48 to 60a of the federal act of 25 june 198264 on occupational old age, survivors' and invalidity pension provision, the clearing duty set out in article 97 of the finmia shall not apply up to 30 september 2021 for derivatives transactions that these institutions enter into with a view to reducing risk in accordance with article 87.652 the federal department of home affairs may extend the timeframe set out in this paragraph 1 in order to take account of recognised international standards and foreign legal developments.63 amended by no i of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).64 sr 831.4065 amended by no i of the fdfa o of 4 sept. 2020, in force since 1 oct. 2020 (as 2020 3801).art. 134 amendment of other legislative instruments the amendment of other legislative instruments is set out in annex 1.art. 135 commencement this ordinance comes into force on 1 january 2016.annex 1 (art. 134)amendment of other legislative instruments the legislative instruments below are amended as follows:.6666 the amendments may be consulted under as 2015 5413.annex 267 67 revised by annex 1 no ii 14 of the financial institutions ordinance of 6 nov. 2019, in force since 1 jan. 2020 (as 2019 4633).(art. 93)data to be reported to trade repositories legend for column validation for t / p / v:t: reporting of an individual transaction68 m: mandatoryp: reporting of a position69 u: under reservationv: reporting of a valuation o: optional n: not applicablefielddata to be reportedvalidation forpermitted valuesadditional explanationstpvcontracting partiestpvcontracting parties1 id of reporting counterpartycode for identifying the reporting counterpartymmmid of reporting counterpartycode for identifying the reporting counterparty2 id of non-reporting counterpartycode for identifying non-reporting counterpartymmolegal entity identifier (lei) consisting of 20 characters, validity may already have lapsedif lei is not available: business identifier code (bic) in accordance with iso 9362:2014 consisting of 11 charactersif neither lei nor bic is available: internal code consisting of a maximum of 50 characters3 name of reporting counterpartycompany or name of reporting counterpartymmntext consisting of a maximum of 100 characters4 registered office of reporting counterpartyinformation on the registered office, consisting of a full address, city and country of the reporting counterpartymmntext consisting of a maximum of 500 characters5 corporate sector of reporting counterpartytype of business activities of reporting counterpartymmnfor financial counterparties:- a = banks in accordance with article 1 paragraph 1 of the banking act of 8 november 193470- b = securities firms in accordance with article 41 of the financial institutions act of 15 june 201871 (finia)- c = insurance and reinsurance companies in accordance with article 2 paragraph 1 letter a of the insurance oversight act of 17 december 200472- d = group parent companies of a financial or insurance group or of a financial or insurance conglomerate- e = managers of collective assets und fund management companies in accordance with articles 24 and 32 finia- f = collective investment schemes in accordance with the collective investment schemes act- g = occupational pension schemes and investment foundations in accordance with article 48 et seq. of the federal act of 25 june 198273 on occupational old age, survivors' and invalidity pension provision non-financial counterparties:- h = oil and natural gas- i = basic materials (chemicals, raw materials)- j = industrial companies (construction, electronics, production technology, transportation, etc.)- k = consumer goods (food, household appliances, etc.)- l = healthcare- m = consumer service (travel, media, etc.)- n = telecommunications- o = utilities (electricity, water, etc.)- p = technology (software and hardware)for central counterparties:- q = central counterparty6 status of reporting counterpartyindication whether the reporting counterparty is a financial or non-financial counterparty and whether the counterparty is small in accordance with articles 98 and 99 finmiammnfp = financial counterparty which is not considered a small financial counterparty under article 99 finmiafm = small financial counterparty under article 99 finmianp = non-financial counterparty under article 93 paragraph 3 finmia which is not considered a small non-financial counterparty under article 98 finmianm = non-financial counterparty under article 93 paragraph 3 finmiaq = central counterparty7 reporting entity idcode for identifying reporting entitymmmvalid legal entity identifier (lei) consisting of 20 characters8 id of clearing member of reporting counterpartycode for identifying the clearing member of the reporting counterpartyuunlegal entity identifier (lei) consisting of 20 characters, validity may already have lapsedif lei is not available: business identifier code (bic) in accordance with iso 9362:2014 consisting of 11 charactersmust be indicated if the reporting counterparty is not a clearing member and the transaction in question is a centrally cleared transaction9 clearing thresholdindication as to whether the reporting counterparty exceeds the clearing threshold at the time of reporting in accordance with articles 98 or 99 finmiammny = the reporting counterparty has exceeded the threshold in accordance with article 100 finmia at the time of reporting.n = the reporting counterparty has not exceeded the threshold in accordance with article 100 finmia at the time of reporting.section 2a - contract type10 product taxonomytaxonomy of the product code of the contractmmnu = unique product identifier (upi) in accordance with recognised international standards if upi is not available: i = international securities identification number (isin) in accordance with iso 6166:2013if neither upi nor isin is available: a = alternative instrument identifier (aii) in accordance with esma guidelinesif neither upi, isin nor aii is available: e = exchange product code (epc) issued by the relevant trading venueif none of these codes is available: n = not available c = classification of financial instruments (cfi) in accordance with iso 10962:2015the order of the permitted values corresponds to the expected value depending on its availability.11 id of productdetails of the product code of the contractmmnvalid code as per taxonomy used 12 asset categoryindication of type of underlyingmmnco = commodity / energycr = creditcu = currencyeq = equity securityir = interest rateot = other derivative13 type of contractdetails of type of contractmmncd = contract for difference (cfd)fr = forward rate agreementfu = futurefw = forwardop = optionsw = swapsb = spreadbetex = exotic product14 underlying taxonomytaxonomy of the underlying instrument of the contractmmnisin in accordance with iso 6166:2013if isin is not available: country code in accordance with iso 3166:2013 if the issuer of the underlying is a state; in all other cases:if neither isin nor country code is available: upi in accordance with recognised international standardsif neither isin, country code nor upi is available: id of the basket of underlyings or if this is not available the value na; or in the case of indices for which no isin is available: full name of indexin all other cases: the value nathe order of the permitted values corresponds to the expected value depending on its availability.15 id of underlyingdetails of the underlying code of the contractmmnvalid code as per taxonomy usedsection 2b - transaction details16 trade ida unique trade id provided by the reporting counterparty at the request of the other counterpartymmmtext with a maximum of 52 characters17 side of reporting counterpartyindication whether the reporting counterparty is acting as buyer or sellermmnb = buyers = sellerto be determined in accordance with recognised international standards18 compression (numerical reduction of outstanding contracts)indication whether the contract results from such a compression exercisemony = the amount reported is the remaining transaction or position amount following compression.n = the reported transaction or position does not result from compression.in the case of positions that remain as a result of netting transactions, this field remains empty. 19 price/rateprice per derivative excluding, where applicable, commission and accrued interestmondecimal value20 price quotationthe manner in which the price is expressedmonu = the price is expressed as an absolute value.p = the price is expressed as a percentage value.21 currency of pricethe currency in which the price is expressed, if applicableuonin the cases of prices given as absolute values, the currency of the price in accordance with iso 4217:2008, or other recognised international standards, should be indicated22 nominal value 1current reference value of the contractmundecimal valuemust be indicated if the field amount exhibits the value 123 nominal value 2in the case of swap transactions and currency forward transactions, the current second reference value of the contractoondecimal value24 currency of denomination 1currency of nominal value mmncurrency in accordance with iso 4217:2008 or other recognised international standardthe currency in this field corresponds to the currency of nominal value 1.in the case of interest rate derivative contracts, this is the nominal currency of leg 1.25 currency of denomination 2currency of nominal value. in the case of interest rate derivative contracts, this is the nominal currency of leg 2. uuncurrency in accordance with iso 4217:2008 or other recognised international standardmust be indicated if nominal value 2 was reportedin the case of interest rate derivatives, this is the nominal currency of leg 2.in the case of foreign currency contracts, this is the second currency.26 currency to be deliveredcurrency to be delivered, if applicableuuncurrency in accordance with iso 4217:2008 or other recognised international standardmust be indicated if the contract is settled in cash27 price multiplierthe number of units of the financial instrument which are contained in a trading lot, e.g. the number of derivatives represented by one exchange-traded contractmmndecimal value28 amountnumber of reported contractsmmndecimal valuethe value 0 is permissible only if the field type of report exhibits the value c.29 type of deliveryindication whether the contract is settled in physical form or in cashmmnc = cash settlementp = physical settlemento = optional for the counterparty30 conclusion datedate on which the contract was concludedmmndate and time format in accordance with iso 8601:2004may be provided in either coordinated universal time (utc) or local swiss timeif the information is not expressed in utc, this should be indicated to the trade repository31 effective datedate when obligations under the contract come into effectmondata format in accordance with iso 8601:200432 maturity dateoriginal date of expiry of the reported contract. an early termination is not reported in this fieldmmndata format in accordance with iso 8601:200433 termination datedate on which the reported contract terminatesuundata format in accordance with iso 8601:2004this field should be used in the event of early expiry (report via type of report = c) or in the event of compression (report via type of report = m). in all other cases it should be left empty.34 date of settlementlast date for settlement of underlyingsoondata format in accordance with iso 8601:200435 market value of contractvaluation of contract at mark to market or mark to model pricesoomdecimal valuemust be provided in the case of a valuation report36 currency in which the current mark to market value of the contract is expressedcurrency in which the mark to market or mark to model price valuation was effectedoomcurrency in accordance with iso 4217:2008 or other recognised international standardmust be provided in the case of a valuation report37 date of valuationdate of last valuation at mark to market or mark to model pricesoomdata format in accordance with iso 8601:2004must be provided in the case of a valuation report38 time of valuationtime of last valuation at mark to market or mark to model pricesoomtime format in accordance with iso 8601:2004must be provided in the case of a valuation reportmay be provided in either coordinated universal time (utc) or local swiss timeif the information is not expressed in utc, this should be indicated to the trade repository39 type of valuationindication as to whether the valuation was effected at mark to market or mark to model pricesoomm = mark to market priceo = mark to model pricemust be provided in the case of a valuation report40 collateralisationindication as to whether collateralisation has taken placemmoun = uncollateralisedpc = partially collateralisedpl = one-way collateralisedfc = fully collateralisedthe value un should be used if no credit support agreement (csa) or pledge agreement was used or if the contract of the counterparties envisages neither the provision of an initial margin nor the provision of variation margins.the value pc should be used if it is contractually prescribed that both counterparties must regularly provide variation margins.the value pl should be used if only one of the counterparties is contractually obliged to an initial margin and/or variation margin.the value fc should be used if it is contractually prescribed that both counterparties must provide an initial margin and regular variation margins.for centrally cleared derivatives, the value pl should be used.41 types of collateralisationif collateralisation was effected, it must be indicated whether this took place on the basis of a collateralisation annex to a framework agreement or pledge agreementuuocsa = collateralisation annex to a framework agreement (credit support annex)pledge = pledge agreementthe value csa corresponds to an irregular right of lien under swiss law.the value pledge corresponds to a regular right of lien under swiss law.42 type of framework agreementreference to the framework agreement if used for the reported contractoontext with a maximum of 50 characterssample values isda master agreement, master power purchase and sale agreement, international forex master agreement, european master agreement or any local or internal framework agreements43 version of framework agreementyear of the framework agreement version used for the reported trade, if applicableoontext with a maximum of 20 characterssample values: 1992, 2002section 2c - clearing44 clearing dutyindication as to whether the reported contract and both counterparties are subject to a clearing duty under article 97 et seq. finmiamnny = the reported contract and both counterparties are subject to a swiss clearing dutyn = the value y is not applicable45 date of clearingdate of clearing if the contract was settled via a central counterpartyuondata format in accordance with iso 8601:2004must be provided in the case of a centrally cleared transaction46 id of central counterpartyindication of the standard code of the central counterparty which cleared the contractuonvalid lei consisting of 20 charactersif lei is not available: bic in accordance with iso 9362:2014 consisting of 11 charactersmust be provided in the case of a centrally cleared transaction47 intra-group transactionsindication as to whether the contract was entered into as an intra-group transaction in accordance with article 103 finmiammny = the transaction is an intra-group transaction in accordance with article 103 finmian = the value y is not applicablesection 2d - interest rates48 interest type leg 1indication of the type of interest rate of leg 1uunf = fixed interest ratel = variable interest rate49 interest type leg 2indication of the type of interest rate of leg 2uunf = fixed interest ratel = variable interest ratemust be provided for interest rate swaps50 interest rate leg 1details of the fixed interest rate that applies to leg 1 or details of the regular fixing of the reference interest rate used to determine the variable interest rate, if applicableuundecimal value in the case of fixed interest ratestext in the case of variable interest ratesin the case of variable interest rates, the name of the reference interest rate and the reference period is to be indicated in the format reference period/reference interest rate (e.g. 3m/euribor)51 interest rate leg 2details of the fixed interest rate that applies to leg 2 or details of the regular fixing of the reference interest rate used to determine the variable interest rate, if applicableuundecimal value in the case of fixed interest ratestext in the case of variable interest ratesmust be provided for interest rate swapsin the case of variable interest rates, the name of the reference interest rate and the reference period is to be indicated in the format reference period/reference interest rate (e.g. 3m/euribor)52 interest practice leg 1interest payment practice in the calculation period in question, if applicableuunmarket-standard indication of interest practicemust be provided for interest rate derivatives format: days per month/days per year (e.g. actual/365, 30/360, actual/actual, etc.)53 interest practice leg 2interest payment practice in the calculation period in question, if applicableuunmarket-standard indication of interest practicemust be provided for interest rate swapsformat: days per month/days per year (e.g. actual/365, 30/360, actual/actual, etc.)54 payment frequency leg 1payment frequency of leg 1, if applicableuuninteger value plus:- y = year- m = month- w = week- d = daymust be provided for interest rate derivativessample values 5y, 3m or 10dthe smallest possible integer value should always be given (e.g. 1m and not 30d)55 payment frequency leg 2payment frequency of the variable leg, if applicableuuninteger value plus:- y = year- m = month- w = week- d = daymust be provided for interest rate swapssample values 5y, 3m or 10dthe smallest possible integer value should always be given (e.g. 1m and not 30d)56 interest rate redefinition frequency for leg 1 frequency of the redefinition of the variable interest rate of leg 1, if applicableuuninteger value plus:- y = year- m = month- w = week- d = daymust be provided for interest rate derivativessample values 5y, 3m or 10dthe smallest possible integer value should always be given (e.g. 1m and not 30d)57 variable interest rate redefinition frequency for leg 2 frequency of the redefinition of the variable interest rate of leg 2, if applicableuuninteger value plus:- y = year- m = month- w = week- d = daymust be provided for interest rate swapssample values 5y, 3m or 10dthe smallest possible integer value should always be given (e.g. 1m and not 30d)section 2e - foreign exchange58 forward exchange rateforward exchange rate on value dateuundecimal valuemust be provided for forward exchange transactions59 exchange rate basiscurrency pair for exchange rateuuncurrency pair with currencies in accordance with iso 4217:2008 or other recognised international standard, separated by a forward slashmust be provided for all currency derivatives, e.g. usd/chf, chf/eursection 2f - commoditiesgeneralmandatory general information for all commodity derivatives60 commodity underlyingtype of commodities underlying the contractuunag = agriculturalen = energyfr = freightme = metalin = indexev = environmentalex = exotic or not otherwise applicable61 commodity detailsdetails of the particular commodity beyond the data provided in field 60uungo = grains / oilseedsda = dairy productsli = livestockfo = forestryso = softsdr = dry freightwt = wet freightoi = oilng = natural gasco = coalel = electricityie = inter-energypr = precious metalnp = non-precious metalwe = weatherem = emissionsot = otherenergymust be provided if the field delivery point or zone is to be completed62 delivery point or zonedelivery point(s) of market area(s)uunenergy identification code (eic) consisting of 16 charactersmust be provided if the delivery point or zone is in europe and the commodity details line exhibits the value ng or el63 interconnection pointindication of the border(s) or border crossing(s) of a transport contractuuntext with a maximum of 50 characters64 load typeidentification of last delivery profile according to the delivery periods per dayuunbl = base loadpl = peak loadop = off-peakbh = hour/block hourssh = shapedgd = gas dayot = other65 delivery start date and timedelivery start date and timeuundate and time format in accordance with iso 8601:2004may be provided in either coordinated universal time (utc) or local swiss timeif the information is not expressed in utc, this should be indicated to the trade repository66 delivery end date and timedelivery end date and timeuundate and time format in accordance with iso 8601:2004may be provided in either coordinated universal time (utc) or local swiss timeif the information is not expressed in utc, this should be indicated to the trade repository67 contracted capacityquantity per delivery intervaluuntext with a maximum of 50 characters68 quantity unitdaily or hourly quantity delivered in mwh or kwh/d depending on the underlyinguunkwkwh/hkwh/dmwmwh/hmwh/dgwgwh/hgwh/dtherm/dktherm/dmtherm/dcm/dmcm/d69 price per time interval quantitiesif applicable, price per time interval quantitiesuundecimal valuesection 2g - optionsmandatory information for all non-exotic options70 option typeindication of option typeuunp = putc = callo = other71 exercise typeindication of type of exercise for the option in questionuuna = americanb = bermudane = europeans = asiano = other72 strike price (cap/floor rate)strike price of the option expressed in the corresponding reference currency or reference amountuundecimal valuesection 2h - credit derivatives73 seniorityorder of underlying claims in the schedule of claimsuunsr = senior/not subordinatesb = subordinateot = othermandatory information for credit derivatives74 premium / couponthe annual premium / annual coupon of the contract as a percentage of the nominal valueuundecimal valuemandatory information for credit derivatives75 date of last credit eventdate of last credit event of the underlying claimsuundata format in accordance with iso 8601:2004mandatory information for credit derivatives76 id of indexserial number of reference index, if applicableuuntext with a maximum of 10 charactersmandatory information for credit derivatives that refer to an index as the underlying77 index factoradjustment factor of the reference index with respect to past credit eventsuuninteger with a maximum of 3 charactersmandatory information for credit derivatives that refer to an index as the underlyingsection 2i - report modifications78 report typeindication of report type mmmn = transaction is being reported for the first timeto be used for the first-time reporting of a transaction or position insofar as the report type x does not apply.an otc derivatives transaction that is cleared centrally on the same day it is concluded is at least to be reported as a centrally cleared transaction. the reporting of transactions taking place before clearing on the same day is permitted but is not mandatory.an otc derivatives transaction that is not cleared centrally on the same day or not cleared centrally at all is at least to be reported on the basis of its status at the end of the trading day. the reporting of transactions taking place beforehand on the same day is permitted but is not mandatory.block trades (in which a large pooled position is received and then individually assigned) which are not assigned on the same day are to be reported. if the assignment does take place on the same day, there is no need to report the block trade. in both cases, the assigned transactions are to be reported.indication as to whether the report refers to an individual transaction or a positionx = transaction is being reported for the first time and the transfer of the transaction to a position is envisaged on the same day.the resulting sum of transactions is to be reported at the end of the day as a position via the field level = p. a renewed reporting of individual transactions as compressed is therefore inapplicable.this report type is primarily envisaged for exchange-traded derivatives (etds) and contracts for difference (cfds).in the case of exchange-traded derivatives involving clearing through a central counterparty, the reporting duty exists only at central clearing level (cleared allocation). the steps prior to central clearing do not yet need to be reported. m = modification of erroneous data, supplementation of missing data or updating of positionse = report was made erroneously and should be deletede.g. the double reporting of the same transactions with a different trade idc = premature termination/cancellation of a contractpredefined termination does not need to be reported.for modification reports, report type = m should be used.z = compression of an otc derivatives transactionintended for compressions in accordance with article 108 letter d finmia.the transaction is thereby closed.v = reporting of a valuationongoing report of valuations in accordance with article 109 finmia. the first valuation report can be entered either as report type = n or in a subsequent report as report type = v.in the case of centrally cleared transactions, the valuation of the central counterparty is to be used.no valuation is to be reported for transactions that do not have to be valued by law.d = modification of the trade id, provided this had not yet been determined at the time of reporting.l = modifications that arise as a result of certain events during the term of the contract and for which no other value applies (lifecycle events)all events during the term of exchange-traded derivatives must always be reported at position level.an example of this kind of event is the partial exercise of an option which reduces the overall position of this option.79 report levelmmnt = transactionp = positiona renewed report has to be submitted for a position only if it has changed.it is permissible to report derivatives transactions only at transaction level.68 field level of reporting exhibits the value t69 field level of reporting exhibits the value p70 sr 952.071 sr 954.172 sr 961.0173 sr 831.10annex 3 (art. 103 para. 4)calculation of the initial margin for a netting set 1 the initial margin for a netting set is calculated using the formula: net initial margin = 0.4 * gross initial margin + 0.6 * ngr * gross initial margin2 the following apply in this respect:2.1 the net initial margin is deemed to be the reduced amount of the initial margin requirements for all derivatives contracts with a counterparty included in a netting set;2.2 the ngr is the net gross ratio, calculated as the ratio between the net replacement value of a netting set with a counterparty (numerator of ratio) and the gross replacement value of this netting set (denominator of ratio);2.3 the net replacement value of a netting set is the sum of the market values of all transactions, whereby no negative values are permitted;2.4 the gross replacement value of a netting set is the sum of the market values of all transactions in accordance with article 109 finmia and article 99 finmio with positive values in the netting set.annex 474 74 amended by no ii of the o of 5 july 2017, in force since 1 aug. 2017 (as 2017 3715).(art. 105 para. 1)discounts (haircuts) on collateral rating class as per annexes 2 to 4 ca75oterm to maturityhaircut on collateral in cash deposits in % haircuts on collateral as per art. 104 para. 1 lit. b in %haircuts on collateral as per art. 104 para. 1 lit. c and d in %haircuts on collateral as per art. 104 para. 1 lit. e and f in %haircuts for securities fundsn.a.n.a.0n.a.n.a.15haircut applicable to invested assets (weighted average)1 or 2, or 1 for short-dated debt securities 1 yearn.a.0.51n.a.> 1 year and 5 years24> 5 years483 or 4, or 2 or 3 for short-dated debt securities 1 jahr12> 1 year and 5 years36> 5 year6125all15not recognisedsecurities that would be classified in rating classes 6 or 7 in accordance with annex 2 cao are generally not recognised as collateral.75 sr 952.03annex 5 (art. 105 para. 3)quantitative and qualitative minimum standards for collateral 1 quantitative minimum standards 1.1 if debt securities have a credit rating from an approved rating agency, volatility estimates for each category of securities may be provided.1.2 when delimiting securities categories, the type of issuer, its rating, the residual term and the modified duration must be taken into account. volatility estimates must be representative of the securities actually contained in this category.1.3 for the other debt securities or shares recognised as collateral, the haircuts must be individually calculated for each security.1.4 the volatilities of the collateral and the currency mismatch must be individually estimated. the estimated volatilities may not take into account the correlations between claims without collateral, collateral and exchange rates.1.5 if the haircuts are determined using own estimates, the following quantitative requirements must be met:1.5.1 when determining the haircut, a one-sided 99% confidence interval is to be used.1.5.2 the minimum holding period is ten business days.1.5.3 if the frequency of the revaluation amounts to more than one day, the minimum haircut is to be scaled according to the number of business days between the revaluation, with the help of the following formula: h = hm [(nr + (tm - 1)) / tm] the following abbreviations apply here: h = the haircut to be applied hm = the haircut with daily revaluation nr = the actual number of business days between the revaluations tm = the minimum holding period for the transaction in question.1.5.4 account must be taken of the illiquidity of assets of lower quality. in cases where a predefined holding period is too short in view of the liquidity of the collateral, the holding period must be increased. banks must recognise if historical data underestimates the potential volatility, e.g. in the case of pegged exchange rates. in such cases, the data is to be subjected to a stress test.1.5.5 the survey period for determining the haircut must amount to at least one year. where individual daily observations with different weightings are taken into account, the weighted average observation period must be at least a year (i.e. the weighted average time lag for the individual figures may not be less than a year).1.5.6 the data must be updated at least once every three months. if market conditions require it, it must be updated immediately.2 qualitative requirements 2.1 the estimated volatilities and holding periods must be used in the bank's daily risk management process.2.2 the banks must ensure that the requirements of this annex are accurately reflected in the internal guidelines, controls and procedures with respect to the risk measurement system.2.3 the risk measurement system must be used in connection with internal credit limits.2.4 an independent review of the risk management system must be regularly carried out as part of the internal audit process. this must encompass at least the following points:2.4.1 the embedding of risk measurement in daily risk management;2.4.2 the validation of any material change in risk measurement procedures;2.4.3 the accuracy and completeness of position data;2.4.4 the review of the consistency, promptness and reliability of the data sources used for the internal models, including the independence of such data sources; and2.4.5 the accuracy and appropriateness of the volatility assumptions.

958.11 english is not an official language of the swiss confederation. this translation is provided for information purposes only and has no legal force.ordinanceof the swiss financial market supervisory authority on financial market infrastructures and market conduct in securities and derivatives trading(finma financial market infrastructure ordinance, finmio-finma)of 3 december 2015 (status as of 26 november 2021)the swiss financial market supervisory authority (finma),based on article 51 paragraph 2 of the financial institutions act of 15 june 20181 (finia), article 74 paragraph 4 of the financial institutions ordinance of 6 november 20192 (finio),articles 39 paragraph 2, 101 paragraphs 1 and 2, 123 paragraphs 1 and 2 and 135 paragraph 4 of the financial market infrastructure act of 19 june 20153 (finmia),and article 36 paragraph 4 of the financial market infrastructure ordinance of 25 november 20154 (finmio),5hereby decrees:1 sr 954.12 sr 954.113 sr 958.14 sr 958.115 amended by annex no 5 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).chapter 1 record-keeping and documenting requirements (art. 74 para. 4 finio; art. 36 para. 4 finmio)6art. 1 1 securities firms under finia and participants7 admitted to a trading venue record the orders and transactions which must be recorded under article 74 finio and article 36 finmio in a ledger, regardless of whether or not the securities or derivatives are traded on a trading venue. the ledger may also be divided into journals.82 the following shall be recorded in the ledger for all received orders:a. the name of the securities and derivatives;b. the time the order was received;c. the name of the person placing the order;d. the name of the transaction and order type;e. the volume of the order.3 the following shall be recorded in the ledger for completed transactions:a. the time of execution;b. the volume of the execution;c. the attained or allocated price;d. the place of execution;e. the name of the counterparty;f. the value date.4 the received orders and completed transactions, regardless of whether they are subject to the reporting duty outlined in chapter 2, shall be recorded in a standardised format, so that the information can be delivered to finma promptly and in its entirety on request.7 as most participants are legal entities, gender-neutral terminology is not used in this text.8 amended by annex no 5 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).6 amended by annex no 5 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).chapter 2 reporting duty (art. 51 finia; art. 39 finmia)9art. 210 transactions to be reported securities firms under finia and participants admitted to a trading venue must report all transactions under article 75 finia and article 37 finmio to the addressee under article 5.10 amended by annex no 5 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).art. 3 contents of the report 1 the report shall contain the following details:a.11 the name of the securities firm subject to the reporting duty in accordance with finia or the participant admitted to a trading venue;b. the transaction type (buy/sell);c. the exact name of the securities or derivatives in question;d. the volume of the transaction as follows: nominal amount for bonds, units or contracts for other securities and derivatives;e. the price;f. the date and time of execution;g. the value date;h. whether it is a proprietary or client transaction;i. the designation of the counterparty as a stock exchange member, other securities firm12, customer; in the case of transmissions of orders: designation of the party to which the order was transmitted;j. the name of the trading venue where the security or derivative was traded, or the notification that the transaction was made outside a trading venue;k. for client transactions: a standardised reference enabling the identification of the beneficial owner of the transaction (art. 37 para. 1 let. d finmio and art. 31 para. 1 let. d finio).2 for client transactions, it shall further contain a standardised reference enabling the identification of the beneficial owner of the transaction (art. 37 para. 1 let. d finmio and art. 75 para. 1 let. d finio).1311 amended by annex no 5 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).12 term in accordance with annex no 5 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327). this amendment has been made throughout the text.13 inserted by annex no 5 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).art. 4 reporting deadline transactions shall be reported within the deadlines outlined in the regulations of the trading venue to which the report is addressed.art. 5 report addressee 1 securities transactions must be reported to the trading venue where the securities are admitted for trading.2 if a security is admitted for trading at more than one trading venue in switzerland licensed by finma, the reporting parties may choose at which trading venue to fulfil their reporting obligations. 3 the derivatives transactions under article 75 paragraph 2 finio and article 37 paragraph 2 finmio must be reported to the trading venue where the underlying is admitted for trading. if the derivative has more than one security as underlyings, the report may be made to the trading venue where one of the underlyings is admitted for trading.144 trading venues shall have a dedicated office (reporting office) in their organisation for receiving and processing reports.5 the reporting office shall issue a set of regulations. it may request adequate compensation for any duties commissioned by finma. the rates are submitted to finma for approval.14 amended by annex no 5 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).9 amended by annex no 5 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).chapter 3 otc derivatives transactions for clearing (art. 101 finmia)art. 6 principle 1 the derivatives categories to be cleared via a central counterparty are listed in annex 1.2 the decision whether to list derivatives categories in annex 1 is based on whether:a. the contract conditions contain the usual legal documents for the sector with the usual contract specifications listed by counterparties;b. the operational processes are subject to automated post-trade processing and there are standardised lifecycle events managed in accordance with a generally agreed schedule;c. the margin or financial requirements of the central counterparty are adequately proportionate to the risk being mitigated by the obligatory clearing;d. the size and depth of the product's market are stable over the long term;e. if a participant in a central counterparty defaults, the market segmentation remains sufficiently high;f. the number and value of the previously concluded transactions are sufficiently high;g. the information required for the formation of prices is readily available on normal commercial conditions;h. there is a heightened systemic risk that counterparties may be unable to meet their payment and delivery obligations to each other if there are strong interdependencies between them.art. 7 determination of the otc derivatives for clearing 1 when licensing a swiss central counterparty or recognising a foreign central counterparty, finma determines which of the derivatives cleared by the central counterparty are subject to the clearing obligation. finma shall take into consideration the criteria under article 6 paragraph 2 as well as international standards when determining the clearing obligation.2 if the central counterparty clears additional derivatives categories subsequently to obtaining a licence or recognition, it shall inform finma thereof.3 upon request it must deliver all information to finma necessary to determine the derivatives categories subject to the clearingobligation.chapter 4 correspondence and determination of deadlines in relation to the disclosure of shareholdings and takeovers art. 8 correspondence (art. 123 para. 1, 139 para. 5 finmia)1 notifications and submissions sent by fax or e-mail pertaining to the disclosure of shareholdings and takeovers are admitted in correspondence outside of administrative proceedings and recognised for the purpose of adhering to deadlines.2 as a rule, recommendations by the disclosure offices are served upon the parties, applicants and finma by fax or e-mail.3 the ordinance of 18 june 201015 on electronic communication in administrative proceedings applies to electronic submissions in administrative proceedings. submissions to the takeover board may also be made by fax.15 sr 172.021.2art. 9 determination of deadlines (art. 123 para. 1 finmia)1 any deadline calculated by trading days starts on the first trading day following the trigger event.2 any deadline calculated by weeks ends in the last week on the same day as the day on which the trigger event took place. if this day is not a trading day, the deadline is on the next trading day.3 any deadline calculated by months ends in the last month on the same date as the date on which the trigger event took place. in the absence of such date, the deadline ends on the last day of the last month; if the day is not a trading day, the deadline ends on the next trading day.4 trading days are days on which the relevant stock exchange in switzerland is open for trading in accordance with its trading calendar.chapter 5 disclosure of shareholdings section 1 notification duty art. 10 principles (art. 120 paras. 1 and 3, 123 para. 1 finmia)1 the beneficial owners of equity securities under article 120 paragraph 1 finmia are subject to the notification duty. a beneficial owner is the party controlling the voting rights stemming from a shareholding and bearing the associated economic risk. 2 if the voting rights are not exercised directly or indirectly by the beneficial owner, any person who has full discretionary powers to exercise the voting rights is also subject to the notification duty in accordance with article 120 para. 3 finmia. if the person who has full discretionary powers to exercise voting rights is directly or indirectly controlled, their notification duty is met where the controlling person reports on a consolidated basis. in such case, the controlling person is considered to be subject to the notification duty.163 there is no notification duty, if:a. notification of reaching a threshold was provided and that threshold is exceeded, without the subsequent threshold being reached or exceeded;b. notification of reaching or exceeding a threshold was provided and that threshold is met again, without having reached or exceeded the subsequent threshold;c. a threshold is temporarily reached, exceeded or fallen below during a trading day.16 amended by no i of the finma ordinance of 26 jan. 2017, in force since 1 march 2017 (as 2017 547).art. 11 indirect acquisition and indirect disposal (art. 120 para. 5, 123 para. 1 finmia)the following cases in particular qualify as an indirect acquisition or indirect disposal of a shareholding:a. the acquisition and disposal via a third party in their own name and on behalf of the beneficial owner;b. the acquisition and disposal through directly or indirectly controlled legal entities;c. the acquisition and disposal of a shareholding which directly or indirectly transfers control of a legal entity which directly or indirectly holds equity securities.art. 12 acting in concert or as an organised group (art. 120 para. 1, 121, 123 para. 1 finmia)1 any party who coordinates their conduct regarding the acquisition or disposal of shareholdings or the exercising of voting rights with third parties by contract, other organised arrangement or by law, is acting in concert or as an organised group.2 acquisitions and disposals between persons who are acting in concert or as an organised group and have disclosed their total shareholding are exempt from the notification duty.3 changes in the composition of the group and the nature of the arrangement or of the group must be reported.art. 13 triggering of the notification duty (art. 120 paras. 1, 3 and 4, 123 para. 1 finmia)1 the notification duty under article 120 paragraph 1 finmia is triggered by the emergence of the claim to acquire or dispose of equity securities (binding transaction), irrespective of whether this claim is conditional. the indication of an intended acquisition or disposal does not trigger a notification duty, provided there are no legal obligations associated therewith.2 the triggering of the notification duty at the time of the binding transaction under paragraph 1 and an associated disconnection of beneficial owner status and voting entitlement, do not trigger a separate notification duty under article 120 paragraph 3 finmia either for the acquirer or the person disposing of the shareholding.3 if a threshold is reached, exceeded or fallen below of as a result of a company with registered office in switzerland increasing, decreasing of restructuring its share capital, the notification duty is triggered by the correspondent publication in the swiss official gazette of commerce. in the case of companies with registered office abroad whose equity securities are mainly listed in whole or in part in switzerland the notification duty is triggered by the publication in accordance with article 115 paragraph 3 finmio.art. 14 calculation of the positions requiring notification (art. 120 paras. 1 and 3, 123 para. 1 finmia)1 any person who reaches, exceeds or falls short of a threshold in one or both of the positions below, must calculate the positions individually and separately and report them simultaneously:a. acquisition positions:1. shares and equity-related units and voting rights under article 120 paragraph 3 finmia,2. conversion and acquisition rights (art. 15 para. 2 let. a),3. granted (written) sales rights (art. 15 para. 2 let. b),4. other equity derivatives (art. 15 para. 2);b. disposal positions:1. sales rights (art. 15 para. 2 let. a),2. granted (written) conversion and acquisition rights (art. 15 para. 2 let. b),3. other equity derivatives (art. 15 para. 2).2 the positions requiring notification shall be calculated for companies with registered office in switzerland based on the total number of voting rights in accordance with the entry in the commercial register. the calculation of the positions requiring notification for companies with registered office abroad shall be based on the publication in accordance with article 115 paragraph 3 finmio.art. 15 equity derivatives (art. 120 paras. 1, 4 and 5, 123 para. 1 finmia)1 equity derivatives for the purpose of this ordinance are instruments whose values are derived, at least partially, from the value or performance of equity securities of companies under article 120 para. 1 finmia.2 the following shall be reported:a. the acquisition or disposal of convertible and acquisition rights, particularly call options, and of sales rights, particularly put options which are designed for or permit physical settlement;b. the granting (writing) of convertible and acquisition rights, particularly call options, and of sales rights, particularly put options which are designed for or permit physical settlement; andc. equity derivatives designed for or permitting cash settlement as well as other contracts for difference, including financial futures.3 the exercise or non-exercise of equity derivatives reported under paragraph 2 must be reported again if it leads to one of the thresholds under article 120 paragraph 1 finmia being reached, exceeded or fallen below.art. 16 other facts requiring notification (art. 120 paras. 1 and 4, 123 para. 1 finmia)1 a notification duty applies in particular when one of the thresholds under article 120 paragraph 1 finmia is achieved, exceeded or fallen below of:a. due to an increase, decrease or restructuring of share capital;b. due to the acquisition or disposal of proprietary equity securities by a company;c.17 due to the acquisition and disposal of equity securities for in-house funds in accordance with article 71 of the financial services act of 15 june 201818 (finsa);d. through the proportion of voting rights in the acquisition positions in accordance with article 14 paragraph 1 letter a 1, alone, whether exercisable or not and regardless of whether the total proportion of voting rights including equity derivatives under article 15 reaches, exceeds or falls below a threshold;e. when transferring equity securities by virtue of the law or following a court or authority ruling.2 changes in information under article 22 paragraphs 1 letters d and e, 2 letters c, d and f and 3 again trigger a notification duty.17 amended by annex no 5 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).18 sr 950.1art. 17 securities lending and similar transactions (art. 120 para. 1, 123 para. 1 finmia)1 lending transactions and similar transactions, such as repurchase agreements or collateral transactions with transfer of ownership must be reported.2 the notification duty is only incumbent on the contracting party acquiring temporary ownership of the securities through such transactions:a. for lending transactions: the borrower;b. for repurchase agreements: the buyer; andc. for collateral transactions: the collateral taker.3 on expiry of the transaction, the returning contracting party under paragraph 2 is again subject to a notification duty if a threshold in accordance with article 120 paragraph 1 finmia is reached or fallen below.4 lending transactions and repurchase agreements do not need to be reported if they are processed in a standardised manner via trading platforms for liquidity management purposes.art. 18 collective investment schemes (art. 120 para. 1, 121, 123 para. 1 finmia)1 the notification duties under article 120 paragraph 1 finmia for shareholdings held by approved collective investment schemes under the collective investment schemes act of 23 june 200619 (cisa) must be met by the licence holder20 (art. 5 para. 1 in conjunction with article 2 paragraph 1 letter d finia, article 13 paragraph. 2 letters a-d cisa and article 15 paragraph 1 letter e in conjunction with article 120 paragraph 1 cisa).212 fulfilling the notification duty involves:a. notification duties for more than one collective investment scheme of the same licence holder shall be fulfilled comprehensively (i.e. including all collective investment schemes) and for each collective investment scheme if they individually reach, exceed or fall below relevant thresholds.b. fund management companies within a group of companies are not required to aggregate their holdings with the holdings of said group of companies.c. the notification duty of externally managed investment companies with variable capital (sicav) is met by the fund management company.d. each sub-fund of an open-ended collective investment scheme with sub-funds qualifies as an individual collective investment scheme under paragraph 1.3 for foreign collective investment schemes not approved for offer which do not depend on a group of companies, the notification duties in article 120 paragraph 1 finmia shall be met by the fund management company or the legal entity itself. the requirements of paragraph 2 apply.224 for foreign collective investment schemes not approved for offer which depend on a group of companies, the reporting requirements in article 120 paragraph 1 finmia are met by the group.235 the independence of the fund management company or the legal entity is contingent on the following:a. personal independence: persons controlling the exercise of the voting right for the fund management company or legal entity act independently of the group parent company and those companies under its control;b. organisational independence: the group ensures through its organisational structures:1. that the group parent company and other companies under its control do not influence the fund management company or legal entity in exercising voting rights either through instructions or by any other method, and2. that no information is exchanged or disseminated between the fund management company or legal entity and the group parent company or other companies under its control which could influence the exercise of voting rights.6 the group of companies must provide the competent disclosure office with the following documents for those cases under paragraph 3:a. a list with the names of the fund management companies or legal entities;b. a declaration that the independence requirements in paragraphs 3 and 5 are fulfilled and maintained.7 the group of companies must provide the competent disclosure office with details of every change to the list under paragraph 6 letter a.8 for those cases under paragraph 3, the competent disclosure office may request further documentation supporting compliance with the independence conditions at any time.9 details of the investor's identity are not required.19 sr 951.3120 as most licence holders are companies, gender-neutral terminology is not used in this text.21 amended by annex no 5 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).22 amended by annex no 5 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).23 amended by annex no 5 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).art. 19 banks and securities firms (art. 123 para. 2 finmia)1 when calculating their acquisition positions (art. 14 para. 1 let. a) and disposal positions (art. 14 para. 1 let. b), banks and securities firms under the finia may disregard equity securities and equity derivatives which they hold:24a. in their trading book, provided their share does not reach 5% of voting rights;b. as part of securities loans, collateral transactions or repurchase agreements provided their share does not reach 5% of voting rights;c. only for up to two trading days and exclusively for clearing and settling purposes.2 the calculation under paragraph 1 is only permitted if there is no intention to exercise the voting rights or to intervene in the management of the issuer'25 in any other way, and the voting share does not exceed 10% of the voting rights.3 equity securities for in-house funds under article 71 finsa shall be attributed to the bank's or securities firm's proprietary holdings.2624 amended by annex no 5 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).25 as most issuers are legal entities, gender-neutral terminology is not used in this text.26 amended by annex no 5 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).art. 20 takeover proceedings (art. 123 para. 1 finmia)1 from the publication of the pre-announcement or of the prospectus (offer prospectus) of the takeover offer until the end of the extension period, the following persons are subject exclusively to the notification duties of the takeover board based on article 134 paragraph 5 finmia: a. the offeror27;b. persons acting in concert or as an organised group with the offeror;c. persons under article 134 paragraph 1 finmia holding at least 3% of the voting rights directly, indirectly or in concert with third parties, whether exercisable or not, in the target company or, if applicable, in another company whose equity securities are being offered in exchange;d. persons designated by the takeover board in accordance with article 134 paragraph 3 finmia.2 cases requiring notification which occur during the takeover proceedings must be reported in accordance with the provisions of this ordinance after expiry of the extension period.3 paragraphs 1 and 2 do not apply to the buy-back of proprietary equity securities.27 as most offerors are legal entities, gender-neutral terminology is not used in this text.art. 21 preliminary ruling (art. 123 paras. 1 and 3 finmia)1 requests for a preliminary ruling regarding the applicability of a notification duty must be submitted to the competent disclosure office in good time prior to the transaction.2 the competent disclosure office may exceptionally admit requests for already concluded transactions.section 2 notification and publication art. 22 contents of the notification (art. 123 para. 1 finmia)1 the notification contains the following details:a. the proportion of voting rights, type and number of all equity securities or equity derivatives under article 15 and the associated voting rights held by the persons involved. when falling below the threshold of 3%, the notification to that effect may be given without specifying the actual voting proportion;b. the trigger event, such as:1. acquisition, 2. disposal, 3. transfer of voting rights with full discretionary power (art. 120 para. 3 finmia), 4. exercising or non-exercising of equity derivatives under article 15, 5. securities lending and similar transactions under article 17,6. change in share capital, 7. court or authority ruling, 8. acting in concert, 9. change in the composition of a group, or 10. change in notified details;c. date of the triggering of the notification duty;d. transfer date of the equity securities, if different to the triggering date of the notification duty;e. last name, first name and place of residence or corporate name and registered office of the acquiring, disposing or associated persons.2 in the following instances, the information in paragraph 1 shall be supplemented with:a.28 in the cases outlined in article 120 paragraph 3 finmia:1. concerning the notification of the person with full discretionary powers over the exercise of the voting rights: the proportion of voting rights covered by the authorisation to exercise,2. where the notification is not submitted by the person with full discretionary powers to exercise voting rights, but by the person who directly or indirectly controls the person with full discretionary powers to exercise voting rights (consolidated reporting): a respective reference;b. when acting in concert or as an organised group under article 12: the details in accordance with article 121 finmia and article 12 paragraph 3 of this ordinance;c. for equity derivatives under article 15 with an international securities identification number (isin): the isin;d. for equity derivatives under article 15, without an isin: the relevant details, including:1. the identity of the issuer,2. the underlying,3. the subscription ratio,4. the strike price,5. the exercise period,6. the exercise type;e.29 for collective investment schemes in accordance with article 18 paragraph 3: confirmation that the requirements under article 18 paragraph 5 are met;f. for transactions under article 17:1. the proportion of voting rights, type and number of transferred equity securities or equity derivatives under article 15 and the associated voting rights, 2. the nature of the transaction,3. the agreed time of return or, whether the party subject to the notification duty under article 17 paragraph 2 or the counterparty has discretion as to the time of return.3 in the event of an indirect acquisition or indirect disposal (art. 11), the notification must contain the full details of the person making the direct acquisition or disposal as well as of the beneficial owner.28 amended by no i of the finma ordinance of 26 jan. 2017, in force since 1 march 2017 (as 2017 547).29 correction of 26 nov. 2021 (as 2021 775).art. 23 supplementary details (art. 123 para. 1 finmia)every notification to the disclosure office and company must contain the details of a contact person including their last name, first name, address, telephone number and e-mail address.art. 24 notification deadlines (art. 123 para. 1 finmia)1 the notification must be received by the company and competent disclosure office within four trading days following the triggering of the notification duty. the disclosure office shall supply the requisite forms.2 in the event of an acquisition through inheritance, the period under paragraph 1 is twenty trading days.3 the company must publish the notification within two trading days of receiving it.4 for transactions in proprietary securities, the company must provide notification to the competent disclosure office and publish the notification within four trading days following the triggering of the notification duty.art. 25 publication (art. 123 para. 1, 124 finmia)1 the company publishes the notification pursuant to article 22 via the electronic publishing platform of the competent disclosure office. it must also refer to the previous publication relating to the same notifying person.2 if a company fails to publish a notification or if it publishes an incomplete or erroneous notification, the disclosure offices may publish the necessary information without delay and invoice the company for the costs incurred through the substitute measure. the disclosure offices may publish the reasons for the substitute measure. the company must be informed in advance.art. 26 exemptions and easing provisions (art. 123 paras. 1 and 2, 124 finmia)1 exemptions or easing provisions to the duty of notification and publication may be granted, provided there is good cause for doing so, and particularly if the transactions:a. are of short-term nature;b. do not entail any intention to exercise the voting right; orc. are subject to conditions.2 requests to this effect must be made to the competent disclosure office prior to the transaction in question.3 requests for completed transactions shall only be admitted by the competent disclosure office as an exception and in extraordinary circumstances.section 3 monitoring art. 27 disclosure office (art. 123, 124 finmia)1 stock exchanges have a dedicated office (disclosure office) for monitoring the duty of notification and publication. the disclosure office also processes requests for a preliminary ruling (art. 21) and for exceptions and easing provisions (art. 26).2 if the establishment of such an office proves excessive, this role may be transferred to another stock exchange; the regulations governing the cooperation must be submitted to finma for approval.3 the disclosure offices keep the public informed of their activities. they may issue communications and regulations and publish information required to fulfil the purpose of the law in an appropriate format. as a rule, recommendations are published in anonymous form.4 the disclosure offices may request adequate compensation for any duties commissioned by finma and for processing requests. the rates must be submitted to finma for approval.art. 28 procedure (art. 123, 124 finmia)1 requests for a preliminary ruling (art. 21) and for exemptions or easing provisions (art. 26) must contain the relevant facts, motion and statement of reasons. the facts must be documented appropriately and have to include all the details outlined in article 22.2 the disclosure office issues recommendations to the applicants; these must be substantiated and submitted to finma.3 the disclosure office may address its recommendations to the company. fundamental interests of the applicant, such as business secrets, remain reserved.4 finma issues a decision, if:a. it wishes to rule on the matter itself;b. the applicant rejects or fails to observe the recommendation; orc. the disclosure office approaches it for a decision.5 if finma wishes to decide on the matter itself, it shall make its intentions known within five trading days.6 a rejected recommendation must be substantiated by the applicant in a submission to finma within five trading days. finma may extend this deadline on request.7 in cases under paragraph 4, finma shall immediately initiate proceedings and inform the disclosure office and parties to that effect. it shall also instruct the disclosure office to submit its files.art. 29 investigations (art. 8, 31, 123 para. 1 finmia)finma may instruct the disclosure offices to conduct investigations.chapter 6 duty to make an offer section 1 duty to make an offer art. 30 applicable provisions (art. 135 para. 4 finmia)in addition to art. 135 finmia and the following provisions, articles 125-134, 136-141, 152 and 163 finmia and the implementing provisions of the federal council and takeover board pertaining to public takeover offers apply to the duty to make an offer.art. 31 principle (art. 135 paras. 1 and 4 finmia)the duty to make an offer is incumbent on any person who acquires equity securities directly or indirectly and, by doing so, exceeds the legal or statutory threshold under article 135 paragraph 1 finmia (threshold).art. 32 indirect acquisition (art. 135 paras. 1 and 4 finmia)article 120 paragraph 5 finmia and article 11 of this ordinance apply by analogy to those holdings of the target company requiring an offer when making an indirect acquisition.art. 33 acting in concert or as an organised group (art. 135 paras. 1 and 4, 136 para. 2 finmia)article 12 paragraph 1 applies to persons acting in concert or as an organised group to acquire holdings requiring an offer with respect to the target company with the aim of controlling the target company.art. 34 calculation of the threshold (art. 135 paras. 1 and 4 finmia)1 the threshold is calculated based on the total number of voting rights in accordance with the entry in the commercial register.2 when determining whether the threshold has been exceeded, all equity securities are taken into account which are owned by the acquiring person or whose voting rights have been transferred to the acquiring person in another way, regardless of whether the voting rights may be exercised.3 voting rights restricted to a power of attorney granted solely for the purposes of representation at one general meeting are excluded from the calculation.art. 35 definition of the duty to make an offer (art. 135 paras. 1 and 4 finmia)1 the duty to make an offer must be extended to all types of listed equity securities of the target company.2 it must also include new equity securities created through equity derivatives, if the associated rights are exercised prior to expiry of the extension under article 130 paragraph 2 finmia.art. 36 transfer of the duty to make an offer to the acquiring person (art. 135 para. 4, 136 para. 2, 163 finmia)if the person previously entitled to the equity securities was subject to the duty to make an offer for all equity securities on exceeding the threshold of 50% of voting rights pursuant to the transitional regulation of article 163 finmia, this duty passes over to the person acquiring a holding between 33 and 50% of the voting rights, if that person is exempted from the duty to make an offer under article 136 paragraph 2 finmia.art. 37 resurgence of the duty to make an offer (art. 135 para. 4 finmia)a person who reduces a holding of 50% or more of the voting rights in a company acquired prior to 1 january 1998 to under 50% must make an offer under article 135 finmia, if the said person's holding subsequently exceeds the threshold of 50%. art. 38 duty to make an offer and conditions (art. 135 paras. 1 and 4, 136 para. 2 finmia)1 the duty to make an offer may not be made subject to conditions unless there is good cause for doing so.2 good cause is particularly present if:a. an official authorisation is required for the acquisition;b. the equity securities to be acquired do not procure voting rights; orc. the offeror wants the specifically mentioned economic substance of the target company to remain unchanged.art. 39 time period (art. 135 paras. 1 and 4 finmia)1 the mandatory offer must be made within two months of exceeding the threshold.2 the takeover board may grant an extension if there is good cause for doing so.section 2 exceptions to the duty to make an offer art. 40 general exceptions (art. 135 para. 4, 136 finmia)1 the duty to make an offer lapses, if:a. the threshold is exceeded during a restructuring resulting from a capital reduction immediately followed by a capital increase for the purpose of offsetting a loss;b.30 banks or securities firms under finia acting independently or as a syndicate acquire equity securities as part of an issue and undertake to sell the number of equity securities exceeding the threshold within three months after exceeding the threshold and the sale actually takes place within this period.2 the claim to an exception under paragraph 1 or article 136 paragraph 2 finmia has to be notified to the takeover board. the takeover board shall initiate an administrative procedure within five trading days if it has reason to suspect that the conditions in paragraph 1 are not met.3 the takeover board may extend the period under paragraph 1 letter b upon application if there is adequate justification for doing so.30 amended by annex no 5 of the finma o of 4 nov. 2020 on financial institutions, in force since 1 jan. 2021 (as 2020 5327).art. 41 particular exceptions (art. 135, 136 para. 1 finmia)1 in the cases outlined under article 136 paragraph 1 finmia and in other justified cases, a person obliged to make an offer may be exempted from the duty to make an offer if there is good cause for doing so.2 further justified cases under article 136 paragraph 1 finmia are particularly those cases where:a. the acquiring person cannot control the target company because another person or group has a higher voting share;b. a member of an organised group in accordance with article 136 paragraph 1 letter a finmia exceeds the threshold individually; orc. the previous acquisition was made indirectly (art. 32), provided this acquisition is not one of the main purposes of the transaction and the interests of the target company's shareholders remain preserved.3when granting exceptions conditions may be attached; in particular the acquiring person may be made subject to certain obligations.4 the conditions under paragraph 3 transfer to a legal successor who acquires a shareholding exceeding 33% even if the legal successor is exempt from the duty to make an offer under article 136 paragraph 2 finmia.section 3 determining the offer price art. 42 stock exchange price (art. 135 paras. 2-4 finmia)1 the offer price must be at least equal to the stock exchange price for every type of equity security in the target company.2 the stock exchange price in accordance with article 135 paragraph 2 letter a finmia corresponds to the volume-weighted average price of the on-order-book trades of the last 60 trading days prior to the publication of the offer or to the pre-announcement.3 it must be adjusted to negate the effects of significant price influences triggered by special events, such as a dividend distribution or capital transactions, to which it is subject during this period. an audit firm in accordance with article 128 paragraph 1 finmia must confirm the adequacy of the adjustment and show the calculation basis in its report.4 if the listed equity securities are not liquid prior to the publication of the offer or the pre-announcement, the audit firm has to carry out a valuation of the company. the report shall outline the valuation methods and the basis for the valuation as well as provide an explanation of whether and, if so, to what extent, the setting of the minimum price is to deviate from the stock exchange price or company value.art. 43 price of the previous acquisition (art. 135 paras. 2-4 finmia)1 the price of the previous acquisition under article 135 paragraph 2 letter b finmia corresponds to the highest price paid by the buyer for equity securities in the target company over the past 12 months prior the to publication of the offer or to the pre-announcement.2 it must be defined separately for each type of equity security. the price of the most expensive equity security relative to the nominal value shall form the basis for setting the appropriate ratio between the prices of different types of equity securities under article 135 paragraph 3 finmia.3 the equity securities in the target company acquired through the exchange of securities as part of the previous acquisition shall be calculated at their value at the time of the exchange.4 if the person buying or selling has added other benefits in addition to the main payment for the previous acquisition, and in particular if the person has provided guarantees or benefits in kind, the price for the previous purchase shall be reduced or increased correspondingly.5 an audit firm (art. 128 finmia) must review the valuation of the equity securities under paragraph 3 and the adequacy of the increase or decrease under paragraph 4 and present its calculation details in its report.art. 44 indirect prior acquisition (art. 135 paras. 2-4 finmia)1 if the prior acquisition was indirect within the meaning of article 32 in conjunction with article 11 letter c, the offeror must disclose in the offer prospectus the share of the total price paid attributable to the target company's equity securities.2 the valuation of this share must be audited by an audit firm.art. 45 payment of the offer price (art. 135 paras. 2-4 finmia)1 the offer price may be paid in cash or exchanged against securities.2 payment against exchange of securities is permitted provided full payment in cash is offered as an alternative.art. 46 valuation of securities (art. 135 paras. 2-4 finmia)article 42 paragraphs 2-4 apply to determining the value of the securities offered in exchange.art. 47 exceptions (art. 135 paras. 2-4 finmia)the takeover board may grant exemptions from the regulations of this section (art. 40-44) to the offeror in individual cases if there is good cause for doing so.chapter 7 cooperation between finma, the takeover board and stock exchanges art. 48 (arts. 122, 123 para. 1 finmia; art. 39 para. 1 finmasa)1 finma, the takeover board, the stock exchange's registration and disclosure offices and trading supervisory bodies shall provide each other, either proactively or on request, with all information and relevant documentation required by these authorities and offices or bodies for performing their respective duties. in particular, they shall inform each other if they have grounds for suspecting a violation of the law requiring investigation by the relevant authority, office or bodies.2 in doing so, the authorities, offices and bodies involved shall observe official, professional and business secrecy and only use the information and relevant documentation received for the performance of their legal duties.chapter 8 final provisions art. 49 repeal and amendment of other legislation the repeal and amendment of other legislative instruments are regulated in annex 2.art. 50 transitional provision on the disclosure of shareholdings 1 disclosure notifications made under existing law retain their validity. cases which arose prior to the finmia coming into force and which need to be disclosed due to that act and this ordinance must be reported by 31 march 2016.2 cases requiring notification which arise after this ordinance comes into force may initially be reported and published under the current law, including a notice to that effect, up to 31 march 2016. the notification under the new legal regime must be submitted to the competent disclosure office and the company by 31 march 2016.3 a disclosure office that does not have an electronic publishing platform when this ordinance comes into force must have such a platform available and fully operational by 1 january 2017.4 until an electronic publishing platform becomes operational in accordance with paragraph 3, the company publishes its disclosure notifications in the swiss official gazette of commerce and in at least one of the prominent electronic media used for disseminating stock exchange information. the relevant point in time in determining compliance with the deadline under article 24 paragraph 2 is the communication of the disclosure notification to the electronic media. such disclosure notification must be sent to the disclosure office at the same time.art. 50a31 transitional provision to the amendment of 26 january 2017 the duty to report under article 10 para. 2 finmio-finma in its version amended on 26 january 2017 must be met by 31 august 2017.31 inserted by no i of the finma ordinance of 26 jan. 2017, in force since 1 march 2017 (as 2017 547).art. 51 commencement this ordinance comes into force on 1 january 2016.annex 132 32 amended by no 1 of the finma ordinance of 3 may 2018, in force since 1 sept. 2018 (as 2018 2387).(art. 6 para. 1)clearing of derivatives categories via a central counterparty i. otc interest rate derivatives typereference interest ratesettlement currencytermtype of settlement currencyoptiontype of nominal value1. basis-swapeuriboreur28d-50ysame currencynoconstant or variable2. basis-swapliborgbp28d-50ysame currencynoconstant or variable3. basis-swapliborjpy28d-30ysame currencynoconstant or variable4. basis-swapliborusd28d-50ysame currencynoconstant or variable5. fixed-to-floateuriboreur28d-50ysame currencynoconstant or variable6. fixed-to-floatliborgbp28d-50ysame currencynoconstant or variable7. fixed-to-floatliborjpy28d-30ysame currencynoconstant or variable8. fixed-to-floatliborusd28d-50ysame currencynoconstant or variable9. forward rate agreementeuriboreur3d-3ysame currencynoconstant or variable10. forward rate agreementliborgbp3d-3ysame currencynoconstant or variable11. forward rate agreementliborusd3d-3ysame currencynoconstant or variable12. overnight index swapeoniaeur7d-3ysame currencynoconstant or variable13. overnight index swapfedfundsusd7d-3ysame currencynoconstant or variable14. overnight index swapsoniagbp7d-3ysame currencynoconstant or variableii. otc credit derivatives typesubtyperegionreference indexsettlement currencyseriesterm1. index cdsindex, not tranched europeitraxx europe maineurfrom 175y2. index cdsindex, not tranched europeitraxx europe crossovereurfrom 175yannex 2 (art. 49)repeal and amendment of other legislation ithe finma stock exchange ordinance of 25 october 200833 is repealed.iithe following legislative instruments are amended as follows:.3433 [as 2008 6521; 2011 6285; 2013 1117]34 the amendments may be consulted under as 2015 5509.

oral questions and written declarations (tabling): see minutes

state of the negotiations on the climate change and energy package (continuation of debate) we shall resume the debate on the state of the negotiations on the climate change and energy package. madam president, on a point of order, i should like to inform the members of this house that this morning the court of first instance in luxembourg ordered that the people's mojahedin organization of iran should be taken off the eu terror list. this is the third time this ruling has been made and this should be a warning to the council and the commission that their attempts to appease the mullahs and the oppressive regime in tehran by putting the pmoi on the eu terror list constitute an offence against freedom and liberty. (applause) ladies and gentlemen, if you do not mind, we shall therefore resume the order of speaking time. (de) madam president, presidency of the council and commission, ladies and gentlemen, this parliament has in recent years always been very bold in exercising its own rights. we have not let ourselves be swayed either when we invited the dalai lama, or when we took a decision regarding the sakharov prize, or with regard to participation in the olympics. i am therefore very concerned that we are not exercising our rights sufficiently regarding such an important matter, which evidently only generates limited interest today and which some fellow members have described as the question of the century. i would ask the presidency of the council and the parliamentary leadership to ensure that we not only talk of better regulation, but that we actually also have the opportunity to see and examine texts. at the moment, for example, in the case of emissions trading, talks are based not on parliament's opinion but only on the decision of a single committee. there have been four committees which have made decisions, the assumptions of which have not been brought into the trialogue. one rapporteur negotiates, and 784 members have no opportunity to contribute their opinion. the procedure is scheduled thus: 10/11 december council, 15 december trialogue, and then decisions will be made. this will mean that we as individual parliamentarians have no opportunity to look at the text, to evaluate it, to discuss and reach a sound decision on it. we already had difficulties in conducting the discussion seriously today, we had to start later, we had to suspend proceedings, now hardly anyone is listening. but that says it all. we are making decisions about taxes of eur 70 billion for people. and we do not appear to give ourselves even a few hours, a few days to have a thorough look. i think that is irresponsible. i ask the presidency of the council and i also ask the presidency of this house to ensure that we can all give ourselves the necessary time. (the president cut off the speaker) (sl) ladies and gentlemen, it is a good thing that right in this period of time we have had a very ambitious presidency, which has truly worked hard to find an agreement on the climate and energy package. in spite of all this, i have my doubts about the appropriateness of the agreement process in the first reading, since such extensive and challenging documents raise the question of transparency and the question of adequate representation of the majority view in parliament, and this then naturally broaches the subject of how democratic this process is. i would therefore like us to give things a little more thought next time before confirming that we will deal with some document by agreement in the first reading. there would be nothing wrong in us concluding a normal first reading in december, and then performing a second reading before the end of our term and coming to an appropriate agreement with the council. it is therefore not surprising that there has not been much discussion of the details in this debate, since members are not particularly familiar with them. i would like to speak mainly about the use of funds from auctions. i think here we need to take into account certain principles, and specifically that we must use funds absolutely exclusively for tackling environmental and climate challenges, that we must use them for mitigation and adaptation and that we must use them to develop technologies that reduce greenhouse gas emissions and that are not yet commercial - in other words, this should include ccs pilot projects. this is not just important for the european union, but also for third countries such as china. in this case we must use the funds for measures within the european union and for cooperation with third countries, and when we talk about the level of emissions, we must take into account our responsibility for global emissions, currently running at 13 to 14 per cent, and also add to this our historical responsibility for emissions. we must also use the financial resources for already existing mechanisms - in other words, we should not be setting up any new funds. i would like to thank the entire negotiating group and inform them that this agreement will see us well on the way to the negotiations in pozna next week. (fi) madam president, we know very well that parliament's position on the climate package is not united. on many issues my own group is closer to the council's position than parliament's. it is nevertheless important to remember that we are completely unanimous on the matter of emission reductions: emissions have to be cut. it is just a matter of how. some want to do it the expensive way, by auction, and we want to do it the cost-effective way, through benchmarking. the representative of the group of the greens/european free alliance expressed the desire openly in the negotiations for prices to rise so that consumer habits might change. our group has no faith in this sort of logic as long as emissions trading is unilateral. as long as it is, it is just a tax. if the emissions trading playing field were global, auctions would be a good option. the price of emission rights could easily be reflected in consumer prices, which in turn would prompt consumers to choose cleaner products. you never know but wholly carbon-intensive production sectors might move into the background. unfortunately, the consumer environment does not work like that now. products that are made in a less clean way outside the eu gain a competitive edge in global markets. this is crucial for jobs. i hope that the council will be able to improve the outcome satisfactorily. (ro) the european union made the commitment to complete the climate change dossier by january 2009. the results of the negotiations will be particularly important for the united nations conference in pozna where the eu's commitment to reducing its carbon emissions and assisting poorer countries will be assessed. we need to make sure that our objectives remain ambitious so that an international agreement is signed which will motivate the developing countries sufficiently to follow our example. if an international agreement is signed, it must remain a priority for us to raise our target from 20% to 30% after 2020, even if this transition will be achieved through new negotiations. a more ambitious long-term objective will safeguard the european union's credibility as a major player in the fight against global warming and will help to achieve favourable results in the future copenhagen negotiations. (sv) madam president, we have promised the un and others that we will reduce emissions by 20-45%. now we will not even achieve 20%. instead, the council of ministers is attempting in the negotiations to shift responsibility from ourselves onto the developing countries. clean development mechanisms tends to mean dirty development in which poor countries are forced to shoulder our responsibility and we expect to be able to secure investments there for ourselves. when these countries then have to deliver their own climate policy, they have to pay more dearly for it. the climate policy must include both aid and measures here at home. the car industry package, that is concerning emissions from cars, is so worthless that the emissions from the paper it is written on are greater than what it will be capable of saving in terms of the climate of europe and the earth. it is bad for the car industry, bad for the environment and it is bad for consumers, who want to have low-energy cars for the future. - (ga) - madam president, the european union must agree ambitious targets so that europe can lead the way in combating climate change. there is a period of economic uncertainty ahead of us, but the economic recession should give us the courage to change more quickly to the new green economy in order to deal with many of the old problems in relation to demand for oil and energy depletion. as regards general stationary combustion, it is important that the new performance standard for emissions is in place, which should be implemented in every power station from 2015 on at the latest. it is also important that continuous monitoring and safety criteria will be in place as well. madam president, climate change can no longer be viewed rigidly in environmental terms, but must instead be mainstreamed as a cross-cutting concept through varying policy areas, including development and human rights. it is a problem not just of the future but of the present. climate change is attacking the natural resource base of poor communities, including their land and water reserves, and people are subsequently being forced to migrate for survival. such migration flows can have destabilising consequences and can threaten the overall internal security of a particular country, region or border area. i visited the chad/sudanese border area this year as a member of the committee on foreign affairs. i saw the devastation caused by war and food shortages. climate change will make situations like this worse. unfortunately, those most at risk are the least culpable in creating this situation. therefore i am delighted to see my colleagues in parliament taking the lead on this matter. the eu, the us and other world powers need to act. madam president, mr piebalgs, mr dimas, ladies and gentlemen, firstly i would like to thank you for holding this debate, which was fundamental for those of us who are participating at the same time in the pozna conference and the european environment council, and who, next monday, will be at the energy council, and then at the european council on 11-12 december. it was important for everyone to be able to give their opinion on what is probably one of the most difficult subjects we have had to deal with, since it involves a radical change to a number of aspects of our economic and social policies, so great a factor is energy in all of this, with its moral, ethical and nature-related dimensions, this respect for nature and, obviously, climate change. i would just like to say as an initial point, to those who cast doubt on climate change, that, in any case, the need to eventually wean ourselves off oil in itself makes this whole directive essential. whether we do it because of climate change or in order to change the energy mix and its territorialisation, the overall package, in either case, is relevant. the second point i should like to make, if i may, is addressed to the commission, which has carried out extremely thorough and extremely important preliminary work. the targets proposed by the committees, and supported by the european councils under the german presidency, are there, are the right ones. i believe that they have everyone's support, and this significant conceptualisation effort to express things that are so seemingly different and at times seemingly incompatible is absolutely outstanding. i believe that, from this point of view, there is broad agreement among the institutions. it is in relation to the methods that questions can be asked. for my part, i would very much like to mention again the contract of confidence entered into with parliament within the framework of the trialogues, and i am well aware of the difficulty of the meps' relationship with the trialogues; the latter will not have escaped anyone's notice. nevertheless, our international commitments, our international meetings are vitally important. copenhagen is probably the most important meeting that humanity will hold with itself. we cannot fail to show that europe is capable of reaching an agreement on these points. we do, of course, have various problems concerning competitiveness. yes, mr watson, mr hoppenstedt and mr davies, financing of carbon capture and storage should, of course, be included, in one form or another, now or a little later. this concerns the methods, of course. likewise, it would be irresponsible to support carbon leakage, and i believe that we have found solutions that are basically quite reasonable. in essence what i would really like to say is that there always comes a time in life when we focus more on the method of the method than on the objective and the way to achieve it. methods can evolve without the objective and the guarantee of achieving it allowing them to do so. there is a copyright mentality where methods are concerned; this is true of the commission, and also of the rapporteurs of parliament's various committees. the only thing that is really incumbent upon us is for us to have the assessable public financial resources to achieve the objectives we have set ourselves in the short, medium and long term. lastly, on my final point i will scrupulously echo what was said in this crucially important chamber. there is no denial of democracy, but a speeding-up of all the processes. i can tell you that the meps were working until 2 a.m. last night and again this morning, and have reached an agreement on the co2 emissions of cars. we could discuss the first three years, but we could also discuss the target, set at 95 grams, which is the key factor for the development of our industry. we could debate how to deal with progressivity where all of our points are concerned. the only issue of importance for us is not to penalise, but to allow competitiveness and to guarantee that each of these targets will be met, as they work together and are all completely interdependent. this, in brief, is what i wished to say, dealing with each speech point by point. rest assured that i shall report them to today's council and to the council of 11 december. in any case, please accept my sincere thanks. member of the commission. - madam president, today's debate has mostly concentrated on the challenge of climate change. it is true that it is a huge challenge, but the same is also true of the energy challenge that we are facing. we have seen the recent volatility of prices, bringing challenges for the security of supply that is particularly important for the european union, where energy import dependence is growing. this package also provides a basis for the solution to energy security, not only for the european union but also for other parts of the world. if we make the technological change, it will provide for very different and secure energy sources that could be used across the world. i believe that today's debate has been very positive and has clearly demonstrated parliament's commitment to finding solutions very rapidly. i am very grateful for this. the commission, from my side and that of my colleagues, will work very hard to facilitate agreement between the parliament and the council this december. member of the commission. - (el) madam president, i would also like to thank the members of the european parliament that took part in today's debate for their constructive opinions. furthermore, i would like to thank the french presidency that tirelessly worked together with the european parliament as well as with the commission to find solutions, which are compatible with our environmental goals, and which are compatible with other situations and problems faced by member states or other sectors of european industry and businesses. the council and the european parliament have demonstrated their will to reach an agreement at first reading, and i think by the next part-session of the european parliament in two weeks' time, any outstanding issues will be settled. by then, we will have an agreement which will allow us to meet our environmental goals, such as the reduction of greenhouse gas emissions in the european union. this is necessary for the european union so that it can properly combat the effects of climate change, and so that it can avoid running into other problems such as, for example, the problem of businesses relocating to countries outside the european union, where they can continue emitting carbon dioxide without any limits. therefore, we must take all the necessary measures. this is what the commission proposal was aiming at, as well as the cooperation between the three institutions, so that proper solutions could be found. i am sure that in two weeks, at the part-session, we will have an agreement. the debate is closed. written statements (rule 142) in writing. - (it) protecting the environment and combating climate change are essential priorities for the whole international community. as i have always maintained in recent years, progress in research enables us to develop objective reasoning, including with regard to energy sources that are too often demonised. in the light of current technological advances, in order to foster a process of geopolitical stabilisation and to ensure greater security at international level, energy sources must be differentiated, reducing dependency on supplies. from this perspective, by improving certain underdeveloped situations such as that in italy, a serious debate on nuclear energy, with specific reference to third generation plants, is to be welcomed. in writing. - (nl) we in europe are standing at a crossroads in history. we have resolved to take the lead worldwide in the fight against global warming. the time has now come to make good on this promise. we understand that, inter alia, our friends in poland want guarantees that they will not be faced with the highest bill of a climate agreement. this is why the eu has to invest more in new clean coal technology and in carbon capture and storage (ccs). the agreement that was concluded this week on reducing co2 emissions from new cars has met with criticism, because it does not go far enough. whilst this criticism is partly justified, we should also acknowledge the positive aspects. we will certainly start from 2012, albeit gradually, and we have also held onto the objective of a maximum of 95 g co2/km by 2020. fortunately, it also contains powerful incentives for electrical or hybrid cars. the manufacturers should realise that they have nothing to lose by openly plumping for these environmentally-friendly cars. the governments should encourage this u-turn much more forcefully with tax incentives. as for the consumer, us included therefore, what is stopping us from buying these environmentally-friendly cars now? today, there are already middle-of-the-range cars available that are below the european standard of 2012. so, . in writing. - i welcome the progress that has been made in the talks between parliament and council over the last few days and late into the night last night. there is still some way to go, and i urge both sides to make the last effort to reach an agreement capable of being approved by the parliament before christmas. to be acceptable to parliament, the package of measures must be sufficiently vigorous for us to achieve the agreed eu targets of a 20% reduction in co2 emissions and a 20% increase in renewables by the year 2020 - but also to enable us to go further and raise this up to 30% in the event of an international agreement. i am also pleased that there seems to be agreement that the biofuels target should be subject to strict sustainability criteria. some have qualified the package of measures as being extreme. if so, then i am an extremist - but i would point out that moderation in the face of a threat to the very future of this planet would be no virtue and vigorous action no vice. , in writing. - (hu) when discussing the developments relating to the european union's climate package, we cannot ignore the possible consequences of the financial crisis. that is to say, if governments spend their accumulated financial reserves primarily on bank rescue packages, then crucial energy investments may suffer delays. in spite of the crisis, europe needs investments as soon as possible in expanding renewable energy sources and making significant improvements in energy efficiency. we need to invest today in order that renewable energy sources may become competitive in the near future. for the above reasons, creating an eu energy fund is an urgent task. the monetary instrument in question would serve primarily to help improve energy efficiency and expand the use of renewable energy sources. moreover, if we really want to strengthen the european union's common energy and climate policy, this intention must also be reflected in the next seven-year budget. in addition to strengthening eu support, the member states must be guaranteed sufficient freedom not only to take into account the various regional differences, but also to determine their own climate policy instruments. the temporary moderation of the prices of traditional energy carriers ought not to induce complacency on the part of decision-makers, nor put to one side the commitments made in relation to renewable energy sources. if, in the shadow of the crisis, the european union loses sight of the goals it has set for itself, this can have a harmful effect on its own credibility and its leadership role in the area of climate change. we have been discussing one problem for far too long, however ever less time remains for it to be resolved. the global processes regarding climate change must be solved within a long-term plan, as well as with concrete measures taken by all players in the world economy. there are a few key actions around which talks need to be organised: investments in new technologies - industry creates problems but with the help of new technologies these can be solved. this is why it is necessary for us to give industry a chance at intelligent development that responds to our goals; mandatory implementation of an alternative option, however without negative effects on the environment; ensuring safeguards in the use of atomic energy which also needs to be given a chance; i state this as well, in my capacity as a representative of bulgaria, which has its own contribution in this process; investments in education and science for sustained development - without which there cannot be talk of an effective fight against climate change, as they ensure adequate individual and organisational preparation; the european commission adopted the 'renewable energy and climate change' package on 23 january 2008. this package shares among the member states, based on criteria and targets, the eu objectives adopted by the european council in spring 2007. these are a reduction in greenhouse gas (ghg) emissions of at least 20% at eu level by 2020, along with, during the same period, a 20% increase in the share of renewable energy resources in overall energy consumption, and a 20% increase in energy efficiency. we can negotiate in every area, but we cannot negotiate with nature. for this reason, to be able to meet these commitments in terms of reducing ghg emissions and increasing the share of renewable energy sources, major structural reforms are required in every area of the economy. romania will adopt the national obligations arising from this legislative package, which will have a significant impact at economic and social level. the completion of the negotiations on the 'renewable energy and climate change' package provides an opportunity to strike a balance between combating climate change, increasing suppliers' security and promoting competitiveness and economic growth, as well as creating jobs. we are pleased that at the moment, the negotiations between the european parliament and the council on the 'renewable energy and climate change' package are progressing towards reaching agreement. the european council to be held 11-12 december 2008 will decide on all the elements linked to this package. in preparation for the discussions to take place 11-12 december, romania along with slovakia, hungary, bulgaria, lithuania and latvia submitted on 28 november a proposal for redistributing the income obtained from auctioning co2 emissions, based on the following formula: ( 90 - x)% + 10% + x%, where x is distributed to those member states which successfully achieved reductions of more than 20% in the kyoto emissions ceiling in 2005. romania also feels that a review clause is absolutely essential in 2014, without however raising a question mark over the 20% (or 10%) reduction targets, simply in order to facilitate possible adjustments to the mechanisms, based on the specific conditions during the relevant period (which cannot be predicted just now). in writing. - (fi) the emissions trading scheme presents a choice of two options. on the one hand, we have the brokers' model, and, on the other, the industrial model. the brokers' model is an opportunity to speculate three times over for those who do not need emission rights for production but who buy them to sell them to manufacturing companies at a high price. they can buy the rights at auctions and on the secondary market at emission rights exchanges, and still speculate in them on the power exchanges. while there are emission rights, people can even speculate in them with over-the-counter deals, avoiding the exchanges entirely. that is why we need to go for the speculation-free industrial model, where targets for cutting emissions are achieved through benchmarking, with best available technology (bat) establishing standards for reductions. in writing. - (da) on monday evening the large political groups in the european parliament agreed a compromise with the council of ministers in respect of the requirements for co2 emissions for passenger cars under which the automotive industry will be able to continue unchanged in its dirty ways all the way to 2019. the eu has signed up to the un's climate targets, under which industrialised countries are supposed to cut co2 emissions by between 25 and 40 per cent by 2020. the agreement on co2 emissions from cars is a bow to the car industry and it only serves to confirm that the eu's promises in relation to climate change are not worth the paper they are written on. each time the eu is supposed to take a tangible step towards living up to its own promises and targets we hear all the bad excuses in the world for why it does not happen. it is unbelievable that the majority in the european parliament is prepared to endorse the continuation of this disgrace. madam president, commissioner, ladies and gentlemen, our adoption of this climate change and energy package should serve as a letter of intent, enabling us to send out a crystal-clear signal to the whole world to reach an ambitious agreement in copenhagen next year. i fully endorse commissioner dimas's statement that the financial crisis has shown how foolhardy it is not to take obvious warning signs seriously. in the case of climate change, we cannot allow ourselves to repeat this mistake if we want to prevent dangerous and possibly catastrophic economic and social consequences in the coming decades. we must show a sense of responsibility and make bold decisions to adopt a clean, efficient energy model, and also to provide the tools needed for our citizens to become aware of climate change and act accordingly. the time has come. i therefore make a public appeal for the chamber and the member states to support this legislative package during the forthcoming plenary, as it will certainly enable us to tackle the major challenge that faces us. tax fraud strikes against the principle of fair and transparent taxation and simply damages the foundations of community operation. lower budget revenues prevent us from implementing our policies to their full extent. combating tax fraud falls largely within the competence of member states, but they should not act individually. there is a clear need to coordinate actions at community level and to strengthen cooperation between the governments of member states and the european commission. since a radical vat reform is both a long term and a time-consuming project, the report proposes using conventional means. they include changes in legislation governing taxpayer liability for the failure to submit the required documents on time or for submitting incorrect documents, reducing the period for data collection and rapid correction of inaccurate data as well as speeding up the exchange of information on intra-community transactions.

11. statutes for the euratom supply agency (vote) - report: jordan cizelj

oral questions and written declarations (submission): see minutes

13. transitional arrangements for bilateral investment agreements between member states and third countries (

implementing measures (rule 88): see minutes

towards an eu strategy on the rights of the child (debate) the next item is roberta angelilli's report, on behalf of the committee on civil liberties, justice and home affairs - towards an eu strategy on the rights of the child. rapporteur. - (it) mr president, ladies and gentlemen, first i want to thank colleagues for their valuable cooperation, and in particular mr frattini for his commitment since the beginning of his mandate to safeguard the rights of the child. the report obviously does not pretend to be exhaustive, but i believe it is a good point of departure. the objective was to lay the bases for a strategy aimed at promoting and safeguarding the rights of minors in the european union's internal and external policies and to support member states' efforts in that sector. we wanted to take as our premise the specific nature of the rights of minors, which are totally distinct from the more general category of fundamental rights, although they form an integral part of them. the strategy aims above all at the positive affirmation of the rights of the child, which include the right to a family, the right to health, education, social inclusion, but also the right to entertainment, the right to play, to engage in sport, together with the right to a clean and protected environment. in substance, the aim is to create a society tailored to the child, in which the child can feel protected and actively involved. that is why the report is based on two main presumptions: (1) active participation of children in decision-making that affects them; (2) mainstreaming, that is to say incorporating and promoting the rights of the child in all european union policies. in short, the rights of minors must finally become a political priority for europe, given also that children account for about 30% of european citizens and much still remains to be done for them, beginning with the fight against violence and abuse, in face of the worrying growth of paedophilia and child pornography networks. the general objective is to ban all forms of violence, including so-called traditional practices, honour crimes, and forced marriages. it is not enough only to ensure the certain punishment of those who commit violence; we must guarantee a strategy of prevention, aimed especially at helping children at risk. another priority is to combat child poverty. it is worth pointing out that even within the european union 19% of children live below the poverty line and we must, therefore, provide aid measures that are also designed to support their families. in particular, we need measures targeted at roma children and street children, who are often forced to beg and thus become easy victims of exploitation, trafficking and organised crime. another basic aspect of the strategy is to guarantee the education and training of all children, including the most poor and disadvantaged. we also need measures targeted at the less able, so as to prevent any form of discrimination. we are among experts here so perhaps there is no need in this chamber to list all the urgent problems that need to be tackled: from the marketing of violent video games to the rise in cases of international kidnapping of minors, the red tape that makes international adoptions difficult, the tragedy of the child soldiers, child labour, the failure to register the birth of a child, the remarkable number of disappeared children of which no more is ever heard. i could go on and on. in truth, we must apply the appropriate instruments and provide prompt information in order to exchange experiences and good practice, and we must create synergy between the related legal and penal instruments in order to address the problems in concrete terms and in real time and possibly succeed in preventing them. let me conclude by saying that approval of the lisbon treaty will give us a few more chances. the eu charter of fundamental rights now forms part of the treaty, including, therefore, article 24, which expressly governs the rights of the child, thus creating a legal basis for implementing the strategy. at this point, we as a parliament, but above all the member states, must set to work immediately. vice-president of the commission. - (it) mr president, ladies and gentlemen, let me give warm thanks to mrs angelilli for this report. from the start of my term of office, the rights of the child have clearly been a top priority, a central item of my agenda, and the cooperation with parliament in this field too has now led to the policy lines that will be the outcome of this report - which i hope will be adopted by a very large majority - guidelines for action that the commission will follow, for there is not a single point in that report that i do not endorse. it sets out horizontal initiatives that cover a number of policies, but the common denominator is that minors, that is children, form the heart of our society and it is, therefore, clear that they deserve our utmost attention. over the coming weeks i, together with my staff, will consider how to put the individual points contained in mrs angellili's report into practice on the basis of concrete initiatives. there are, in fact, already some measures under way. they include the presentation of a communication that you have taken into account and that dates back to july 2006, a general communication on a european strategy on the rights of the child that has the entirely political objective of making those rights a political priority, as mrs angelilli noted. other measures now under way include the creation of a standard helpline telephone number, 116 000, which will be the same throughout europe. let me take this opportunity to invite the many member states that have not yet put that measure into practice to lose no more time in doing so; here, i am obviously addressing not parliament but member state governments. that decision was taken more than a year ago yet more than half the member states still do not have a helpline that actually works, although it is a decision that, i believe, could have been implemented in a short space of time. last october we discussed, with the presidency in lisbon, whether we could jointly set up a european network of early warning systems for the event of the abduction or disappearance of children. you know we were looking at the good example of the french system, we looked at how things worked in belgium, we noted that portugal and greece were setting up, or in recent weeks have already set up systems; but it is clear that child abductors disregard borders and, therefore, early warning systems cannot stop at geographical borders. we have done a lot of work on internet crime against children. our work with a conference of experts last november produced important results in terms of the kind of technical cooperation that could lead to the interconnection of electronic systems to prevent and react to on-line paedophilia. that is one of the most terrible threats to children, and you know that thanks to its inclusion among the 2007 priorities of eurojust and europol we are now able to dismantle many international paedophile networks operating via the internet. we also submitted a report last november - one of the points that was emphasised - on progress in implementing the framework decision dating back to 2004 on combating the sexual exploitation of children. in that report, as you may remember, i highlighted the fact that too many member states have still not transposed that 2004 framework decision, dating back four years now, on the sexual exploitation of children. we certainly created a useful instrument with the european forum. the first experience with it in germany, under the german presidency, mainly related to internet abuse and violent video games. the next european forum on the rights of the child, which will take place under the slovenian presidency, will address other subjects, including in particular international adoptions. we will look at the situation and, as mrs angelilli hoped, we are also looking into practical ways of inviting children, children's representatives, to take direct part in all european forum meetings. you will understand that it is a delicate matter to invite children, including rather small children, to take part in those meetings, but that is the objective that has been decided and we will, therefore, fall in with that proposal from parliament too. we are developing a dedicated european website for children, written and presented in a simple way, which explains, for example, how to guard against the many safety threats to children in everyday life in a non-aggressive and non-shocking way; it explains how to, let us say, steer clear of such dangers. we have said very little about the fundamental rights agency; one of my proposals was to make the rights of the child a priority under that agency's multiannual programme. we still have much to do. mrs angelilli rightly says that we must consider migrant children. that is an aspect we will address specifically in the framework of european immigration policy: children are often victims, they are often the most vulnerable in the general context of migration flows. we must place more emphasis on the need to implement the european action plan to combat people-trafficking, with particular reference to children, in addition to women, for as the two weakest categories they are often the victims of international people-trafficking. we must look into means of financing practical proposals and projects under european programmes. the new daphne programme and the new fundamental rights programme may, for example, enable us also to provide financial aid for the european network of ombudspeople for children. i attach great importance to that network and also, clearly, to the ngos working in that field. the new programme, known as daphne iii, has been refinanced and may serve as a particularly useful instrument. in conclusion, i am, of course, more than ready and willing to continue developing this political strategy, with a view also to producing very concrete results for our citizens in one of the areas particularly close to our heart. rapporteur of the opinion of the committee on women's rights and gender equality. - (el) mr president, protection of the rights of the child has never been lacking from the internal and external policies of the european union, but because of the absence of a legal basis, these policies have been piecemeal, and for this reason your proposal, mr vice-president, for the development of a strategy for the protection of the rights of the child has been favourably received by the european parliament, and also by civil society. we hope it will be strengthened with the entry into force of the reform treaty, which will include as an integral part the charter of fundamental rights, as was mentioned by the rapporteur, mrs angelilli, whom i congratulate for her skills of synthesis and her presentation of today's report. with the possibility of an integrated and coordinated approach to the protection of children at european level - thanks, amongst other things, to the numerous interesting proposals by the commission - the child must be regarded not as a victim, but as the holder of positive rights and obligations, who should grow up in a healthy family environment with the assurance that his or her material and non-material needs will be met. respect for the rights of the child should be strengthened not only through the planning of european actions, but also by the political will of the member states, with measures which will answer to the fundamental needs of children and protect them against multiple dangers. the committee on women's rights and gender equality focused, in its opinion, on the question of supporting the mother and the family in the performance of their obligations. it urged support for vulnerable groups, namely children at risk due to abuse and lack of education, healthcare, proper nutrition and opportunities to develop and achieve their potential. the reconciliation of the parents' working lives with family life: this is an inalienable right of the child, and also represents the creation of valuable capital and an investment in the society of the future. both inside and outside the european union, children's positive rights are often violated, and there is still discriminatory treatment due to sexual inequality. there are gender stereotypes and perceptions which marginalize some groups of children and particularly girls and young mothers. the protection of women, especially during pregnancy and when they are bringing up children, must be a requirement, so that children, from the very start of their lives, can enjoy their fundamental rights. thank you very much, mr chairman, and i also thank mrs angelilli for her report. i welcome the fact that the slovenian presidency chose as one of its priorities the question of children in armed conflicts, which was also one of my topics. my opinion on behalf of the committee on foreign affairs also deals with the need to register children at birth. children who are not registered are invisible and therefore often become victims of sexual abuse or trafficking; they are imprisoned along with adults and are used as active combatants in the armed forces, because it is impossible to establish whether or not they are already adults. the birth certificate of a child guarantees the child his name and nationality as well as access to medical care, for example. i regret, however, that the report is only being adopted in january: the majority of the opinions were voted on and submitted to the committee before the summer and the report could thus have been adopted earlier. a solution to this issue of children rights is needed urgently. one illustration of this is the recent case of the transfer of more than 100 chad children to france. the aim of the action was to help the deserted families in darfur; the children - orphans - would be looked after by foster parents in europe. the un confirmed, however, that in the majority of cases the children were not orphans and did not come from darfur, but from chad, the neighbouring country. finding an urgent solution to the issue of children's rights is not only a necessity for developing countries: it is a necessity for us too. draftsman of the opinion of the committee on development. - mr president, i would like to say at the outset that the committee on development feels very strongly that it is important for the commission to mainstream children's rights into all aspects of development policy, seeing this as a means of achieving the millennium development goals. i know that the commission communication proposes to deal with such issues. i wish to state very clearly that we need a children's rights approach and need to move away from a common focusing, in this debate so far, on issues such as child-trafficking, abduction and pornography. we need to ensure that we understand we are talking about the rights of children: the rights of children to be consulted; the rights of children to be listened to; and the rights of children to have the respect of adults and not be told by adults what they should be doing. i also very much welcome the fact that the lisbon treaty makes reference to children's rights. we welcome this, because at the moment only animal rights have this kind of legal base in the european union, and we urgently needed to make this the case for children too. finally, in the wider world and in europe itself, we need to see that what we are doing is safeguarding children's lives and generally enhancing the well-being of all the children in europe and in the wider world. rapporteur of the opinion of the committee on employment and social affairs. - (el) mr president, i would like to begin by congratulating mrs angelilli on the constructive work she has done. the strategy for the rights of the child is a positive step towards a coordinated approach both to internal policy and to external relations. the committee on employment, whose opinion i drafted and am now presenting, emphasises the social aspects of violation of the rights of the child. it focuses on child poverty, which affects nearly one child in five in the european union. it also stresses the problems of child labour and social exclusion, and calls for special attention to be given to the vulnerable social groups, such as child immigrants, street children and children with disabilities. we are afraid that today's children, mr president, are being called upon to live in a world worse that that known by previous generations. the european union must therefore act now, with substantial commitments, targets and necessary resources, both at community level and at the level of member states. draftsman of the opinion of the committee on culture and education. - (de) mr president, may i begin by congratulating the rapporteur on her report and on the cooperative nature of our deliberations. we fully agree with many major aspects of the report. i wish to highlight two points, however, to which i attach particular importance. the first of these is the right to education as a prerequisite for children's social development. the member states must create unhampered access to education for all children and young people, regardless of their ethnic and social background and their family circumstances. this also means that any kind of exclusion, discrimination and violence against children must be prevented. it is essential to press ahead as quickly as possible with the launch of the helpline. the second point that is very important to me is the promotion of language, as languages are one of europe's cultural treasures. there is also an innovation that we should not overlook, for the rights of children also extend now to their involvement in new developments in the field of education and training and in particular the cultivation of media literacy. competence in the use of information and communication media is an extremely important educational tool and must be vigorously developed. on behalf of the ppe-de group. - (hu) thank you for the floor, mr president. i think there are only a few of us who would not be directly or indirectly affected by the topic of protecting the rights of children. the community institutions have already dealt frequently with various aspects of this topic, but agreed with the submitting committee that, in addition to all this, a comprehensive strategy needs to be developed. there are some specific areas that we absolutely must take into account when working out such a vision. these include, for example, the prohibition of all kinds of violence against children, fighting poverty and discrimination, and the right to education. as mr frattini stated in his introduction that the agency will deal with this area in particular, i would like to make a recommendation to you: why not make the first specific request from the commission to the agency that it investigate the enforcement of precisely this area, the rights of the child? i find the sexual abuse of children, child labour and the enormous differences existing today between how children with refugee status are treated in individual member states particularly worrying. the problem of street children and children forced to beg is a serious problem here in our immediate surroundings. i am also convinced that the fight for the complete enforcement of the rights of the child within the union must mean above all reassessing the role of the family in this new europe, and reinforcing the role of upbringing alongside education, so that our children receive guidance, as well as professional knowledge, in our ever more troubled world. perhaps fewer children would be inclined towards violence, suffering physically or damaged psychologically. thank you. on behalf of the pse group. - (sv) mr president, i want to start by thanking mrs angelilli and all the shadow rapporteurs, but also all the members who have contributed to getting us to a point where we shall soon have the first decision of the european parliament on an eu strategy on the rights of the child. the key question concerns the involvement and influence of children. there will be some painstaking and important work to be done in order to ensure that this becomes a reality and not just words. children and young people expect as much. the point that i consider to have been the greatest success is the proposal concerning violence against children. the committee has unanimously backed my demand that all violence against children, including corporal punishment in the home, must be prohibited by community legislation. it is a great success for children. in my home country, sweden, where corporal punishment is banned, every child at nursery school and all young people know that adults may not strike a child. the fact that we are now making it clear that there must be cooperation in putting an end to all forms of abuse of children means that we need increased cooperation from relevant bodies such as banks, travel firms, credit firms and exchange bureaux to stop child pornography, sex tourism and the exploitation of children, and to get an internet which is safe from paedophiles. illegal websites must also be shut down. member states must legislate against buying sex in order to ensure that children do not become a trade commodity. the most difficult problem we had in the committee related to adoption. i am very happy that we are now agreed that a child has a right to a family , irrespective of whether it is the child's own family, a foster family or through national or international adoption. it is the child's best interests which should decide the matter, not adults' best interests. we all remember what happened at children's homes in romania and guatemala recently - kidnappings of children for adoption are fresh in our memories. children are not a trade commodity. it is now up to the commission to listen to the wisdom which we have shown in parliament and to come back with concrete proposals on how we are to give effect to children's rights which now, with the new lisbon treaty, become an objective to be embodied in law in the eu. with the new lisbon treaty the eu must listen and ensure that the rights of children are integrated into its work. this must happen as a matter of course and must also apply in the global perspective, in development work, in culture and in all areas. child poverty will of course be a central issue, but also the question of how children fare in war and in relation to health risks of all kinds. i am proud to have participated in this work in parliament, which will take a decision on the matter tomorrow. on behalf of the alde group. - (et) mr president, commissioner, ladies and gentlemen. i am pleased that the european parliament has finally reached this debate on the european union's strategy for children's rights because a policy which encourages children's rights will form the bedrock of tomorrow's society. the well-being of society and the state depends on the values and methods used by future parents. my thanks to the rapporteur for drafting such a comprehensive document. it is appropriate that the principles set out in the un convention on the rights of the child and its additional protocols have been used as the basis for developing an eu strategy on the rights of the child. however, this strategy to be more effective and applicable throughout all 27 member states, it must contain more specific provision for implementing measures whose application would be supported both by using member states' and european union resources. the strategy is comprehensive, and i do not have time to go into every aspect. i would like to highlight just one positive initiative, but one which is effective in all respects, namely the recommendation in the european union children's rights strategy for a european union-wide child helpline telephone number; we have had a child helpline number in estonia for three years now and i can confirm to you that it works well. i would like to direct your attention to two important target groups, the safeguarding of whose rights i believe we should focus our thoughts on more keenly. the first of those target groups is disabled children. it strikes me that in our strategy on the rights of the child, greater attention should be focused on safeguarding disabled children's rights; and that also they, like other target groups, should have genuinely guaranteed opportunities, equal opportunities, to be actively involved in the life of society. the second area i would like to highlight is that of guaranteeing the rights of children who are not cared for by their parents. all children unquestionably have the right to a family. unfortunately today it is not possible for all children to grow up in the bosom of the family, and they live in children's homes. we have not paid sufficient attention in our documentation to children who have left children's homes at about 18 or 19 years of age: legally they are adults, although in social terms they are not; this is an area which we should begin to focus some attention. on behalf of the uen group. - (pl) mr president, as an mep who for some years now has been involved in protecting the rights of children, i am very pleased to accept the report of mrs angelilli concerning the creation of a unified eu strategy on the rights of the child. violations of children's rights, violence against children, the trade in children for illegal adoptions, prostitution, illegal work or for begging on the streets: these continue to be an enormous problem for the eu. every strategy concerning children's rights should be based on the values and principles contained in the un convention, particularly as regards protection against all forms of discrimination. every child must have a guaranteed right to have continuous and direct contact with both parents, as well as the right to be brought up in the parents' culture and the right to learn the language of both parents. these rights are repeatedly violated by the german office for children and young people, the jugendamt, as regards children one of whose parents is foreign. in cases of divorce, the jugendamt uses any method to deprive the parent who is not german of their parental rights. children are deprived of their right to learn the language of the second parent, and it is forbidden to have conversations in languages other than german during meetings that have been arranged. official documents state that it is harmful for children to be bilingual. over 250 complaints against the actions of this office have been filed with the committee on petitions. despite the fact that a year ago the european commission stated that the actions of the german jugendamt violate article 12 of the eu treaty, which bans all discrimination, the german state has become even stricter in its discriminatory practices against children of foreigners and this is an absolute scandal. i hope that since this report is the voice of the european parliament, this will help to remove the discrimination that is found in this area. on behalf of the verts/ale group. - (de) mr president, children are not mini-adults, nor are they what people call a natural part of the family or of society. they are legal persons with their own rights. all member states of the eu signed the ground-breaking un convention on the rights of the child, but in many aspects of children's rights we in europe have barely scratched the surface. one bright spot is the fact that the european commission has put children's rights on the agenda, but the commission's proposal, in our view, still comprises too many fine words and too few specific measures. i am pleased that the report fleshes out the commission's recommendation, and for this i reiterate my congratulations to the rapporteur. we must hope that the commission is doing its homework and will be more specific in the 2008 green paper on the rights of the child. we need indicators and precise timetables for the realisation of children's rights. allow me to focus on three points that are important to me. the first of these concerns the rights of girls, especially girls from migrant backgrounds. realising the rights of the child invariably involves the establishment of equality between girls and boys and equal opportunities for both, and this is reflected in the present report too. let me express my gratification at the adoption by the committee and the rapporteur of our proposal that headscarves for girls should be banned at least in primary schools in the eu in order to give girls genuine freedom of choice and the right to a childhood. likewise, there is no justification for prohibiting girls from migrant backgrounds from attending school. the second point to which i attach great importance is that of violence against children and increasing neglect. there is a need to improve children's media literacy. there has been an alarming rise in the dissemination of pornographic material and scenes of violence through mobile phones, and this leads to desensitisation and an accelerating spiral of violence. i ask you, mr frattini, to look long and hard at ways of improving the protection of young people in the media and of protecting children more effectively against violence. my third point concerns the environmental rights of the child, a subject that no one has raised yet. by this i mean the right of every child to grow up in an intact environment. regrettably, in its strategy on the rights of the child, the commission did not consider the need to take more account of children, not just adults, when we set future pollutant ceilings. that applies to noise levels as well as to hazardous substances. i therefore ask you to incorporate the environmental rights of the child, for today's children are the citizens of tomorrow. we all bear responsibility for ensuring that our european home is also a child-friendly home. on behalf of the gue/ngl group. - (it) mr president, ladies and gentlemen, i want to thank mrs angelilli for her sensitive approach to a very important matter: a society that knows how to welcome its children will know how to welcome all its citizens. in the same way, i believe that today in this parliament we are taking a very important step, because institutions that are able to address the concerns of minors will certainly be more able to address the concerns of all european citizens. this report contains many interesting and dynamic ideas, which are also pointers for the commission in relation to further steps that we expect. there are some points that need to be emphasised, especially the need to pay great attention to unaccompanied minors held in administrative detention centres for migrants. when it inspected those centres, the european parliament's committee on civil liberties found that in many countries, such as france, belgium and italy, many unaccompanied minors, many children, are held in inhuman and degrading conditions that are unacceptable for young children as, incidentally, they are unacceptable for all men and women. we emphasise the need to insist on that point. we also believe that great attention must be paid to avoiding child labour. child labour is often linked to exploitation and poverty. that is why that this parliament must make a major contribution towards improving social conditions in the european union. on behalf of the ind/dem group. - mr president, i have many things to say about the rights of the child. firstly, i welcome the amendments to this report that focus on the family and their importance in providing for a child's development. i would like to stress the primacy of parents - not the state - as the guardian of children and, for this reason, the importance of support for the family in their responsibilities. the state should assist the parents in protecting and promoting the child, and it should only take over from the parents when the parents are unwilling or unable to serve their children. on the issue of disability, i praise this report for acknowledging that children with disabilities should be assured full respect and granted equal treatment. i myself have represented many children and their parents who struggled to guarantee education for them. a tragic flaw in the un convention on the rights of the child on which this is based is that, although it guarantees primary education for all children, it makes specific educational provision needed by disabled children 'subject to resources'. these three words have militated against children with special needs getting the help they need in my country. amendment 3 deals with children within the eu who have previously been in institutionalised care. this important issue has come to the attention of many meps following the bbc documentary bulgaria's abandoned children, which focused on care homes for children with disabilities. there will be a screening of this documentary with the participation of the film-maker on 4 march 2008, to which i invite all my colleagues. recently the eu voted against an amendment placed before the committee on budgets that sought to divert eu funding that goes into institutions towards community- and family-based services. this amendment failed. we must be coherent in our approach to de-institutionalisation and integrate children into society, and we must put our funding into community-based approaches in the future. i also welcome the strong line parliament takes on trafficking, especially with amendment 1. it is hard to imagine anything worse happening to a child than being stolen from their family, whether for military, sexual or labour purposes, or even to fulfil the desire of a couple for a child. i also want to mention the trafficking of babies before and after birth for organ and cell harvesting and remind my colleagues that the preamble of the un convention on the rights of the child includes children before birth as well as after. i am pleased that the report takes into account migrant families and unaccompanied minors. with increasing cultural blends, we must continue to acknowledge the importance of embracing all children in our ever-changing society. as much as it is wonderful that labour migration enables parents to go abroad and earn more and provide better for their families, we need to be working towards an equity that will not necessitate this separation and will allow families to stay together in their home country or their country of choosing. now i should like to address the issue of sexual and reproductive rights, which is repeated in six articles of this report. i am personally responsible for six teenage girls and two teenage boys. of course they need to know the facts of life but, at the same time, they need to know the most important fact of life: that they are extremely valuable, developing individuals, persons with a dignity and a future, with a unique contribution to make to their community and family. they do not benefit from the message that is so often given in the name of sexual and reproductive rights that they cannot be responsible and are, in fact, walking disasters who need adult help with damage control, and that they can get this help without any negative effects to themselves or without the knowledge of their parents. the richness of adolescence can and should receive the support of those who are older, who love them and who have already been there. (the president cut off the speaker) (it) mr president, ladies and gentlemen, my colleague's report is excellent and i regard union action and a union strategy to protect the rights of the child as priorities. we must recognise that minors have rights and call for policies and measures in that area that are also aimed at protecting the life of the individual from the moment of conception. the report calls for further measures and - and no one can disagree with this - for the affirmation of children's rights as an integral part of the rights that are binding on the union and its member states and that require a specific legal basis. among the many urgent problems facing children let me highlight the striking number of disappearances; these child disappearances often have a tragic ending as a result of sexual exploitation and violence linked to child pornography. i believe the union cannot accept that any of its member states should in any way tolerate paedophilia of any kind and must ban the right to advertise it and, obviously, to commit it. (hu) thank you, mr president. in light of the demographic crisis, every child's life has a price put on it. we cannot press unilaterally for an increase in the birth rate whilst paying scant attention to ensuring the conditions necessary for the living conditions, equal opportunities and spiritual and physical development of the children that have been born. i therefore consider mr frattini's commitment to giving horizontal priority in union policy to guaranteeing the rights of the child as extremely important. the report, on which i would like to congratulate mrs angelilli, rightly highlights certain problems that must be solved with the utmost urgency. the extent of child poverty is staggering, since, as my fellow members have mentioned, every fifth child lives in poverty, and of course this is very closely linked to leaving school early. we cannot close our eyes to the situations of the several thousand street children and homeless children in the member states of the union, of whom many are forced into begging, stealing, illegal labour or prostitution. according to a study published recently by unicef, there are no countries, and no member states, that are not affected by the matter of child trafficking. we know little about the children, estimated to be several hundred, who disappear from children's institutions and refugee camps each year. violence against children and the increase in aggression among children are grounds for justifiable concern. mr president, under the lisbon treaty, the rights of the child are guaranteed by article 24 of the charter of fundamental rights. the report - the adoption of which i support - is the first step for the union's institutions, including the parliament, to take serious steps in order to comply with the rights of the child, and improve their situations, more consistently. then, hopefully, the member states will not spare their efforts either. thank you for your attention. (fr) mr president, commissioner, i am delighted that the commission is proposing to put in place an eu strategy on the rights of the child. because a great many eu policies affect children, we need to take specific measures so that their rights can be protected and their active participation encouraged. i am particularly pleased that parliament has called for a definition to identify 'children at risk'. this will enable us to provide specific help to children who are victims of a social situation that threatens their mental or physical health. at the same time, we cannot simply leave children who live in poverty to their fate. these children do not always receive the protection they need, because their parents lack the necessary resources. if they are not to be condemned to social exclusion, they therefore need special assistance, and governments must be responsible for ensuring that all children - whatever their parents' social or legal circumstances - have access to health and education, so that equality of opportunity for all is actually guaranteed in practice. i should like to highlight the particular situation of migrant children. administrative detention of children is not acceptable. we cannot understand why anyone fleeing from war or from desperate circumstances should be treated like a criminal, and that applies all the more so in the case of children, all of whom are entitled to protection and education in accordance with the convention on the rights of the child. - (lt) we acknowledge that children's rights are part of human rights, which we are obliged to respect under international and european agreements. children's rights are acknowledged in the charter of fundamental rights of the european union. this should become a component of the reform treaty and be obligatory for all eu member states. commissioner frattini, in the communication you say that the situation within the union with regard to the protection of children's rights is still not satisfactory. but i think it is awful. almost one fifth of children live in poverty. in lithuania, almost half the families consisting of one adult and dependent children live in poverty. moreover, we are not able to obtain statistics on how many children in the enlarged community were left without parents when they emigrated in search of employment and left their children without appropriate care. we read about sexual and psychological violence against children with horror. we have compassion for children who we meet in the street and put a coin in their begging hands. however, more often we do nothing because it is easier to turn away, close our eyes, and say it is not our fault, others are responsible for it. you, commissioner frattini, say that it is the responsibility of individual member states and you do not want to intrude in their affairs. brussels intrudes in many of the affairs of member states: it is important for us to regulate agriculture, internal markets, the flow of capital. we think that these are the issues of vital importance. i believe that our biggest concern should be human rights and, primarily, children. they are our future. i think that specifically the european union should take responsibility for guaranteeing human rights and, primarily, children's rights. i disapprove of a document that merely takes care, remembers and encourages. i think that here we are required to actively take care of our citizens. (pl) mr president, i would like to congratulate ms angelilli for an excellent report on a subject that is key for the future of the european union. most of the proposals in this report are of course deserving of support, but i have a couple of concerns. first of all, the principle of equality of girls and boys is discussed, which could be understood as saying that they are identical, whereas every parent knows that girls and boys are different and require a different approach as regards their upbringing in order to fulfil the principle of their equal dignity. secondly, from the point of view of children's rights, the increase in the number of alternative family structures, which is discussed in the report, constitutes a threat against which action should be taken. there is no mention of the threat in this report. and thirdly, as there is a call in paragraph 167 to provide children and young people with sexual education, paragraphs 163 and 164, which speak of the right to sexual and reproductive health, are unnecessary unless these terms are being used to hide a right to abortion. at this point it can be seen that it is not possible to separate the rights of children who have already been born from the rights of unborn children even though they begin life as embryos they inevitably become children, and if anyone has any doubts about this they should remember that we were all once embryos. (pt) in this one-minute speech i would like to stress that i consider the european union's first priority in relation to children to be to assess the effect of its policies on failure to enforce or the enforcement of children's rights, in particular in connection with a rapid and substantial reduction in child poverty, providing all children with equal opportunities. in this context i would like to ask, by way of example: what effect does the european union's monetary policy and its objective of price stability, or rather, wage restraint, have on failure to enforce children's rights? what effect do european union 'flexicurity', labour market deregulation, easier dismissals, increasingly insecure employment contracts, increased working time and the flexibilisation of working hours have on failure to enforce children's rights? what effect do current european union policies promoting the deregulation and privatisation of public services, including health and education, have on failure to enforce children's rights? these are some examples of what would be the european union's most appropriate, necessary and urgent mainstreaming in relation to children's rights. (pt) commissioner, ladies and gentlemen, violence against those who cannot defend themselves is particularly reprehensible. violence against children is especially odious. community legislation that prohibits all forms of violence, whether physical, psychological or sexual, is required. mention has already been made of unicef data for 2003, which indicate that in some community countries, such as france, around three children die every week from abuse and negligence, while in others, such as germany and the united kingdom, the figure stands at around two per week. i welcome the commitment of european union member states and institutions in implementing child policies, which have grown in number in recent years. existing legislation, policies and structures, however, are still insufficient to respond to the whole range of questions raised in connection with protecting children, whether they are victims of poverty, trafficking, domestic violence, sexual abuse, pornography, child labour or the outrage of child soldiers that persists in the 21st century. i therefore congratulate mr frattini on this initiative, which shows that the required willingness exists to make this an eu priority and to create a general eu strategy to effectively promote and protect children's rights in internal and external policies. i am also very pleased that the new treaty of lisbon incorporates children's rights as one of the objectives of the eu, thus providing a new legal basis for defending those rights. prevention and awareness-raising must be improved and social rights to support victims must be strengthened. cross-border operations against child pornography internet sites must also be reinforced to ensure that the sites are closed down and the criminal networks dismantled. the internet offers children excellent opportunities to communicate and to obtain information, but we must ensure that they do so safely. (el) mr president, our children have independent personalities, they have an inviolable right to the protection of their fundamental rights, which means no degrading treatment and violence, no inhuman working conditions, no exclusion from education, no poverty, no sexual exploitation and abuse, no child soldiers at war. and children have greater need of these universal values than adults do. firstly because they are, by definition, young and vulnerable. secondly, because the parent or teacher or priest and all those with whom they come into contact are always in a position of authority towards them; and thirdly, because if anything goes wrong during childhood, this ultimately has a decisive effect on a child's future life. these are the rights which we are called upon to support today. i shall focus on two: firstly, the children of immigrants are perhaps the most vulnerable. those who are born amongst us, at least, must immediately acquire the nationality of our country. they should not be stigmatised from birth, and should of course go to school regardless of their parents' status, and should not be condemned to social exclusion. secondly, protection of children on the internet: children who often go online and surf unsuspectingly and talk to strangers, and children who may be victims of sexual exploitation - commodities in a very profitable business. mr president, the internet is the new village square. just as parents warn their children not to talk to strangers in the village square, so they should be educated and made aware that similar concern and advice are needed when it comes to the internet. europe should play its part in providing such education as well as helplines for parents and children faced with such situations. mr president, i agree with virtually all the recommendations made in this excellent report. in particular, i agree that the future eu strategy should recognise the important role of the family as the basic institution in society for the survival, protection and development of the child. i also support the right of the child to maintain, on a regular basis, a personal relationship and direct contact with his or her parents unless, of course, that is contrary to the child's best interests. i fully endorse the suggestions in this report to establish a child-friendly society, in which children can feel protected and actively involved. paragraph 27 urges the commission and member states to take action to ensure observance of the rights of mentally-disabled children to access education. in an irish context they have a right to an appropriate primary education, but this is subject to resources. in reality this often means they receive an inappropriate primary education. paragraph 27 also states that mentally-disabled children should have access to the courts. there was recently a case in ireland of a young girl with downs syndrome who had been sexually assaulted, and yet a judge decided she was not competent to tell the truth to the jury. he tested her in court with the assistance of the prosecution lawyers. during this test, the accused and his lawyers were present, but the girl's family was ordered to leave the court. unless all children can be assured of the absolute right to access the courts we will be failing our children. finally, i should like to put a short question to the commissioner. the recent decision to incorporate children's rights into the lisbon treaty as one of the objectives of the eu will provide a new legal basis for children's rights. can the commissioner elaborate - even briefly - on the practical outcomes he expects from this? i put this question particularly in the light of the forthcoming referendum in ireland on the lisbon treaty. (pl) mr president, i would like to draw attention to the problem raised in paragraph 118 of the report with regard to restrictions on free contact with children in broken multi-national families. there are particularly glaring examples of this in germany as a result of the actions taken by the institution called the jugendamt. as a result of these actions, parents who are not german citizens are deprived of the right to speak to their children in their own language, and, in extreme circumstances, are even deprived of their parental rights. the provisions creating the jugendamt date back to 1939, i repeat, 1939, and they continue to function under the law in an almost unchanged form. this institution acts on behalf of what is called the good of the child, but this concept has not been defined anywhere, which means that it can be interpreted in any way whatsoever. in proceedings, the jugendamt favours parents of german background. another concern is that it is not subject to any outside controls; for this reason i would ask that the european commission should prepare a regulatory proposal that would make it possible to avoid any form of discrimination in the institutions of member states, as is currently the case in germany. (pl) mr president, first of all i would like to express my total agreement with the statement by mrs foltyn-kubicka. the issue of protection of children's rights has benefited from the increasing attention paid to it by european union legislators. at the same time, however, an ever-increasing number of areas coming under eu jurisdiction have a direct impact on the rights of the child. for this reason it is with pleasure that i accept the commission's announcement concerning the introduction of a strategy on the rights of the child. the intention to give priority to this issue in the european union, i.e. acknowledging children as fully fledged subjects of law, is deserving of our full support. however, the cautious title of the report, i.e. 'towards a strategy', not simply 'a strategy', would suggest that there will be further steps in the form of public consultations, which could help to set out the chief priorities for future eu measures. to date, the european union has not yet created any special legal foundation concerning the rights of the child. at this point i would like to state my disappointment, since, if the constitutional treaty had been ratified, it would have introduced a more appropriate legal framework in article i-3, which had a direct application to the rights of the child. protection of the rights of the child as an internal and external objective of the european union was included in the lisbon treaty. these rights are also enshrined in the charter of fundamental rights. it is shameful, however, that one hundred million children living in the european union are not equal as regards the rights and freedoms that they possess. it is obvious that, because of their vulnerability and specific needs, children require special care, as well as appropriate legal protection. however, the rights of the child should not be separated from, and should not be in opposition to, human rights in general. an analysis of eu documents would suggest that there could be a movement in favour of treating the rights of the child as an issue that is somehow separate from human rights as a whole. this is a dangerous path and could create dangerous divisions. i would like to thank the rapporteur that she did not allow the delicate nature of this issue to cloud her balanced approach to the subject. it is good that the report does not concentrate exclusively on protective measures, but also emphasises the need for positive affirmation of the rights of the child, such as the right to a family, education, social inclusion, health care and equal opportunities. (hu) thank you, mr president. a strong society and economy can only be built on generations and citizens who are sound in body and mind, so we must do our utmost to guarantee the destiny and rights of future generations even in our own interests, since sooner or later we will all depend on the solidarity of future generations. mrs angelilli therefore deserves recognition for her report, which clarifies the theme in a complex manner. the right of our children to a full life is a complicated system of social requirements and legal guarantees: the right of children to be born and brought up in healthy surroundings; their right to study and to make their dreams come true. family and child poverty is a fundamental barrier to enforcing these rights, so it cannot be emphasised enough how crucial it is for the european institutions and member states to take on a role in the fight against poverty. this must also be done to prevent crimes against children and the exploitation of children. a borderless europe entered a new era at the end of last year. it is a great challenge for the opening up of the schengen area not to create favourable opportunities for criminals. it would therefore be desirable to design a system to make information on crimes committed against children, and the sentences, available to the member states and to protect children from criminals being employed within their environment. mrs angelilli's excellent report will become truly valuable if legislative steps ensue. i trust it will be so. thank you, mr president. (ro) children's rights are an essential topic uniting us all, irrespective of our country of origin or political viewpoint. to speak about children is to speak about our future, the future of european citizens and of the union itself. therefore i can only welcome the report on the european strategy on children's rights. the drafting of the report is in itself a confirmation of the importance of the topic and the text included in the charter of fundamental rights, as it involved the participation of various committees which contributed six opinions. the best interests of the child should be of primary importance. through its values and its concept of development, the european union has the moral duty to ensure that the rights of the child are a major priority for action, both internally and internationally. within the european union, i would like to reiterate the importance of two aspects: first of all, the negative consequences of migration and the precarious condition of children left behind in their home countries by migrating parents. i would like to thank the rapporteur for accepting my suggestion of drawing attention to this issue still affecting european citizens' lives, and i would like to assure him of my support in his appeal for appropriate care, social integration and comprehensive education for these children. no less important is the objective of ensuring the right to education for all european children. outside the european union, it is essential that we promote children's rights on an international level, especially as part of the european union's relations with its neighbouring countries and its strategic partners. among the diverse situations worldwide, i would like to draw attention to the infringement of children's rights in cases of crisis and conflict, particularly frozen conflicts where the rule of law is simply denied. the european union cannot tolerate such situations and must take firm action to ensure that children's rights are respected everywhere. 2007 saw the european union taking decisive steps in this direction, but 2008 will be a crucial year for the actual enforcement of the new strategy concerning children's rights. therefore, i call on the commission and the council to give due consideration to the parliament's recommendations, to ensure that this strategy is a success. (es) mr president, this report brings a comprehensive, consistent vision to the work we must encourage from european union level as far as children are concerned. we must involve everyone who has responsibilities in this area in making boys' and girls' rights to an equal education effective, combating all types of violence and child labour, and protecting immigrant children. aware of trends in society, we acknowledge that the traditional model of the family cannot be the sole reference-point and that there are increasing numbers of alternative models which we must consider in our deep-seated conviction that children must enjoy a positive family environment. on a related issue i would like to raise the initiative on international adoptions where there is a need for regulations which are better tailored to reality and which can address the unknown factors which we are faced with today; such a process is already under way in some states, such as spain, safeguarding the best interests of minors. however, before i finish i should like to express the reservations of the spanish socialist delegation to paragraph 127, on the ban on the veil in schools, as we are more in favour of dialogue and mediation. ladies and gentlemen, we are discussing the most vulnerable sector of society, but also a future which needs solid foundations in values such as respect, tolerance and coexistence. mr president, i welcome this report and the work the rapporteur has done on it. from listening to the debate, there is almost total agreement on what we need to do when it comes to children's rights, and we have come a long way from the old adage that 'children should be seen and not heard'. today we not only want to see our children but also to hear and listen to what they have to say. however, we need some clarification - and perhaps the commissioner could do that for me - in relation to what competence the eu has in this area of children's rights in the light of the treaty that has been spoken of and our vote in ireland on that reform treaty. as you know, under the irish constitution, the rights of children are seen as best protected in the context of the family. we need to acknowledge the important role the family plays in protecting children's rights and we need to look at measures aimed at strengthening families and supporting them where that is necessary. there is also the question of the marital versus non-marital family and whether there are equal rights for children in both of these situations. there is a significant increase in the separated and divorced population in ireland and an increase in cohabitation of couples: one in twelve families takes this form, with responsibility for 50 000 children. we need to look at how the rights of those children are being protected under irish law as it currently exists. there is also an issue about the access of children to both of their parents and the invisibility of children currently under the irish family law system, and that has to be addressed. one last point: there was uproar in 2006 when the irish supreme court struck down the law on statutory rape on the basis that it did not allow an accused individual to enter the defence of honest mistake over a victim's age. the case involved a 41-year-old man and a 12-year-old girl. today, ironically in the dublin district court, sex assault charges against this individual were dropped. we are to have two constitutional amendments in ireland on the issue of the family and the case i just mentioned, and i think we need to see where the eu fits into children's rights so that we vote in ireland in the right way. (pl) mr president, commissioner, today's discussion is proof that the european parliament wants to be involved in the creation of a european policy as regards children. for this reason, the view of many member states that consider that almost all of the regulation concerning the rights of the child belongs in the jurisdiction of family law, and therefore, almost by definition, is exclusively a national responsibility, is very worrying. such a narrow national approach puts the parliament outside the principal decision-making process as regards the rights of the child and makes us, the parliament, into a purely advisory body. this is not a good approach in a europe that is becoming increasingly unified. an example of this can be the regulation concerning transnational recovery of maintenance claims, which the parliament approved recently, in december, as a result of a consultation process. the purpose of this regulation is to ensure that children who have been forgotten by one of their parents are no longer hungry and abandoned and that they receive the funds that have been recovered thanks to a new and more effective system. for this reason i believe that the parliament, which in fact is acting on behalf of all european children, has a moral obligation to be actively involved in making laws for their benefit. to summarise, i would like to say: commissioner, parliament should be more involved in european regulations concerning children. mr president, i would like to thank the rapporteur, roberta angelilli, and the other rapporteurs for their work on this important dossier, and of course to thank commissioner frattini for his encouragement for the communication and for the work that has been done by the commission in this field. while recognising that these matters are primarily those for the member states, there is also, i believe, a role for the european union, and that of course is enshrined in the charter of fundamental rights, where, for the first time, the rights of children are embraced. i believe that a society is best judged by the way it deals with its innocence and we are, as a european union, a society. the particular interest i have in this field is that of parental child abduction across frontiers. i have handled many cases in this sphere and there are several hundred each year between the eu member states and indeed between eu member states and our neighbour countries and beyond. while there are international conventions like the hague convention and, internally, the brussels ii convention, there are still many deficiencies. recently i was grateful to the international law firm freshfields for examining several cases under the brussels ii convention and identifying some of the problems within our own member states. i believe that the work that has been done by the european parliament and by the commission needs to be seen in the context of international developments in law. i think it is right that the old united nations convention on the rights of the child, which puts the paramountcy of the interests of the child first, is absolutely crucial. in the charter of fundamental rights, the concept of the right of a child to both parents is also introduced. that is vital and is now widespread across the world. but there are two aspects which turn on the way in which a case is handled by a court. even though this point is not contained within the report in explicit terms, we should also remember the rights of children mature enough for their wishes to be heard by a court, as in the case of my constituent, 7-year-old jessica, at the high court recently. secondly, where appropriate, independent legal representation for the child should be provided. these are two elements which i think we need to develop in the coming months. (it) mr president, ladies and gentlemen, i thank the rapporteur for her excellent work. the 20th century opened with children having virtually no rights and closed with clear and indisputable advances, yet there is still a long way to go and it will not be easy going, as pointed out in many parts of the report. in the short time available, and on the basis also of personal experiences with unicef, i would urge the commission to emphasise one aspect: we need a community instrument on adoption, for at present the 27 member states have totally inconsistent legislation in that respect. it would be useful to adopt a legislative framework that would help improve the quality of the assistance provided by information services in order to sort out the various steps of preparing for international adoptions and address the procedure governing requests and family support services during the post-adoption stages. today we still encounter far too many abuses, deficiencies, delays and difficulties in this area, which the adopting families and, above all, the children really do not deserve. (sk) all member states ratified the 1989 un convention on the rights of the child; however, the convention does not include any sanctioning mechanism. there are several bodies that strive to improve the rights of the child; their activities should be better coordinated and they should receive more publicity, for example through the creation of a shared website. that way we could avoid the undesirable duplication of their efforts. another step could be to entrust the fundamental rights commissioner with the protection of children's rights. i would welcome the commissioner being involved, according to priority areas, in the fight against child poverty and against all forms of violence. violence against children should never happen. therefore, in my opinion, it is important not only to punish the perpetrators, but most importantly to prevent such inhumane activity. to that effect, i support the rapporteur's request for procedures to improve the extraterritorial prosecutions: in practice this should ensure that a person sentenced in one member state will be registered as a perpetrator of violence against children in the other member states too. i think that this method will be an important step in the prevention of further abuse of children, such as sexual mutilation, sexual abuse, child pornography, kidnapping and trafficking. as far as child pornography is concerned, i am very much in favour of the european commission's initiative, in cooperation with some banking institutions and credit card companies, to try to exclude pages that sell child pornography from online payment systems. this activity could help in the creation of a database of child pornography traders, from which information on the creators and propagators of this repulsive form of trade would be available to the police of the relevant member state, europol and interpol. because i am aware that this is a very important area, i am in favour of the necessary human and financial resources being set aside for the protection of the rights of the child. it is a question of the future of our children, which means our future. (el) mr president, i in turn would like to give my congratulations to mrs angelilli, who has indeed provided an integrated framework for consolidating the charter on the rights of the child. i would like to focus my comments on three issues, beyond those which have already been discussed here. first, there must be a prompt diagnosis and response to the problem of violence and abuse against children, with the establishment of a special record-keeping system, which will progressively contribute towards effective prevention of the problem. second, the adoption by all the member states of the protocol to prevent, suppress and punish trafficking in and sexual exploitation of persons, where, amongst other things, it will be necessary to review the question of issuing temporary or non-permanent permits for residence within their borders. lastly, the issue of substantial management of the problem of criminality among minors, with measures for prevention and social integration of minors, and measures of judicial and extrajudicial intervention. mr president, this is the year of intercultural dialogue, and we must maintain the connecting bridges between all cultures and all religious views. i think paragraph 127 of this report cannot be accepted. (hu) mr president, commissioner, ladies and gentlemen, the destiny of europe is affected significantly by whether it is capable of developing societies that include and support children. supporting and protecting children's rights is crucial to the future of the european union. the development of child-friendly societies in the union cannot be separated from the further deepening and strengthening of european integration. a comprehensive eu strategy is needed to promote and ensure the effective enforcement of children's rights both inside and outside the union. children deserve special provisions and appropriate legal protection. the member states are responsible for supporting parents in their child-rearing duties in many ways. a safe and inclusive europe can only be built using these instruments. our policies should constantly bear in mind the diversity and different needs of children, paying particular attention to poverty, social exclusion, and negative discrimination both at union and at global level. i consider it important that the recommendations of the un convention on the rights of the child be consistently and systematically taken into account within the framework of bilateral agreements concluded by the eu with countries outside the eu. the pse group would like a separate vote on amendment 127. mr president, i welcome the decision to incorporate children's rights as one of the objectives of the eu treaty of lisbon, providing a new legal basis for children's rights. ms angelilli's report deals with many important issues relating to children's well-being and protection. however, i want to emphasise acknowledgement of the fact that, for children, the poverty and social exclusion of their parents represent serious obstacles to exercising their rights. i support the report's demand that the eu work in cooperation with the relevant un agencies, international organisations and research centres to improve the gathering of comparable statistical data on the situation of children in the eu, with a view to developing and including a larger number of indicators relating specifically to children, child poverty and social exclusion. child poverty is a neglected issue, yet one in five children in the eu lives on the brink of poverty. will this not condemn 20% of the eu's future adults to never fulfilling their true potential? if the political will is there, then let us work together across member states to share best practice and learn from one another. we have witnessed the eu-wide campaign to make poverty in the developing world history, so why can we not have a similar campaign, across the eu, to make child poverty history? (et) thank you, mr president. given that a third of the world's children do not have enough to eat and one sixth of them do not go to school, it may appear odd to talk about poverty in europe. all the same, the problem does exist and it is of particular concern that the number of children living in poverty is much greater than the number of adults. in fact, this does not in the main mean that children go hungry but that the opportunities needed for development are not there. i should like to draw your attention to the fact that in the new member states the turbulent development of the market economy has brought with it a great deal of stratification, which very acutely influences children's well-being. social problems in their turn magnify this. and it is not merely a tragedy involving children. a considerable proportion of human resources - the very thing which in my home country of estonia is in increasingly short supply - remains unemployed, for example, and for that reason this is a problem for the member states and the union. even though most policies on children fall within member states' competence, i wish to stress the importance of the european union strategy, indicators, databases and reports. i hope that their influence will increase further for the member states. as a politician i know how difficult it is to explain to one's own electorate why for example one's neighbours care about children more. (pl) mr president, commissioner, the initiative that has been put before us concerning a strategy on the rights of the child is a signal not just for europe, but for the whole world, as to how the rights of the youngest members of society should be protected. for this reason i would like to give my appreciation to mrs angelilli for an excellent report. unfortunately, instances of violations of the rights of minors often occur in certain parts of europe - in europe, where we are so proud of our highly developed system for the protection of human rights. for this reason we must ensure that children who are experiencing various humiliations know that there is someone to whom they can turn to for help and who will give them this help. i would like therefore to support the call of the author of the report for the creation of more effective monitoring, as well as the european commission's idea for putting into place a telephone helpline for children in need of assistance. another important issue is that of children from poor, immigrant or refugee families. they are suffering for reasons that are outside of their control and, as a result, are often condemned to a worse life than that experienced by their contemporaries who have not had to flee their own countries. for this reason i would like to support the proposal to grant them full rights, whatever the legal situation of their parents, and also give them equal access to education. vice-president of the commission. - (it) mr president, ladies and gentlemen, i thank all the speakers, and i am also glad they have recognised that the commission and parliament are, for the first time in europe and even before the entry into force of the lisbon treaty, jointly formulating a genuine, horizontal european policy in all areas for the protection and promotion of the rights of the child. that is a political achievement on an issue that was not on the european agenda until two years ago and it is, therefore, also a response to those who were aware of the need for practical results. europe is moving forward in this area. i was very pleased with what mr mcmillan had to say. one of the main criteria for evaluating the degree of civilisation of a country is the way it treats its youngest members, its children; the member states of the european union and all of us europeans aspire to lead the world in terms of the way we treat children and the opportunities we offer them. many issues have been addressed, and some already feature in the proposal i submitted and in the very useful recommendations set out by mrs angelilli, yet i believe there are other points that need to be looked at in more detail in the coming months. let us make 2008 the year of further progress with this european strategy. mrs gl and mrs sinnot, addressing the role of the family, made it very clear that many of the problems we encounter stem from a view of the role of the family that is outdated and not what it ought to be. we looked into that last year, as you will remember, in relation to violent video games; a statistical survey in europe showed that only 20% of respondents were interested in how their children used the internet and came across or used video games. that means that 80% of parents surveyed were not aware what type of electronic games or internet sites their children were visiting. that shows why the family, as has been said, is the key place where we must promote the rights of the child. mr catania and others spoke on the question of child labour. you will remember that, in the proposal i put forward on imposing severe penalties on those who exploit the illegal work of legal immigrants, i particularly condemned the use of migrant children, who are both vulnerable because they are migrants and exploited because they are working illegally; they are particularly vulnerable because children should not work but should go to school. if that proposal, which is on the table, is adopted it will become a european directive and will, therefore, legally compel member states to introduce rules of a kind we unfortunately do not yet have . the question of unaccompanied migrant children is an important one, and we are discussing ways of financing targeted projects, for we have discovered situations that really are tragic, in addition to those that have been mentioned. in the canaries, for example, the spanish government has discovered very worrying cases, which we must obviously address, of the arrival of large numbers of children who are unaccompanied because their parents have simply sent them off alone. that is quite shocking in itself. we must strengthen european legislation to combat violence against children, as mrs segelstrm made quite clear. there is one very serious issue that concerns me personally. there are rules to ensure that one of the two parents is effectively granted custody of a child in the event of separation or divorce. in fact, in many member states the rules in force are not applied in practice; that is not to say that the governments are not applying them, but often the magistrates and courts are scarcely aware of them. there are cases where one parent actually steals the child from the other parent. in some cases it proves impossible to enforce the decisions, which is why we must put much more emphasis on this question in the context of allocating the custody of minors. sex tourism is another area to be addressed, including cooperation among public authorities and private individuals, tourist agencies and credit card companies, to help us to identify people who buy child pornography material on the internet. clearly the paedophiles do not pay cash, they pay by credit card. if we have that cooperation, which we are making a start on, then we will also be able to reduce and put a stop to the tragedy of sex tourism. a new area is the right to grow up in a non-polluted environment, the environmental rights of the child. we must focus on it closely because it is not just a new area but one that we must quite clearly all address. mrs harkin was one of those who raised the question of the effect of the lisbon treaty. that treaty does not introduce a specific legal basis, but gives the value of a european policy to the strategy we are discussing here today and which hitherto was based on a common political resolve. with the lisbon treaty, we can now regard the strategy for the protection of children as truly european, which is a quite extraordinary step forward. in conclusion, over the coming months we must work on this subject and it is clear that in this way europe is investing in its future. it is investing in its young people, investing for children. however, i see another area in which children could be actively involved in one of the european union's most important policies: the policy of integrating immigrant communities. if we placed our trust in children, in the smallest children at school, and made them ambassadors of integration - given that they find it much easier to play or learn side by side with children from different cultures and backgrounds - we will have given children the job, as someone said, not of being mini-adults, but of being genuinely actively involved in integration policy. for if that policy is not based on integrating children at school it will never be a genuine policy of integrating immigrants who come from other countries. rapporteur. - (it) mr president, ladies and gentlemen, first of all let me once again thank commissioner frattini for reiterating the european commission's serious commitment to the sector of the rights of the child. i thank him also for calling on member states, in his opening statement, rapidly to activate the child helplines, for the delays here are indeed unjustifiable. i am also grateful to him for pointing out that not all member states have to date introduced a national guarantee in relation to the rights of the child, something we also noted and deplored in the report. i am also grateful to all my colleagues who played a part in the drafting of this document, and to those who have spoken, for i believe we are all agreed on the concept of the higher interest of the child. obviously, i support that and share the concerns that have been expressed in the chamber today. we must force our member states to move more quickly from words to deeds and obviously parliament and the european commission must do their part too. let me say a few brief words on some of the issues that were highlighted. on the environment, let me confirm to mr frattini that it is true that we could perhaps have done more in the report, but we did make it clear that the right to a healthy and clean environment must be one of the main rights guaranteed to minors. i was pleased to find that one of the issues that will be addressed at the next european forum on the rights of the child will be the question of international adoptions. in that context i also want to point out that aside from the enormous and often entirely bureaucratic difficulties of international adoptions, there also is the tragedy of children who are fought over by their parents following separation or divorce. that is indeed a major european problem, which has obviously also grown as a result of opening up borders. let me conclude by saying that i am of course very pleased with the work that has been done, and although i believe the result is certainly not perfect, it can be a very good point of departure provided, i repeat, that serious and responsible practical action is taken promptly. the debate is closed. the vote will take place on wednesday at 12 noon. written statements (rule 142) in writing. - educational segregation is one of the most harmful forms of discrimination faced by roma children. as a basic human right, education is crucial for the attainment of other human rights, and investment in early childhood education for roma is a policy that functions on multiple levels and benefits more than the children it aims to educate. the benefits of early education include: the promotion of social equity, increased individual and broader social productivity, reduced levels of poverty, and the elimination of discriminatory attitudes and social exclusion. as roma children become more educated, they increase their chances of becoming productive members of the workforce. while they earn money and contribute to the national budget through taxes on both income and consumption, they begin to influence the way in which non-roma view them, thereby affecting broader social issues. also, as roma become more productive and their poverty level decreases, they also become contributing members of society instead of beneficiaries of public aid. the combination of the increased contribution and the decreased benefits paid out by the government is the net budgetary benefit to the national budget. a program that supported these developments would benefit all europeans and not only the roma. in writing. - (fi) one of the most fundamental structures underlying common european values is our duty to protect innocent souls, by which i mean children. on few matters can we be so unanimous. it is vital that children's rights are protected more effectively than is the case at present, and that also applies at community level. the commission's communication on establishing a strategy on protecting the rights of children was very welcome. parliament's report on the strategy is an excellent one. i would like to raise a few points on this broad issue. firstly, the status of families is directly connected with the rights of children. the family is indisputably the best environment for a child. the family and the protection of family life are, in fact, children's rights, and these are realised when a family is managing well. the strategy should also include measures to promote the well-being of families. a child's right of access to both parents should be protected at all costs. children are exposed very early on to horrific, violent and sexual forms of entertainment, with disastrous consequences. the proposal in the report, for example, to create a uniform classification and labelling system in the eu for the sale and distribution of audiovisual content and video games intended for minors is a worthy one. the polluter pays principle should operate in violent forms of commercial entertainment because the damage done is enormous. thirdly, determined efforts should be made to eradicate child pornography. priorities for the commission are to strengthen cross-border operations to close down websites that oppress children and to improve cooperation between public authorities and the private sector. regrettably, children's rights do not escape the general spirit of the relativity of values that tends to exist in society. we need to say out loud what is definitely not relative. the rights and protection of children lie at the heart of human values, which is why we still need to remind people of the dire consequences that await wrongdoers. in writing. - (hu) the european union has a special responsibility to protect fundamental human rights, above all the rights of children. despite this, 19% of children in the union live with the risk of poverty, and this number is higher than for the adult population (15%). worldwide, 40 million children under the age of 12 are subject to some kind of act of violence. nearly 6 million are in forced labour; one and a half million become victims of human traffickers. against this background, a european strategy of zero tolerance that aims to protect the rights of children is of very great importance. i feel that a key role in this can be played by better legal regulation, including an investigation into the impact on minors of the new and existing rules. i do not, however, support the creation of a separate parliamentary body with responsibility for children's rights. any tasks of such a body can be performed by the children's rights coordinator appointed by the commission. i do, however, support the creation of a post of commissioner for human rights and minorities, who would also be responsible for protecting the rights of children. it is important to note that the majority of children living in disadvantaged circumstances are of roma origin, or belong to the minority living in europe. it would also be advisable to implement european institutional reforms under which the children's rights coordinators reporting to the commissioner would provide links between institutions, ngos and governments, to give continuous dialogue and cooperation. with regard to the fact that there are already many european organisations and institutions within the union that deal with children's rights, we must place the emphasis on uniting the old ones and making them operate more effectively, rather than creating new ones. besides the protection of children's rights, the issue of education is becoming more and more topical. attentive education allows uninformed young offenders to grow into informed, law-abiding citizens. i would be making an omission if, in the context of this debate on children's rights, i did not speak about the case of shaun attard, which broke the hearts of the people of malta and gozo. this gozitan child was taken from his father in a manner that surely had a psychological effect on him. it is possible that the law is being observed in this case and that the european directives are being respected. however, there are considerable doubts as to whether what is taking place is really in the best interests of this child. i regret to say that from what i can see, the british authorities are making it difficult for the child's father to have a fair hearing of this case. even the few contacts between the child and the father are full of obstacles. i would like to appeal that, while the law is to be observed, mario attard is given a fair hearing and, moreover, serious consideration is given to shaun's best interests. in writing. - (pl) today's debate concerning the rights of the child raises many fundamental questions concerning the proper development of our young people. the future of our children, ensuring they can develop properly, is the issue that determines the future of our continent as regards proper interpersonal relationships. the rights of the child must be respected. the rights of parents to bring them up in accordance with the values they believe in must also be respected. to speak about the rights of the child and to leave out the issue of their right to be brought up in natural families, where there is a father and a mother, is a violation of their rights. surely a decision about a child's adoption, where the child is handed over to a couple of the same sex, and thus deciding about the child's future destiny, and, in a way, forcing a sexual orientation on them is a violation of the child's fundamental rights. we cannot remain silent on this issue, just because it violates eu political correctness.

membership of committees and delegations: see minutes

12. protection of personal data (vote) - report: roure

5. environmental quality standards in the field of water policy (vote) - report: laperrouze

texts of agreements forwarded by the council: see minutes

2. quarterly statistics on community job vacancies (vote) - athanasiu report

freight transport logistics in europe and sustainable mobility (debate) the next item is the report by ins ayala sender, on behalf of the committee on transport and tourism, on freight transport logistics in europe - the key to sustainable mobility. rapporteur. - (es) mr president, this afternoon we are discussing a key sector for european growth, competition and employment, namely logistics. logistics are essential to the quality of our citizens' daily lives, although they do not perceive this clearly enough. this exercise attempts among other things to increase the visibility of this topic among citizens. this is a sector which accounts for approximately 13% of gdp in the european union and has great economic impact as it amounts to between 10 and 15% of the final cost of finished products in europe. in some sectors, such as the important automotive industry, it exceeds even social costs. it is also a sector which hitherto has appeared to be a matter exclusively for industry and the market; its success and potential for growth appeared incontrovertible and this must continue to be the case. but, true to our firm conviction that the best market is a well-regulated market which facilitates and promotes positive capacities and, moreover, prevents potential risks before they become barriers and obstacles to necessary growth, creativity and development of our citizens, we therefore applaud the commission's decision to begin to consider this sector in terms of the contribution which the european union can make so as to increase opportunities and restrict obvious risks, given the growth forecasts for the transport sector in europe. the talk is currently of growth of some 50% between the years 2000 and 2020. therefore the sector will be able to exploit and increase the opportunities open to it in a situation which we perceive as being defined around five essential priorities. the first priority is the recent enlargement towards the east which increases distances and creates outlying areas; at the same time, however, it also creates new opportunities both in terms of markets and trade in our citizens' diverse cultures. the second priority is globalisation, which accelerates trade, diversifies needs and redefines the geographical position of territories and peoples. i am thinking here of my own country, spain, which appears to be peripheral where enlargement is concerned, yet is placed by globalisation on a crossroads between areas as important as latin america, africa or trade with asia. another of the priorities for tackling logistics is climate change and current energy needs. we need to make infrastructure use more efficient, improve traffic management and restrict unladen journeys; current logistics can make a major contribution to this. the fourth priority is the opportunities for information exchange that we are seeking in europe under the seventh framework programme and the whole future of the knowledge economy. logistics are the very embodiment of intelligent transport - transport which includes planning as a fundamental concept and is based increasingly on intelligent transport systems. sesar, safeseanet and track and trade are all devices and new technologies which are being successfully applied to this sector. finally, demographic changes and young people's employment expectations are also areas to which logistics can make a decisive contribution. to that end the proposal for a report specifically tries to support the commission in identifying bottlenecks and trying to draw up new proposals. we need to prevent the administrative burden being too great by using precisely these intelligent systems to reduce and restrict formalities, which remain complex, especially in, for example, customs and maritime trade; i believe, however, that the proposals the commission is making in this regard in its action plan are potentially very positive. another bottleneck for which we are also proposing a number of solutions is the lack of infrastructure and shortfalls in associated funding. to that end we reiterate the need to terminate the system of cross-border networks by opening up unused historic passes in the pyrenees, or in the alps where we believe it would also help, and reducing congestion on some roads by opening rail tunnels. there is also a specific proposal to that end which i particularly support, namely the proposal for a system of dedicated freight railways. we would urge the commission to submit a plan to us on the subject. as for the need for finance, what we would like is for the debate on the future funding of a sufficiently ambitious european transport policy to include logistics as a priority concern. regarding the lack of manpower we support the commission in its proposal to make the profession more attractive but we would like it to refer not only to training but to improving social and working conditions. finally, we also wish to support and encourage the commission in this regard when we point to the need for any future consideration of urban transport to include a specific chapter on urban logistics. we believe that our citizens endure congestion on a daily basis when logistics, which if successful are invisible, are shown to have failed. to that end we believe it is time that logistics took its rightful place in european discussions. vice-president of the commission. - (fr) mr president, ladies and gentlemen, i particularly want to thank mrs ayala sender for her report on freight transport logistics. i should also say to mrs ayala sender that i remember our visit to zaragoza, where we had the opportunity to see the benefits of all the work currently being done in europe on developing logistics. the report gives us high hopes of the approach adopted by the commission in its communication on logistics in 2006. this resolution is an important step in the joint efforts by parliament and the commission to improve the operation of freight transport in europe. i find it very encouraging, because in a few weeks' time i shall be presenting the action plan for logistics. mrs ayala sender has eloquently set out the issues at stake: the economic dimension and the efficiency of logistics, which are a key element in the competitiveness of our economies. logistics facilitate the flow of goods and help make our products competitive by giving them access to more distant markets. thus logistics have become an important and dynamic industry that creates jobs and europe has the most successful logistics companies in this field. furthermore, logistics improve environmental efficiency. as mrs ayala sender has said, they help to minimise transport congestion. freight transport and logistics also have to meet the challenges of reducing the number of road accidents and pollutant and noise emissions. the work to be done on logistics does not involve regulating this rapidly growing sector, but ensuring that it has a sustainable future by allowing it to mobilise the efficiency potential that still exists in the transport business. in fact, that is why we have developed the idea of comodality, the effective combination of different modes of transport. in that respect we can use logistics to reconcile the economic and environmental objectives. however, there are still some obstacles to the development of logistics. first, the lack of harmonisation and common rules stands in the way of new solutions, particularly the development of information and communication technology. we could plan freight transport better, we could improve the operation and safety of transport systems, we should improve the monitoring of goods and ensure that customers have the necessary information. the logistics chain must work as a coherent whole, even if several partners and several modes of transport are involved. secondly, we must lay more emphasis on quality in freight transport, with service quality indicators and the sharing of good practice. that means improving the training of practitioners and recognising their skills. thirdly, we have to address the problem of bottlenecks, obstacles to freight transport. we have consulted everyone working in the logistics field and received five hundred replies, which will help us in our preparation for the action plan for logistics. the report by mrs ayala sender also, rightly, highlights the simplification of administrative procedures, infrastructure investment needs and the problems posed by logistics in urban areas. we need concrete answers to all those questions. i am pleased that the committee on transport and tourism has attached real importance to the action plan for logistics that i shall be presenting in october. the plan should propose concrete measures with clear objectives and a specific timetable. it will be one of a set of initiatives including a freight priority rail network, a port policy and two commission documents on the maritime space without borders and motorways of the sea. the adoption of those measures will be an important signal and a way for us to identify alternative modes of transport that are efficient, integrated and environmentally friendly and, of course, meet the needs of users. the action plan will be coupled with measures to make rail, sea and inland waterways transport more attractive. the commission does not claim to be able to solve the freight transport problems facing europe on its own, but, on that point too, the report by mrs ayala sender sends a message to the member states to encourage them to develop their own logistics initiatives, especially by investing in infrastructures, in close collaboration with the european union. we shall only succeed if the member states and the european union act together. logistics are a major problem. by working on them, we shall achieve the modal shift that we want to see in the fight against global warming. in my view, the way to make european mobility sustainable, that is to say compatible with our environmental requirements for the benefit of the economy and of european citizens, is through good logistics and good transport infrastructures. may i thank mrs ayala sender wholeheartedly for her contribution to these advances in logistics, which are key to the development of sustainable transport. draftsman of the opinion of the committee on industry, research and energy. - (fi) mr president, ladies and gentlemen, i should like to thank the rapporteur, mrs ayala sender, most sincerely for a very creditable report. i am nevertheless sorry that the committee on transport and tourism omitted from the report certain key issues which the committee on industry, research and energy brought up. of these, the most important is the internalisation of the external costs of transport, such as environmental costs. pricing that takes account of real costs, including environmental and social costs, is a fundamental means of making a transport system intelligent, efficient and rational. in switzerland the road toll on lorry transport has led to the effective transfer of consignments to the railways and reduced the number of trucks travelling empty. this is a good example to us all. it needs to be realised that an efficient, rational transport system is not the same as the constant expansion of road traffic. carbon dioxide emissions from traffic cannot continue to increase as they are doing now; otherwise the reductions in emissions achieved in other sectors, such as industry, will have been a waste of time. on behalf of the ppe-de group. - (de) mr president, commissioner, ladies and gentlemen, first i want to thank the commission and the rapporteur for their work. freight transport logistics is such a broad subject that it is not always easy to confine oneself to essentials. as it is put so well in french: 'qui trop embrasse mal treint'. so let us be glad that today we have managed to pick out the key points! we have to tread new ground, because this is not an easy field. it is an area of conflict between the economy and growth on the one side, and the environment and security on the other. put simply: everybody wants the goods, nobody wants the transport. that means that this sector, which does indeed offer very good employment prospects, does not have a very good image. we must do our part to remind people firstly that it is an important economic sector, secondly that we can tread new ground, and thirdly that the sector still has employment potential today. i still regard the reference to training as very important and it should be taken up by the various countries. specialisation in these areas can lead to new and interesting jobs. research can also help make freight transport more efficient, environmentally compatible and also more secure. cooperation among countries remains essential. we need only think of the trans-european networks. we all think globally, nobody wants to act locally. to put it simply, we want these networks everywhere, but we do not have the resources, whether we negotiate with the council to get more funds for the trans-european networks or with the countries themselves. as regards modes of transport, i believe nobody has anything against shifting goods to the railways and inland waterways, but efficiency is the key point. efficiency is not just a question of price. if transport by rail becomes cheaper but not more efficient, we will not achieve that modal shift. so we must combine efficiency with price if we are to deal with this matter adequately. finally, let me raise the subject of megaliners and standardisation. we cannot prohibit, or even authorise, everything purely at european level. we should work together properly with the member states and find directives, for example in the fields of security and infrastructure, that must determine whether or not these megaliners should be tolerated. on behalf of the pse group. - (fr) mr president, i should first like to thank mrs ayala sender for her initiative. commissioner, i believe, in fact, that we are still not used to talking about logistics, either at european level or in the member states. often we have a road policy, a railway policy, an aviation policy, a maritime policy, and in some countries we find it very difficult to coordinate them. logistics involve no more nor less than avoiding too many transfers between the different modes of transport and making sure that optimum use is made of them where they are most efficient or profitable. in that respect, i think that the work started by mrs ayala sender is very promising and we are, of course, looking forward to the commission communication. i should also like to reiterate the point made by the committee on industry, research and energy. in my view, not enough emphasis has been placed on the reports on the environmental aspects of the question. clearly we have to develop logistics in europe and transport policy is an adjunct to the internal market and its development, but we cannot, on the one hand, have ambitious plans to reduce greenhouse gases and, on the other hand, be over-modest. in that respect, i am concerned at the fact that 60-tonne lorries have been allowed to creep into all the reports. an earlier report referred modestly to a european modular concept; some reports talk about megatrucks and gigaliners, the theory of the road lobby being that the larger the lorry the less it will consume and the greater the saving. that is untrue. the larger the lorry, the more competitive it is compared with the rail and waterway transport, and the more the commission policy on railways, waterways and motorways of the sea will be undermined. it will not even be worth talking about any more. there will still be just as many lorries, but what is certain is that there will be far more goods on the roads and we shall have failed. on behalf of the alde group. - (nl) mr president, in its communication the commission rightly says, and not for the first time, that logistics play an important part in our response to all manner of new challenges, on the environment for example. equally important, of course, is the role of logistics when it comes to the union's competitiveness. priority has to be given here to optimising the european transport system, addressing the problem of existing bottlenecks and applying advanced logistics. action is required. how can we improve the efficiency of individual transport modes and combinations of those modes? that is the million-dollar question. and i would emphasise here that the anticipated growth in freight transport needs to be addressed as pragmatically as possible. if we are to cope with that level of growth, maximum use must be made of all modes of transport. so it is emphatically not a matter of one or other but of all. it is a pity that the house's reaction to the communication threatened to get bogged down in a policy debate on whether or not these longer heavier vehicles - ecocombis or gigaliners - should be allowed, as mr savary said just now. after a lot of pleading we now have agreement on a compromise which is as neutral as possible. as someone who is in favour of these big, longer heavier vehicles, i would like to add one thing, and that is that calling for innovative ideas, only then to discard them on the basis of false arguments, will get us nowhere. base your decisions on proper research, that is what i say. once again, the anticipated growth of road freight transport will test us to the utmost. results in the immediate future will depend on how we prioritise existing obstacles. sacred cows will have to be sacrificed, including those surrounding longer heavier vehicles, for example, or the proliferation of driving bans in the european union, the sacred cows over cabotage, and so on and so forth. i sincerely hope these priorities will shortly be formulated more clearly in the european commission's action plan. it only remains for me to thank the rapporteur for her hard work. i am leaving directly, not out of rudeness, but because i have an important meeting elsewhere. on behalf of the uen group. - mr president, i welcome the contents of this report today, which supports the broader development of trans-european road networks in europe. the second largest road development in ireland at present is the construction of a 112 km road called the m3, which will by-pass the towns of dunshaughlin, navan and kells in county meath. there has been a lot of press coverage recently in ireland about the role of the commission in the context of the m3. some people who oppose this development have totally misrepresented the role of the commission in this matter. i want to set the record straight as to the exact role of the commission concerning the m3. on 29 june 2007 the commission sent a letter by reasoned opinion to the irish government, seeking an explanation as to why the irish government did not carry out a second impact assessment when there was an archaeological discovery at lismullen last march. the irish government will defend its position because it acted only after independent reports from the director of the national museum of ireland were given to the irish government. this report recommended that this find at lismullen be excavated and preserved by record. this proposed plan of action was supported by the chief state archaeologist in ireland. however, the commission sending a letter by reasoned opinion to the irish government does not mean, as has been reported, that ireland is going to be fined hundreds of millions of euros by the european union or that the building of this road, which has commenced, has to stop, or that legal action will be taken against ireland. i know that this is an emotive issue, but the role of the european union in this issue has to be put into perspective. on behalf of the verts/ale group. - (de) mr president, commissioner, ladies and gentlemen, as a green i am of course in favour of any improvements in logistics because that can help reduce environmental damage. i must say from the outset, however, that there are few areas where the european union really has the power to do anything in this regard. there are always logistical weaknesses in areas where the link between different transport modes does not work; this is particularly harmful when the railways cannot be used because the logistical links are cumbersome, bureaucratic, non-existent or poorly developed. even in cases where many transport modes run empty, however, we find that there is clearly a lack of logistics, or that it is simply not worthwhile to use the rolling stock in an efficient and targeted manner. those are crucial issues and they are indeed addressed in the dossier. at the same time, they have been exploited by a number of lobbyists. in my view, the improvement in infrastructure is not yet logistical; we still see empty wagons even on very good roads or railways, which does not help us in any way. in particular, i object to the fact that this dossier has been misused as a propaganda instrument for what are known as gigaliners. we are already suffering from the fact that very poor use is made of the rolling stock. nonetheless, it is intended for reasons of economic self-interest - especially on the part of the timber industry, in the past at least - to introduce very large hgvs, which will adversely affect road maintenance. after all, we must all realise that roads will need to be repaired far more frequently if even more weight is put on the axles, if even more weight presses on the asphalt surface. that is why we cannot speak of environmental or economic improvement here, because in the end this also hugely distorts competition with the railways. mr president, far more freight is currently carried by road than is good for the quality of our air, our protection against excessive noise, our safety and the amount of space we need. these transport operations continue to grow, especially as they have become relatively cheaper over the years. companies are organising more and more movements that are not necessary. there are two reasons for this: the sourcing of raw materials, the various stages entailed in processing them and the sale of the end products are all handled at very different locations, and this generates a lot of unnecessary transport operations between those locations. despite the creation of main ports and other large distribution centres, goods still travel further than they need to. in sparsely populated countries with few or no railways, most notably america and australia, enormous road freight vehicles have developed, so-called road trains or rigs. these keep the cost of road transport down, but they create far too many avoidable problems for everybody else. we must not allow these heavy vehicles into europe. freight transport has to be cut, and that which is really necessary must as far as possible go by rail or water. mr president, the importance of logistics to our society is well known. everyone involved has a duty to ensure that logistics operations proceed smoothly. public authorities make the operating framework as favourable as possible and business and industry devises concepts to meet market demand in the best way possible. i am glad that the rapporteur mentions that and emphasises the various areas which need consideration. something which gave rise to much discussion as we dealt with this report is the question of these longer heavier freight vehicles or 'ecocombis'. although practical tests at national level have yielded quite positive results, opinions on these vehicles differ. to my mind the compromise is a good starting point for further debate. i look forward to seeing what the european commission will bring to this debate, both in its freight logistics action plan and in the study of vehicle weights and dimensions. the study will be commissioned shortly and its findings will be published next summer. to sum up briefly, my compliments to mrs ayala sender on her report and i hope that the course embarked upon can be taken further later on in the year. on behalf of the its group. - (de) mr president, for years now globalisation has landed us with rising expenditure on freight transport; on top of that we have had enlargement eastward - together with a misdirected eu aid policy. as a result, millions of vehicles are transporting freight every day, from private cars to hgvs, and the adverse effects such as congestion, noise, environmental pollution and fine dust pollution are escalating. the concentration on road transport will no doubt exacerbate the existing problems in densely populated areas and on the main transport routes. hgvs are far more often involved in accidents than other forms of transport and strict eu-wide rules on rest periods will make little difference. brussels does not take public health protection really seriously either, for there is no other explanation for the failure to transpose the convention on the protection of the alps. in fact the eu addressed those issues years ago, drawing up action plans and calling for transport to be shifted from road to rail. yet once again it did not managed to achieve any real results. in regard to trans-european networks, we cannot continue to close our eyes to reality and, in the end, rolling country roads will have to become economically attractive. (de) mr president, mr vice-president of the commission, ladies and gentlemen, let me point out that the commission itself said that logistics is a matter for the industry itself. i believe that is the right approach. i hope, therefore, that when the commission presents its action plan, it will divide it up into measures we can take as a community, measures the member states can take, and measures it is up to the industry itself to take. of course we have to reduce the red tape that is still an obstacle to coastal shipping, which has to fill in various forms, while hgvs can simply drive across the european union. we must indeed cut back government bureaucracy and promote modern transport infrastructure and systems. let us make no mistake, however. logistics is a matter for the industry itself and we should not take on a burden we simply cannot afford. on gigaliners - perhaps it would be better to say either 60-tonners or 25m-long hgvs, for there are different categories - at this moment in time my group is quite definitely against authorising their general use in transport. after all, in most parts of the european union infrastructure such as bridges, crossings and roundabouts are certainly not suitable for such long or heavy hgvs. the state treasuries are not handing out any money for reinforcing the bridges or converting roundabouts. given that transport situation, gigaliners produce considerable transport safety problems. just imagine one of those 25-tonners coming round a bend in a small village, misjudging the bend and then trying to reverse! i think, therefore, we should continue doing what we have done in the past. we should authorise them in finland and sweden, which have huge open stretches for the transport of timber. in that regard, the committee on transport and tourism has made a sensible suggestion. it says we should authorise these gigaliners in the member states, but only subject to very stringent conditions, if we can show the commission that the necessary transport security exists, that the necessary transport infrastructure exists. that means we should check those conditions in individual cases and for individual countries. (ro) mr president, commissioner, member states have to ensure a favourable environment for the development of freight transport logistics and to remove the barriers involved. both for carriers and for clients it is extremely important that freight arrives on time and under the established terms. by 2020 a 50% increase in freight transport is predicted. freight transport logistics represents 13% of the union's gross domestic product and 10-15% of the final cost for products is represented by the cost of transport logistics. that is why member states should facilitate freight transport and the rules and controls should be carried out on the basis of common norms, without introducing barriers to the free movement of goods. these norms should be forwarded with priority to all the relevant carriers so that they can respect the regulatory provisions, and observe their contractual obligations. (the president interrupts the speaker) the european union has to use more environmentally-friendly means of transport. it is no coincidence that 70% of the priority projects for the development of the european transport network are meant for railways and waterways transport. unfortunately, member states have made little use of the marco polo programme for the transfer of a larger volume of freight transport from the road to the sea transport system. the navigable waterway made up of the rhine, main channel and the danube shortens the distance between the northwestern and southeastern europe by 4 000 km. moreover, as of 2007, the european union has an exit to the black sea. for freight transport logistics, intelligent transport systems and the use of technology become indispensable. however, freight transport needs a good transport infrastructure and that is why we hope that the budgets relating to the community and national transport projects will become a priority in the future. i think that this report is extremely important for the economic development of the european union. member states should do more for freight transport logistics. congratulations to the rapporteur. (es) mr president, commissioner, i am one of those people who believe that progress and welfare cannot be attained without ambitious objectives, but i also believe that we in the community and the european union have on too many occasions given ourselves grandiloquent and unrealistic agreements and objectives. this is what i believe happened in 2000 with the lisbon strategy, which was going to make us the most competitive and dynamic world economy by 2010; or in 1994 with the essen agreements on trans-european networks, most of which are still pending. in march this very year, the european council set a target for a 20% reduction in greenhouse gas emissions and energy consumption, whereas in reality we have proved incapable of attaining the much more modest targets to which we committed ourselves in kyoto. now we are debating freight transport logistics in europe as a key to sustainable mobility, a crucial element for our growth and development; and given the significant growth in freight transport predicted by 2020, logistics is something we cannot ignore as it is a necessary tool to increase the accessibility, efficiency and security of freight transport, as well as its sustainability. however, at the same time it is necessary to correct persistent failures such as the bottleneck in the trans-european road network in the biriatu pass in the basque country, or other aspects where there are shortcomings such as the lack of corridors currently devoted to rail freight (such corridors do not need to be high-speed in order to be competitive), or the poor interoperability of the railways, or the lack of efficient transhipment. we must make intelligent transport systems possible, apply the potential offered by the internet to the management of freight transport by standardising weights, dimensions and rules governing freight, reducing red-tape and establishing one-stop access points. we must promote co-modality of the various modes of transport, not forgetting motorways of the sea and inland waterways; most of all we must incorporate the real costs, including environmental costs, into the price of use. all this cannot be achieved while reducing states' contributions to the community budget. (da) mr president, eu transport policy is on the wrong track. broadly speaking, nothing is being done about the key problems: climate change, congestion and accidents. it is as though we have become inured to congestion and accidents - but we cannot be content to inure ourselves to climate change once it has begun. we have to act now. yet traditional thinking prevails every time, even in this otherwise excellent report - which includes the absurd proposal to allow the use of megaliners. what would happen if we allowed the use of these juggernauts of up to 60 tonnes? would we have fewer lorries? of course not. the gain from increasing the size of lorries would be eaten up by the increase in transport tonnage. that is a law of nature; it is what happens when transport is cheaper. our roads would become full of these mobile warehouses, and neither 'intelligent' traffic management nor any other hocus-pocus would be of any help. it would be like applying small sticking plasters to a gaping wound, which will just become larger and larger with the present transport policy. ladies and gentlemen, i urge you to vote against the megaliners in paragraph 21. we cannot permit this kind of heavy goods vehicle in europe. we cannot make it cheaper to transport goods by road. as mentioned earlier, this would undermine the competitiveness of maritime and rail transport: precisely the modes of transport that must be reinforced if we are ever to have sustainable freight transport in europe. (ro) mr president, this report is welcome as logistics is the key to economic development, and transport and mobility are the engine for sustainable development, and has to respond to the current imperative challenges, that is the need to decongest traffic and to fight against climate change. faced with the need for sustainable economic development and the need to reduce pollution, logistics, planning, exchange of best practices as well as efficient cooperation between all relevant players - authorities, producers, carriers, beneficiaries - are the only viable solutions. currently, both carriers and beneficiaries prefer the rapidity of roads and airways. unfortunately, the extreme heat this summer caused the introduction of traffic restrictions for heavy-load vehicles in certain regions, such as romania, and thus freight transport traffic faced difficulties and financial losses were reported. under these circumstances, railway transport and above all internal navigable waterways and short sea routes, as well as comodality, have undoubted advantages for decreasing the pressure on road infrastructures. it is mandatory to resurrect the debate on co-financing the transeuropean transport networks because, in order to make these massive investments in european infrastructure, national financial efforts, irrespective of their significance and however well-intentioned they may be, are insufficient especially in the case of the new member states. the commission has to bear in mind and to allocate more funds as of 2008. i would focus on the importance of the rapporteur's recommendation towards member states to draw up national action plans for freight transport logistics, together with the european general action plan. within these national plans, major importance should be attached to crossborder transport to and from third countries, as well as to the security of cargoes. these plans can successfully contribute to the improvement of priority management and to the absorbtion of structural and cohesion fund financingmeant to improve and enlarge transport infrastructure, as well as to a better cooperation between the ten and marco polo projects at crossborder level. (pl) mr president, i should like to congratulate mrs ayala sender on her excellent report. i would like to raise two specific issues: firstly, i too welcome the points made in the report about the european commission's intention to investigate the possibility of creating a single transport document for all modes of transport. this is a very interesting announcement, which could support interoperability and promote multimodal transport, does not require investment expenditure and could help in integrating us to a great extent. the second issue, which i also consider to be particularly important, is the creation of a system of training and further training in the areas of transport and logistics in order to create a system for the mutual recognition of skills and competences; this is in reference to paragraph 17. i would definitely like to support this concept for the reasons given above. the third issue that i would like to raise is schengen and, more specifically, how the new member states are to introduce its principles in practice. (fr) mr president, i should also like to thank mrs ayala sender for the excellent work that, at the time parliament is discussing this type of work, has resulted in this own-initiative report on freight transport logistics in europe, a very important subject for our fellow citizens, as has often been said. since i have to be quick, two main points. the first is that it is more essential than ever to take logistics into account in our overall goods transport strategy and we must pay particular attention to urban logistics and logistical problems in towns. the second point, and here i am speaking as a member of the committee on budgets, is that european union investment must include the financing of logistical infrastructures. we know how disappointed we were about the amounts of the appropriations allocated to the rte-t and i am counting on the support of the commissioner in ensuring that the member states make a greater contribution - at any rate managing to persuade them - when the financial perspectives are renegotiated. finally, i should like to draw attention to the views expressed on gigaliners, lorries weighing over 60 tonnes, being driven on european roads. as very many of my colleagues have pointed out this evening, these are not in line with european objectives for safety or environmental protection or sustainable development. (nl) mr president, commissioner, logistics processes are a matter chiefly for industry and the transport sector and in my view that is how it should stay. they are considerations featuring prominently on the agenda in europe and indeed worldwide and for that reason we welcome the commission's proposal. but efforts need to be concentrated on securing a better framework for transport and fewer obstacles rather than on yet more european rules or prohibitions. the rules do need to be tidied up. so i am happy that in this regard we have significantly streamlined the rapporteur's draft report. let me say a little more about the obstacles to logistics. last year in this house we debated the naiades report. we are fully behind the commission on this, because there are a lot of obstacles to inland waterway transport too, and i hope the commission will lose no time in laying its first proposals before parliament. another obstacle to logistics is the restriction on these 60-tonne vehicles. i support the compromise, namely that member states must be able to decide whether or not they apply this, but i am also aware that there are an awful lot of myths, not to say mega-myths, doing the rounds on this subject. you are having a study conducted, commissioner. i urge you above all to study the facts and i also urge you to study the international routes. i agree with my fellow member mr jarzembowski that we must not allow these gigaliners into our towns and villages. but over long-haul routes where there is no alternative, fine. so will you look at the facts? i await your conclusions with interest. (hu) i would like to thank my colleague, mrs ayala sender, for an excellent report. she has prepared some comprehensive material covering all areas, which will help in the drafting of the commission action plan. it is an investment in the future of the european economy for timely, effective freight transport logistics to be put in place throughout the whole of the eu. its existence will contribute to sustainable economic development, improved competitiveness and regional development. however, to achieve this goal we need ever higher quality, more punctual, effective and secure logistics and, most importantly, harmonisation of transport methods so that the efficiency and the benefits of individual methods can be used to full advantage. this requires the creation of the right technical, practical and economic conditions. impact assessments relying on a unified strategy for logistics development are required. it is important to separate the roles of the state and the private sector. efficient logistics is the key to sustainable mobility. mature logistics solutions contribute to the optimisation of freight transport, and so it is also useful to look at opportunities for research and development support for developments in logistics. (pt) with this initial report, on which the rapporteur is to be congratulated, we hope to contribute to the definition of a strategic framework for freight transport logistics in the european union. we consider logistics to be an essential tool for the effective planning and implementation of a balanced and sustainable use of the various means of transport. logistics are consequently central to a process of rationalisation for the purpose of achieving the most competitive and sustainable levels in the future. despite the advantages conferred by a modern system of logistics in the areas of economic efficiency and competitiveness, optimum use of resources, creation of employment opportunities, protection of the environment and improvement of safety and security, we recognise that there are still problems to be solved, one of the most obvious being the chronic underfunding of the tens, including the development of freight transport logistics. it is therefore essential to explore alternative sources of funding via private-public initiatives, the eib, the structural funds, etc. another timely point raised in the report is the need for the commission action plan, mentioned earlier, to provide measures to fight organised crime in international freight transport and ensure the security of freight transport loadings against theft, robbery and hijacking. it is for the public authorities to regulate these and other matters, and to facilitate multimodal freight transport, which is essentially a business activity. measures such as 'one stop administrative shopping' and cutting red tape reduce costs and pave the way for a sounder and more competitive economy in the sector. given the high growth rates in freight transport that are expected, the future role of logistics will be crucial to achieving an efficient, sustainable, accessible and safe transport system. to this extent, we are sure that logistics will make an increasingly essential contribution to achieving the lisbon goals. (es) mr president, commissioner, efficient freight transport logistics is crucial to territorial cohesion. so says ms ayala, whom i wish to congratulate on her sound and thorough report. in view of this i would like to ask the commission to pay special attention to the specific problems faced by island territories, for which maritime transport is of particular importance. simplifying procedures, tackling the problems of island ports such as the excessive costs produced by market limitations, or how to facilitate new infrastructures through trans-european networks and the structural and cohesion funds: these are measures which would contribute to improving the economic development and competitiveness of islands. i would like to close by asking the commission to give special consideration to the needs which being an island presents in the forthcoming action plan on transport logistics which it is to present. (de) mr president, as transport policy stands today, europe is aiming at more transport software, i.e. more intelligent solutions to improve efficiency, but also to serve the interests of the environment and health protection. we will not go into the detailed reasons for this change, although surely it has much to do with the fact that we do not have the money for large new infrastructure projects - see, for instance, the rather modest funds allocated to the tens and suchlike. under these circumstances it is most important to ensure that new hardware is not let in through the back door on austrian and european transport routes. i, like a number of others, am referring to the 60-tonners or gigaliners or whatever we call them. at any rate, they can certainly not be authorised in an infrastructure that is not appropriate for them; they might be a good solution on flat land where there is little traffic, but they would be totally misplaced in mountainous and densely built-up areas. austria in particular is in no way equipped for superweight trucks. over the past few months we have seen again and again what they mean in terms of bridge construction and the weight they can bear. we have no interest whatsoever in landing ourselves with new problems here. it is not in the interests of transport policy either, and especially not in the interest of health and environmental policy. if we cannot produce any extra european funds to pay for the external costs of the existing infrastructure, then we should leave things as they are or, in this concrete case, leave the gigaliners in northern finland. vice-president of the commission. - (fr) mr president, ladies and gentlemen, thank you for joining with your rapporteur in emphasising the importance of logistics, not only from the economic point of view but also environmentally and socially. i think it is unanimously agreed that logistics should be developed and made more efficient, more environmentally friendly. that is made very clear in the report by mrs ayala sender, which i welcome. a number of the wishes you have expressed, which i have listened to very carefully this afternoon, will be incorporated in the action plan for logistics that will be coming out by the end of october. since i really do not have enough time to reply at length, i shall just refer to the rules on the size of lorries. that is certainly one of the most controversial issues and we shall not be able to debate it fully today. i shall simply make a few comments. it is a fact that, although we hope to see much more of a modal shift in the future, at present most goods are carried by road. we have to assess any measures that might improve the efficiency of that mode of transport and reduce its impact on the environment. the assessment should also cover the rules on the size of lorries, directive 96/53. i think any amendments have to be considered very carefully, because they might have complex repercussions. we need to examine the effects that wider or heavier lorries might have on the infrastructure, safety, the environment, the system of shippers and carriers, and intermodal competition. as i said, i feel that we should give these questions very serious consideration. my services will therefore be embarking on research to evaluate experiences. on the basis of its results, we shall be able to discuss all the nuances of this very important issue, which must not be treated lightly. that is my first point and i shall wind up very quickly, too quickly for my liking, but i appreciate that parliament has a timetable. the second important issue in the work on logistics is infrastructures. reference has been made to the financing of infrastructures. i should like to draw attention to the new marco polo ii programme, which will enable us to finance logistical solutions favouring the modal shift or the reduction in traffic. finally, training. the last speaker, mr rack, said that a new culture has to be developed. that is indeed what is necessary and we always come back to the men and women working in the transport business, who need to master a whole range of new skills if transport is really to be made more efficient and mobility more sustainable, in other words more environmentally friendly. i thank parliament very much and i shall take full account of this report and the subsequent debate. the debate is closed. the vote will take place tomorrow.

signature of acts adopted under codecision: see minutes

corrigendum (rule 204a): see minutes

membership of committees and delegations: see minutes

order of business the final version of the draft agenda as drawn up by the conference of presidents at its meeting of thursday, 28 august 2008 pursuant to rules 130 and 131 of the rules of procedure has been distributed. no amendments have been proposed, so the agenda is adopted. (de) mr president, looking at the agenda and assuming that the debate on georgia takes place today, we do not have any specific requests. however, if there are delays and the sitting overruns, with the result that the debate on georgia cannot take place until tomorrow, then we would move that the debate on the social package be postponed until the september ii part-session for, in my view, it will be impossible for us to debate the social package and georgia in a single morning. i just wanted to give the house advance notice, as it were. thank you, mr swoboda. there was no interpretation, i believe, particularly into english, if i have identified the colleagues concerned correctly. let me repeat what mr swoboda has just said. mr swoboda said that, if the debate on today's summit does not take place today but happens tomorrow, the debate on the social package should then be postponed until the september ii part-session, as the time allocated for this debate will then be taken up talking about today's summit. that is as i understand it. do we agree on that? it seems we do. that brings us to the one-minute speeches on important political issues under rule 144 of the rules of procedure.

lapsed written declarations: see minutes

movement of persons with a long-stay visa (debate) the next item is the report by carlos coelho, on behalf of the committee on civil liberties, justice and home affairs, on the proposal for a regulation of the european parliament and of the council amending the convention implementing the schengen agreement and regulation (ec) no 562/2006 as regards movement of persons with a long-stay visa - c6-0076/2009 -. mr president, commissioner, ladies and gentlemen, today we are speaking about absurd situations such as that of a student who obtains a visa in order to take a course in belgium. not falling within the remit of directive 2004/114/ec, he may not go to the netherlands to gather information from a specialised library for the purposes of writing his thesis nor benefit from a weekend getting to know barcelona because he will be arrested in the country which issued the visa. the schengen convention stipulates that holders of a long-stay visa may only reside in the territory of the member state which provided the visa. they may not travel to other member states nor pass through other member states on their return to their country of origin. schengen stands for freedom of movement. any person who legally resides in a member state should be able to move freely within an area where there are not internal borders. the ideal solution would be for the member states to comply with their obligation to provide a residence permit to nationals of third countries who are holders of this type of visa. however, this does not happen in the vast majority of member states. member states have temporarily got around this situation by issuing type d + c visas, which allow the holders of a long-stay visa to move freely within the schengen area for the first three months. this type of visa will be abolished from april 2010 with the entry into force of the community visa code which will make it even more urgent to find a solution to this problem. the amendments which i have proposed and which have the support of the majority of the members of the committee on civil liberties, justice and home affairs contribute towards the resolution of this problem without reducing security in the schengen area. the obligation to consult the schengen information service during the processing of requests for long-stay visas is the same procedure as the one which already exists for nationals of third countries who are holders of residence permits. in this way, we have responded to any fears of decreased security. the truth is that various member states have been providing long-stay visas and, subsequently, residence permits, without first consulting the sis, in particular, with respect to the requirements of article 96 on the effects of a refusal of admission. this practice weakens the security of the schengen area and creates problems on its external borders in cases where individuals with a valid visa are recorded in the sis. this creates complicated and unnecessary situations for individuals and border guards who have to attempt to discover whether visas have been falsified, whether a reference on the sis system is incorrect and should be removed, or whether the visas should never have been granted. the initiative on which we are going to vote will allow the holders of long-stay visas to move freely for a period of three out of every six months. this is the same period as holders of residence permits are allowed and, at the same time, it also ties the member states to their obligation to provide residence permits in cases where stays of more than one year are authorised. it also recognises the need to strengthen the level of data protection which exists under the schengen agreement and recommends that the commission should present the necessary initiatives if sis ii does not enter into operation before 2012. with the entry into force of the treaty of lisbon, the two initial proposals were merged together and a new legal basis was provided. the text upon which we are going to vote in this plenary session is the result of the negotiations which continued under the swedish and spanish presidencies. this resulted in an agreement at first reading, hence allowing this regulation to be adopted before the entry into force of the visa code. mr president, i would have liked to invite the spanish presidency, which is absent from this debate, to guarantee to parliament that the regulation can enter into force before 5 april 2010. it is essential for this to occur in order to avoid an omission in the law. i congratulate the european commission for this timely initiative. i am grateful for the faithful collaboration of the council, particularly that of the swedish and spanish presidencies, and the cooperation of the shadow rapporteurs, which has allowed a broad consensus in the committee on civil liberties, justice and home affairs. with this measure, we can resolve a troublesome problem faced by thousands of citizens of third countries and do it well, strengthening both freedom and security along the way. member of the commission. - mr president, as the rapporteur pointed out, the aim of this proposal is to facilitate movement within the schengen area for third-country nationals who are legally residing in one of the member states on the basis of a long-stay or 'd' visa. according to the current schengen acquis, third-country nationals who hold a residence permit can travel freely within the schengen area because the residence permit is equivalent to a visa. however, there has been a recent trend in member states not to convert long-stay visas into residence permits upon arrival. that is why we are having this discussion here today; obviously, the commission, the council and the parliament had to find a solution to the problem. the legal and practical situation has considerable negative consequences for third-country nationals legally staying in our member states on the basis of a d visa. these persons can neither legally travel to another country nor can they transit through the territory of another country when they want to return to their country of origin. the absurdity of this situation was illustrated by the example that the rapporteur, mr coelho, raised. the best solution would, of course, be that all member states issue the necessary residence permits and that they do this in time. unfortunately, this is not the situation today, and therefore we have the present proposal which aims at extending the principle of equivalence between a residence permit and short-stay visas to long-stay d visas. a third-country national holding a long-stay d visa issued by a member state will thereby be able to travel to the other member states for three months in any half year under the same conditions as the holder of a residence permit. this would restore the basic philosophy underlying the creation of an area without internal borders, namely that the person can travel around in the schengen area for short stays with the documents based on which he or she is legally present in a member state. i was very pleased to learn that mr carlos coelho had expressed his support for this proposal from the very beginning and the rapporteur, together with the committee on civil liberties, justice and home affairs and the committee on legal affairs, has understood that action needs to be taken in order to facilitate the life of third-country nationals, because we want to encourage people legally residing in our area. i want to thank the rapporteur for his constructive approach to this. i do not need to remind you that we have to find a solution quickly, especially due to the visa code which will be applicable from 5 april this year and will abolish the so-called d+c visas which were intended to partly remedy the situation of d visa holders. i believe that the final text on the draft regulation satisfied all the parties since the compromise text was agreed between all the institutions. in order to tackle some of the concerns expressed by the european parliament and the member states - for instance, concerning security - several amendments have been made to the initial text. to give a few examples, the proposal shortens the period of validity for long-stay visas. they should have a period of validity of no more than one year. after this one year period, the proposal established the obligation for member states to issue a residence permit. the requirement of systematic checks in the schengen information system (sis) is also reinforced. where a member state considers issuing a residence permit or a d visa, the responsible authority should systematically carry out a search in the schengen information system in order to avoid a situation where we have an alert at the same time as a long-stay visa. in order to give a response to the security concerns regarding biometrics - and this is, of course, a major issue for many member states - a political declaration has, as you know, been attached to the draft regulation in which the commission is invited to study the possibility of the use of biometric identifiers with respect to long-stay visas and to present the results in the study to this plenary and the council by 21 july 2011. the commission also accepts that a reporting obligation has been included in the draft regulation on the application. to conclude, in order to find a compromise response to the major concern of the european parliament concerning the guarantee for high-level data protection in cases where an alert has been issued in the sis, a joint declaration has been agreed. the commission is invited by the council and the european parliament to present the necessary legislative proposals amending the relevant data protection provision for the schengen convention if there are further substantial delays in implementing the sis ii that go beyond 2012. i believe that, with these changes, we have reached a reasonable, well-balanced solution that will considerably facilitate the lives of the third-country nationals that are residing legally in our countries. it will also very much correspond to the philosophy of a europe without internal borders. i want to thank once again the libe committee, the juri committee and the rapporteur for their very constructive approach to this. mr president, eu cooperation is based on values, and the most fundamental of these values is freedom. the subject of our discussion today is people's ability to move about freely. in my eu, there are no restrictions on this. it is here that i believe the eu's greatness lies. all of us who live here enjoy freedom of movement, but it should also apply to all those who come to reside here for a lengthy period. under the schengen convention, the holder of a long-stay visa is not currently entitled to freedom of movement; instead, as mr coelho has pointed out, he or she may only stay in the member state that issued the visa. as a result, for example, a visiting professor from india who lives and works in my home city of uppsala in sweden cannot travel to paris to attend a conference without applying for a visa to visit france, and a student from china cannot travel to germany to visit a friend for the weekend without first applying for a visa to go there. this type of barrier to freedom of movement must not exist within the eu. we are now changing this. the purpose of the present proposal is to secure freedom of movement throughout the schengen area for third-country nationals who are resident in a member state for a lengthy period. i would like to thank mr coelho, who has done an extremely fine job as rapporteur, and who has taken account of the views that i put forward in my opinion on behalf of the committee on legal affairs as well as the views of other shadow rapporteurs. we have the result before us now: it is a positive proposal that forms another link in ensuring freedom of movement within the eu, including for third-country nationals. it develops things further, and that is the eu that i am proud to live in and work for. mr president, commissioner, ladies and gentlemen, i welcome the opportunity to pass a resolution in parliament to facilitate travel for third-country nationals legally residing within the territory of the european union, and i congratulate my fellow member, mr coelho, for the excellent job he did in parliament regarding this issue. this proposal facilitates in a tangible way travel within the european union for third-country nationals holding long-stay d visas issued by a member state. this is to provide a solution for situations when, for one reason or another, some member states are unable or unwilling to issue a residence permit in time for third-country nationals residing in their territory. that is to say, they do not use the framework provided by the schengen regulations properly. and i am glad that we are able to make a step forward regarding this issue. our aim is to avoid third-country nationals arriving in the european union having the impression of entering an impregnable fortress. the integrated border management and the visa policy should serve these purposes. as a hungarian member, i urge that the borders of the european union are made permeable to persons travelling in good faith. contact between citizens living on the two sides of the border should not be restricted. it is in the interest of third-country nationals living in neighbouring countries to the eu - including the members of the hungarian minority - to be able to reside legally within the area of the european union without any bureaucratic or administrative burdens. this requires appropriate laws, both at community and member state level, which do not counteract each other but rather reinforce the objectives of one another. i hope that instead of remaining a high-sounding idea, the new community legislation will indeed provide practical support particularly to young people, students wishing to study in member states. they should be the most important beneficiaries of this regulation. on this point i can only agree that the commission should submit a report on the enforcement of this regulation by april 2012 at the latest and, if necessary, a proposal for the amendment of the regulation in order to accomplish the objectives. i congratulate the rapporteur, mr coelho, for the preparation of this report and also agree that it is important to ensure the free movement within the schengen area of third-country nationals in possession of a long-stay visa who are lawfully present in a member state as soon as possible. according to the current practice of member states, for various reasons, it takes rather a long time for third-country nationals to replace a long-stay visa with a residence permit. i could quote many examples from european union member states, including my own country, lithuania, where, for instance, a long distance lorry driver who has received a d visa cannot carry out his principal job. the practice that has evolved in this area undermines the legitimate expectations of third-country nationals who have come to the european union to work or study. the member states should also take appropriate measures to simplify the procedures for issuing visas. a long-stay visa should have the same impact on a person's movement within the schengen area without internal borders as a residence permit. the most important aspect here is not the length of time a holder of a d category visa visits another member state but the opportunity itself to better meet his needs within the schengen area. therefore, i agree with the proposal that a third-country national, holding a long-stay visa issued by a member state, should be able to stay in another member state for three months within any six-month period under the same conditions as a holder of a residence permit. at the same time, it is very important to ensure that the simplified movement of third-country nationals within the schengen area does not pose additional threats to the security of the member states. therefore, i call on you to adopt this partly amended regulation immediately. mr president, commissioner, ladies and gentlemen, in a sea of difficulties, stages take shape. this is the case with this text, which has just been explained very well by all my fellow members, on all sides, and which concerns all third-country nationals living legally - i would emphasise - in europe. it is, in fact, high time that this text was adopted; it is high time that freedom of movement for third-country nationals was established within the eu, and i am glad we have reached the point at which we lay another brick in the construction of a europe of freedoms, in an area that we want to be made increasingly secure. it represents both an obvious fact and a step forward. an obvious fact, as people have mentioned: there is basically no major controversy surrounding this text, and the few amendments show that we all want to build a europe where no one is stuck in a member state without being able to explore the rest of the european area. then, it is a great step forward because it represents rights for third-country nationals, students, researchers or others who live on eu territory. finally, to conclude, this will clearly encourage people outside europe to think of europe as a single area, a united europe, a common area, and it will forge european culture and identity beyond our borders. mr president, i firstly wish to thank the rapporteur, mr coelho, whose proposal i, like the other shadow rapporteurs of the committee on civil liberties, justice and home affairs, support. i have already had the opportunity to say here that mr coelho has given good service to the principle of freedom of movement within the european union, to the rights of citizens, be they european citizens or citizens of foreign countries, and to european democracy itself. this does not only mean its own citizens, but also its reliance on the contribution of thousands and thousands or even millions of citizens of third countries who pass through the european territory, who reside here, and who come here for long or short periods in order to work and to study. mr coelho, with the input of the shadow rapporteurs, has worked in an excellent atmosphere of cooperation and willingness to provide information. above all, he has done so on time and in this matter time is crucial, given that we are dealing with the lives of individuals. like other speakers before me, i could give examples of students, researchers and scientists who arrive in europe because of the recognised quality of their work but who subsequently cannot cross our borders, which are, as a matter of fact, very closed indeed in the cases of some people from other continents. in two hours, a researcher can leave portugal and enter spain, making for the border of another member state, or rather, he cannot leave if he has, as happens in some cases, a visa to study for a two year masters degree which does not allow him to leave the country to share his work or to undertake research in another member state. we ourselves have even had to deal with such cases on some occasions when, for example, we wish to hear someone's input in a debate in brussels, for example. we should note that this is not only an unnecessary and unjust burden for the citizen of the third country in question. it is a waste for those of us who were relying on their contribution. it is a waste in terms of our competitiveness when we compare, for example, the mobility of this type of foreign citizen in the united states, for example, or in china, india or brazil, and then see the obstacles to their mobility within the european union. it is a waste in terms of the mobility of our workforce, of our scientific community when we recognise that this growing mobility is very important in periods of crisis such as the one we are undergoing at present, and it is also a waste for the knowledge society. it is therefore time that the council implements these proposals before the visa code comes into force in april and causes more unnecessary obstacles to the mobility of such individuals. it remains for me to say therefore that, on behalf of our group, we support the proposal of the rapporteur and we shall vote in favour. on behalf of the efd group. - mr president, the report proposes that member states may issue long-stay visas for up to 12 months for third-country nationals which will be recognised by other states within the schengen group. britain is not a member of the schengen group, so would not appear to be directly affected. however, the proposals would make it easier for the citizens of non-eu countries who enter one member state to travel to other eu states. britain has a massive problem with illegal immigration. there are at least one million illegal immigrants in britain. under these proposals, people who wish to migrate to britain illegally may come to another eu state perfectly legally, obtain a long-stay visa that gets them to france, for example, from where they may gain illegal entry into britain. the uk independence party meps will therefore vote against this report in the interests of protecting our borders against further illegal immigration. (nl) mr president, in this report, i came across what is indeed a most bizarre example of why we absolutely must relax the rules in this way, namely that of a foreign student who has been granted a visa to study in belgium and, as a result of the new arrangement, can now look up information in a dutch library and then travel on to barcelona. that is nice for him! yet that is not what this is about, of course. in practice, schengen, and european visa policy as a whole, means something quite different from freedom to travel for students. it means the complete demolition of our borders, giving free rein to organised crime and illegal immigration without there being any watertight external borders - which were supposed to be the cornerstone of the whole system - to keep this in check. one of the direct results of schengen, for example, is that the masses of regularised spanish illegal immigrants are free to move to the other member states. in my opinion, this parliament would do better to reflect on the impact of such decisions on ordinary europeans for once instead of thinking about the day-to-day practical worries of foreign students. (es) mr president, i would like to start by congratulating mr coelho on his excellent work and, in particular, on the high level of consensus achieved between the council, the commission and the different political groups in parliament. thanks to his work, i think there is going to be very little disagreement here. the european union constitutes the greatest space of freedom that has ever been established. we should eliminate all of the obstacles that prevent free movement, both of european citizens and of third-country nationals legally residing in a member state. we should put a definitive end to the absurd situations so often faced by holders of long-stay d visas. as you know, a long-stay visa allows the holder to reside in the member state that has issued it. however, the holders of such visas cannot move freely within the european union except to travel to the member state that issued the visa. paradoxically, situations such as the ones already described arise very frequently. i will give one further example: a student preparing his phd thesis in lisbon on the history of the americas is unable to consult the files and documents housed in the general archive of the indies in seville, which is one hour away by plane. ultimately, the aim of the proposal is for long-stay visas to provide the same rights as those provided by a residence permit. ladies and gentlemen, we need to improve the principle of mobility: mobility that is essentially for work, scientific and academic purposes. although it would appear completely unnecessary from what i can see, i shall finish by asking all of you to support mr coelho's report, not only because of its extremely high quality but also because it constitutes a further guarantee of the great space of free movement that we defend. i also support mr coelho's proposed timetable. (fr) mr president, i should first like to thank the rapporteur, mr coelho, for his work, and to pay tribute to the cooperation there has been between parliament, the council and the commission during the consolidation of the two reports, and the first reading, which should also be the last. it was crucial for this report to be adopted before the end of april 2010 so that it could be implemented at the same time as the visa code. it is extremely important for all residents of the european union to be able to travel throughout all the member states. that way, we can solve the twin problem of the application of the 'd+c' visas and the rules for residence permits. thanks to this report, all third-country nationals who hold a long-stay visa will have the right to travel anywhere in europe for six months a year. all persons concerned should receive all necessary information when they receive their visas and, above all, should be informed that this visa will automatically become a residence permit before the expiry of its one-year period of validity. finally, it is important to emphasise that, for security reasons, each individual who applies for a d visa will have to be subject to investigation but will not have to be registered in the sis. the contracting party must take due account of any information already included in the sis by another contracting party. furthermore, if sis ii is not implemented from the end of 2012, we urge the commission and the council to present the legislation required to provide the same level of data protection as that afforded by sis ii. (it) mr president, ladies and gentlemen, these proposals seek to make it easier for third-country nationals legally residing in a member state to move in the schengen area on the basis of a d long-stay visa. essentially it wants to extend - and this concerns us - the existing principle of equivalence between a residence permit and short-stay c visas to long-stay visas. a long-stay visa will thus have the same effects as a residence permit as regards circulation in the schengen area. in other words, it wants to make it possible for anyone in possession of a document showing that he is legally resident in a member state to move freely in the schengen area for short periods of no more than three months in any half year. we would point out to the commission and the council the security problems that may arise from this free movement. it is already very difficult to perform checks in one member state: let us be mindful of the risks we run by abruptly implementing this principle. (de) mr president, a few months ago, there was not only a festive atmosphere in this chamber but also a feeling of joy for most people here because the visa regulations were being eased for many countries in europe. so, what is the reality? with the lifting of the visa obligation for citizens from montenegro, macedonia and serbia in december 2009, there was a wave of people travelling from the balkans, via austria, to central europe and up as far as scandinavia. a real migration of peoples! in just seven weeks, around 150 000 macedonians have taken advantage of this new freedom to travel, according to the ministry of the interior. two thirds of these people are not making the homeward journey. in many villages, particularly albanian-macedonian villages, five buses start out every day towards central or western europe, equipped with a tourist visa, which expressly prohibits gainful employment. this means, therefore, that, after 90 days, these people go underground and the supposed tourists then find themselves once again on the cheap labour market earning 'dumping' wages. that is the difference between the reality of the situation and the european parliament's pipe dream. the consequences of this will have to be borne by our home countries. they have to suffer the consequences of what is decided by the majority in this chamber. they will have to put up with scarcely controllable illegal immigration and illegality and the associated undeclared employment. (mt) i would also like to congratulate my fellow member, carlos coelho, for his report on this initiative which is granting third-country citizens the possibility of greater freedom of movement within the european free zone. however, mr president, i must point out an irony which has surfaced in this debate, namely: whereas we are granting greater rights to third-country citizens, at this very moment, the european union and its citizens are facing serious problems with travel to a country such as libya, for instance. this is due to the ongoing problem between switzerland and libya, which has resulted in libya blocking travelling for all european union citizens and not just for the swiss. so while we are granting more rights to third-country citizens, our own citizens are being given fewer rights to travel to third countries such as libya. what are the consequences? the consequences are very serious. there are workers who are unable to go and work in libya, companies who have invested in libya are being prevented from sending over their workers, while other workers are currently in libya and must remain there until their replacements are granted entry. this is a precarious situation and i appeal to commissioner malmstrm to intervene in this issue with urgency. i understand that this is a diplomatic issue between two countries who are not even european union members, but it has serious repercussions on european union citizens whose interests lie in travelling to libya in order to earn their living. (sk) the report from my fellow member, mr coelho, and also the draft regulation, concern the free movement of people, which is an essential element of democracy in the european union, and it is therefore unacceptable to have persons holding long-stay visas in one member state of the european union not able to travel across the european union. there are several reasons to support the above initiatives. the first is respect and the upholding of fundamental human rights which, without doubt, includes the freedom of movement. if a member state legalises the stay of a national from a third country, there is no reason why that person could not move freely within the schengen area. naturally, the details relating to not downgrading the level of security within the schengen area should be elaborated. there has also been talk here about students and scientists who were unable to travel to another member state. i would like this group to be expanded further to include businesspeople, because if we do not allow them this, we will be reducing the european union's competitiveness. and therefore, i believe this proposal will find support and i congratulate the rapporteur. (pl) mr president, i would like to thank mr coelho very much. my opinion has been incorporated into the regulation. i have also had the opportunity to work on the regulation itself. i would like to say that the nature of mr coelho's report is not only urgent and important, but it is also symbolic. today, as a representative of one of the new member states, i can say with pride that we can change the rules enabling free movement around the schengen area, where, until recently, some of the present countries of the european union were encountering similar difficulties. i think the symbolic nature of these changes is, today, something which cannot be overvalued, and i hope the consensus which has been reached in this house will be a huge success for all of us. secondly, i would like to say that doing away with the 'd + c visas' and the fact that member states cannot issue residence permits force us to take very urgent action. i will give only a few examples of matters which have been mentioned in this chamber today. two ukrainian students, who were travelling from wrocaw to berlin last year, were detained just as they were crossing the border, mainly because the young people were not aware of the rules, and they only wanted to make use of our intellectual resources. i think the voting today will be very significant and important for us. i would just like to draw attention to the last matter - the question of security. we should, today, have a good system for exchange of information collected in schengen, we should most certainly work on the second generation schengen information system and the visa information system, and, above all, perhaps have even more frequent reviews and reports. i would like to appeal strongly here to mrs malmstrm to ensure that coordination between member states on security will be equally as good as it has been until now, and once again, i would like to thank mr coelho very much for a splendid report. (hu) mr president, i would like to say that i quite agree with and support the rapporteur and also commissioner malmstrm in finding a solution for this issue that is in line with the rule of law, respect for human rights, data protection and, of course, safety considerations, too. a lot of concerns were voiced. i would like to point out a few issues. in order to make this regulation work, first of all we need to study and learn more about the practices of each member state. we are aware that some member states are able to issue the residence permits in good time. these best practices can mean a lot to us. we need to coordinate member state practices in order to increase trust. all member states should use the sis system - we know that not all of them do so today - and introducing sis ii and operating the vis systems are extremely urgent tasks because these systems will provide guarantees in the long term. it is in europe's interest that third-country nationals residing here - students, businessmen, researchers - should be able to move freely indeed. (el) mr president, i, too, should like to start by thanking mr coelho for his excellent work on this report and to state the following: first of all, the schengen acquis is exactly that: freedom of movement within the borders of the schengen area. therefore, in this debate, we need to draw the first basic and simple conclusion: that it is vital for this regulation to move forward. the example of the student is illustrative; anyone with a long-stay visa should have the right of freedom of movement. the problem arises - and this is what i should like to highlight - of whether this will facilitate illegal immigration, albeit indirectly, if there will be security problems, and if a person who exercises this right will, at the same time, not have the means to move, which is something the member states need to take into account. obviously, each member state will have to be very careful when issuing visas. at this point, as stated in the report, a very important parameter arises, the most decisive parameter of all: that processing of data prior to long-stay visas will now be mandatory in the schengen information system. thus, in the final analysis, we are not only safeguarding the schengen acquis, but also strengthening security in connection with precisely that. as such, we should all be positive about these prospects and the sis ii system, which is a necessity, must, come what may, proceed quickly. finally, we must, in cooperation with the member states and the services of the member states, not only facilitate the schengen acquis and strengthen it, but also simultaneously strengthen security, which is the necessary element for every member state, for all of us, and for the schengen acquis. (applause) (sl) freedom of movement and the abolition of internal borders are two of the most important factors of european integration. we have to facilitate movement in the schengen area for citizens of third countries who are legally resident in a member state. it is unacceptable that, because of red tape, we should restrict the movement in europe of students, researchers and companies. similarly, we have to enable freedom of movement as soon as possible for the citizens of bosnia and herzegovina and albania, and the people of kosovo, who paradoxically have fewer rights to free travel today than they did years ago. obviously, conditions have to be right for that to happen and we should not allow ourselves to be misled by data on mass illegal immigration. the people of the western balkans have been isolated by the visa regime for far too long. they need to strengthen contacts with the citizens of the union but, more often than not, rejection of their visa applications prevents them from doing this. let us not risk engendering an even stronger sense of isolation and discrimination, particularly amongst young people, who may never have had a chance to discover the union. let us therefore waste no time once either bosnia and herzegovina or albania comply with the visa liberalisation criteria. any action we take to facilitate travel in the schengen area will be a step forward and will be in the interests of the european union. (pl) mr president, the proposal under discussion concerns one of the fundamental principles of the function of the european union - the removal of internal borders and the free flow of people. for this reason, it deserves special attention. it is incomprehensible and, as a consequence, unacceptable, that the holders of long-stay visas have less freedom of movement within the schengen area than people who have short-term visas. for this reason, i am sympathetic to the european commission's proposal. i think, however, that we should make amendments to the proposal to guarantee security. therefore, i support the proposal of the committee on civil liberties, justice and home affairs that, as part of the schengen information system, there should be a flow of information between member states about undesirable persons. the european commission should also be required to present a report on application of the regulation not later than 5 april 2012. the amendments which have been prepared merit serious reflection and - in most cases - support. (pl) mr president, it is not only the citizens of third countries who would like it to be easier for people from these countries to move around within the schengen area, for we, the residents of the european union, are also waiting for this. it is paradoxical that the holder of a short-term visa today has greater freedom of movement than the holder of a long-stay visa, and a person from a third country who holds a legal permit for a long-term stay, for example, in poland, cannot travel to germany or france. freedom of movement should not apply only to residents of the european union. researchers, students, school children and business people from third countries should be able to move freely, visit friends and learn the traditions, customs and culture of other countries. they will be good ambassadors for the idea of the european union, and we, the residents of the european union, will take a step towards realisation of the idea of a union without borders. (de) mr president, the visa system of the schengen countries is apparently so complicated that the consulate employees no longer know what they are doing and are allowing honest visa travellers to fall into the visa trap. the fact that consular staff are not aware of the visa categories 'd' and 'c' seems rather strange. it is downright negligent if someone omits a schengen information system check to make the work easier. it is clear that this will create numerous, unnecessary problems at the external borders and this situation urgently needs to be changed. in this connection, it makes little sense to discuss national visa alert lists if the eu alert system and the eu alert regulations are not even applied consistently. the liberalisation of visas for the balkan countries goes hand in hand with an increase in futile asylum applications from these countries. it is especially important now, when, since the relaxation of the visa regulations for the balkans, there is a real threat of a wave of immigration, when, within seven weeks, almost 150 000 people from macedonia have made use of their new freedom to travel and, according to estimates, almost two thirds of them will probably not make the homeward journey, to whip the enforcement of the visa regulations into shape. (hu) as hungarian members of parliament, we are in a special position when we are to vote and decide whether to make it possible for third-country nationals to move more freely within the european union or, on the contrary, try to impede it. due to the tragedy of trianon, hungary lost a great part of its territory, and we have a large number of hungarian compatriots living outside the borders of present-day hungary, and thus outside the current borders of the european union, in the former southern region and subcarpathia. our compatriots are in a very humiliating position when they study or work in research or other areas in their own truncated country, and are not allowed to leave the territory of hungary. this is an extremely poor and intolerable situation we need to take action against. this is why we, hungarian members of parliament of hungarian sentiment, will vote for this proposal in order to bring an end to this ridiculous position. mr president, this proposal is based on the assumption that all persons from third countries entering the eu are persons of good faith and that, if they say they are coming here to study, they really are. the eu is rich in bogus colleges, and even genuine colleges frequently have students on their books who never appear in a lecture room. if their movement to other states is facilitated, it will be much more difficult to check the genuineness of their status and more difficult to locate them when their status is found not to be true. although the uk is not in the schengen area, the eu has a track record of regularising illegal immigrants. today's holder of a long-stay visa or a residence permit might be tomorrow's illegal migrant, and the day after, an eu citizen with complete freedom of movement. member of the commission. - mr president, two questions were raised, not particularly related to this issue, but i would like to take the opportunity to briefly touch upon them anyway. mr busuttil raised the issue of libya. i can assure him that it is a very complicated issue, but we are involved actively in dialogue with libya, with switzerland, with the member states, in order to find a solution to this very complicated problem before it escalates even further. so i hope to be able to come back to you soon on developments on this. to ms fajon, i want to tell you that, of course the situation of albania and bosnia and herzegovina is another track and we are right now finalising a mission there to evaluate how these two countries are doing according to the criteria. the commission will very soon, after consultation with member states and experts, make a report on that and the assessment of that report will be shared with members of the committee on civil liberties, justice and home affairs before we put a possible proposal on the agenda. on this proposal, i can assure members and the rapporteur that the commission is extremely dedicated to making this work, and we will do our utmost to make sure that the regulation is implemented. it might sound like a technical problem, but it is not. it concerns individual citizens and we want to encourage people to come here legally with all their papers in order, whether students, researchers, experts or scientists. it is good for them and it is good for us. it is also within the philosophy of the european union to have an area of no internal borders. therefore, we should avoid making life unnecessarily complicated for these people. i think, within this proposal, we have found a good balance. we have been able to take the security considerations into consideration in a satisfactory manner and we can congratulate ourselves. this is the union working at its best with three institutions trying to identify a problem and trying to find a concrete solution to the benefit of the citizen. so, thank you very much for your work, mr coelho, and thank you for a good debate in this plenary. mr president, four final points. the first is that it is regrettable that the council's chair is empty during this debate. the second is to thank commissioner malmstrm for her kind remarks and also to ask her, together with the council, to guarantee the entry into force of this regulation on 5 april. otherwise we shall have a legal loophole, with consequences for real people. the third point is that it is regrettable that the members who have participated here in the debate and who have raised the issue of security problems have not been able to recognise the improvements which parliament has introduced by means of this regulation, in particular, the obligation to consult the schengen information system in advance. as i emphasised in my initial statement, i believe that parliament has performed its task well because it has strengthened both freedom of movement and security. not to recognise this means looking at it in a one-sided way, and not seeing the whole picture. my final point, mr president, is to thank all those who have worked together towards this aim, namely those who allowed us to have an agreement on first reading, particularly the commission and the council, but also all those political groups within the committee on civil liberties, justice and home affairs and the justice committee who made this broad consensus possible. i believe that when we participate in finding a solution in this manner, we are performing our work in the best possible way. the debate is closed. the vote will take place shortly. written statements (rule 149) i support the efforts made as part of this report to successfully extend the freedom of movement for holders of long-stay visas in the same way as that for holders of permits and short-stay visas. the agreements currently in force have entailed numerous disadvantages for third-country nationals who are legally resident in one of the member states and who wish to travel for various reasons throughout the european union. there are discrepancies between member states with regard to the time required, method and criteria used for granting visas. what has been observed in practice is that visa applicants who are rejected by one state try their 'luck' in other member states. this is down to the fact that some states are more demanding, while others are more lax when it comes to granting visas and residence permits. to avoid creating an influx of visa applications via certain states which adopt a more liberal policy for granting visas, i propose standardising the checks and method for approving visa applications between all member states. this procedure will ensure a standard approach to all applications, thereby eliminating the risk of any 'gateways' to the schengen area appearing.

7. draft amending budget no 3/2006 (vote)

agenda of the next sitting: see minutes

11. promoting worker mobility ( - enmienda oral al apartado 7: mr president, i would like to move the following oral amendment to paragraph 7: 'calls on the member states to remove obstacles to workers' mobility by offering persons (the majority of whom are women) who follow their spouses or partners to another member state, appropriate services such as courses to facilitate their integration into their new social and cultural environment, for example language courses and vocational courses'.

1. optional and temporary application of the reverse charge mechanism in relation to supplies of certain goods and services susceptible to fraud (amendment of directive 2006/112/ec) (

debates on cases of breaches of human rights, democracy and the rule of law (announcement of motions for resolutions tabled): see minutes

closure of the sitting (the sitting was closed at 23:00)

agenda of the next sitting: see minutes

european order for payment procedure (debate) the next item is the recommendation for second reading, on behalf of the committee on legal affairs, on the council common position (07535/3/2006 c6-0227/2006 for adopting a regulation of the european parliament and of the council creating a european order for payment procedure (rapporteur: arlene mccarthy). rapporteur. - mr president, commissioner, almost 12 months ago we first gave our approval to the european payment order, a new law to assist in simplified debt recovery for businesses and citizens owed money in another eu member state. today, a year later, the committee's view has not changed. we believe that we need this pragmatic and practical eu law, in particular to ensure that businesses and citizens have an affordable system to recover those debts owed to them. why? because until this law comes into force, recovery of debts from another eu state is a costly legal process. in some cases, money spent on lawyers and administrative costs exceeds the amount owed to the individual. more significantly, studies and experience show that companies which do not get their debts paid are at risk of collapsing, with knock-on effects not just in terms of job losses, but also for other smes in the supply chain. out of between 30 and 40 billion invoices in europe each year, as many as 1 billion default and turn into debt cases. interim justicia carried out a survey on payment practices in 16 european countries some 10 years ago. the average delay then was just 14 days. by the end of 2003, however, this had not declined, but risen to 16 days. according to a world bank study, 'doing business in 2004: understanding regulation', the nordic countries have the most efficient and effective legal systems of the countries surveyed. they take the least time to reach a solution while keeping costs low. italy is one of the countries with the longest delays worldwide. the explanation it is said lies in the lax appeal process, which allows proceedings to be disrupted at any point during a trial. spain, by contrast, has one of the most complex legal systems, which generates higher costs and leads to longer court proceedings. my own member state, the uk, has some three systems operating for payments, again creating confusion for businesses or the public. extensive differences in legal regulation of overdue payment recovery therefore lead to uncertainties, especially in eu trade, and the additional costs prevent the eu's aim of equal opportunities for market access for both local and eu operating companies. it is clear that a lack of enforcement systems for payments undermines the internal market and business confidence and that, as a result, smes have continued to experience cash flow problems caused by late payments. the european payment order will also apply to individual citizens who work or live in another member state and who can also take advantage of this new law. of course, the high and expanding volume of trade within the eu and the increased movement of people raise the likelihood that more and more businesses may become involved in cross-border litigation. there is a risk that citizens may not be inclined to assert their rights because of the obstacles they face, particularly in dealing with the legal system in another member state and with unfamiliar procedures and unknown costs. it is essential, therefore, that the eu provide for a judicial area where private individuals and businesses can have access to justice and redress in the case of an uncontested claim. this procedural law will help facilitate that access. the payment order introduces a practical eu-level instrument for obtaining an enforceable decision and i believe in this way we can demonstrate to citizens that the eu is delivering a practical tool to assist them with redress and remedies. i want to put on record my thanks to members of the committee, in particular the shadows, mr wieland, who is here this evening, and mrs wallis, who cannot be here. they have not only supported my approach but have made useful and constructive proposals for amendments at every stage of the procedure. the committee consulted with key protagonists and we believe we focused on the core issues. both my shadows were concerned to ensure that the forms and the annex, the bones of the proposal, were simple enough for businesses to be able to fill them out with minimum bureaucracy. only time and experience will tell if this has been achieved. that is why, under the new comitology procedures, parliament needs to be consulted and informed of any changes the commission would like to make to the system. i would also like to thank the british presidency, in particular the minister baroness ashton, who was instrumental in helping us to make progress on the clear drafting of this law. so now, commissioner, at second reading we are down to the last few details. mrs wallis is concerned that the commission should seriously address the potential discrimination affecting citizens and businesses where eea members can participate in the single market, but cannot be a party to the epo. i hope the commission will address this issue. the forms should be user-friendly and simple and we would therefore like the commission to take on board our amendment in this area. finally, since we started this process a year ago and since the commission's original proposal, we now have a new institutional agreement, with effect from july 2006. the committee and parliament insist that the new regulatory scrutiny procedure and rule should be respected in this legislation and on the payment order. commissioner, let me say how much we have appreciated the cooperation of your departments in this area. i hope that, together with the finnish presidency, we can sign off the european payment order and begin the process of putting it into law across all the member states of the eu, so that businesses and citizens can be confident of operating in the internal market in the knowledge that the failure to pay a debt does not end up in endless court proceedings with no outcome. thanks to the european union, there is now a simple and user-friendly system for speedy payment of debts which, i believe, will drive forward the internal market for smes and boost the eu economy. mr president, first of all, i would like to thank the rapporteur, mrs mccarthy, warmly for her work and her efforts to bring this project, which is very important for our citizens, to a satisfactory conclusion. like the rapporteur, i would also like to thank the former united kingdom presidency, particularly baroness ashton, for the work done in moving ahead with this important project. as you know, this regulation on the european order for payment procedure aims at facilitating the mass recovery of uncontested claims in europe. it is thus very important, as it will allow all creditors in europe to recover their claims in a uniform way and more rapidly and cheaply than in ordinary court proceedings. it will also alleviate the burden on the courts by removing from ordinary proceedings those claims where the debtor does not contest the debt. the proposal potentially concerns all citizens and economic operators in europe. a european order for payment can circulate freely in europe and will be enforced automatically. there will be therefore no need to request a declaration of enforcement - the 'exequatur' - in the member state of enforcement. concerning the amendments, i can accept the third amendment as proposed. on the second amendment, i can accept the compromise amendment on the comitology procedure, which is in line with the council decision taken in july 2006. on the first amendment, while i understand the reason and the concern expressed by the committee, i think that we should not at this stage reopen the question of the definition of a cross-border case, adopted at first reading by the council and the european parliament. at the same time, i can confirm that the commission is available and willing to look more closely into the effects of the regulation for parties domiciled in third countries and, in particular, states of the european economic area. i am ready to give very careful consideration to any proposals. on behalf of the ppe-de group. - (de) mr president, the rapporteur, mrs mccarthy, has set out the essentials of why this matters in economic terms. this european order for payment procedure represents a major step forward in the application of laws across borders, and, in particular, a step forward for business, which has a particular interest in the legal soundness of claims being established without delay, in the prompt assignment of title, and in this claim being capable of being enforced, without further cost-intensive procedures, in the country of the debtor. it has to be said, though - and it is to this that i want to give particular attention - that legal relationships across borders will become increasingly important to private citizens, who find it particularly difficult to enforce claims across borders, whether such claims are contentious or not. today, it is undisputed claims that we are discussing, and that is why this first step is so important. private individuals find the business of getting what they are entitled to complicated enough as it is, and they have serious problems with getting claims enforced in a country other than their own; this instrument will make things easier for them. a form that even an ordinary member of the public can complete will make it possible for claims to be enforced relatively simply and without great expense. another consideration is that constant reference has been made to businesses and to creditors, but not enough has been said about the debtors. systems have been introduced in the member states of the european union - not least in the one from which i come - to make the establishment of such claims a positively economical business, not least for those who owe the money. the debtor who is willing - but perhaps not able - to pay up, can agree reasonable repayments with the creditor, who has an interest in establishing title and thereby preventing the debt from lapsing, and, in the absence of a contested case, fewer costs are incurred. it is therefore in the interests of all parties that we should make cross-border legal proceedings speedy, efficient and affordable. on behalf of the pse group. - (pl) mr president, late payments are the main cause of insolvency, which threatens the survival of businesses, especially small and medium-sized ones. they jeopardise the operations and solvency of these businesses, often resulting in the loss of many jobs. swift and efficient debt recovery when no legal dispute is involved is therefore vitally important for business entities in the european union. it helps to preserve jobs. the member states have attempted to solve the problem of large-scale debt recovery in the case of undisputed claims, generally by simplifying proceedings regarding payment orders. there are, however, significant differences between national provisions and the way individual procedures operate. as a result, the latter may be inadmissible or impossible to apply in cross-border situations. it is therefore appropriate to respond positively to the proposed regulation setting up a european procedure for payment orders. the debate is closed. the vote will take place on wednesday at 12.30 p.m.

adoption by estonia of the euro on 1 january 2011 (debate) the next item is the report by edward scicluna, on behalf of the committee on economic and monetary affairs, on adoption by estonia of the euro on 1 january 2011 - 2010/0135(nle)). rapporteur. - madam president, i am pleased to be able to present this report endorsing estonia's application to join the eurozone. it is very significant that a small, but highly determined, eu member state comes knocking on the eurozone's door during such difficult times. it says a lot about the country and it says a lot about the euro and the eurozone as well. the reason why estonia should join the eurozone is straightforward. estonia has met the maastricht criteria laid down in the treaties. more importantly, we need to keep in mind that these achievements were reached during the worst global financial, economic and social crisis we have seen in our lifetimes. such achievements, it must be said, are the result of determined, credible and sustained efforts by successive estonian governments and the estonian people. moreover, despite the eurozone's recent difficulties, public opinion in estonia is strongly in favour of joining the euro. as rapporteur, i have been in constant contact with the commission, the european central bank and the estonian government and visited estonia in the middle of may when the commission and the ecb published their convergence reports. the preparations made by the estonian finance ministry, parliament and statistical office and the central bank are a credit to estonia. i must raise my concern, however, at the extremely short time that parliament is being given to present its report following the publication of these convergence reports. i do not think it is appropriate. as has been stated in the past, it demonstrates a lack of respect for parliament. i admit that there have been some noticeable improvements, as when the central bank and the commission met with the bureau and gave an oral explanation of progress. however, i sincerely hope that this timetable will not be followed next time a country wishes to join the eurozone. although there may be some who say that the eurozone should sort out its problems before taking in new members, in my opinion this would be a short-sighted approach. as members of the eurozone, we are either confident and motivated enough to see our way through the stormy seas the euro is passing through or else we lose our heads in a frenzy and refuse an able and qualified member state which wants to join the euro and is ready to give a helping hand in the time of need. in our battle to restore confidence in the eurozone with measures to improve the sustainability of public finances, through tighter statistical governance, my opinion is that estonia will be a real asset to the eurozone. its prudent approach to public finances meant that, by the end of 2009, it comfortably had a very low - if not the lowest - government budget deficit in the eurozone. meanwhile, despite a massive contraction of the economy by nearly 15% in 2009, the fact that it had rebuilt up large surpluses during the good years has meant that its government debt to gdp ratio is, at 7.2%, easily the lowest in the eu and one of the lowest in the world. put plainly, during the worst economic and social crisis, estonia has kept its house in order. this puts estonia firmly in the group of eurozone countries which are more fiscally disciplined and prepared to take the tough choices to maintain sustainable public finances. it also carries significant political symbolism. estonia's application to join is a significant symbol to its neighbours that joining the euro should be an attractive option for those countries which prepare themselves well. finally, this is not to say that an easy economic path ahead lies ahead for estonia. unemployment is extremely high, for one thing, and the inflation risk for the future is also not very good. therefore the government needs to maintain vigilance over prices, especially during the changeover period. therefore i commend this report to this house. member of the commission. - madam president, first of all i would like to thank mr edward scicluna for his very balanced and substantive report on estonia's convergence and entry into the euro area. i also want to congratulate our estonian friends on reaching this important milestone. i appreciate the overwhelming support for estonia's euro adoption given by parliament's econ committee on 2 june. it is indeed crucial in bringing the commission proposal further and eventually introducing the euro in estonia on 1 january next year. we all know that the convergence assessment and the decision on estonia's adoption of the euro will take place against the background of one of the most difficult times for the euro area - if not the most difficult time - since its creation. in this respect this positive assessment on estonia is an especially important signal, showing that the emu framework is fully functional. it also underscores that, in the convergence assessment, member states are examined on the basis of their own performance, on their own merits and with full respect to the principle of equal treatment. the positive assessment on estonia is also a strong positive signal for the markets as well as for the non-euro area member states at this current juncture. let me stress that estonia would enter the euro area from a very strong position with credible policies, one of the strongest fiscal positions and by far the lowest debt level in the eu, as mr scicluna illustrated. while the average in the european union is currently around 75% public debt, estonia has a debt level of 7.2%, which is of course a huge difference from the average. while not immune to the crisis, the estonian economy has also shown its ability to operate and adjust under a fixed exchange rate regime for close to two decades since 1992. therefore euro adoption itself is not expected to be a major shock to financing conditions as financial deepening is already well advanced. of course, euro adoption will not be the end of the road; quite the contrary. should estonia adopt the euro next year, it will be key to maintain policy discipline and fully gear fiscal, structural and prudential policies towards a successful performance within the euro area. i welcome the willingness of the estonian authorities to reassure euro-area and eu partners through a formal letter stating their firm commitment to stability-oriented policies and setting out policy priorities accordingly. in parallel, there is a pressing need to strengthen economic governance in europe. the commission's recent proposals aim at both substantial deepening of economic governance in europe and prudent widening of the euro area on the basis of the countries' own merits. that is the way to build up a stronger and more effective economic and monetary union. to conclude, after this week's consultation with the european parliament, the issue will be followed by a discussion in the european council later this week. should all go as planned, we expect to have all relevant legal acts adopted by the ecofin council on 13 july, thus giving estonia sufficient time to prepare for the changeover and for the adoption of the euro on 1 january next year. so, once more, many thanks for your support for the proposal, and my warmest congratulations to the estonian people! on behalf of the ppe group. - madam president, may i thank the rapporteur for a very fine report. i can support him in the general thrust of his comments and also in the concerns that he raises. can i say in particular that we are able to admit estonia to the euro area because of sacrifices made by the estonian people and the leadership given by the estonian government and parliament. this leadership goes beyond simply putting their house in order and making the sacrifices that go with that. while some of us are licking our wounds, being very uncertain about the future and wondering about the eurozone, here is this small country showing the way. it is a beacon not just for the other countries in that region that aspire to join the european union, but a beacon for the whole of europe to reinforce our confidence at this difficult time which will pass. i would like to remind the house while i am on my feet that, during the first 10 years of the euro, 16 million jobs were created within the european area - many more jobs than were created at the same time in the united states. this really is therefore an endorsement of the whole project at a time when it needs endorsement by a courageous parliament, courageous government and courageous people. i welcome estonia and i think they are doing the right thing. the experience from my country - another small country - has been almost entirely beneficial. think about where small countries would otherwise be. where would we be if we did not have the european central bank and the commission and the fellowship of the eurozone ministers in these difficult times? we would be truly lost. two points i want to raise concern the issue of boom-bust cycles, which has to be addressed and does need to be monitored, and that of asset inflation. i was raising this with the president of the european central bank for two years before it became popular to talk about it. the commission and the ecb have to somehow come to terms with how low inflation and low interest rates also give asset inflation. there has to be some way of dealing with that. i am glad to support the general thrust of the rapporteur's report. ladies and gentlemen, the day after tomorrow we will be voting together on the report of the european parliament supporting estonia's accession to the euro area. then it will be a little less than a month before the council's official decision. for estonia, joining the euro area is the next transitional milestone in the european union's integration process, and accession is a natural part of the wise budgetary policy that has been practised in estonia over a number of years. as early as the start of the economic crisis, our society realised that the challenges arising from the crisis required a completely new approach and a rethinking of many of the policies that had been pursued up to that point. specifically, this meant several budget cuts in 2008 and 2009. accession means that the efforts made in recent years were correct, and the developments of recent years have also shown how important it is to have credible statistics and to avoid double standards. i am sure that estonia will continue its very appropriate, transparent and reasonable fiscal policy in the future. we have realised that, in a small country with an open economy, there is no other option. estonia's accession is a positive sign to the whole of europe. we have faith in the single currency as a reassuring light at the end of the tunnel in the complicated economic situation we face in europe today. i believe that once estonia has joined, the euro area will have a member which understands the rules of the game, and which will be useful in strengthening monetary union and the single currency. for my part, i wish to thank colleagues, namely the rapporteur, edward scicluna, and the shadow rapporteurs for their substantial work. i would like to assure you that estonia is ready to join the euro area. thank you. madam president, i am delighted to be able to welcome estonia as the 17th member of the euro area from 1 january 2011. our baltic neighbour, as previous speakers have already said, is actually one of the very few countries that meet the maastricht criteria, and indeed with enthusiasm! in the current climate, we can be certain that the commission, eurostat and the european central bank have looked very closely at everything and made no allowances in their evaluation of the figures. the council will also take its decision without any political benefit. ten years after its introduction, the euro is, as we all know, currently facing its greatest test and challenge. it is testimony to an enormous degree of commitment, an unbelievable will and an extraordinary amount of effort that estonia has succeeded in actually meeting the accession criteria under these circumstances. i believe that it is also evidence of the fact that it wants to meet these criteria as laid down in the treaty. estonia knows that, as a member of the european union, it is also obliged one day to become a member of the euro area and the fact that it wants to do that so quickly makes me, personally, very happy. it shows that there are still countries that have real confidence in this european project. it is fortunate that the estonian government did not have to put this accession decision to the people in a referendum, as we are well aware that citizens are to some extent very concerned. if they follow the media, they will view the euro as a soft currency and the euro area as a transfer union, and they are scared that the introduction of the euro will lead to large price increases. slovenia and germany are examples of this, and in germany it is not without reason that the expensive euro has been referred to using the play on words as the 'teuro' ('der teure euro' - expensive euro). the fact, then, that all of this is just perceived inflation, as the european central bank says, is surely something of an understatement. as a member of the euro area, estonia will also have to deal with the problems facing the single currency and thus also sign up to the euro area rescue plan. what impact that might have on the budget, we do not know. i would like to ask the commission to provide some clarity in this regard. i hope estonia continues its excellent development and i hope that its achievements, particularly with regard to budgetary discipline and combating inflation, will prove to be sustainable in future, too. on behalf of the ecr group. - madam president, i would like to thank the rapporteur, mr scicluna, for his clear and comprehensive report. we fully support his conclusions. during this time of unprecedented economic turmoil across the globe following the financial crisis of 2008-09, it is a testament to the financial skill and fiscal discipline of the estonian government that they have qualified for euro entry. their ability to keep their public deficit in check despite the high pressures of unemployment is to be applauded. it is my opinion that, if any member state meets the stringent criteria for euro entry and if it is their wish to join the eurozone even at this turbulent time, then it is ultimately a decision for their constituents and i wish them well in their chosen journey. madam president, many think that congratulations should be given to estonia; i offer the estonian people my commiserations. the value of a country's currency must reflect the relative demand for its exported and imported goods and services, as well as other monetary movements, and must change according to need. a country tied to a currency value that does not reflect the needs of its economy will find that any economic problems are aggravated. the united kingdom found this when we were members of the predecessor of the euro, the exchange rate mechanism. we found ourselves locked not only into a single currency value, but also into a recession from which we escaped only when we left the erm. the scicluna report congratulates estonia on replacing current and capital account deficits with current and capital account surpluses. this appears to be good news, but there are dangers on the horizon. this surplus might result in the commission and the european central bank setting the kroon-euro rate at too high a level. if estonia then suffered a decline in the value of its exports relative to imports, a recession and balance of payments deficit would follow from which it would not be able to escape. estonia will lose its monetary and fiscal sovereignty, and therefore political sovereignty, which is ironic for a country that only 19 years ago escaped from the clutches of the soviet union. (lv) madam president, when it comes to football, we fans expect things to happen logically. we expect the team with the best discipline and the greatest commitment to win the world cup. this sort of logic should also be applied in the event of euro area enlargement. budget discipline and the implementation of reforms must be rewarded by admission to the euro area. during the world economic upswing from 2005 to 2008, the majority of european states spent a good deal more money than they could afford; they lived beyond their means. they prepared the ground, in fact, for today's euro crisis. during this time, while others were spending money, our friends in estonia were somewhat cannier - they were storing up budget surpluses. it is thanks to these surpluses and their budget discipline that the steep economic downturn that they experienced also in 2009 did not bring estonia to the verge of bankruptcy. instead, by observing strict discipline, estonia meets all the maastricht criteria and it should be admitted to the euro area. the introduction of the euro in estonia would be good news on three fronts. first, it would be a very important and powerful signal internationally that, in spite of all the difficulties, the euro area continues to expand. second, it would be a positive signal to all of the baltic states and the baltic region that the baltic states and the region are stable and capable of following pragmatic policies. third, it would be a very important signal to latvia and the other euro candidate countries that abiding by the maastricht criteria will be crowned and rewarded with admission to the euro area. at this time in europe, the member states must put their budgets in order, so that their populations and the financial markets can regain their faith in the euro area. to my mind, the admission of estonia to the euro area will serve as a good example to the governments and societies of other countries of the fact that budget discipline is possible even in very hard times. thank you for your attention. (ro) at the start of the economic crisis in the european union, the baltic countries were among those which were hardest hit. the baltic tigers became the sick men of europe following an economic boom lasting several years. nonetheless, we now have estonia preparing to join the euro area in record time. however, this country's accession will strengthen the euro area at a critical juncture. we applaud estonia's ambition to adopt the single currency in spite of the crisis which has not left it unscathed. it has been able to tackle it with prompt austerity and fiscal discipline measures. although they have been hit hard by the crisis, the baltic countries have enjoyed the advantage of having a low level of public debt, which provided them with greater flexibility in relation to external loans. this is an important point to remember, bearing in mind that estonia's public debt to gdp ratio is 7.2%, far below the 60% reference value. i think that it is now time for us to learn the lessons from the european crisis and from estonia's determination and for us to successfully find the happy medium between ambition and prudence. however, as part of this process, we must not ignore the social aspect of migrating to the euro. the experience of states which have previously joined it highlights major risks in terms of price rises. this is why i hope that the estonian authorities will be able to apply balanced fiscal policies so that its citizens are not obliged to make major sacrifices. in this respect, mr scicluna is quite right to draw attention to the risk of inflation. last but not least, estonia's transition to the euro also has a symbolic aspect. it can serve as a model for countries in eastern europe whose enthusiasm has been dampened by the crisis, along with a decline in their real chances of meeting the deadlines for adopting the euro. (sv) madam president, i would like to direct a personal note of praise to estonia. europe and the euro are currently facing severe problems. difficult times separate the wheat from the chaff. here we can see the difference between those who really believe in europe and want to contribute to a stronger eu, like estonia, and those who nervously stand on the sideline waiting to see how things turn out, like my home country sweden, the president's home country the united kingdom, and denmark. let us for a moment assume that the eu's forefathers had stood and waited in the same way when it all began: where would europe be today then? it is in times of crisis that the eu develops and demonstrates its strength to become a more unified and stronger europe. the euro is the most visible symbol of a united europe. all credit to estonia. (ro) i wish to begin by congratulating estonia on the particular efforts it has made in meeting the convergence criteria by adopting prudent policies. this will make it the 17th country to adopt the euro. during a difficult period for the european economy when there has been ever-increasing speculation about member states leaving the euro area, estonia is demonstrating that it is prepared to switch to the single currency. this also sends out a strong signal in terms of the euro area's possible expansion towards the east. the other eight countries featuring in the 2010 convergence report, which also included romania, have made uneven progress towards adopting the single currency and, at the moment, they do not meet all the criteria for joining the euro area. finally, i wish to state that any member state must only adopt the euro at the time when it is fully prepared to do so. (lt) i would also like to add to today's congratulations to estonia's administration. a few years ago lithuania was also in the same situation, but the inflation indicator lacked one tenth of a percentage point. in fact every state has its own particular historical past. we have a distinct economic structure and we have different decisions that were taken because of certain issues in the past. what makes estonia different is that there were probably fewer populistic decisions in the past, a very cautious central bank policy and many other things. that really is an example to us all, especially the baltic states, and in a few years we hopefully will also have the same pleasant moment. once again i would like to congratulate the current member of the european parliament and former finance minister, who also contributed to this process and i would like to congratulate the entire estonian government on the really very successful implementation of certain principles of the economic and monetary union. good luck. madam president, the fact that mr brons, who spoke earlier in the debate, dribbled out his words and then promptly left speaks volumes for the interest that he and his party really show in this debate. the interesting point about estonia's adhesion to the euro is that it is a vote of confidence in estonia and a vote of confidence in the euro. the euro has come in for much criticism, especially and predictably in the anglo-saxon press. the reality is that without the euro, and without the budgetary discipline shown by countries like estonia, there would be no hope for any of us. (sl) i suppose i would never be able to forgive myself if i passed up this opportunity to congratulate my colleagues from estonia. over the past two decades, estonia has, in many areas, had one of the best track records of any of the transitional countries. let us, for example, recall the excellent tax reforms which they instituted. at a very early stage, as early as the 1990s, they liberalised their economic system in a way that other transitional countries proved unable to equal. i am convinced that estonia will be a strong pillar of the euro area, that it will act much more appropriately than many members of the euro area and that it will do its bit for the stability of our common currency. member of the commission. - madam president, i would like to thank the honourable members for their support. let me use this opportunity to inform you of the reasons for the tight timetable for adopting the convergence report to which mr scicluna referred. the cut-off date for the assessment depends on the availability of the forecast data, which itself depends on the date of the validation of the public finance data by eurostat. in fact, to give the european parliament more time, eurostat agreed to advance the validation of the fiscal data. still, the production process of the report by the commission is very tight because we want to ensure a quality product, and squeezing it further would not be feasible without compromising the overall union-wide assessment of all member states, not least as regards the excessive deficit procedures and the overall respect of the stability and growth pact, which is the very foundation of the economic and monetary union. in fact we will use the same raw material tomorrow in the commission when we take decisions on, in total, 16 excessive deficit procedures - 12 existing and four new excessive deficit procedures for the eu member states. so it is indeed an overall europe-wide process and that imposes some limitations on the commission's work in this regard. in any case, i appreciate your pragmatism and i might say that i met members of the econ committee on 13 april to have an informal advance dialogue on the convergence prospects for estonia. i would also like to add that the commission is ready to inform the parliament at any time regarding the economic and fiscal situation in estonia. it is clear that estonia must stay vigilant to ensure the stability of its public finances and macroeconomic development, and the commission will certainly monitor this very vigilantly. finally, i count on having estonia as an ally in pursuing fiscal discipline in terms of exercising peer pressure in the eurogroup. we need allies to that end, and i count on estonia in that regard. we need to work together in order to ensure the sustainability of public finances and thus sustainable growth and job creation in europe. i think it was mr brons who referred to estonia supposedly losing its recently regained independence and its freedom. maybe i should respond to mr brons by saying that perhaps it would be relevant to mention the reasoning followed by my grandfather when he voted 'yes' in the referendum in finland on finland's eu membership, some 15 years ago. he said to me that he spent five years on the front to defend his country looking to the east, but since then he had always looked to the west. rapporteur. - madam president, thank you for your explanation, mr rehn. i understand the timetable is such. my concern was that parliament's role could not be seen as trivialising, which i am sure the commission had borne in mind. to conclude, i would like to thank my fellow shadow rapporteurs for their useful advice and meaningful amendments, which i fully supported and inserted in the report. i would especially mention my fellow mep mr ivar padar, the former estonian minister of finance, as well as the current minister, mr jrgen ligi, for their very frank and open explanations given every time i needed their help. i wish the estonian people well. they have so far succeeded in proving the critics wrong. i now invite them to continue on the spot and keep full vigilance over their economy, especially its competitiveness, to ensure that their success will continue in the future as eurozone members. i therefore commend this report to the house. estonia's application deserves our support and i hope that, when parliament votes on wednesday, a convincing majority will give the estonians the credit they deserve and demonstrate that the eurozone is very much alive. the debate is closed. the vote will take place on wednesday 16 june 2010. written statements (rule 149) in writing. - president, in these difficult economic times it easy to overlook how far europe has come in recent years. just twenty years ago, estonia was part of the soviet union; today it stands ready to join the euro zone. we must not underestimate the difficulties which all of europe - whether in or out of the single currency - faces. nevertheless, estonia faces the challenges as an independent nation within the eu and will accordingly be a key player in finding the solutions. i look forward to scottish independence when the people of scotland will also have a full role to play in europe's future. i thank the rapporteur, edward scicluna, for drafting the report supporting estonia's accession to the euro area. i am very pleased that estonia's efforts to meet the maastricht criteria have been duly recognised, and i hope that colleagues will support the report in wednesday's vote. the adoption of the euro in estonia on 1 january next year will take place at a crucial time for the entire euro area. the global economic and financial crisis exposed those member states which have systematically evaded the jointly agreed criteria, and which have thereby jeopardised the other member states' economies. this crisis is extremely enlightening, and it is especially important that all the member states in the euro area, as well as the european central bank, are diligent in making sure that the maastricht criteria are always fulfilled. the criteria become essentially meaningless if member states are allowed to deviate from them and get a free ride at others' expense. although a precedent has been created, we cannot rely on rescue packages to compensate for the irresponsible economic and financial policy decisions of member states. the estonian government has had to make several difficult, but necessary decisions in order to stabilise the national budget and stop the economic decline. estonia's imminent accession to the euro area is testament to the fact that the government's action has borne fruit. i hope that the other member states are also ready to adopt measures which will guarantee european economic and financial sustainability and competitiveness, taking into account the structural changes taking place in the global economy. estonia's accession to the euro area sends an important and reassuring signal and gives us reason to believe that the single currency, with its recent trend of decline, will soon stabilise.

1. amendment of council regulation (ec) no 55/2008 introducing autonomous trade preferences for the republic of moldova ( (fr) mr president, i should like to take the floor briefly under article 15(6)(d) of the treaty on european union, which stipulates that the president of the european council shall present a report after each of the meetings of the european council. an extraordinary meeting of the european council was held on 11 march. i regret that no such report has been presented. mr audy, i take your point but if i recall correctly the president of the council was in parliament after the 11 march extraordinary session of the council, in an extraordinary conference of presidents that was open to all members. can we now please move on to the votes? - after the vote: (de) mr president, ladies and gentlemen, i have just one comment. yesterday, i was denied the opportunity to respond directly to mr schulz. i have sent you all an email - initially in german, but the english and french versions will follow - in which i make a statement in this regard, and i will also duly reject the accusation.

resumption of the session i declare resumed the session of the european parliament adjourned on friday, 12 march 1999. approval of the minutes the minutes of the sitting of friday, 12 march 1999 have been distributed. are there any comments? mr president, i would remind the house of the recent death of yehudi menuhin in berlin on 12 march. berlin was the scene of his rise to fame and it was to berlin that he returned in 1945 to promote dialogue with the german people. he was the first jewish person to do so. yehudi menuhin made a conscious decision to become a european. he supported those who fought for freedom in the soviet union and was the first to put forward in the knesset the notion of an israeli-palestinian confederation. he conducted the peace concert in sarajevo, and worked to ensure that culture and the development of culture featured in our treaties. he also cooperated with parliament and with the commission to develop the mus-europe programme. to date, this programme has enabled over 3 000 children from underprivileged and marginalised areas of the european union to learn music, mime and movement, as part of education for tolerance. mr president, i think we owe something to this self-professed european and british citizen. i am not calling for a minute's silence simply because i believe yehudi menuhin himself would have wished our debates to continue as planned. i appreciate that today is a difficult day, but i do feel that the house should pay tribute to the memory of yehudi menuhin. loud applause thank you, mr barn. i think the applause indicates that the house supports your views, and they will be passed on as appropriate. mr president, i should like to inform you that a few days ago in the rue wirtz, a woman was raped and then murdered, and i support your efforts to secure the establishment of a police station, which is urgently needed and would be greatly welcomed by those who live and work in the surrounding area. mr rbig, i have already sent two or three letters to the relevant belgian authorities, but i will make further representations to them following your request. mr president, i refer to the minutes of the last plenary session in strasbourg. on thursday i asked if we could have some information regarding the ongoing dispute about the interpreters and the payment of their wages. i understand that today we shall be discussing the wages of other personnel but i think we should be looking into the matter of the interpreters. madam fontaine promised that a note would be circulated explaining the current situation. can you advise me if that note is now on its way? thank you for reminding me of this issue, mr falconer. it was dealt with at the last meeting of the bureau, and a note explaining the situation will be distributed to members immediately. the bureau instructed the secretary-general to act on parliament's behalf and to bring all possible pressure to bear in the search for a solution to the problem, in the hope that it will be resolved as soon as possible. the minutes were approved order of business the draft agenda as drawn up by the conference of presidents pursuant to rule 95 of the rules of procedure has been distributed. pursuant to rule 97 of the rules of procedure, and in view of the events which took place last week, i propose the following amendments to the agenda for the sittings to be held today and tomorrow. i should inform the house that these changes have already been included in a corrigendum to the agenda, but they need to be formally adopted. the president read out the amendments to the agenda mr president, you have just mentioned as an item on the agenda, incorporating the corrigendum that we have received, the statement by the council following the resignation of the commission. i do not think that this wording represents what actually happened last week, which was the resignation - albeit collective - of the members of the commission. this is what was stated in the letter that mr santer sent to gerhard schrder, which, i would point out, was signed by all the commissioners individually. i think we should not give the public the wrong impression, particularly by leading it to believe that the motion of censure was adopted. there would indeed have been a collective resignation if the motion of censure which i and 69 of my colleagues tabled had been adopted, but this is not what happened. the agenda should therefore refer to the individual resignation of the members of the commission, so as to prevent any misunderstanding among the public. mr fabre-aubrespy, i do not think there is any problem about saying in the agenda 'the resignation of all the members of the commission'. it is not just one or two members who have resigned, but all of them. they announced this in one single document, which they all signed, so i think we can quite easily call this the resignation of all the members of the commission. i cannot see any problem in leaving this item as it stands. mr president, tomorrow's agenda includes the de giovanni report on scrutiny of the exercise of the commission's powers. the committee on budgetary control has asked me to recommend to the house that this report be referred back to the committee on institutional affairs, since the committee on budgetary control urgently needs to discuss this matter further, particularly in the light of what is in the wise men's report and in terms of access to information and the supply of information. i would ask you to take a vote on whether this report can be removed from the agenda and referred back to the institutional affairs committee. i have already spoken to the chairman, and we agree that the events of the last few days have made some additional work necessary. mrs theato, referral back to committee must be requested by a political group or by 29 members. does any group wish to take over this request? mr president, you will recall that i asked at the last part-session for the groups and committees to be given another opportunity to peruse this rather insubstantial document and to see whether it represents the best solution. for that reason, my group is naturally in favour of referring the report back to committee. mr president, i should like to speak in favour of this proposal because, under these new circumstances, it makes a good deal of sense to reopen the discussion of an agreement which had its merits but could of course be further improved with the new commission. i can therefore say, on behalf of my group, that we are fully behind this idea. parliament approved the request for referral back to committee mr president, i believe i speak for many other members as i put the following question, which i hope the commission can respond to. following the resignation of all the members of the commission, we have repeatedly read that the commission will continue to deal with current business, but will not for instance take legislative decisions. this is perfectly understandable. my question is as follows: does the debate on agenda 2000 count as current business? according to statements made by president schrder and others, this will be a key issue at the european council to be held in berlin the day after tomorrow. the commission is very well acquainted with everything involved in this debate and i should like to know if, despite its great significance, the commission feels it counts as current business. i suggest that we do not debate this question now. it would seem best to ask the council itself to reply when it takes the floor shortly. i can also make available to you a legal report prepared by parliament covering this very contingency. mr president, i have heard that the commission and the council presidency will be here today and tomorrow. today, tomorrow, or at the very latest the day after tomorrow, a decision will be taken on a crucial issue, military intervention in kosovo, the repercussions of which for peace in general and in the balkans in particular are anyone's guess. perhaps you could therefore take it upon yourself to ask these two institutions to make a statement informing parliament what the position of the european union is and what their own position is, and to hear the opinion of this house. mr president, we have a historic duty . the president cut the speaker off mr ephremidis, this is not the time to hold a debate on kosovo. there are other opportunities for that. it is not possible at the moment. the order of business was thus established statement by the commission mr santer, you have the floor to make your statement. mr president, ladies and gentlemen, we are currently going through one of the most difficult periods in the construction of europe. these are very distressing times for me and for the other members of the commission, both professionally and personally. we assisted the committee of independent experts in its work, and we acted swiftly and without hesitation by resigning as soon as we knew its conclusions. it was a very painful decision, but it was necessary to preserve the institution of the commission and the european union as a whole. we must now ensure that the right lessons are learnt from this crisis, which must be the catalyst for deep-rooted and permanent reform in the european institutions. i hope that it will pave the way for a more transparent, responsible and democratic europe, a europe that applies the most rigorous ethical standards. this is what the people and the taxpayers of europe expect of us. i have said that the commission intends to leave office as soon as possible, and this naturally depends on when the member states and parliament decide to appoint and approve our successors. until then we shall endeavour to provide a smooth transition. we will not take any new political initiatives, but we will deal with matters already in hand and any urgent business, and we will meet our institutional and legal obligations. i think it is in the interests of all the institutions that interinstitutional relations should not be affected. as for the report by the independent experts, i said at the outset that their work had our support and that we would act on their conclusions. we have kept our word, but i have to say that my colleagues and i were dismayed that such general and sweeping conclusions were drawn from the cases examined. as many members of this house have recognised, we have done more than any commission before us to try to improve the commission's working methods. when i took office four years ago, i started work straight away on modernising the administrative tradition at the commission, and many of these reforms are now in place. i regret that the turbulence of the last few weeks has prevented greater attention from being focused on the reforms that we had already launched. perhaps it is a law of history that crises occur when things are getting better, not when they are getting worse. we now need to move on and learn from past mistakes. the experts' report talks at length about 'responsibility', an essential concept for any modern civil service which is responsible to those it serves. i am convinced that our reforms are starting to bring about change, and the next commission needs to go even further. the concept is one that applies equally to all the institutions, and it also implies that the funding the commission is allocated must be commensurate with the tasks it is given. no matter what the political pressure, the commission must not take on any new tasks if it does not have the financial and human resources to carry them out. mr president, ladies and gentlemen, i wish my successor, who i hope will be appointed very quickly, every success in his difficult task, and i hope the european parliament will give him its full support in the greater interest of the union. applause thank you, mr santer. through its applause, the house has shown how much it has appreciated the dignity with which you have acted throughout this period. thank you. mixed reactions council statement following the resignation of the commission the next item is the council statement following the resignation of the commission, followed by a debate. mr president, ladies and gentlemen, coming at a time when europe faces difficult decisions concerning its future development, the resignation of the european commission is a severe test of our resilience, but it is also perhaps a salutary shock. first of all, our thanks and recognition are due to the european parliament. it has vigorously exercised its parliamentary right of scrutiny, which is only right and fitting. without the dedicated work of many of your staff from all the political groups, the beneficial process that is now taking place would never have happened. the people of our member states rightly expect the institutions of the european union to use the revenue from their taxes in a responsible manner. but let me add in the clearest possible terms that the members of the commission and their staff also merit our respect and thanks. they deserve respect for having accepted political responsibility for the circumstances described in the independent experts' report; and the commission and its staff also deserve our thanks for the work they have done over the last few years to deepen and broaden european union. strategic decisions were taken during their tenure, such as the introduction of the euro and the start of the present enlargement process, decisions in which the commission played a vital part. not least among its achievements is agenda 2000. the commission must complete the work it has started on this initiative while it is still in office, which i hope will be done within a few days. europe, the presidency and all of us here must be able to depend on a fully operational commission in the coming days. the resignation of the commission has highlighted the slow but steady development of a european public opinion and the strengthening of parliamentary democracy as a component of the union. it is my belief that the principles of democracy have stood this test, and i welcome that from the bottom of my heart. applause but the deplorable errors that have now been uncovered must not bring the entire institution into disrepute. since the european communities were founded more than 40 years ago, the commission has been the key institution in the unceasing advance of european integration. it has to represent the common good of all 15 member states in an impartial way and must also continue to be the driving force and initiator of new developments in the realm of european policy. if we wish to achieve the aims of the union - and there is surely no doubt of that - we cannot afford to discredit an institution which is unparalleled in the history of our nation states. the european union needs a strong commission with authority to act, and needs it quickly. what is now required is the total radical reform that president santer has already initiated. that too must be explicitly recognised. the map 2000 programme for better organisation and personnel management and the sem 2000 programme, designed to improve financial control, are steps in the right direction. the commission's internal inspectorate, uclaf, must become an independent control body. where do we go from here? it is absolutely crucial that the european union should demonstrate its effectiveness at this difficult juncture. as far as the special meeting of the european council in berlin is concerned, this means that the german presidency must do everything it can to broker a political deal on the agenda 2000 package. success in berlin is now more crucial than ever. applause let me add that this will be one of the most decisive weeks europe has faced; not only do we have the berlin meeting this week, but the crisis in kosovo has regrettably come to a head. and we have had the resignation of the commission. the accumulation of these three crises also shows how much we in europe - our nations, the commission, the european council and parliament - have to do at the present time; we have a huge burden of responsibility to shoulder if we are to overcome these crises together. the results of the round of visits undertaken by federal chancellor gerhard schrder, as well as yesterday's discussions in the general affairs council, have convinced us that all the member states ardently desire success in berlin. the resignation of the commission is neither a political nor a legal obstacle to the achievement of the success to which we all aspire. in accordance with the treaty, the commission will continue to perform its official duties until it is replaced by a new commission. that arrangement is an essential means of ensuring a stable transition. i am confident that berlin will be a success and that agenda 2000 can be formally adopted before the end of the present legislative term. the way has been prepared by regular contacts between the european parliament, the presidency and the commission for progress briefings. the european council in berlin will also have to deal, of course, with the consequences of the commission's resignation. without wishing to anticipate the discussions of the heads of state and government, which will certainly not be easy, i think we can already say that the decisions which need to be taken to appoint a new commission will have to be reached in a difficult political and legal context, at a time of transition from the situation created by maastricht to the new amsterdam regime with the accompanying constitutional issues, coupled with the fact hat we are dealing with all these matters for the first time. the council presidency has a great deal of sympathy with your president's proposal, which is supported by all political groups, that the procedure to nominate a candidate for the office of president of the european commission should be initiated as soon as possible. according to that proposal, the european parliament could approve the nomination of a new commission president at its part-session in april, and then in may - which is a very ambitious target - it could approve the nomination of the new commission. applause this in turn raises another specific problem, which concerns the length of time for which the commission is to be appointed, given the fact that its appointment coincides with the transition from the present parliament to the one which will be elected this summer and which, i am informed, is due to convene on 20 july. the sovereign decision of the new parliament cannot and must not be pre-empted. the decisions that have to be taken are of enormous political importance. let me assure you that it is the concern of the council presidency to arrive at a speedy and constructive solution in close coordination with the european parliament, the member states of the european union and the commission which is in office. in berlin, the heads of state and government will deal in detail with the question of the next steps to be taken and - if possible - may even move on to talk about specific individuals. the presidency will try to secure a political agreement among the heads of state and government on a candidate who could be nominated in time for your part-session in april. besides requiring us to resolve the burning issues of the moment, the latest developments also give us cause to devote more thought to the future working methods and composition of the bodies of the union in general, especially in the light of the forthcoming enlargement of the european union. the protocol on the bodies of the union which is annexed to the treaty of amsterdam, as well as the relevant conclusions of the european council summits in luxembourg, cardiff and vienna, have established the framework for our reflections. in preparation for the cologne meeting of the european council, the presidency will shortly present proposals as to how and when we should address the institutional questions which were not settled by the treaty of amsterdam and which have to be resolved before enlargement takes place. however, we may have to go even further than that. after all, it is absolutely essential to keep developing the democratic control that this house has exercised so efficiently. public confidence in the institution must be fully restored, and that is precisely what the present crisis offers us the opportunity to do. the developments we have witnessed must never be repeated, otherwise the ideal of european unification would be seriously prejudiced. in adopting reforms, we must also consider the relative power of the various bodies and their role within the constitutional fabric of the union. the commission, with its exclusive power to initiate legislation, is an important instrument of european lawmaking, for which the council together with this house are ultimately responsible. the commission is also empowered by the treaty and secondary legislation to perform executive functions. greater care must be taken in the forthcoming reform process to ensure that the commission is not constantly being entrusted with new tasks without being given the material, human and financial resources it requires in order to perform them. applause i hope that all of us will also make this clear to our populations at home during the european election campaign, because in this domain - at least in germany - i encounter a certain ambivalence between, on the one hand, a proclaimed willingness to transfer more funds to europe, which is essential for the european union to go on assuming new responsibilities if it cannot raise its own revenue, and, on the other hand, the domestic discussion which then ensues. i believe that if we are serious about european unification, the conclusion to be drawn from this crisis is that the new commission must be given the funds it needs to guarantee the orderly management of our affairs. applause every future reform must focus on strengthening the democratic control and legitimation of the executive and legislative branches of the european tier of government. that is not only dictated by the constitutional traditions of all the member states; it is also an absolute prerequisite for a viable union. the present crisis also presents an opportunity to accelerate the reform process and, or so i hope, to make the reforms more incisive than was initially envisaged. we must, and indeed we can, seize that opportunity together for the sake of europe. applause mr president, the events of the past week have revealed, perhaps for the first time ever, an expression of 'pan-european public opinion'. and if we ever needed a demonstration of the suspicion with which, sadly, the public across virtually all our member states view the european union institutions, we saw it in the collective sigh of relief and even, unfortunately, celebration which could be heard after the resignation of the european commission. it is important to state at the outset that the resignation of the commission last monday was not because the experts had found the twenty commissioners guilty of personal fraud. in fact, the opposite was the case. they explicitly cleared the twenty of such accusations and allegations. as far as nepotism is concerned, it found only one commissioner overwhelmingly guilty of favouritism with regard to work which was not within the european remit of the commissioner. it criticised certainly two others for poor judgement in employing friends or relatives whilst acknowledging that the correct procedures for recruitment had been followed, and the work they had been engaged in had been of a european nature. we should also be clear that accusations which were being bandied about in this house in december and january against other commissioners, were overwhelmingly and largely dismissed. it is important that this house is grown up enough to recognise that fact. however, the report was decisive in its conclusions regarding the loss of control of management by this european commission; and it was right and proper that in the light of the conclusions the college took the decision to resign. my group now expects the independent group of experts to complete the second part of its report on the structure of the european commission. i give notice that i am concerned about voices i hear arguing that the group of experts have now done their job and should stand down. i want to caution against those voices. i am suspicious of their motives and their backing. i believe that it could be very convenient for some if the independent group of experts were to be prevented from delving in the required detail into the workings of different directorate-generals. i therefore ask this house to make sure that the group is given the space to work and that the secretary-general of the european commission be asked to ensure that his officials at every level cooperate to the maximum to facilitate the report. in my group's view the second report must contain a more widely-ranging review of the commission's culture, practices and procedures. we want it to deal, amongst other issues, with how financial contracts are awarded and the procedures for contracts for interim or temporary staff to implement programmes, and to follow up allegations of fraud, mismanagement and nepotism involving staff. the group of experts is not in danger of removing or, in fact, countermanding in some way the powers of this house. to believe that, is to demonstrate a lack of confidence in our work. this report and the one which will follow, is about something quite different. it is a procedure and process that is not unknown in any of our countries, in order to look from time to time at the culture which permeates administrations and executives in each country. now is time to look to the future. the european commission is not in the habit of resigning. this is, after all, the first time in our forty-two year history that such a thing has happened. if we are to demonstrate that the european union can be different; if we are to respond to the opportunity of this moment, then we must call on the heads of state and government meeting in berlin on wednesday this week to designate immediately their nominee for president of the commission. it is quite unthinkable that the european commission, having resigned, should quietly continue with 'business as usual' until the end of their mandate. we want not just the president of the commission replaced, but a new commission in place with speed, properly ratified by this parliament, using the powers which will be given to us in the incoming amsterdam treaty. given this background, the european council should put forward an experienced, competent candidate committed to in-depth reform, with a clear vision as to where he or she is going, with a programme to get there and credentials which are beyond reproach. what is clear, is that the new president of the commission must assume not just the political responsibility for the commission, but the political leadership as well. this parliament must also recognise the exceptional nature of this moment. we must not allow ourselves to engage in a constitutional or institutional debate about dry procedures and put up bureaucratic obstruction to change, and rapid change at that. the impact on european public opinion, if the european council and the european parliament were to come together to put in place a new commission able to demonstrate its commitment to serving the people of europe, would be instrumental in rejuvenating the vision of europe. colleagues, our responsibility now is to address three principles to the council. firstly, we want immediate action to show we have grasped the moment; and we hope that the council will accept the opportunity which the european parliament has provided through the work of the independent group of experts. the first principle is immediate action. the second principle must be to insist on the use of the amsterdam treaty, whether it is formally in being or not as the way in which this parliament will use our powers to ratify the new commission; and our third principle should be for a strong candidate for the european commission president, for a timetable for the new commission to be in place and a strong and clear programme of reform. those are the principles at which we should be looking in our deliberations over the next two days. i am sure those are the principles which the people of the european union want to see as a result of the crisis that currently engulfs us. if we do that, working together, i believe that we have an opportunity now to demonstrate a new sort of future, a new sort of europe for the next millennium. mr president, ladies and gentlemen, my comments are directed primarily at the president-in-office of the council. it is clear, as you say, that the european parliament has payed a significant role in this crisis. the committee of wise men recognised that fact as well. parliament has been taking vigorous action for over a year now on the basis of the court of auditors' reports. the same cannot be said of the council. the report of the wise men says in as many words that the council has been conspicuous by its silence in this whole affair. it is therefore useful to recap on the facts. more than a year ago, in march 1998, parliament's committee on budgetary control voted, on the basis of mr elles's report, to defer granting a discharge in respect of the 1996 budget and asked the commission to take the necessary measures towards the middle of september. in october 1998, the european parliament adopted a resolution on the independence, role and statute of the anti-fraud office which was to succeed uclaf. the commission was not yet able last december to comply with the european parliament's demands. the ppe group then brought forward a programme of action, to be implemented within twelve months, which would modernise the commission by 1 january 2000. we called for an independent anti-fraud office, changes to the staff regulations and a code of conduct for commissioners and senior officials, we called for the members of the commission to be individually politically responsible, and we asked for commissioners to make a declaration of their interests. the socialist group did not ask these vital questions. they voted in favour of the discharge. they subsequently tabled a motion of rejection which was in effect a vote of confidence. sustained applause from the right in january 1999, we called on mrs cresson to accept her political responsibilities and resign. this too was rejected, and the committee of wise men was then set up. i admit that a majority of my group did not vote in favour of that. but, and please take note, the committee of wise men agreed with the findings of the committee on budgetary control, added to them and vindicated the positions which we as the ppe group had adopted. happily the commissioners do not stand accused either of fraud or of lining their own pockets, but there is the fateful passage in the wise men's report, paragraph 9.9.2. the commissioners' argument that they were not aware of problems which were well known and known even at the highest level in their departments is tantamount to an admission that the political executive is no longer in control of the administration it is supposed to head. much of the responsibility for this loss of control lies primarily with the commissioners individually and the commission as a whole. things that had been going on for years unbeknown to many people have now been brought to light by this report of the committee of wise men. the present commission is also having to take responsibility for the previous one. the report of the wise men details it all: in 1990, tourism; from 1992 onwards, the programmes for the mediterranean region, humanitarian aid, training under the leonardo da vinci programmes and security. the committee of the wise men says that the supervisory bodies are a mess, that the procedure takes too long and that staff policy has been a machine running out of control. i wish to pay tribute publicly here, ladies and gentlemen, to the personal integrity of the commission president, jacques santer. i wish to acknowledge that the political achievements of this commission are impressive: the single currency, employment, preparations for enlargement and the preparation of agenda 2000. i wish to state that the reforms which mr santer has proposed, for instance the codes of conduct, were impressive reforms. but the main thrust of the wise men's report has made praise impossible, which is why we must now express appreciation of the fact that you have accepted the political consequences of this wise men's report. where do we go from here? for the benefit of mrs green, i would say that we are willing to let the committee of wise men continue with their work until april, but on condition that we are able to assess that work at our last part-session in may. we shall be discussing this shortly in the conference of presidents. secondly, and here again i address myself to the president-in-office of the council, the commission itself said in a statement of 17 march: 'we urge the member states to appoint a new commission without delay'. we are asking you to appoint the new commission president in berlin and to ensure that a new commission is in any event in place before the european elections. whichever treaty you care to apply, maastricht or amsterdam, this commission will remain in office until the beginning of january 2000. after that and, i hope, after the european elections, a fresh decision will have to be taken by the conference of the european union governments. we want a start to be made on the reforms straight away. we have no illusions. these reforms will take years, but we have to start on them right away. we want to see the new intergovernmental conference you have announced looking also at the question of the individual political responsibility of members of the commission. and we want the measures we have been calling for since last year and in the discussions chaired by mrs theato, with james elles as rapporteur, to be implemented at last. it will take time, but the time has come when we have to rebuild confidence. we need a strong commission. it is the guardian of the treaties. we need a commission which is accountable, accountable to parliament. we need a commission which more than ever, as the treaty says, is independent, transparent and above all pursues the general interest of the union. a great many people, even some in this house, keep saying that all this is good for their country. who talks about the general interest, the bien commun of the european union, this european union which is now in deep crisis? this crisis can also be a challenge, a challenge not only for the new commission, but for all of us. let us try to make a true challenge out of this crisis and breathe new life into the european union. applause from the ppe group mr president, this has been a week without precedent with the resignation en masse of the european commission. that resignation follows the damning report by the committee of independent experts of the commission as an administration that in too many instances was out of control and a system where too few people were prepared to accept personal accountability and responsibility for their conduct of public affairs. i believe that mr jacques santer is a decent man. his commission included a number of positive and strategic achievements. the launch of the euro, the conclusion of the amsterdam treaty, the preparation of agenda 2000, the opening up of enlargement negotiations. in part, the santer commission, ironically, has become a victim of its own willingness to examine fraud and corruption within the commission. in part, it has been a victim of the chaotic, undermanaged and sometimes unmanaged growth of responsibilities during the delors years. ultimately, however, this commission was the author of its own demise. over the past twelve months, in relation to the conduct of affairs with this house, jacques santer, unerringly if unwittingly, led his commission to last week's crisis-in-the-making. at every critical point during that period, he has caused the commission to offer to this house solutions that, had they been offered at the outset of each stage, might have worked. in the end, and always at that stage, they proved too little and too late. for his own political misjudgements, jacques santer has paid the ultimate political price and with him his colleagues have resigned. if this has been a difficult week for the european commission, it has been a good week for european democracy. for the parliament, this entire debate has represented a coming of age, a new maturity in understanding our democratic rights and our capacity and our duty to act in the public interest when we assert them. the system of governance in the european union needs to be subject to more democratic control and public accountability. we believe we have crossed a new and irreversible threshold in that process. i might add that threshold is one we would never have crossed if we had followed the soft advice of a false sense of confidence commended by some to this house last december. for its part, the european parliament will no longer be prepared to be presumed to be the junior partner in european decision-making. it is not that the parliament should be first among equals, but from now on it must be an equal among equals. we find ourselves now in the process of creating a new, minimum and acceptable european norm for the management of public affairs and community institutions which does not permit cultural exceptionalism. hiring one's dentist to do work of dubious, if any, european value is not acceptable. now, mr president, i hope you will allow an english-speaker to talk to you in french to suggest that the language of molire might be enriched by a new and typically european concept, that of 'berthelisme ', which means having a fictitious job paid for out of european taxpayers' money. the members of the acadmie franaise could immortalise this word by putting it in the dictionary. purists could never accuse it of being franglais, not that i would ever dare to offer such an insult to the members of the acadmie . last week saw the downfall of a commission in which some members had already made a start along the road to 'berthelisation ', and in future we will always be ready to condemn any commission that again succumbs to the berthelot syndrome. berthelisme , of course, mr president, is not confined to the corridors of power of the european commission. the european parliament must profit from this occasion to clean up its own act. we are vulnerable on the matter of top staff appointments. we remain vulnerable on the question of members' travel allowances until the system is radically overhauled. we are not yet as transparent as we could be or ought to be on our individual group and collective expenditures financed by public purse. we cannot demand in this institution, of other institutions, what we would not demand of ourselves. the creation of new european norms of behaviour in office must apply with no less force and conviction to the european parliament than they will to any future european commission. the eldr group notes the implicit criticism of the council in its role as one of the two arms of the budgetary authority for failing to give due and proper consideration to critical reports prepared by the european court of auditors on tourism policy on the med and the echo programmes. this failure by the council to assume political responsibility should caution a certain modesty among those in some of our capital cities who seem prone to see the failings revealed in recent days as almost uniquely the creation of the european commission. in this regard, we note with concern the relative ease with which the council granted discharge for 1996; and we note with profound regret that on the very day of the publication of the expert committee report, the council granted discharge, prematurely in our view, for 1997. it is not an inspiring example of responsibility in action. where should we go to from here, is now the essential question. the eldr believes that the santer-led caretaker commission has lost its political and moral authority to act and so it must go immediately and be replaced by an interim commission for the balance of its unexpired term. the appointment of the new millennium commission, due to take place in january next, we believe, properly is a matter for the new parliament with a new mandate, with new political balances and with new powers under amsterdam. the current treaties already provide a way; and if the council wishes to add to that the spirit of amsterdam, then we can proceed to an interim commission appointment through that means. but let me make it clear that the renomination of mr jacques santer or madame edith cresson or some others to the interim commission would not be acceptable to the eldr group in the light of recent events. such nominations would risk provoking even deeper crises. for our part, the liberal group has consistently argued the merits of individual accountability within collegiality. to this end, we do not tar all the outgoing commission with the same brush. we are prepared to judge each on his or her individual merit in the belief that not all were personally responsible for the ineptitude or incompetence of some. let me say to the president-in-office that i would like to take this opportunity on behalf of my group to wish the berlin council well, and to say that we hope you will achieve the objectives of agenda 2000 which are now more essential than ever. but let me also say in concluding that when we come to appoint an interim and future european commission, my group, which has been to the forefront in criticising the current commission, wishes to make it abundantly clear, that our wish is for a strong, independent political commission; and any attempt to weaken this in the future is one that we would resist in parliamentary terms. the commission needs reform and union needs a strong, independent, politically reformed commission. mr president, ladies and gentlemen, the serious problems identified in some areas of management at the commission and highlighted in the report by the committee of independent experts have led to the collective resignation of the entire commission in line with the spirit of the treaties. it was a responsible and courageous decision. although the santer commission can be proud of its undeniable success in preparing for the introduction of the single currency and guiding it through on schedule, its unprecedented resignation has created a serious institutional crisis involving far more than just the question marks over certain commissioners or european civil servants. most of the facts which were identified as having led to the completely unjustified failings highlighted in the report originated under the previous commission administration, which has gone unpunished. ladies and gentlemen, i would urge you to reread the chapter in the report on the security office, which was set up in 1990 and was directly answerable to the commission president at the time. in more general terms, it is regrettable that all - and i mean all - the union institutions succumbed to a sort of bulimia, which meant that a number of areas of activity were considerably extended: regional structural aid, external actions, the med, phare and tacis programmes, emergency humanitarian aid, reconstruction programmes for the former yugoslavia, upgrading of nuclear power stations in eastern europe, and so on - i am sorry to say that this list is not exhaustive - without the structures and administrative procedures being adapted to deal with these new responsibilities and without any kind of financial control worthy of the name. responsibility for this failure lies not just with the commission, but also with parliament and the council, which not only agreed to the increase in the commission's activities, but were often the ones that called for them to be increased in the first place. how can we get out of this institutional crisis? first and foremost, we need to speed up the process of reforming the institutions, a problem that was unfortunately overlooked when the amsterdam treaty was negotiated. these reforms are also a prerequisite for enlargement, and we need to establish a strict timetable and a target date, perhaps 1 january 2002. secondly, we must take the opportunity offered by the appointment of a new president and a new commission to refocus the commission's work on its main fields of responsibility as defined in the treaties, while respecting the principle of subsidiarity. it would also be desirable to arrange for its management responsibilities to be transferred to the member states and the partner states with which the union has concluded association agreements, giving the community bodies greater supervisory powers rather than direct administrative responsibilities. finally, the new commission president must undertake a programme of action to achieve these aims, which he must present for parliament's approval. working at the head of a new team, he must clean up the commission and put his house in order, cutting out any dead wood and concluding any disciplinary and criminal proceedings arising from the cases of fraud or corruption which have been uncovered. there are currently 28 directorates-general and offices, not counting the decentralised agencies. this is far too many, and the number needs to be considerably reduced, since it is nothing more than a feudal system. what we need to do now is not to create more new european civil service posts, but simply to reorganise the management procedures and make them more efficient. the root-and-branch reform recommended by the committee of experts and the court of auditors must be implemented immediately. firstly, effective and independent financial controls should be introduced to apply the financial regulation strictly, using reliable audit mechanisms. secondly, an interinstitutional body - parliament, the commission and the council - should be established to follow up the court of auditors' recommendations, which condemn the misuse of community funding. thirdly, a procedure for the award of contracts must be introduced which is totally transparent and is addressed to genuine professionals. to eliminate the temptation of corruption, which can occur all too often, the staff working in this field must be rotated on a regular basis, contrary to what has happened up to now. fourthly, recruitment procedures must be reformed to prevent made-to-measure competitions which make nepotism and cronyism all too easy. all of these measures should be introduced as quickly as possible. however, the treaty of amsterdam, which is scheduled to come into force on 1 may, changes parliament's confirmation procedures, so it would be better not to pre-empt matters before then. it would also be politically preferable for it to be the parliament elected in june that applied these new powers, so we might need to consider bringing forward the date of the constitutive sitting in july. finally, it is up to the council and parliament, the union's two political institutions, to act in close cooperation to ensure that the european union that emerges from this crisis has stronger structures and greater legitimacy for its activities. we rely on the governments not to shirk their political responsibility once again, but to reform all the european institutions to make them more democratic and efficient, so that we can meet the challenges of enlargement and globalisation that are currently the main driving force behind the political construction of europe. applause from the upe group mr president, it is abundantly clear that the european union is currently experiencing the most serious institutional crisis of its history. the commission itself is primarily responsible for the events which have taken place, but the governments of the member states must bear a share of the blame as they have failed to allocate adequate resources to the commission since the end of 1994. the council should shoulder some responsibility for what happened too. it has been conspicuous by its absence throughout the present crisis. the commission failed to meet the objective its president outlined when he assumed office and declared it was important to act less but to do so more effectively. if this crisis heralds the birth of truly european public opinion and helps to strengthen transparency, it will have served as a step in the right direction - a step towards making the european union more democratic. the european parliament has emerged from the crisis with a greater sense of authority as a body that represents all the people of europe. successive treaties have increased its legislative powers and on this occasion, parliament has clearly asserted its role as a monitoring body. in so doing, however, it has acquired additional responsibility which it must exercise wisely in the future. the committee of independent experts has identified some irregularities for which it holds certain commissioners responsible. indeed, politically, the commission as a whole is deemed responsible. although we recognise the discrepancy between the objectives and the resources allocated to achieve them, lack of political direction and mismanagement - which had already been brought into the open during the mad cow crisis - can never be justified. we appreciate the sense of responsibility displayed by the european commission in resigning. those of us who in the past have strongly criticised its handling of affairs must not now whip up public opinion against it. we must respect the individuals involved and the decisions they have taken. nevertheless, we need to look to the future. public opinion will not tolerate things carrying on in the same old way. if the people of europe cannot trust the institutions that represent the european venture, they will no longer support it. the problem cannot be reduced to the search for some kind of superman or outstanding politician. people are certainly important, but so too are the methods, programme and objectives. the commission's role in the european institutional balance is crucial. it defends the common interest, and it must continue to fulfil it. we therefore need a competent and responsible commission. the next commission must improve its decision-making processes. it should be borne in mind that successful implementation of policies is not merely an administrative task, but very much a political one. in the eyes of the people, the commission should embody the values of transparency and responsibility. it must also make available to parliament all the information it requires to fulfil its monitoring role, and this is a prerequisite for mutual trust and effective cooperation. i should now like to address the president-in-office of the council directly. the confederal group of the european united left - nordic green left very much hopes that a new commission will be appointed at the earliest opportunity, in response to the wishes of the people of europe and to enable us to meet the challenges of the next few months. chief amongst these is the creation of employment and the promotion of the principle of internal solidarity within the framework of agenda 2000. our group has called for a new commission to be appointed immediately. we therefore agree with mr fischer that the procedure and timetable for doing so should be decided at the berlin european council. we also call for early approval of a statute for members of the european parliament in the interests of transparency for all, not least for ourselves as members of the european parliament. mr president-in-office, we trust you will choose wisely. we shall not approve the nomination of a president without a programme or a commission without clear objectives. mr president, mr president-in-office of the council, ladies and gentlemen, for over a year, parliament has been calling for transparency and above all financial transparency. for over a year, parliament has had to fight in order to extract from the commission the information to which it is entitled under the treaty. our experience was that we got the information in dribs and drabs, too late, and very often it was incomplete. looking back over this parliamentary term, it is clear that of all the european institutions it is the european parliament which has done most to expose real and fundamental problems of mismanagement, fraud and nepotism. parliament has been prepared to be confrontational over this, and rightly so. if we had yielded last december to the commission's threats or had gone along with the socialist group in approving the 1996 accounts, we would not be at the point we have reached today, a point it was absolutely essential that we should reach. the report of the independent experts fundamentally bears out what the committee on budgetary control had uncovered in a number of reports. it bears out critical reports by the european court of auditors. and it vindicates paul van buitenen, the official who was immediately suspended by the commission and subjected to particularly fierce attacks. applause from the green group the essence of the problem raised in the report, however, is that there is no real - as opposed to mythical - ' collegiate' responsibility for the actions of the commission members as a group. that focal problem must now be addressed. so i find it unfortunate that the commission's initial reactions last week were very much ones of defence and denial. parliament has had similar experiences in recent years. we therefore find ourselves in a difficult situation, a time of crisis, but one from which the european institutions may emerge strengthened. i think i can see the first signs of that. this is the very first time i have seen a debate surfacing everywhere in the 15 countries of the european union in which ordinary people are discussing how they view the commission, how they view parliament and what they expect of the council, and this is something which is new and particularly important for the future. we therefore think it is indeed vital for the council to name a new commission president as soon as possible, who can appear before parliament ahead of the elections with a new team. the new president must be a strong european figure with vision and managerial qualities, so that reforms can be carried out in what remains of 1999. we believe those reforms must include the following: a clear body of control mechanisms, a bridging of the deep divide between political control and the actual implementation of programmes, a good set of staff regulations giving officials the right to speak out freely, and the development of a culture of open debate amongst the institutions and with the european public. lastly, we think it crucial that mr van buitenen should be reinstated. he has played his proper part as a european official. mr cox is of course right in saying that parliament too must continue cleaning up its own act. but we must focus here on our remit of exercising scrutiny over the institutions, and in that respect it is our duty to exercise full scrutiny over the executive, the commission. applause from the green group mr president, my speech is mainly addressed to the president-in-office of the council, since he is now the only officer on board - indeed, almost the only officer left - after the resignation of the commission and the departure of jacques santer, to whom i would like to pay tribute. unfortunately, joschka fischer has already left, pressed for time, no doubt. i have to say that he is facing an uphill task, since he is going to have to make progress on agenda 2000 by ensuring that the berlin summit is a success, while at the same time seeing to the appointment of a new commission. on this last point, there is a very clear conflict of interests between parliament's desire to keep the power vacuum that we have had for the last week to a minimum and our concern, in selecting the new commission, to follow the highly detailed procedures that allow parliament to exercise its prerogatives in full, in other words the procedures provided for in the amsterdam treaty, which inevitably take a long time. there is also a conflict between the desire to change all the outgoing commission in order to make a completely fresh start and the concern to ensure continuity in the main policy areas at a particularly busy and delicate time, which would obviously be easier if some commissioners could remain in charge of certain issues. in addition to these conflicts of interest, there are also the very different feelings that we ourselves have about all this. our group feels that it is very important that parliament played its political role, sometimes rather hesitantly, admittedly, but it did so all the same, and it has emerged in a stronger position. it has been progress for democracy. at the same time, however, we need strong european institutions and in particular a strong commission. so we need to find some sort of middle way between laxity, negligence and wastefulness on the one hand and systematic, destructive criticism on the other. reform is needed for this, and all the institutions must make an effort here: the future commission, of course, the future parliament, naturally, and the council of ministers, because the council of ministers bears a great deal of the responsibility for the problems which have been identified. it was mainly the council which gave the commission so many more tasks but without the funding to be able to carry them out, and it has seriously neglected its supervisory responsibilities. here again, as the president-in-office has just said, we are going to have to get round the contradiction of wanting to do more without spending more. i wish the presidency-in-office the best of luck, since it will now have to shoulder the burden of getting the institutions out of the first political crisis to hit the european union. mr president, the europe of nations group would like to thank the wise men, because they are not looking for scapegoats but are instead indicting the system. the problem is the culture of secrecy. the wise men are very precise in their conclusion: they have not found a single person who has shown the slightest sense of accountability. that is a severe judgement on all the members of the commission. none of them should therefore be able to be reappointed now. we propose a temporary commission composed of independent persons who are not themselves tainted. we would like to see an investigation of the charges against the current commission and the apparatus of officials. there must be accountability, especially for those who have helped to withhold information. if it transpires that there are members of the commission who are on record as having been strongly opposed to the adoption of the accounts and other regrettable decisions, then they could be considered for reappointment in january. but now, after first deciding to stand shoulder to shoulder and accept collective responsibility, the members of the commission cannot turn round and say that they no longer share this collective responsibility which they recently took upon themselves. all of the commission must go and not come back. the wise men should continue their work and extend it to the other institutions, including parliament. there are now 1 000 committees, 10 000 laws - with even more amendments - and 100 000 projects. the temporary clean-up commission should examine these committees, rules and projects to see what can be handed back to the member states. a new commission will be no more able to manage what the old one could not manage. we are all indicted in the wise men's report, especially those who have voted in favour of the many new areas of responsibility. the solution is not new faces, but an extensive clean-up. those who have engaged in fraud and covered up fraud will be held to account, and mr van buitenen should return to his job and have his salary paid. the solution is a leaner form of cooperation with complete openness: a lean and open europe. madam president, if the commissioners who so badly abused the confidence placed in them had resigned, we would not now be witnessing its members jockeying for position; but probably those commissioners refrained from resigning at the suggestion of their own coteries. indeed, it now seems clear that the council of ministers is seeking to discredit the entire commission rather than to highlight the shortcomings of individuals. the internal feuding has died down and given way to a common aim: to nominate a new commission which will remain in office for some six years and to appoint the president of the commission, thereby depriving the future european parliament of its new power - conferred on it by the amsterdam treaty - of appointing the new commission president. an institutional confrontation is taking place. the council of ministers wishes to tie the hands of the commission; it wishes to strip parliament of the role so painstakingly acquired over so many years. the result could be to recreate that democratic deficit which once again seems to suit the governments, in that they are working for their own partisan interests and against political union. we reiterate our protest about this. we all know that, without political union, economic union will remain wishful thinking, useful only to powerful lobbies but remote from - if not detrimental to - the needs of the european people. an institutional war is therefore under way, to prevent the commission and parliament from cooperating constructively with one another and to place europe's future in a strait-jacket designed by the council of ministers. but a political war is being waged too: the majority in the next parliament, which ought to appoint the commission president, might in fact be different from that in the council, which represents 13 left-wing governments out of 15. alleanza nazionale resents the fact that this crisis could have been foreseen and avoided; we would draw attention to the potentially negative impact on the turnout at the elections if the appointment of the new commissioners is not marked by transparency and propriety; and we urge that, if the decision is to nominate a new commission rather than to extend the mandate of the existing one - replacing the disgraced commissioners - then its term of office should be limited, expiring on 31 december, since parliament has political responsibility for appointing the new president. any other procedure would deal a blow to democracy and an insult to the european people. but let us also remember that there was already talk a few months ago of the council of ministers wishing to proclaim the new commission before the elections: even then, therefore, there was a clear intent to deprive parliament of its powers and steer the elections in a particular political direction. this is scandalous and undemocratic! madam president, ladies and gentlemen, when several crises coincide, as is happening at the present time, a president of the council really ought to possess the capacity to be in two places at the same time. perhaps we should go ahead and adopt that now as one of our future reforms. mr fischer was unable to stay here with us, because he had to return to bonn for a special meeting of the federal cabinet on the kosovo crisis. i convey his apologies to you. the presidency sees the resolution of the commission crisis in which we are now immersed as a joint responsibility of parliament, the council and the member states. that is why i am pleased that a broad consensus has emerged in the course of this debate here in the house, as well as a great deal of concurrence between the opinions expressed here and the view of the council. we want a quick and convincing solution - a solution that is likely to restore and strengthen public confidence in the european institutions. that is why we do not seek an interim arrangement; we want to have a clear idea of what awaits us in the coming years. we have to know now where the good ship europe is headed and whose hand will be on the wheel. i agree with all of you who have said we need a commission that will set about the task of internal reform of our work and our institution with great energy and vigour. the new commission will have to meet very high standards. for that reason, we must take great care to ensure that the proposals which we in the member states and the council make are consistent with those standards. we want to take the first decisions in berlin. what i believe we can certainly achieve is a procedural agreement, in other words on what we actually want to decide and when we intend to make those decisions. the presidency is thinking along the lines of following up the berlin summit with an informal special summit at which the principal player would be selected. if more can be achieved in berlin, so much the better. but that cannot be guaranteed, because we have to unite 15 member states behind a common stance. you know how difficult that is. let me emphasise how important it is that the rights of parliament are properly respected throughout this decision-making process. this means that, whenever the new commission president and the new commission are nominated, the rights of parliament under the amsterdam treaty must be upheld. any other solution is unfair to parliament and, for that matter, to the new president of the commission, if we are thinking of making a decision now that will last until 2005. i see a very important message and a valuable token of your support in paragraph 9 of your joint resolution, which categorically states that our present problems must not serve as a excuse for deferring or avoiding important substantive decisions. the priorities are quite clear: in three days' time, in berlin on thursday, we must bring agenda 2000 to a conclusion, and we must ensure that the commission crisis is quickly overcome. we also agree that the reform process in the european union must include all the institutions. i have no wish to dismiss the possibility of the council examining how it can organise its work more effectively and reflecting on the mistakes it might have made. indeed, i believe it is necessary for us to do that. i should like to refer to another point that was discussed here. one of the reforms we shall have to tackle is the members' statute. this has no direct bearing on the commission, but it is another very important point under the general heading of institutional reforms. let me assure you that the presidency vigorously supports parliament's aim of adopting the statute before the end of the present legislative term. that is the only sensible way forward. i should like to appeal to you, ladies and gentlemen, to exert influence on the political decision-makers in your own countries so that we can obtain the broad support we require in the council; unfortunately, we do not yet enjoy that support, but there are signs of progress. madam president, ladies and gentlemen, it is pleasing to hear what we have just heard from the president-in-office. however, i have to say, mr verheugen, that well-intentioned statements from the council are part of the tradition of this house. you will understand the importance we attach to checking whether such pledges are actually honoured at some time in the future. but i believe that what you said between the lines, as it were, is correct, and i agree with you there: we should not really be talking in terms of a crisis in the european union. in our own countries, when a government loses its majority and the confidence of the national parliament, that is a crisis for the government, but it is not a crisis of state. it is possible, of course, for government crises to develop into state crises, and the crisis between the institutions here - particularly within the commission - could develop into a crisis of the european union, but that is what we all intend to prevent. what we have heard today from the council presidency sounds hopeful, in so far as it indicates that nothing in the institutional relationships between parliament and the commission and between parliament and the council will ever be the same again. our relationships will be realigned. the two other institutions will appreciate our desire to shift the balance in favour of parliament - not because we are out to sap the strength and usurp the powers of the other institutions, but because parliament has grown in strength through its own activity. it has certainly not been easy. if i think back a few weeks and months - to january, for example - i remember that all the political groups, especially the main ones, were riven from top to bottom over one issue or another. the fact that this is no longer the case is due to the minimum consensus we reached in january, to the fact that parliament itself appointed an impartial committee. i very much hope that, when the committee of five experts has presented its second report and we sit down to deal with it, such an intermediate step will no longer be necessary. parliament must be able to do that under its own steam if it takes itself seriously. but if that is the case, then i believe it is also self-evident that the general institutional reform which needs to be undertaken - since there can be no enlargement before the institutions are reformed - will be carried out as a genuine joint task, just as we must jointly appoint the new commission. in particular, the next revision conference on the expansion of the treaties, especially as regards the reform of the institutions, can no longer be a conventional intergovernmental conference. it will have to be a conference of the european institutions, and above all of parliament and the council. madam president, this is certainly the first time that the european union has been in this situation, and i hope it will be the last. following the scathing report from the committee of wise men, the resignation of the commission was a necessity, but it could have come sooner. we could have had a different outcome if the commission had taken advantage of the stay of execution we granted it when the budget discharge was deferred. had that happened, we should not be in this situation today. parliament could also have brought this whole matter - which has been described here as both a crisis and an opportunity - to a head two months earlier if it had made full use of its powers and passed a vote of no confidence. secondly, it emerges clearly from the wise men's report that the european parliament and its committee on budgetary control acted correctly. they exercised their powers of scrutiny. they brought the problems to light. and now the consequence of this is that we must initiate the action set out in the elles report. we must look to the future, introducing and implementing appropriate reforms. a third point i take from the report is that the information parliament was receiving from the commission was inadequate; it was misleading and even fraudulent. this will have to be investigated. we have a right to information. we are a controlling body, and it is up to us to determine what we need to inspect and which oral and written information we require for that purpose. what do we do now? we must look forward, because for us in the european parliament, elections are looming. but the public image of europe is also on the line. so although we must get to the roots of the present problem, it clearly makes no sense to indulge in a surfeit of retrospection and soul-searching. the first thing we need is the rapid appointment of a new commission. i believe it has to be an interim commission, one which will take the action that needs to be taken, so that the year 2000 will see the installation of a competent, efficient and trusted commission. fourthly, the institutional gap between the administration and the commissioners in terms of accountability must be closed as quickly as possible. this was one of the most damning criticisms of the commission. i am not in favour of any further reports by the wise men; the real priority now is to implement with all possible haste the programme of work we have drafted, so that by the year 2000 we shall truly have eliminated all the abuses which have come to light here. it is important to look ahead and to create more democracy. i believe the citizens of europe understand that we in the european parliament have begun to grow into our role as the taxpayers' watchdog and the people's advocate. that is the path we should continue to follow. madam president, it is remarkable how much progress the european community has made in a couple of months. what was unthinkable even a few months ago has now been achieved. individual responsibility on the part of commissioners will be a fact in the future and the president-in-office should be complimented on having recognised this fact. of course, we need to continue collective responsibility to the extent that the commission, as a legislature, should not be under the pressure of individual governments. but we need individual accountability as many speakers have said. we are not only at the end of a road, we are at a new beginning. this requires real vision on the part of the council, parliament and the commission. we need a new balance. i should like to ask the president-in-office a question on this point. i listened carefully to him when he said that we did not need an interim commission. i would draw his attention to the fact that paragraph 7 of our resolution speaks both of a commission until the year 2000 and a new commission. there is a certain ambiguity in the language of the council. the president-in-office says that we need to work with the treaty of amsterdam - i hope he speaks on behalf of all 15 member states - which means that this parliament will co-decide who is going to be the new president. i hope it is realised that there cannot simply be one candidate. secondly, we want action quickly. all speakers have emphasised this point. can we appoint a new commission during the first week in may when this parliament is ending its work? i hope that is the case. if it is not, we would impinge on the rights of the new parliament which is sovereign and should give legitimacy to the commission for the next five years. how can that be ensured? the president-in-office needs to reply to that point. if we do not have a new commission with the full assent of parliament, it means that the new commission will only work until september or maybe october this year. if that is the case, it will be a total contradiction of what we are saying, namely that we need a new commission as quickly as possible, and that includes the point made by president santer. this fundamental point should be emphasised because the ambiguity may lead to a misunderstanding. my final point is that we should not look at the form but the substance. the substance of change, namely putting into action the reform programme of commissioner santer, is essential. he was right to emphasise that many of these things have already started. it now comes down to the question of implementation and this needs some experienced commissioners who are already there. we need a clean-up commission until the end of this year and i hope the president-in-office will read carefully the joint resolution by many groups which says that we must have action first and real reform later. this ambiguity needs clarification. otherwise this debate will yield only half a result. thank you, mr brinkhorst. i have no doubt that the council has heard you and will be considering the question you have put to it. madam president, mr president-in-office, i come from a country, portugal, which has always believed in strong men. i personally have greater faith in strong institutions - strong institutions made up of strong men, of course. in fact, the problem of a weak country, like a weak europe, is that it does not have strong institutions. and the reason they are not strong is the current zeitgeist : an extreme centre under which everyone is equal, the parties are all stealing each others' clothes, we all speak the same language and there is no ideology to speak of. an example of this was the motion of censure submitted by the socialist group, which was really all things to all men, and of course sowed confusion amongst members. in the end a different motion emerged, similar to the one at the time of the bse debate, and the result was inevitable. it has been like the dnouement of a bad aristotelian play, because there has been no deus ex machina , just intrigue leading to the calamity and the final outcome we are now witnessing. i am of course happy for one crisis to lead to another, as this is the only way strong men will come forward who can decide what europe needs to do. madam president, the commission is paying the price for having such an untransparent and secretive style of management. its resignation is a sign of crisis and indicates the failure of a europe cut off from its citizens, turning its back on social needs and thumbing its nose at democracy. the commission and the council must learn their lesson from this by radically changing some of their practices. the commission has long felt itself to be above any form of control and has refused to give parliament the explanations it has demanded for the serious irregularities identified over a number of years. its behaviour has often been obstinate and arrogant. it has been obstinate in following an ultra-liberal line which the public has increasingly rejected and in pursuing policies which parliament and the council have strongly contested, such as the liberalisation of postal services and trade relations with the usa. it has been arrogant in the way it has justified these policies and its undemocratic management style, though this is certainly not intended as a criticism of the work of the european civil servants, for whom we have the greatest respect. the irregularities which have been identified must never happen again, and this means that both the methods and the approach need to be changed. the commission and the council must stop seeing the fight against employment as a matter for discussion rather than action. the current emphasis on financial profitability and price stability must give way to policies promoting jobs and growth with binding targets, and the task of the ecb must be revised accordingly. europe needs a breath of fresh air to bring it greater transparency and democracy. the relations between the european institutions and their respective responsibilities need to be clarified, and the council must face up to its responsibilities, which has not always been the case. i myself think that having a stronger commission would not solve any of our problems, quite the reverse. what does need to be stronger is parliament's monitoring of the commission and its initiative-taking and evaluating role, in conjunction with the national parliaments. we also need to have more widespread democratic debates on european issues throughout the union. it is high time that the public in the european union became involved in the building of europe, so that they can impose transparency, democracy, a spirit of responsibility, ethical standards - all in all, respect for themselves as citizens. madam president, mr president-in-office, ladies and gentlemen, i believe that the commission, rather than the whole of europe, was embroiled in a profound crisis - of that there is no doubt - and that the crisis had already gone on too long. to that extent, the resignation of the commission is only logical; it is a salutary shock that clears the way for the rebirth of credibility. the soul of europe is embodied in its people, who rely on their representatives to continue the work of unification democratically and efficiently to the best of their knowledge and judgement - in a word, responsibly. the commission that has just resigned, however, had lost the confidence of parliament and the people. that is why the first and foremost requirement is the earliest possible appointment of a new commission, headed by a strong european personality, a commission that is determined to serve until the year 2004. the ball is in the council's court, and it must come up quickly with the necessary proposals. i believe this has to take place before the elections to demonstrate to the public that we can get things done. at the same time, i am well aware that, before the elections, parliamentary assent is still governed by the maastricht rules, but it is the spirit of amsterdam that will determine the political implications of our assent. that is why the new president of the commission must be granted the right to demand the resignation of individual commissioners who transgress. but the need for reform applies to every institution. the constitutional fabric of europe, the balance between the institutions, the need for greater powers of legal redress for the citizens of the union - all of these things have been on the agenda since at least the last intergovernmental conference in amsterdam. for that reason, mr verheugen, i should like to propose that, when you give the starting signal for the next intergovernmental conference under your presidency, you involve the european parliament from the outset and ensure that we are not left standing outside the gates again when the chips are down. this crisis is simply crying out for the establishment of a new relationship between the council and parliament. grasp that opportunity now! as you know, madam president, i am a relatively new member of the house. when i first came here, i was full of admiration for the members of the european parliament and especially the committee on budgetary control, which had carried out very rigorous and very clear analyses of what was going wrong in parliament. i admired parliament and was proud to be a part of it, because it pushed for real action to be taken. we could, then, have reached a decision back in the autumn. at the end of the year, we were ready and already felt that a motion of censure was appropriate. we tabled one, and in the end almost half the members of parliament voted in favour of it at the start of this year. some members, a majority, thought that we ought to secure more evidence from a committee of independent experts, and we got it. the commission then accepted its responsibilities, and we think that is a good thing. throughout all this, however, the council has remained deaf and blind. even after the commission resigned, it barely troubled to investigate in a number of member states what the charges were and what the new commission's remit ought to be. there is, after all, no question of the present commission, which has just resigned, staying put. that is not an option. in any event, we want the incoming commission to discharge its responsibilities fully and clean out these augean stables. it will need to be a strong commission. it is of no great interest to me whether it is a short-term or a long-term commission. what matters is that the rights of the european parliament, in other words the rights of our citizens, should be fully respected, now under the maastricht treaty and soon under the amsterdam treaty, and not before time. the main thing is for the council to appreciate that the commission must be flanked by a strong and democratically elected parliament; respect for parliament must ensure that the council gives us a commission which we can fully endorse and with which we can cooperate, so that we never again have a recurrence of what we have seen here in the last few months. madam president, it is always tempting to rewrite history, but the facts always tend to remain obstinately the facts, and the fact is that the european parliament has by no means always played the role it should have done in the events since august which have now led to the resignation of the commission. let me remind you that last december and january it was mrs green, on behalf of the socialist group, who said that anyone who felt able to tell the public, the commission and parliament that they had no confidence in the commission's financial abilities had no place in this house, and it was mr martens, the chairman of the ppe group, who said that his group still had every confidence in the president of the commission, and if a majority in parliament voted against the commission it would be an out-and-out disaster. mr cox and mrs lalumire said that they personally would be voting in favour of granting the discharge. the report by the committee of independent experts, which is an excellent one, merely repeats what mrs wemheuer and mr de luca wrote in their report on tourism, what mr fabra valls wrote in his report on the med programmes and in his work on echo, and what mr elles himself said in his report on the discharge. the committee has a good deal more to say, a point which it has made itself, and the statements we hear each day from its members would seem to indicate that they should be given further work to do here. this is why the committee should be asked to produce a second report, and why it should also give its opinion on how parliament operates, so that everything is out in the open and no one can say that parliament too is afraid to confront its own style of management. we need a temporary committee to implement the remedial measures in the same way that the committee of experts diagnosed the problems. madam president, ladies and gentlemen, our colleague jean-claude martinez was the first person to condemn the commission's mismanagement, serious errors and lies during the bse scandal in 1990. we have had to wait another nine years before the commission was forced to resign. the report by the committee of independent experts of 15 march, which among other things criticised the commission for having lost control of the administration it is supposed to manage, was absolutely scathing. this mafia-style political mismanagement in the commission, which goes back to the time of jacques delors, is partly explained by the fact that it is directly responsible for the management of considerable sums of community funding, and that civil service work is delegated to external consultants or subcontractors selected on the basis of questionable criteria without any sort of advertising or transparency. claude perry, the director of perry-lux, admitted that out of 5 000 or 6 000 external experts working for the commission, several hundred were in fictitious jobs and were receiving a daily allowance of bfr 2 860, as was the case with euro-conseil. the maastricht and amsterdam treaties meant that the commission took on a great deal more work and community programmes, all of which threatened to make individuals and businesses alike feel increasingly smothered. in this orwellian world with its supranational and totalitarian administration, it became difficult, according to the committee of experts, to find anyone with even the slightest sense of responsibility. this lack of responsibility enabled the commissioners, and in particular the socialist mrs cresson, to turn a blind eye or to cover up fraud, malpractice and nepotism. instead of the heavy punishment that europe's taxpayers, having seen their money squandered, are entitled to expect, the commission is proposing to pay the 20 commissioners in question 60 % of their salary for three years, in other words a minimum of 60 000 francs per month. the voters and taxpayers are going to love that idea. this is why there is a justified upsurge of feeling against these anonymous officials who are trying to deprive us of our sovereignty, identity and freedom. when they vote for my list on 13 june in france, the public will be showing their political maturity and spirit of national resistance. madam president, i think it is important to keep things in perspective as we confront the present situation. the european commission has resigned following the publication of a report prepared by a committee of independent experts, which both parliament and the commission had agreed in advance to abide by. clearly, the committee of independent experts is not endowed with divine right but it has drawn up a report and we must respond to its findings. the report did not find individual commissioners guilty of fraud or misconduct. it arrived instead at the overall conclusion that the commission had not been operating satisfactorily, that certain procedures were not appropriate and that the commission was collectively responsible for this state of affairs. accepting collective responsibility, the commission then resigned. what should not happen is what we witnessed in the house this afternoon, when certain party leaders or leaders of political groups took advantage of the situation to attack other political groups for purely electoral reasons. there is no excuse for such behaviour. to use a biblical reference, i would invite whoever is free from sin to cast the first stone. as things stand at the moment, the fact is that it has been shown that the commission was not operating satisfactorily, and as a result we need to appoint a new commission. a constitutional procedure must now be embarked upon. the treaties do provide for replacement of the commission, yet parliament finds itself in a difficult position as its term of office expires in june of this year. consequently, unless council nominations are received very soon, this parliament will be unable to approve the new commission. the task would have to be delegated to the new incoming parliament. a word of warning is also called for, however. our eagerness to monitor and scrutinise the community's public accounts must not be allowed to hinder the community's executive role. in other words, if the committee of independent experts continues its work for an indefinite period of time and investigates every aspect of the commission's activity, parliament might well become a very powerful institution and a very effective one where monitoring is concerned, but there is a danger that this would hamper the normal running of the commission. i believe there is a need for caution in following up the findings of the committee of independent experts. my feeling is that rather than concentrating on further monitoring, we should come up with fresh ideas to ensure that the new commission is properly structured. as previous speakers have already made clear, we hope in any case that the council will set the course, prepare the programme and indicate what we can do in the few remaining months of our term of office. parliament will then be in a position to judge whether or not it is in a position to fulfil the constitutional role laid down for it in the treaties. nevertheless, i think we should pay tribute to the former commission, which is still in place in a caretaker capacity. we should pay tribute to the dignity of its members and to the dignified manner in which the commission decided to resign, choosing not to continue in office. madam president, following on from the views expressed by my colleague, i believe that the public's verdict on how we discharged our responsibilities during the present crisis will soon be made crystal clear at the ballot box. i am very satisfied with the active - and on occasion decisive - part played by my delegation. i am also very well aware of the implications for the whole process of putting forward a motion of censure with the contradictory aim of bolstering confidence in the commission. further, minutes before its crucial meeting following the publication of the much-heralded report, a de facto motion of censure was threatened, should the entire european commission not have resigned. returning to the present crisis, my view is, firstly, that a solution should be found as quickly as possible. secondly, it is vital for the berlin european council to set out clearly the timetable and procedure to be followed. we should trust the wise judgment of the berlin european council. finally, i feel that we should make all efforts to implement the treaty of amsterdam as it seeks to enhance the status of the european commission. above all, we need to maintain a sense of perspective. what our fellow citizens really want to know is how we are going to tackle unemployment more effectively, how we are going to continue supporting the agricultural sector, how we are going to put our economies back on track, how we are going to promote the development of our infrastructure and how, indeed, we are going to ensure that solidarity remains a pillar of our union. these must also be our priorities. consequently, every effort should be made to remain focused on what must still be the main objective of the berlin european council. madam president, firstly may i say that i find it a pity that no one is left from the commission. but anyway, after the report it was inevitable that the commission should resign. to my mind, it would have been far better for democratic and political developments in europe if parliament had had the courage to send the commission packing in january. parliament has really hidden behind the skirts of the wise men and has thus let a political opportunity slip. as regards the report of the wise men, i think the conclusion that the commission has totally failed in its duty is a little too black and white. this commission prepared admirably for the euro and for agenda 2000. nor do i like the ease with which accusations are made against individuals and their families, without any proof. for the man in the street, it is not easy to distinguish between improprieties in parliament and in the commission. that is why clear measures are needed to show people, amongst other things, how the official machinery actually works, for the very specific reason that people have a strong aversion to officials, technocrats and their bureaucracy. so independent financial scrutiny is required. i agree with mr brinkhorst that action is needed. but we must not get carried away by the emotions of the crisis and take hasty decisions which we may later regret. we need a strategic approach to secure democracy in europe. i think that only a new parliament can install a new commission. madam president, as we see it, the commission's resignation was the only conceivable outcome, particularly in the light of the report by the committee of independent experts, which basically clarified and confirmed the reasons that led many of us to vote for the motion of censure - which some people claimed was a vote of confidence - back in january. which means that, one way or another, we have now lost nearly three months. but the issue we are discussing today is the replacement of the commissioners, and in that context we consider it essential that the commission should be replaced as speedily as possible so as to reflect all the political and legal consequences of the commission's resignation. nevertheless, this speed should not prevent very serious reflection about the immediate and fundamental causes underlying this resignation. it is not enough for us just to change individuals - it is also crucial to change both working methods and policies. as we see it, these two aspects are the main reason for the commission's resignation. on the one hand, there is a lack of transparency, with absurdly secretive management of instruments and public funds, which inevitably leads to irregularities, favouritism and fraud. but there is also the obvious insularity and remoteness of the commission from the public because of the misguided policies that have been implemented and in particular because of their impact on our societies. because of all this it has become necessary not only to change people, but also to find appropriate ways of changing our working methods and policies. it will be essential in future to provide for greater and more effective control of the commission, in view of the concentration of both legislative and executive powers in that body. indeed, the issue that we now have to tackle is not whether or not to strengthen the commission, but above all how to keep a check on its activities. the next european council will have to take all these aspects into consideration, and if possible, it will have to draw up a precise and realistic timetable in conjunction with parliament so that these issues can be analysed and a new commission appointed without delay. lastly, i would like to mention that financial matters also feature on the agenda of the berlin council. it is particularly important for the council to achieve a satisfactory outcome on both the commission issue and agenda 2000 - for it to be a success, the council cannot accept just any solutions to these two important problems. this should be its chief concern. madam president, those of us who have been taking steps here during the past two months to ensure that the commission should be held accountable have won our case. we have demonstrated that we, the elected representatives, will not put up with nepotism and fraud under any circumstances, and so the commission has at last been forced to resign. obviously a new commission should be appointed as quickly as possible so that work can be resumed. the guiding principle behind this undertaking must be to 'clean up' inside the commission and create the conditions for a climate of openness and transparency - more valuable assets than ink and paper. that is really the whole point of the exercise. the committee of independent experts, in its report, highlights one aspect in particular: that the commission has lost control over a large number of projects. consequently, this raises the question of whether the commission has its fingers in too many pies. is it not time to apply the subsidiarity principle and delegate competence in some fields to the member states, for example in terms of cofinancing under the common agricultural policy? the eu cannot deal with everything and the commission is unable to fulfil the tasks allotted to it by the member states, as the last commission clearly demonstrated. i am not in favour of a strong commission, but of a strong parliamentary system of government, which means that the european parliament should have more influence and the commission less. madam president, the report by the special committee has shown beyond a shadow of a doubt that there is an urgent need for reform within the commission. it has brought to light a culture of complacency towards irregular practices at the very highest level. this evidence might not have come to light had this parliament not demanded urgent action in january. the report and its aftermath gives us an historic opportunity to force a seismic change in the relationship between the commission and parliament, to tackle the democratic deficit in the european union and overhaul the system of scrutiny. the commission not only needs to be brought under democratic accountability, i want to see meps given tough new powers to tackle mismanagement, fraud and nepotism. now that they have resigned there should be no question of some commissioners returning to their posts. having volunteered to accept their collective responsibility and resign it would be incomprehensible to the citizens of europe if the same individuals were to be reinstated. this union's institutions, with parliament playing a major role, must ensure that a new commission is put in place soon, charged with the responsibility of ensuring that a complete reassessment of commission management and structure is initiated and that the new parliament after june must have its opportunity to judge those who are nominated to the commission from 2000 onwards. madam president, i will start by reminding the council presidency of what paragraph 9.4.12 of the committee of wise men's report says. i quote: 'the external auditor (the court of auditors) produced reports which were clear and to the point (for example in 1992 and 1996 on tourism and in 1996 on med and echo). however, only one of the two arms of the budgetary authority (parliament) gave them proper consideration'. manifestly, then, the second arm of the budgetary authority - the council - has been seriously deficient here. the fact that on the very day the wise men's report came out, the ecofin council made its recommendation that parliament should grant a discharge for 1997 is, in my view, an illustration of how slack the council is. the council will be taking great risks if it seeks to reappoint commissioners who are currently in office. we think that the new caretaker commission should not include any members of the present commission, because the committee's work is not yet complete. all manner of new frauds and other irregularities may yet come to light. waiting for the committee to complete its findings will take too long. the new caretaker commission must take office as soon as possible. the council has a heavy responsibility here. if it does not do its stuff quickly, the present commission will still be around until the end of 1999. that is totally unacceptable. we have to have a caretaker commission before the elections. people have to be able to see that something is being done. mrs cresson must go right away. on this too the commission has to face up to its responsibilities, and article 159 of the treaty states that the council or the commission president can apply to the court of justice to have members of the commission compulsorily retired. mr santer too has forfeited too much credibility as commission president in recent months and weeks to be able to remain in office. his job must be taken over immediately by the vice-president. we agree with what mr cox said on that. mr van buitenen must be reinstated without delay. madam president, whatever impression the commission's dramatic resignation may have given, what is at issue is not the weakness of the men and women involved, but the lack of principle of the institution itself. there is no doubt that the commission is unprincipled because it is neither one thing nor the other - half government executive, half administrative commission - and because all it does is to build a gilded cage around people, trapping them with increasingly interfering regulations and directives gilded with subsidies and patronage. corruption is not the result of human weakness, it lies at the very heart of the european system, since what the commission - and the european parliament, incidentally - mainly does is to transform the wishes of numerous lobbies and interest groups into legislation. the commission acts as a screen for the irresponsibility of the council and the national governments. this is why, together with bruno mgret, the members from the front national - mouvement national do not see the point of simply plastering over the cracks, and we call for the commission to be abolished altogether and replaced by just a secretariat at the council of ministers. madam president, i should like to begin by taking up something said by mr martens, whom i normally hold in high esteem but whose reconstruction of this crisis i find unconvincing. i would remind him that the last crisis revolved around fraud. that, in our view, was an insufficiently sound point of departure. the wise men's report has proved us right: the current crisis revolves around structural political problems. this is what lies behind the crisis in the commission, and we pro-europeans believe that this could be a healthy crisis, bringing about a real reform of that institution. we are a thousand miles away from last time, when the issue was fraud. having said that, i believe it is in the interest of parliament and of all pro-europeans - i repeat the term - to go into the elections with a new commission, thereby proving that the european institutions are capable of moving rapidly. it is therefore very important, now that the parliament and commission have acted, that the council should do likewise. our role was to call for swift action, beginning in berlin, and here i welcome the very clear statement from the council president, mr fischer, who said this afternoon that parliament could approve a candidate for president in april, and in may the new commission. this means that the heads of state need to reach an agreement before the april part-session of parliament. that schedule suits us perfectly. we hope it can be adhered to, because it should minimise criticism of the european institutions and enable the commission to confront the burning political issues rapidly. we wish to see swift action and a strong political solution, in other words a solution lasting more than just a few months. furthermore, if possible - and we do think it possible, since it is a matter of political will - the amsterdam procedure should be followed from the outset because, if the commission is to be a strong one, it must first of all last for a reasonable period of time - not just until the end of the year - and secondly its president must have the enhanced powers conferred on him by the amsterdam treaty. this must happen, and all it takes is political will. finally, the presidency must have various tasks: not only to administer the complex structure of the eu commission, but also to reform it from within. parliament has made a number of suggestions in this respect. my own suggestion to the council is that it should explore in more depth the proposals on reform of the commission which have been put forward by parliament in various forums. we are convinced that all the european institutions are in need of reform in the run-up to enlargement, and that this crisis has occurred in the commission because it is the nerve-centre and therefore the body most exposed to the repercussions of past enlargements and the increase in the eu's workload. but the other institutions, the council and parliament, are likewise in need of reform. i therefore believe that the initial step being taken - reforming the commission and progressing towards a more democratic european union - is the start of an important journey for the union. madam president, there is a well-known saying: 'victory has a thousand fathers, defeat is an orphan'. everyone is in favour of reform today, outbidding each other. this was not the case a few months ago. most socialists - apart from some notable exceptions - voted against allegations of mismanagement and the need for urgent reform of the commission in december. let us not try to re-write history. may history note that the real vanguard for change - as mr martens noted earlier - were those who voted in favour of refusing to sign the 1996 discharge. without this act of defiance nothing would have happened and we would have gone on as before. secondly, the wise men's report has totally vindicated the findings of the committee on budgetary control. mr van buitenen should now be reinstated. furthermore, the enthusiasm of some colleagues, particularly mrs green, to take the conclusions of outside experts in a report probably drafted by the same people who have drafted our own reports in the committee on budgetary control would seem to indicate that she takes outside experts' opinions more seriously than those of colleagues. thirdly, when we come to appoint a new commission, whatever its make-up may be, its real emphasis must be the reform of the commission, continuing the programme for codes of conduct, the reform of the statutes and the screening report of the resources which are needed. lastly, what we are moving to is a discussion between parliament and the council. the real question is: do we want to have the rule of the few or the rule of the many? as pericles, in his funeral oration in the thucydides version of the peloponnesian war , said: 'if we look to the laws, they afford equal justice to all in their private differences; if no social standing, advancement in public life falls to reputation for capacity, class considerations not being allowed to interfere with merit; ' at the same time he said: 'our constitution does not copy the laws of neighbouring states. we are rather a pattern to others than imitators ourselves. its administration favours the many instead of the few. this is why it is called a democracy.' madam president, i am sure we are all aware that the present situation is without precedent in the history of the union. times such as these are a test of the strength of the european union, and reveal whether it is built on solid foundations or whether it is merely a house of cards. it is therefore incumbent on us to face this crisis squarely. replacing the present commission with another is not the only problem. what is on the table at the moment should certainly result in reform of the working methods of a single institution. crucially however, it should also result in reform of all the institutions themselves, that is, parliament, the commission and the council. if it does not, we shall have squandered a unique opportunity. parliament has every right to be proud of how it has assumed its responsibility and demonstrated its maturity. the resignation of the commission ought to serve as a catalyst for the much-needed institutional reform. it is to be hoped that the council will now rise to the occasion, give priority to the interests of europe as a whole, dismiss the vested interests of individual member states and seek a satisfactory way out of this crisis. we shall then be able to congratulate ourselves on having achieved a more robust, transparent and democratic europe. madam president, first of all, i am disappointed that this house is meeting today and tomorrow, rather than on the scheduled dates. our conduct here smacks of submission to the requirements of the national governments. although this might happen in national parliaments, it certainly would not in regional parliaments, where the sense of democracy is more pronounced. such conduct gives us scant hope that parliament really will exercise its rightful monitoring role. let us acknowledge that, thanks to an initiative taken by a number of us - and then clumsily hijacked by the majority - we managed to expose an affair which reveals that, however well-equipped bureaucracies, technocracies may be, they are often prone to shortcomings which then lead to such improprieties as have now resulted in the individual resignations of several commissioners. i think that we shall have to be far more vigilant in future and, most importantly, i take exception to the fact that some invoke the amsterdam treaty, seeking, that is, to use a new instrument, prematurely, to handle an old affair, belatedly. i should never wish to take away any of the new parliament's powers, and i therefore urge that the new parliament should be the one to decide on the commission, so as not to have to live with a commission on which it has had no say. madam president, 'shakespeare in love' has won and europe is ecstatic. you know the quotation from hamlet: 'though this is madness, yet there is method in it' - it would be a good idea for mr santer to study william shakespeare. but this is not madness, it is a revolution for the present and for the future. it is a revolution for the present because of the three things that brought it about. first there was the event itself: 16 march 1999 will go down in history as the day on which the commission resigned. then there was the de facto censure imposed by the european parliament. in 1979 we had universal suffrage, and in 1999 we faced up to our responsibility. the construction of democracy is complete. then there was the reason that caused the revolution: parliament's criticism of the general lack of supervision. there have been no cases of individual fraud, it should be pointed out - we know this for a fact and anyone who says otherwise is lying. in brussels, at the eye of the storm, people understood what was going on, but the public was alarmed by the lies they read in the murdoch press and heard from the french populists, nationalists from all parties and populists in all the media. we have even heard some of them here today. people are being taken in just to win readers or votes and to bring europe down. it is up to us to tell them the truth. it is a revolution for the present because of the lesson it has taught us, because europe has given a lesson in democracy. in the member states there are a good many parliaments and governments that should take inspiration from us to break free and to show greater responsibility. but it is also a lesson for the future and a revolution, in three ways, for tomorrow. first of all, everyone wants a strong commission and everyone agrees that we need it, even the upe group. jacques chirac and lionel jospin agree on it, which is good. jospin and schrder agree on it, which is essential. schrder, jospin and blair agree on it, which was unhoped for. yesterday major blocked everything, but today blair together with france, germany and the other member states are all calling for prodi. what a turn-about for the united kingdom and for europe! the second aspect of the revolution for the future is new controls, new regulations, and new cultures. we have created the single currency, now we need to create common ethical standards for government in europe. the third and final aspect involves elections plus responsibility. our citizens elect us and we approve the commission and monitor it. european democracy has just been born, and it is up to us to ensure that it grows up properly. madam president, mr president-in-office, ladies and gentlemen, for months we have been issuing warnings to the commission at meetings and in personal conversations. they were not heeded, and the result is plain to see. we must recognise that times have changed, because the european union now has the democratic strength to put its own house in order. i believe it is good news for the people of europe that the system is democratic enough to ensure that an administrative apparatus cannot commit misdemeanours with impunity. but we must also recognise that this problem is not really about particular individuals. there were many honourable people in the last commission, and we must not forget that. we must realise that this is primarily a structural problem; it is about a lack of efficiency within the european institutions. unless we change the structures within the commission, we shall be back in this same situation two years from now, because replacing the individuals at the top is only part of the answer. for that reason, we need to adopt certain procedures in connection with the installation of the new commission. on the one hand, it is surely the case that the european public needs to see the right signals from us before the elections. on the other hand, there must be enough time to ensure that the procedure for appointing the commission affords the opportunity for a radical reorganisation of that institution, and a good new president will use that procedure and the support of parliament to gain the upper hand over the apparatus. since the new commission will want to remain in office for the next five years, we must also take account of our successors in parliament, who will have to cohabit with and accept the commission and who will also have to legitimise that same commission in the future. i believe a compromise will take clear shape on this basis, and i think the council presidency will be able to offer us a time-frame within which both requirements can be satisfied, so that we can manage the reorganisation and thereby create a better europe. madam president, ladies and gentlemen, it was the wise men's report that achieved what this parliament could not achieve, namely to hold the commission to account. that is a shameful admission. all those who did not support the motion of censure have been made to think again by the wise men's report. it is a fact that the 140 pages of the report contain nothing new. be that as it may, the wise men did produce one pearl of wisdom when they stated that the commission as a whole had lost control of its finances and its officials; with that statement, they placed the real problem at the door of the commissioners, thereby revealing the limits of administrative powers. the resignation of the commission was no heroic deed, but rather a case of the commissioners jumping before they were pushed. the loss of confidence in this commission is so calamitous that the only option for us is the quickest possible replacement of the entire team, but let me stress that merely replacing individuals is not enough. real reforms are needed, not just tinkering. on the one hand the structures of the commission must be thoroughly reviewed, and on the other hand there is an urgent need for an extension of the powers of scrutiny vested in this house. the fact that this debate is taking place is the real achievement of the committee of wise men, because what is ultimately at stake here is the right of citizens to be governed democratically and to scrutinise the actions of those who govern them, and that right must not be allowed to fall by the wayside. mr president, even though the christian democrats are late converts to the idea of a committee of experts which they opposed in january, we in the socialist group welcome the fact that they now support the establishment of the committee of experts and we look forward to its second report which will be published within the next couple of months. i want to focus my contribution this afternoon on that report. however, by way of comment, i would just like to say that the reforms we are looking for in the european union institutions, as the previous speaker said, do not end with looking at the 20 commissioners. that has been the focus for the last few months but what we need to do now is to find the causes of the widespread problems in the commission and, more importantly, we want the committee of experts to recommend remedies. therefore, i hope that the committee of experts when it meets during the course of the next few weeks and when it conducts its detailed investigations into the operation of the commission, will look in some detail at the structural problems within the commission. this is not just a question of political leadership. it is associated with the processes for personnel and financial management. it is about the whole management structure of the commission; the relationship between the staff and their directors; the relationship between the directors and the directors-general; the relationship between the directors-general and the commissioners and their cabinets. so it is extremely important that this second report, which we must now focus upon, looks at the necessary root-and-branch reform. i hope that at the end of tomorrow's vote, the resolution we pass will set out very clearly that we want the committee of experts to bring forward those recommendations. we do not want a generalised polemic from the committee of experts; we want specific recommendations about what it has discovered not only in relation to the last four and a half years but about procedures that, as we know, have gone on in the european union civil service for many years. the challenge is how we act upon that. the critical thing for the socialist group is that we want a new president of the commission in office as quickly as possible and we want that president to take the report of the committee of experts and to make sure that every step is implemented, not just in relation to the 20 commissioners, not just in relation to the culture of the college of commissioners, but for directors-general, directors and every level of responsibility and management within the commission. if we do not do that the whole exercise of the last few months will have been a waste of time and we will have made no further progress in what is after all a major event for the public in the european union. mr president, may i say to mr donnelly that the president-in-office told us we had made use of our democratic right and had done our duty. had the commission been prepared to give us access to all the relevant information when the scandal first broke, we should not have needed the committee of wise men, and we are every bit as capable as the wise men of producing the second report if we obtain the necessary information from the commission. let me address a brief remark to the commission and its president. it is not as if the crisis had already begun when the reforms started to bite. on the contrary, leonardo did not appear on the scene until 1998, and the problems surrounding mrs cresson have only come to our attention in the last few months. that is why this is so disastrous, as is the fact that all the financial transactions which were undertaken by the commission and which are now being criticised in the wise men's report were given the go-ahead by financial control. lastly, may i say just a few words on the wise men's report and on our activity here in parliament. does it surprise anyone that the socialist group gagged those of its members who were against giving a discharge in respect of the 1996 budget? does it surprise anyone that the socialist group voted against mr bsch, the rapporteur on the anti-fraud office, olaf, who is one of their own members, and does it surprise anyone that the coordinator of the socialist group in the committee on budgetary control resigned her post in protest at the policy of her group leader? against this background, it was probably only to be expected that the head of the group would table a motion of censure with the intention of withdrawing it again. if the socialist group had behaved as consistently back in january as they now claim to have done, we might have had a new commission up and running by now and could have spared ourselves the crisis we have all been discussing today. mr president, i am afraid all this is what shakespeare calls 'much ado about nothing', and so i do not think we have the basis for a new beginning or a clean slate. the problem of the european commission, after all, affects all the community institutions without exception: fraud, nepotism, profligate spending, lack of transparency over subsidies, inflated salaries. who in parliament would dare to claim that the commission alone suffers or has suffered from these ills? the fact is that the european institutions without exception, so parliament as well, are too far removed from their people for normal democratic scrutiny to be possible. so the scandal over the commission should above all lead to greater respect for the subsidiarity principle, drastic curtailing of the european policy of subsidies and hand-outs, and above all a greater exercise of scrutiny by the member states and member state governments. until this happens, i fear that nothing much will improve. mr president, i am surprised and saddened at the petty political way in which some colleagues are seeking to profit from what is an extremely serious situation. we are in fact facing a crisis in the institutions of the european union, and we must face it head on. the resignation of the commission was a demonstration of the political and personal sensitivity of all its members. however, it also demonstrated that the institutions we have established function and that we need to develop them. the european parliament has displayed commendable composure and maturity in the face of this crisis. but the time has now come for our leaders to take some bold decisions which will work positively towards strengthening the institutions of the european union. some opponents of the european idea may have wanted to use this institutional crisis to strike at the very heart of what has brought us all here today. decisions are difficult. however, vacuums and deadlocks are dangerous. the community's heads of state and government must make prompt decisions and come up with an unequivocal solution. the president-in-office has taken a positive step by declaring that the name of the new commission president will be put forward by april. i do not think this is enough. swift decisions also need to be taken regarding the other members of the commission. whatever constitutional issues may be outstanding could be settled and, in accordance with the amsterdam treaty, the council and the european parliament could work to implement the necessary reforms. we have the opportunity to restore the confidence that is needed in the institutions of the european union. i think we owe this to the people of europe, and we owe it to the idea of the european union. mr president, the crisis that is buffeting europe is both a serious and a healthy one: serious because without a doubt it represents an unprecedentedly difficult moment, but healthy because - as others have said - from now on the topic of institutional reform can no longer be avoided. it must be tackled head on, prior to enlargement, and must open the door to economic governance in the europe of the euro. this europe has given itself institutions such as the european central bank to manage monetary policy; now it also requires authoritative political governance, authoritative political institutions. we are all in favour of autonomy for the central bank, but this should mean autonomy vis--vis another, much-needed, political body. this issue can no longer be ducked. however, what has happened is also healthy because it has at last raised the question of transparency. each of us appreciates from our own experience the urgent need for transparency in the activities of the commission. anyone who has had connections with that institution, such as applying to participate in a programme, has experience of inadequate information and inadequately substantiated decisions. it is likewise healthy in that the wise men have established a sort of moral case-law, telling politicians to refrain from doing not just what is forbidden, but also what is inadvisable. this lesson in moral case-law could also usefully be learned by the various countries' national political leaders, if the public is to feel at ease with politics and its institutions. one must not do what is inadvisable. i too look forward to a rapid solution to the crisis and an authoritative commission presidency, and i too would stress that - if the presidency is to be strong and authoritative - it cannot be a short-term one but must have sufficient time to plan its work. mr president, no one wanted this crisis yet no one did anything to prevent it. nevertheless, because of the regenerative and creative effect it will have, it should herald a new era in the life of our institutions and make them fit to serve a more ambitious european union - a more transparent and democratic union, and, of course, a more political one. but it should also be more responsible about the way it operates and controls its affairs, ridding itself of negligence and demagoguery and avoiding a scapegoat culture. we are experiencing real growing pains, with dwindling institutional resources required to cope with ever greater burdens. so it is not surprising that there is a sharp dividing line between collective and individual responsibility, and between community and governmental responsibility. nowadays, we cannot even rely on the legal certainty of legislative texts for either the past or the future. mr president, that is why the institutions can only find a way out, a direction, a guideline, in political terms. which means that it is up to the political powers that be, and in particular the council and parliament at present, to act swiftly to resolve this crisis. but acting swiftly does not mean acting with undue haste. it means that the council should nominate a candidate to be president of the commission within a reasonable deadline, and that this president should benefit from the democratic legitimacy bestowed by parliament, which is absolutely essential for a strong commission. and by strong, i also mean stable, and with a political future. committees are not the way to achieve the necessary reform of the institutions and to imbue them with a fresh sense of drive. parliament will be more than willing to swiftly resolve a crisis which, if it drags on, will only give ammunition to the european union's enemies and weaken it economically. to do this, parliament's demands will have to be heeded, but it is willing to reach political agreement with the council on a solution. mr president, the epicentre of this crisis is not brussels - its origins lie in every single capital of the fifteen member states. it is now incumbent on the council, and in particular the german presidency, to put its cards on the table and acknowledge its responsibility. we will be waiting here to listen to its proposals. fortunately, according to what the president-in-office of the council has told us today, it seems that the council is on the right track and is adopting a common sense approach. let us hope so! mr president, in this debate on the resignation of the commission and the forthcoming summit in berlin, i would like to start by thanking the good commissioners for all the work they have done in recent years. it is a pity things had to come to such a pass and that a call in january from this parliament, and from a large proportion of my group's members, to dismiss those commissioners who were under fire was not acted upon. if that had happened in january, both the commission and parliament would have emerged stronger from this conflict. now the good commissioners have been swept aside together with the bad ones. that really is a shame. and i cast a critical glance at our socialist friends, because if they had helped us in january with that resolution, all the things which have happened would not have done so. we endorse the departure of the entire commission as something which is inevitable. we hope to see a new commission very soon, starting with a new commission president. but we believe it has to be a caretaker commission, because a truly definitive commission can only be appointed once the elections are out of the way. that seems to me to be the normal democratic rule. in our member states too we do not appoint governments first and then hold elections; we do it the other way round. as regards the president, it would actually be nice if parliament could nominate a candidate. there are, as i understand it, three of them: mr prodi, mr solana and mr kok. i would be happy with any of them, but my own personal preference would be for mr prodi, the man we know best. he has my vote. anyone who can steer italy's bureaucracy and its economy along the right track can cope with brussels. so as far as i am concerned, mr prodi would be a most welcome choice. one last remark on agenda 2000, because this too will be discussed in berlin. i very much hope that changes will be made to agricultural policy, because the way it is shaping up is not good. i hope that changes will be made to the structural funds. i hope above all that the netherlands will score better on agenda 2000 than it has done so far, because the current dutch government can probably prepare itself rather better than it has been doing. as far as that is concerned, we wait eagerly to see if the results are better than they look like being. we await the debate on agenda 2000 and the advent of a new commission with equal interest. mr president, the view of the dutch members of the group of the party of european socialists is that the commission's decision to resign was the only one possible in the light of the committee of wise men's report. so that is rather different from what mrs maij-weggen said just now, from dismissing two commissioners on grounds of alleged fraud and saying that their resignation had to be seen as the preliminary outcome of a trial. it is more important for parliament now to be pulling together to establish a new position vis--vis the council than for her to be claiming which group was the instigator of the trial. this new position, this new culture, must be reflected in the implementation of the code of conduct, the development of individual responsibility for commissioners, a revision of the staff regulations, and the members' statute. this new attitude from the commission in its way of working and its dealings with parliament can be summed up as the end of arrogance. that is undoubtedly a gain for parliament, provided it is not replaced by arrogance on the council's part. perhaps the council will find it hard to work under pressure of time. but it is of the utmost importance to have a new commission as soon as possible, in advance of the elections to a new european parliament. it will have to draw up an ambitious programme, to be evaluated by the house. the current parliament can inform the new commission of the reforms that are required. a new commission will have to commit itself to these. with the heralding of the commission's new term of office in the year 2000, parliament can then monitor the commission's performance as it carries out this programme. so we want a new commission for five and a half years, with a six-month probationary period. a good commission does not need to fear a review of this kind by parliament, because in any normal democratic national parliament, ministers are subjected to constant scrutiny. mr president, anyone who takes the time to analyse the events of the past year will see that many things have been the subject of debate in this house. there have without doubt been injustices on an individual level, since many of those who have been forced to resign should not have done so. nor is there any doubt that this whole sequence of events was used to further petty political aims in various quarters. the fact is that these events are now in the past, they are over and done with, and we must now focus our attention on the lessons to be learned from these developments and on how to use them for the good of the european union and the world in general. i believe that acknowledging that the european parliament has a far more important role to play than the other institutional bodies have been willing to accept is a fundamental and crucial point. from now on, the european parliament must fulfil the expectations of the people of europe as regards the ways in which it should tackle these issues. others have lessons to learn as well. the council of ministers for instance, was in a great hurry to grant discharge, without examining the real facts. and if the commission had acted differently in certain circumstances, we would not have ended up where we are today. however, the basic lesson we must take away from all this is that we must be responsible towards those who are going to vote for us in the very near future. here too, mr president, the council of ministers must take responsibility. if it does not make the right decision to allow the institutions of the european union to act properly and in a cooperative way during this crucial period, and if we remain in a state of partial governance for any longer than is necessary, i fear that we will not have learned the lessons we need to have learned from this crisis and all our efforts will have gone to waste. madam president, at this stage in the debate, virtually everything has already been said. most of those present have observed that while the events of the past week are not something to rejoice over, they served to bring matters to a head and have cleared the air both as regards relations between parliament and the commission and in restoring people's confidence in the union in the long term. i think we can now clearly see that we needed the time between january and march to prepare the report, which provides us with a quite different basis from the one we had in january for making constructive improvements in the future. i am impressed by the speed and efficiency with which the committee of experts has carried out its work. there has been some criticism of the fact that the task was given to outside experts instead of being carried out by parliament itself. however, i believe that our situation is too politicised to allow us to carry out such an investigation. i also honestly believe that there are times when it is appropriate to resort to an outside opinion. it is a necessary step, albeit a difficult one to take, since it is hard to see how to resolve the problems when one is deeply involved in the work and the procedures. let us now hope that this report really does become a blueprint for a thorough-going reform of the commission's working practices and, perhaps even more importantly, that the call for openness and transparency which has constantly been reiterated over the past few weeks and which has frequently been made by the european parliament now becomes a reality. as recently as last january, we came up with a very constructive proposal on this subject. mr president, a new era starts here today. i am tempted to paraphrase the famous words that goethe said on the night after valmy: for the european institutions a new era is beginning and a different culture is required. and that culture is the culture of democracy. can we live up to this culture? i think we are all facing a collective challenge here. first, the commission, which has long been a rather other-worldly institution supported by a choir of faithful followers. now it is to become an ordinary governmental organisation monitored by representatives of the people. it might be rather annoying for it, but that is the way it is. parliament too is facing a challenge. parliament has become a major player in the institutional game, but as the french say, 'noblesse oblige ': this new responsibility brings new duties with it. can we be a strict partner to the commission, giving it the strength that is so vital to both our institutions, or will we be interfering usurpers, grasping for power that is not ours? we have to act responsibly. this new challenge is also something the council is facing. first of all it must ensure, as the other arm of the budgetary authority along with ourselves, that the commission is given the administrative resources with which to act. we hope to see this in category 5 of the financial perspective. it must also abide by all the rules of the democratic processes. finally, the challenge also affects the member states. the biggest omission from the amsterdam treaty was the reform of the commission. now we need to choose a proper commission that operates according to either the corporate model or a more presidential one. the timetable must be respected and we must meet these challenges together, or else everyone will be the loser. mr president, ladies and gentlemen, the resignation of the commission was justified and necessary on the basis of the wise men's report, and i am pleased to see so many of my honourable colleagues coming out in support of this report and its outcome, even though they originally opposed the appointment of the committee of wise men. but we all live and learn. secondly, the wise men's report was hard, but it was not unfair, because i believe that the less say the public have in how their money is spent, the stricter must be the criteria governing the administration of financial transactions. thirdly, the european commission had to resign, because it was too weak in many respects in relation to the council. on the other hand, it often made a point of showing its muscle to parliament. fourthly, we need a strong commission with a strong president. only that sort of commission will be a worthy and fitting partner for parliament. but being strong also means being open, transparent and certainly not secretive. point five: we need a new balance between the collegiate nature of the commission and individual responsibility. the public must be aware of the collective responsibility borne by the whole commission, but also of every individual commissioner's accountability. point six: some people are talking about the commission crisis as if it were a crisis of the entire european union, but the eu must stand the test, and it will, especially if it responds quickly, and i hope that the presidency can impose itself at the council meeting in berlin. point seven: we need a new team, not just a new president. the commission must be visibly renewed with new faces. point eight: some people see the incapacity and the mistakes of the commission as an opportunity and a summons to weaken the commission and even the eu. that is the wrong way to react, and i deplore such an attitude. point nine: we have achieved a great deal in this union, and indeed with the commission that has now resigned, but i believe that a common economic area and a common currency are not enough. and so point ten is that we must continue on the road leading to environmental and social union, on the road leading to political union, and we need a commission and a commission president who will not shirk any of their responsibility for the pursuit of these goals. mr president, it is important, as people have already pointed out in this debate, that this is a crisis in the commission. it is not a crisis of the european union. therefore, at this time our citizens need the reassurance that can only come from the council of ministers and parliament and the administrative people carrying on with the important tasks that have to be done, such as the completion of agenda 2000, regulation of the euro and reassuring the citizens of europe that there is nothing in the present crisis that has not been provided for in the treaties and that cannot be handled. there are many people in parliament who are taking pride and satisfaction in the role that parliament has played in all this. however, to my mind, parliament has stumbled along rather than charted out a very careful strategy in all that has happened. firstly, the committee on budgetary control, by a narrow majority, agreed to grant discharge. parliament refused discharge but later it voted a motion of confidence in the commission and its president. the leader of the socialist group voted to give discharge and also voted confidence in the commission. mr cox, leader of the liberal group, voted to grant discharge. so we should remember that it was not entirely clear from the very start where we were going. the committee of inquiry came up with its findings and it seems that it is these findings, which contained nothing new, which led to the resignation of the commission. the committee of inquiry made its point clearer than parliament has ever been able to do, so the public was able to read in a very clear way where the failings were. i believe that the consequences have been disproportionate to the failure of the commission as a college. the failures of the commission have been there for a long time. the failures have been obvious in that we gave them too many tasks and we did not give them the resources to discharge these tasks. i regret that one or two commissioners did not shoulder their responsibilities but i regret that so many good people, including the president mr santer, who have done so much important work and achieved so much success have appeared in the eyes of europe to be discredited when in fact they are people of honour who have done a good job. mr president, ladies and gentlemen, a great deal has been said about the resignation of the commission being an institutional and political crisis. i would call it more of a growth crisis. when jacques delors was president of the commission, it burst strongly onto the political stage in various areas of european policy, most of them incorporated in the maastricht treaty: the single market, economic and monetary union and european citizenship. it had abandoned its traditional role, but we failed to learn any real lessons from this. nor did the member states, which missed the opportunity provided by the amsterdam treaty because they were unable to get to grips with the problems of reforming the union institutions. parliament too was sometimes too timid in its approach to the amsterdam treaty and failed to keep the required distance. finally, and above all, the commission more than any of the other institutions was in the best position to see just how far its organisation and operation had become completely obsolete in terms of the tasks it was expected to perform, and which it agreed and asked to carry out. so now the line which the new president and the new commission have to take is clear. they must behave in practice, even though they are not yet able to do so by right, as a proper european government, with all the transparency and efficient organisation and management that this implies. as mr bourlanges said, the technocrat culture must give way to a culture of democracy. i think this is where the socialist group is to be congratulated, since it was our patient strategy which lanced the boil that was sapping the institutions. instead of going in for politicking, squabbling and settling scores, we pushed parliament into making a political gesture, and if the european union emerges the stronger for it, then it will be thanks to the actions of our group. mr president, can i first of all make an observation on behalf of many members about the gross discourtesy of the commission in not being present for this debate. to its credit the council is at least represented by coreper. i am probably the least surprised person about the findings of the committee of wise men, because, as many colleagues know, since 1990 i have been pursuing a fraud in dg xxiii. this has been amplified by the report but there is nothing new in it. my view is that the report by our colleague mrs wemheuer from the socialist bench who has not spoken tonight and who resigned in protest at the position of the socialist group before christmas from the committee on budgetary control did indeed examine the institutional questions which were supposed to be examined by the committee of wise men. paragraph 1 of the resolution passed by the parliament in january actually required the committee of wise men to examine the way in which the european commission systematically covers up fraud, mismanagement and corruption; and that is not in the report, especially if i may say so in relation to the saga on tourism. all we have actually seen is a delay of three months from the report by mr elles, which was sent back to ommittee in december despite the socialist wishes. that contained a number of reforms which could have been put into place even then. mr van buitenen's testimony on 9 december was widely circulated in the parliament and had all the information needed by the parliament to move to a motion of censure, possibly of individual commissioners, at the time. so the crisis that has developed over the last three months must be laid very firmly at the feet of mrs green. i described her as the most confused woman in europe and still believe that is the best description of her. so the report we have seen debated this evening is van buitenen ii. there is very little new in it, and i would simply say to the council that the wise men's report, if it recommends a fundamental change of the staff regulations and the way in which the commission itself operates, will have achieved something. may i just point out to the house that at no stage in the last eighteen months has any member state made any request through coreper or otherwise for the reform of the institutions. it is high time they did. mr president, the conclusions of the wise men's report are quite clear. the commission has lost political control of its administration. that is in fact the most frightening conclusion of the report. it means that staff in the commission can just go on in the same way, without any control or overall political guidelines. in such a climate, corruption, nepotism and irregularities can thrive. fortunately, the next wise men's report will be a shake-up of the civil service culture at the commission, and that is where the biggest battles will be fought. we need a comprehensive staff reform, which in my view should include an end to jobs for life and introduce fixed-term contracts instead. of course, there should not be any witch-hunt against officials in the commission as such. many of them work diligently and well, but it should be possible to get rid of the rotten apples. it will be a tough battle. the staff organisations will fight tooth and nail when they see their unrivalled privileges disappearing. the wise men's report places a collective responsibility on the commissioners. they have at last accepted that responsibility and resigned en masse. we can see that, because they are not here this evening. parliament would have dismissed the whole commission if they had not resigned of their own accord. the danish social democrat delegation is therefore unanimous in not voting for the restoration of a commission which is almost identical to the one we have just dismissed. it is not a question of personalities, although one person tried to make it so. it is a question of principles, and we would like to call upon our colleagues to set aside national party political considerations. new blood is what is needed. finally, i would like to reprimand the council. there must now be an end to the politics of the 15 rubber stamps. the national governments have shown no responsibility at all in this matter. year after year, they have approved the accounts without batting an eyelid, so perhaps we should consider sacking the council next time round. and i would like to say to my friend mr mcmillan-scott that i think it is a common trick to malign mrs green when she is not present, but that is typical of what the conservatives in england stand for. they are a common crew! mr president, the crisis which has been brewing for months in the european commission and which has now culminated in the resignation of the commissioners has sent out a clearly visible and long overdue signal. brussels has its own watergate, and conclusions now have to be drawn so that the crisis of confidence between the european parliament and the commission, between the public and the european union in general, can be overcome. the commission crisis is not confined to that institution alone. on the contrary, it is a crisis of the european union. to dispel it, we need short-term measures and lasting reforms. one of the short-term requirements is the nomination of a new president of the commission by the member states, in berlin if at all possible, and the commissioners who were explicitly criticised in the wise men's report must not be part of a future commission. among the lasting reforms are the earliest possible establishment by the council of a procedure that will make it possible to call individual commissioners to account in the event of misconduct, mismanagement and fraud. the unavoidable tasks facing the european union are completely divorced from present-day political reality. the treaty of amsterdam already provides for considerable improvements in this respect. these alone, however, will not suffice. a procedure for calling individual commissioners to account must be laid down at or before the next intergovernmental conference. a sustained improvement is also required in the fight against fraud. eighty per cent of all eu fraud takes place in the individual member states. if that scandalous situation is to be remedied, we need more than just an independent anti-fraud office; the european court of auditors must also be given wider powers. it must be able to investigate cases of fraud at the scene of the crime, in cooperation with regional and national authorities and supreme courts. parliament's right of scrutiny must on no account be diluted. the wise men's report was useful, but it should be completed by 20 april, and above all it should carry out an investigation at the level of officials. it is unacceptable for this commission to operate on the principle that commissioners may come and go but mandarins are forever. mr president, the european commission resigned because the committee of independent experts which investigated its activities found that it had been mismanaged. president santer made what was absolutely the right decision and accepted full responsibility. this process has shown that it was immensely important to have set up this independent committee, as it is only because of their work that we have been able to get to grips with the real problems. without it we would have merely swept matters under the carpet, as it were, having had two or three token resignations from commission members. reading this report now, it seems unlikely that we would have had sufficient justification for dismissing everyone. we have to bear in mind, however, that we will need to cooperate extremely closely with the council in the future. the new commission must be appointed quickly, and it was very good to hear the president-in-office of the council say that the principles of the treaty of amsterdam would be respected in this connection. nevertheless, while we ponder these images of power, we must remember that the most important matter on the agenda at the forthcoming berlin summit is the approval of agenda 2000, and in the light of the current situation it is vital that berlin should be a success. certain speakers here have proposed that the new commission might include members of the current one. i believe this has to be examined on the basis of what we want from the commission. the aim must be to improve the commission's work and management culture, and we must have commissioners who can do this. the current situation should be exploited thoroughly. we need time and energy to bring about reform, and capable people to manage it. mr president, jacques santer has shown great political courage. by resigning along with all the rest of the commission, he has shown that he accepts full responsibility, and i admire his honesty. however, i also regret the fact that a commission which has done excellent work throughout its term of office should have been forced to resign. if mrs cresson had resigned of her own accord last january as she should have done, when her dubious practices were already widely known, we would not be in a political crisis in europe today. i hope that the kind of national tricks that mrs cresson got up to will no longer be possible in the new commission, a new and strong commission which i hope will have the endorsement of the newly elected parliament in june. i would also like to take this opportunity to pay tribute to jacques santer and most of his commission, which has launched some historic projects: the euro, enlargement, agenda 2000. he was also determined to carry out fundamental reforms to make the fight against corruption more effective. it is through the irony of history that the santer commission has become the first victim of its own reforms. let us hope that the measures it has taken will enable its successor to be more transparent, democratic and effective. president, i am really appalled at the remark of the tories and their leader this evening but i am not surprised. it just confirms what i have always thought about them. this report, however, gives us an opportunity for a fresh start. by 'us' i mean all the institutions of the european union. reform of the commission is the start. the council of ministers and the national governments also need to examine themselves critically and ask if they have always acted in the best interests of our union. the council of ministers will make very important decisions this week which we know will have a long-lasting effect on the future success and credibility of the european union. let us hope that they make these decisions in the same spirit of openness and accountability and respect for democracy that they rightly demand of the commission. the commission has been found guilty of malpractice. i would suggest that the way to remedy this would be firstly that all appointments and contracts be openly advertised, decided independently and scrutinised by the parliament. the commission staff should cease empire-building and behave collectively for the good of the community. the practice of there being a de facto national quota for senior staff appointments in the commission must end. the commissioners should be entitled to appoint a personal cabinet but this should be done with complete transparency. each commissioner should have to justify the appointments by publishing details of the individual's qualification for the job to an independent assessor. each cabinet member should be absolutely required to leave office with the commissioner. no more parachuting into important commission staff positions. with regard to the role of national governments, these and other reforms are badly needed. the public must be made aware that it is often the practice of governments and the council of ministers to blame the commission when things go wrong. as has been pointed out here, most eu funding is actually administered by national governments and there is considerable evidence of fraud and malpractice in this area. it is the responsibility of governments to address that. and finally, president, i would say that with regard to the role of the council of ministers, we know that they meet in private. they are one of the few remaining governing bodies anywhere in europe where decisions are taken behind closed doors, and this must stop. mr president, the uncompromising final paragraph of the conclusions of the report is undoubtedly controversial. according to this paragraph, despite the dilution of political responsibility observed during the inquiry, the commissioners should accept this responsibility as a body. faced with this conclusion, the commission had no alternative but to resign, which it has done with its dignity intact. this crisis has come at the worst possible time, with the european union in the final stage of the agenda 2000 negotiations, the outcome of which will to a large extent determine our collective future, and in particular the future of the cohesion countries, including my own, and of the applicant countries from eastern europe and of our farmers. the frenetic demands made by certain political forces to get rid of this commission makes me suspect that it would suit them to have a weak commission, because a weak commission would in theory be easier to bend to their minimalist views on the future of the european union. i believe that it would be more reasonable to keep this commission on in a caretaker capacity, as it is familiar with the dossiers being negotiated and could therefore guarantee more rapid, effective and well-balanced negotiations. nevertheless, we are open to other reasonable solutions. the important thing is that the pace and the balance of the negotiations on agenda 2000 should not be affected and that the strategic interests of the union should not be jeopardised. i also want to emphasise that i am against a second report by the committee. we need a strong commission in which political responsibility outweighs bureaucracy. we need parliament to actively pursue its budgetary control functions and we need a body that will fight effectively against fraud. if what we have now is not adequate, then we need to carry out whatever reforms are necessary. but we cannot perpetuate exceptional arrangements. it is time for the institutions to act and to accept their political responsibilities. mr president, i should like to begin by paying tribute to my fellow-countryman, jacques santer, who is not in my party but whom i respect for the important political work he has done as president of the commission. i would like to underline his political successes, but also the circumstances that led to his downfall, for which his own political group, the ppe, bears considerable responsibility. as everyone here has said, we need the swift appointment of a strong new commission that can carry out root-and-branch reforms. however, while i naturally agree with this in principle, i would also stress that we shall be in an entirely new situation. the new commission is to be approved by parliament, which will also vote in the new commission president on the basis of the commission's programme. there is to be a new relationship between parliament and the commission, and it will be the commission and its programme that parliament will be approving for its term in office. so in approving the commission, parliament will be bound by a sort of contract for the term of office, and it will have to be disciplined and show political maturity. there will have to be a stable majority if the commission's proposals are to be implemented, and parliament will no longer be able to make do with the kind of fluid majorities that expose it to the risk of blackmail, particularly from eurosceptic or anti-european groups. the parliamentary democracy that is now being introduced in europe also requires parliament to be legitimised by its electors, and this is why i do not agree that it should be the old parliament that approves the new commission. it should be the new parliament elected on 13 june. mr president, the social democrats must bear a large part of the responsibility for the institutional crisis in which the eu now finds itself. last december, they voted not to hold the commission responsible for its administration. that decision, together with the attitude it reflected and which preceded the vote, meant that the commission felt under no obligation to carry out reforms at an early stage, thereby possibly avoiding the present situation. in january, the social democrats also lent support to the commission by voting against the censure motion. in our present situation, we need a new commission whose mandate will last until the year 2000 to take over before the european elections in june. any other solution would not be understood by the voters. the commission also needs to play a central role in taking initiatives and in ensuring that the treaty is respected. with so many important issues on the agenda, it is essential that the policy-making work continues. whatever the different governments may say, the new commission's mandate should last only until the end of the year. the newly elected european parliament should approve the appointment of the president of the commission and the commissioners for the period 2000 to 2004. the result of its vote should be respected, in accordance with the treaty. several factors serve to complicate both the process and the timetable: the commission has to be appointed in two stages; the present parliament's remaining mandate is so short; and two different treaties have to be applied. the importance of the role of the european parliament in this process stands out clearly. the council of ministers has not instigated any administrative reforms. however, if what parliament says is to carry any weight, it is essential that no criticism can be levelled against its own position. it is fortunate that parliament, on various occasions, has carried out major changes in its own working practices. a new proposal for a statute for members of the european parliament has been submitted to the council of ministers for approval. this issue also needs to be settled before the european elections. mr president, the resignation of the commission in the wake of the report published by the committee of wise men was the right decision. since march 1998 parliament's group of the european people's party has systematically highlighted failings in the work of the commission. the results of the report which led to the resignation simply repeat in black and white the findings of the committee on budgetary control. it would have been reasonable to expect those commissioners charged with negligence, mismanagement and nepotism to have known when to resign themselves, in the light of information obtained earlier, especially as parliament does not have the power to dismiss individual commissioners. in the future we will need to analyse the make-up of the institution and examine the functions of commission officials. continuing the work of the committee of wise men, is, however, not the solution. parliament now has the means to monitor the commission's activities. it is parliament's task to ensure that the positive reforms now under way in the commission are carried out and that any problems that emerge are promptly dealt with. the situation is an awkward one at the moment as far as the union is concerned. a temporary commission must therefore be swiftly appointed, so that the union is capable of operating as soon as the new parliament commences work after the elections in june. naturally, a temporary commission would only operate until the end of the year, when the new parliament will carefully consider the choice of commissioners for the next five-year term. we do not need a commission made up of failed politicians or those who have been put on the shelf in their own countries. in considering the choice of commissioners we have to take account of the candidates' ability to manage the affairs of the union and to bear both individual and collective responsibility for their decisions. parliament has now brought about a huge change in policy and it must be ready to take the responsibility for seeing the reforms through to the end. we are now altering the course of the union, making for a more transparent and democratic people's europe. thank you, mrs matikainen-kallstrm. i have received eight motions for resolutions to wind up the debate, pursuant to rule 37(2). the debate is closed. the vote will take place tomorrow at 3 p.m. the sitting was suspended at 8.35 p.m. and resumed at 9 p.m. eaec accession to kedo, eu-dprk relations the next item is the joint debate on: the report (a4-0104/99) by mr tindemans, on behalf of the committee on foreign affairs, security and defence policy, on the agreement on terms and conditions of the accession of the european atomic energy community to the korean peninsula energy development organisation (kedo) (c4-0483/97); -the oral questions by mr spencer, on behalf of the committee on foreign affairs, security and defence policy, to the council (b4-0147/99) and the commission (b4-0148/99), on the european union's relations with the democratic people's republic of korea.as the president said at the beginning of the sitting, the council has indicated that it is unable to be present because of work connected with the preparations for the european council meeting in berlin. mr president, as the house will appreciate, we are dealing here with a very serious matter, namely kedo and relations with north korea, a country which is totally isolated at present and which is in the grip of acute food shortages. so this is a most serious debate. i shall confine myself to three points. firstly, kedo itself. we have already held one debate in parliament to discuss an initial tranche of funding. kedo came into being as a result of a project to prevent the proliferation of nuclear weapons in north korea and draw north korea more closely into the international community. in 1993, there was a fear that north korea might obtain nuclear materials from its soviet-type nuclear facilities, graphite moderator reactors, with a view to putting them to military use. this fear was further intensified by the north korean threat to leave the nuclear non-proliferation treaty. an agreement was concluded with the united states whereby north korea would freeze its nuclear programme and possibly close down its nuclear facilities, in exchange for the building of two light water reactors and in the meantime receiving supplies of heavy fuel oil. so kedo was a us initiative, although south korea and japan helped to carry it out. it may seem odd to seek non-proliferation by building two new nuclear facilities. but these facilities, light water reactors, are not only safer to operate but also harder to use for military purposes. the european union was then launching its new strategy for asia, to develop better relations between europe and asia. membership of kedo was therefore consistent with this policy and was intended to improve security in north-east asia. it would also show solidarity with our asian allies and might also bring economic benefits to european industry through the us involvement, since european firms would be eligible for kedo contracts. the foreign policy aspects of joining kedo are therefore significant. parliament's foreign affairs committee devoted 18 months and lengthy discussions to preparing a report which was as complete and accurate as possible. it also worked with the committee on budgets and the committee on research. the other committees directly concerned by this report favour joining kedo and think that parliament should do its job and make that accession possible, including in financial terms. i must take this opportunity of saying straight away that we were able to work extremely well with the committee on research and technology and the committee on budgets, with mr ford and mr brinkhorst. it was a delight, and often when the three of us consulted, we were all in agreement on the conclusions. there was one problem. the council decided that the accession agreement would be concluded under euratom. the treaty on which euratom is based does not contain any obligation to inform or consult the european parliament. the council and commission undertook to do that on a voluntary basis. but european membership of kedo will mean expenditure using funds from the budget. the three committees and the house as a whole realised this, and so there was a chance that this spending might not be approved unless agreement could be reached to involve parliament in future international agreements concluded under the euratom treaty. well, mr president, thanks to contacts and an exchange of letters, we have already reached agreement on the first tranche which i mentioned. but now what do we find? we, the three rapporteurs plus an official, visited north korea from 5 to 14 december. on 15 december a new agreement was signed by euratom, that is to say with the involvement of the european institutions, an agreement with canada. i am no troublemaker. i do not want to stir things up unnecessarily, but this is totally unacceptable for a directly elected parliament which has responsibilities and which has to answer to its voters. we cannot agree to the conclusion of something like this, since we shall be required to pay for it, since we shall have to authorise the expenditure for it. we cannot accept that unless we are properly informed and consulted. there has been a flurry of activity over this in the last few days, but i shall not dwell on that. in the foreign affairs committee, commissioner brittan made a statement which gave us the impression that we were moving towards an agreement. we have now seen a letter this afternoon to the president of parliament, signed by sir leon brittan, telling us how the commission plans to handle such matters in the future. i am pleased to say at this point that we are quite happy with this letter. we are also reassured by what sir leon said in the committee about how some paragraphs are to be interpreted, so we are able today to commend the entire kedo dossier to the house. but there is one more point i would like to make. when we were in north korea we had some quite fascinating encounters, we three rapporteurs and the official accompanying us. clearly we were going ask for meetings with the leading figures, and we got them. we talked, sometimes at considerable length, with the president of the national assembly, the foreign minister, the deputy foreign minister, the energy minister, the spokesman-general for the army, and so on. we got a fair impression of how things are. as i said, there are acute food shortages in this country. it is totally isolated. we came to the conclusion that humanitarian aid has to continue and that cooperation with the authorities there must improve, so that the help we offer can be more effective. we naturally came to the conclusion that we must do everything possible to prevent proliferation, to coax the country out of its isolation and into the family of nations, and that kedo can help to achieve that. we think the koreans would be prepared, if invited by the house, to meet with members of parliament here, and with the specialist committees. we advocate this in the motion for a resolution we have tabled. and we think that better diplomatic contacts may produce results. of the 15 member states of the european union, only sweden has an embassy - just sweden, none of the others. might the koreans not open a liaison office here? might we not strengthen our diplomatic presence there, with the european union taking an initiative to that end? we advocate both these things. but i will say no more on that particular subject. my third point concerns the two questions asked by mr spencer. perhaps i can just quote them. they are as follows: in the light of the recent establishment of a political dialogue with north korea, will the council state its views on the possibility and desirability of further developing relations between the european union and its member states and north korea? how does the council assess the current security situation in north-east asia? what discussions on this situation have been held, or are likely to be held, with the republic of korea, japan and the united states? his second question was: 'in the light of the recent establishment of a political dialogue with north korea, will the commission state its views on the possibility and desirability of further developing relations between the european union and its member states and north korea? how does the commission assess the current security situation in north-east asia? what discussions on this situation have been held, or are likely to be held, with the republic of korea, japan and the united states? mr president, i am speaking in two capacities - for the liberal group and also for the committee on budgets. it is quite ironic that on the same day that we are debating the consequences of the resignation of the commission, we should also be discussing the question of kedo. the committee on budgets, in a sense, has been the auxiliary committee. for us it was very clear when the council decided unilaterally at the end of february 1996 that kedo would be supported by financial resources entered in the budget, that the committee on foreign affairs, security and defence policy, which had not been not consulted, should give its opinion. that story has taken quite some time and still at the present time there is a reserve in the european union budget. the fundamental reason has to do with the debate which we had earlier today. it has to do with democracy and accountability. therefore, it has to do with the question of whether in the future we will have the possibility in this parliament of discussing the very fundamental question - as all normal national parliaments do. the euratom treaty is 40 years old. it provides very extensive powers to the commission and the council. it provides no powers to parliament. so, when the commission chose to enter into the agreement, it chose article 101 of the euratom treaty and this treaty does not provide even for consultation with or information to parliament. it is on those grounds - and i say this unabashedly - that the committee on budgets decided to put the resources in reserve until the foreign affairs committee and the committee on research, technological development and energy were adequately involved. we have been acting on behalf of these two committees. in substance it is very clear that it is not the committee on budgets that will decide whether or not we should enter into an agreement on energy cooperation with north korea. it is against that background that we are pleased to hear that the commission recognises that the times are changing. we look forward to hearing sir leon brittan, on behalf of the commission, reading out the results of the discussions we have had and which i hope will lead to a situation where we will have more accountability on euratom matters in the future. it is again very ironic that on a day like this the council is not even represented at political level and it shows that maybe the next battle for democracy will not be with the commission but with the council. speaking on behalf of the liberal group, we welcome the fact that the european union has a strategic energy and foreign policy involvement in north-east asia. we also welcome the very active involvement of sir leon brittan on behalf of the commission. it is against that background that we were deeply disappointed that it was not possible to find an adequate institutional arrangement for this particular point earlier. the liberal group fully supports mr tindemanns' view that it is not only with south korea but also with north korea that a new relationship should be developed. i would like to ask one question of sir leon. this morning in the international herald tribune there was a strong plea for a new approach to north korea. apparently the japanese are more reserved than the south koreans. we should strongly support the 'sunshine' policy of president kim dae jung who has suffered more than anyone in south korea from the tensions which have existed for more than 40 years between south and north korea. it is against that background that we would like to give our support to a kedo agreement and also to new relations between western europe and north korea. mr president, like mr brinkhorst i am also speaking in two capacities, firstly on behalf of the committee, and secondly on behalf of the socialist group. firstly, i should like to congratulate my two companions in this long endeavour: mr brinkhorst and mr tindemanns. we started this process on 21 november 1997. if i had known i was going to spend so long with them i would have checked with more care who they were going to be. however, i could not have picked two better companions. we spent a whole week together in north korea and ten and a half hours in meetings with the deputy foreign minister. this would have produced any personality clashes there might have been. equally, i should like to thank sir leon brittan for all his efforts to try to reach an agreement between the commission and the european parliament. it has been a long, hard road. i will not go into the detail because the points have been raised by the two previous speakers. we now have an agreement that i think parliament can accept on the basis of the letter which has been sent today. i am deeply disappointed that the council of ministers, which apparently accepted an oral question for debate on relations with the dprk, has failed to send anybody to participate in the debate. perhaps they have been delayed and i should be glad to hear from you, mr president, if that is the case. i presume we are expected to work out the council's view on these matters by some form of telepathy. kedo, as you have been told, is a project to build two light water reactors to substitute for russian design chernobyl-style reactors that were under construction in the dprk and which have the ability to produce weapons-grade plutonium. to try and resolve that problem we have the us-dprk framework agreement of 1995. the european union was asked to contribute to that and this is what this comes from. the research committee's view was one of critical support. we have a series of concerns. firstly, a financial hole it still exists. japan's contribution of us$1 billion and the republic of korea's 60 % and the european union's us$85m do not make up the full cost of the project. it is unclear how the gap is going to be bridged. secondly, we are concerned about how the united states is delivering the promised heavy fuel oil which is meant to act as a bridge until these two nuclear reactors come on line. it is being fitfully delivered. north korea is a deeply suspicious country. we in the european union might understand that the checks and balances of the us constitution mean that president clinton cannot always clearly deliver on his promises but we can hardly be surprised that the north koreans take a different view when, in the coldest month of the year and when energy is most needed, there was a failure to deliver heavy fuel oil to the sonbong oil-fired power plant. thirdly, we are concerned about the fact that kedo is a bat without a ball. there is no money being put forward to connect the two nuclear power stations into the north korean grid system. this is only going to cost $100m or $200m, comparatively small beer compared to what is being spent on the kedo project as a whole, but, clearly, if you do not have the bat and the ball, you cannot play the game. fourthly, we are concerned about the lack of clarity on the allocation of these enormously large contracts and whether european industry is going to get a fair opportunity to bid. despite these reservations the research committee voted in favour of the programme. we believe that, overall, it serves our best interests as a parliament and as a european union in demonstrating our role in east asia. this debate is not only about mr tindemann's kedo report. it also refers to two oral questions to the council and the commission with respect to future relations with the dprk. we have been supplying humanitarian aid for some years following a series of natural disasters - flood, drought and tidal waves - that tipped what was a barely sufficient north korea firmly into the red as far as food production was concerned. there is severe malnutrition in north korea. a recent world food programme report indicated that 16 % of children between the ages of 1 and 6 are so badly malnourished that they suffer from permanent brain damage; 45 % of children are so badly nourished that they will be permanently stunted. so, 300 000 to 400 000 0-6-year olds are permanently brain-damaged and 1 000 000 0-6-year olds are permanently stunted. therefore, i welcome the new agreement to supply further food aid of something over ecu 30m and to target children under 12 and lactating mothers. i welcome the agreement by the north koreans on monitoring. after the events of last week it is vital for us in parliament to be assured that the commission is spending the money in the appropriate ways. i welcome also the assistance on agriculture - new techniques and maybe even new crops. i am disappointed, however, that nothing is being done in the non-nuclear energy sector. while i was there on the delegation i visited a coalmine and a thermal power station. firstly, there was no power so the coalminers had to be evacuated. no coal would therefore be produced over an eight-hour shift and the power station only had three days' supply. both were extremely primitive and i speak as someone whose family were coalminers in the united kingdom in the 1950s. compared to the cost of kedo, one-tenth of 1 % of the kedo project would boost productivity in the coalmining industry - it has been estimated - by something like 25 %, and modernise elements of coal-fired power production. on the political side i welcome the result of the council's low level political dialogue with the dprk and support the idea of a second meeting when the time is right. i welcome the commission's communication on korea calling for critical engagement. all i ask is that we move quickly. the situation is critical. we should not miss an opportunity. i know the north koreans have asked for a liaison office to be opened in brussels. i hope we can agree that can happen, subject to reciprocity in pyongyang, and that subject to the necessary agreements we can move on to more developed relations. finally, i welcome the paragraph in the report that asks for a delegation to come here from the dprk's parliament. we will have hard and difficult negotiations with them but the dialogue has to start somewhere. mr president, ladies and gentlemen, may i say first of all that i am pleased that the general issue regarding parliament's role in euratom agreements has been settled and i can assure you that the commission services will implement the practical arrangements we have arrived at. before setting those out, i want to say that i very much agree with what mr tindemanns said about the role of kedo as part of our asian strategy and being an important contribution to it. we will come to north korea in a moment but we have to look at our policy with regard to the region as one which has to be integrated, comprehensive and positive. as far as the problems we have had with euratom agreements, i am grateful for what has been said about my own role in resolving them. i can assure you that i absolutely agree with mr brinkhorst that times have changed and we have to reflect that in what we are doing. the measures the commission intends to take are set out in a letter that i have sent to the president of the european parliament today. that letter states first that at the beginning of each year, the commission will provide a list of all the relevant euratom agreements under article 101(2) which are under negotiation or for which negotiations are to be launched in the coming year. this list will be regularly updated and forwarded to parliament under the necessary conditions of confidentiality. secondly, the commission will provide oral information on request to the relevant parliamentary committee on the conduct of the negotiations under the necessary conditions of confidentiality. thirdly, the commission will forward the proposals for conclusion of the relevant euratom agreements to the parliament at the same time as they are forwarded to the council for approval. that is a significant procedural innovation since it provides a guarantee to parliament that it will be informed before the council has taken a position on the conclusion of these agreements. thus parliament will have the opportunity to make its views known before a decision is taken to conclude the agreement in line with the commitments made in our earlier exchange of letters. i should add that the time it takes for the council to reach a decision on conclusion is generally fairly lengthy. that leaves ample time for parliament to express its view if it so wishes. in those cases where the council may wish to take a particularly rapid decision, the commission will duly inform the parliament of this possibility. fourthly, by way of a letter, information will be provided on the relevant agreements under article 101(2) euratom which are currently either under negotiation or for which a decision or conclusion has not yet been taken. the agreements referred to represent all agreements covered by article 101(2) euratom which are under negotiation or for which negotiations are to be launched in the coming year. finally, in order to ensure that there is no further misunderstanding between the commission and parliament, the commission will also convey separately to the parliament all relevant texts and agreements which should have been covered by our understanding during the latter half of last year and the beginning of this year. that is what the letter says. with respect to the report on the kedo accession agreement it is a well-presented and interesting document which addresses the fundamental aspects of the kedo initiative. the visit of the parliamentary delegation to north korea was regarded in a very positive way by the international community and i am grateful for the degree of attention parliament has given to kedo. i particularly endorse the conclusion which states that parliament considers that the european union should play a role in reducing the risk of nuclear weapons proliferation, increasing nuclear safety and encouraging the development of better relations between the dprk and its neighbours and that membership of kedo will enable it the better to play that role. we are fully playing that role in the implementation of the accession agreement. we attend all kedo board meetings and negotiating meetings with north korea. the eu has staff in kedo, including at director level, is following the procurement aspects - and here i can assure mr ford that we have every intention of ensuring that europe gets a fair crack of the whip - and europe has the chairmanship of the important international nuclear safety advisory group. we are paying our financial contribution which helps to ensure that the dprk respects its non-proliferation pledges and we were pleased to note that the dprk is now going to allow access to the so-called underground facility so as to allay international concerns. security aspects are fundamental to peace and stability on the peninsular and the kedo project is contributing to reconciliation between the two korean governments. indeed, it is a unique example of south and north koreans working together. kedo itself is a special organisation where we are cooperating actively with our american, japanese and south korean partners to help improve security in north-east asia. north korea is also aware of our involvement not only through kedo but also via the political dialogue which i shall refer to in answer to the question and by the european union food aid programme. indeed, it is the case that the commission negotiators have recently reached an ad referendum agreement with their dprk counterparts on conditions for a new eur30m aid programme for 1999. so we are contributing to a process of engagement with north korea, seeking to encourage it to become a more responsible member of the international community. we have to be realistic. there is an important, difficult and ongoing task to ensure security in north-east asia and underpin the global non-proliferation regime. kedo is a key part of that task and we will continue to remain in close contact with parliament in the implementation of our participation in it. we will have to start preparing soon for the future of our participation in kedo because the current agreement expires at the end of the year 2000 and we will be in close contact with parliament following the procedures i referred to earlier. so i am very gratified to see that parliament's opinion records approval of the accession agreement which will allow the release of the funds for the 1999 financial contribution. it is true that broader financial problems remain but the first thing we have to do is to play our part. turning to the question from mr spencer on the broader issue of relations with north korea, i welcome the visit that was paid by the members of the european parliament to north korea and i am glad that it was a successful bonding exercise. the negotiations i have had with the members of the parliament to deal with the kedo problem have been a similar bonding exercise and i thank all concerned. there is no doubt at all, as far as relations with north korea are concerned, that a crisis in the korean peninsular would have far-reaching consequences in north-east asia and beyond and we have a responsibility, commensurate with our new role in seeking to be involved politically in that part of asia, to do what we can to avoid it. president kim dae jung has strongly advocated greater international engagement as a way of handling the problem and i can certainly assure you that we fully support, as mr brinkhorst has urged us to do, president kim's 'sunshine' policy. america too is conducting a wide-ranging review of its policy under former defense secretary perry. we have been pursuing a policy of limited engagement illustrated by the food aid and other assistance programmes, as well as by kedo. we are currently discussing how that policy may now be taken further forward. an important factor will of course be the policies which the dprk itself pursues in key areas such as security issues, relations with neighbouring countries, human rights and so on. we also have to take account of the need to support our key partners in their dealings with the dprk. the eu regularly exchanges views with our dialogue partners, including the united states, the republic of korea and japan with regard to the situation on the korean peninsular. the idea that was put forward for further development in the energy sector is certainly one that we want to consider. possibilities are being considered, including a study into alternative energy sources and/or the coal sector rehabilitation. on the political side we obviously have to tread warily but not so warily that we do not make progress. that is the course we shall pursue and i am grateful to parliament for its support for it. mr president, ladies and gentlemen, in his own inimitable way, the commissioner has not only set out the problems but has also provided us with avenues to explore. we are grateful to you, commissioner, for your letter, which - at the last minute, if i may say so - enabled us to reach our decision on the kedo project. it might have come a little earlier, but we are pleased that you found the right approach along with our three musketeers. these really are three committed musketeers, who care about the interests of the people in north korea and about this issue. on behalf of my group i should like to offer my sincere thanks to mr tindemans, to mr brinkhorst and also to glyn ford. although you, as a practised diplomat, tread warily but with undoubted success along the path of rapprochement and cooperation with other countries, you will permit me, as a member of parliament who need not be quite so diplomatic, to point out that the kedo project, like others, must ultimately be judged by the conduct of the government of the democratic people's republic of korea in terms of its military activities and its humanitarian inactivity. i do believe that the north korean government must finally provide conclusive evidence that its military activities do not pose a threat, particularly to its neighbouring states, and that they are not designed to pose a threat. we call for access by independent inspectors to nuclear facilities, especially the underground facilities. we also really ought to expect the north korean government to declare at long last that it will not undertake any more test launches without giving prior notice. after all, japan could not fail to perceive the totally unexpected test launch of a missile over japanese territory as a threat. i believe we must surely agree that a country such as north korea which is looking for support from the international community must naturally conduct itself in such a way that it is not seen to threaten or act in a hostile manner towards other states. so much for the military aspect. as far as the humanitarian side is concerned, we are pleased to note, sir leon, that you have made progress on the question of providing food supplies for the population. but to be honest, i distrust any statistics released by the north korean government on the extent of the famine in north korea. i certainly believe it to be essential that we keep in touch with the aid agencies on the ground, because i do not think that even this project can come anywhere near providing the volume of aid that is needed - and mr ford has given us some figures. the fact that north korea has money for military actions but no money to buy food for its people is a contradiction that we cannot tolerate if we care at all for the people of north korea. in that respect, i believe we should keep a very watchful eye on that situation, and we should expect the north koreans to tell us the truth here and to assist us in ferrying supplies to the population, especially in the remote parts of the country. mr president, ladies and gentlemen, you may not be surprised to learn that i cannot see this whole situation in such a rosy glow as it has been presented here, especially by sir leon brittan. we know each other only too well, of course, from the committee on external economic relations. the few good points to be found in the kedo programme, namely the desire to arrive at an alternative form of energy and to make a contribution to north korea in terms of promoting reconciliation or improving people's living standards, are swamped by a whole series of points which mr tindemans presents in detail in his explanatory statement. mr ford has also told us what is really happening over there in north korea. i cannot help wondering whether we should not be trying to solve quite different problems there at the present time, rather than helping to build two light water reactors. how is north korea ever supposed to repay the debts it is incurring in this domain? if we reply to this question by claiming that we need to have a foot in the door, economically speaking, and to profit from projects and contracts, then i have to say that this is surely a very mercenary approach; to put it more bluntly, we have taken a policy that is supposed to provide a country with a helping hand in its pursuit of development and have succeeded once again in turning such a policy on its head in spectacular fashion. we are building a new white elephant under the guise of development aid. that is surely not designed to provide long-term assistance. reactors are to be sited somewhere in the landscape, and there is not even any certainty as to how the energy is to be transmitted from there. and what about the disposal of the nuclear waste? that, of course, is another question you have yet to resolve. you may find that amusing, sir leon. but as an aid worker who has worked long enough in the shanty towns of this world, i have to tell you that this sort of solution is certainly not one that springs to my mind. let me conclude by stating the obvious, namely that the way parliament has been treated throughout the period of the kedo negotiations has been anything but brilliant. if you are now presenting us with a letter, sir leon, the content of which i can certainly endorse - well, i have to say that it may have come late, but at least it has come. however, we are being given sight of this at a very, very late stage in the proceedings. i know that you are always keen to inform parliament and that you do that and come to our meetings. but in terms of substance - and let me make this very clear - we are usually sold short, because our questions often receive extremely flowery answers. that is something we very often experience in the committee on external economic relations. be that as it may, i have some different ideas of what would help these countries. for that reason, even though much of the content of the report may be right and proper, i regret that we shall have to vote against it. mr president, i have a suggestion to make. it would be a better idea to announce when the council is present rather than when it is absent, since this is becoming the exception rather than the rule. it is also going to make it difficult for mr brinkhorst to cross swords with the council if it is never here. it is a little late to be realising that instead of crossing swords with the commission, we should have focused our energies on trying to get the council out. but it is too late now, the damage is done. another thing: regarding the procedures for the vote tomorrow, i regret that we were not able to table amendments in the committee on foreign affairs, security and defence policy and had to table them directly in the plenary. it is going to add to our workload today, and it is also not in accordance with the rules. as for the substance of what has been said, i am absolutely dumbstruck. this will come as no surprise to someone like sir leon brittan, who is more of a dreamer than a realist. when i hear people talking here this evening about crises and food shortages, i honestly wonder whether they really appreciate the scale of what is happening in north korea. and yet the figures speak for themselves: two to three million people have died over the last four years. this has nothing to do with food shortages - it is a genuine famine, an out-and-out disaster, and it is not a natural disaster but a structural one caused by an insane, criminal and psychopathic regime which is worse than the worst regime in the soviet union or ceaucescu's romania. we are talking here very earnestly about a nuclear programme, and our green colleagues are right on this, in part: should we really be allocating hundreds of millions of euros to build nuclear power stations over there, even if they are less likely to be used for military purposes, when other solutions could easily be found? we are not asking for anything in return. we are providing food aid, and we are not asking for any reforms, although we know perfectly well that the agricultural production system is structurally quite incapable of meeting north korea's needs. i find this totally incomprehensible. this agreement will be supporting a regime that is completely and utterly insane. clearly we will be voting against this report, but that is not enough. perhaps when sir leon brittan stops being such a dreamer and becomes more realistic he might think about the possibility of investing a few million euros in providing the north koreans with information, instead of letting them starve to death without any knowledge of what is happening in the rest of the world. i think there are some fairly obvious things we could be doing instead of sitting back and watching pyongyang fire off missiles and waste what little energy the country has left on totally insane plans. it is a mad regime and it must be brought down. mr president, i understand the council is not present. is that correct? i repeat what the president said at the start of the sitting: the council has announced - albeit with regret - that it is unable to attend because of duties connected with the preparation of the european council meeting in berlin. i understand what you are saying, mr president but i rise on rule 40 which says that when questions to the council have been placed on the agenda in time, that is to say three weeks before - and as far as questions of foreign policy is concerned this time limit does not even apply - they will be answered. i am speaking here in place of mr wijsenbeek who, as we all know, is a recognised expert on the rules. we are in a dilemma. the oral question plus the report are part of a package. the council is not present tonight but we are also sitting tomorrow and i move that we suspend this item now so that before we vote tomorrow we have the reply from the council. that is the logical thing to do. this parliament is by now taken seriously by the commission but apparently not by the council. could i have a ruling from you on this point, mr president? mr brinkhorst, we have come to the end of this debate. i understand your comment, which has been noted, but the discussion is over. mr president, you cannot say that the debate is over if one of the two institutions to which we addressed our questions has not even replied. it seems to me that it should be up to the president to ask the council to give a reply. if you rule that we will not suspend the debate until tomorrow morning - and i understand that is implicit in what you are saying, though i would question it - could you a least say that the council will reply in writing to the specific questions put by mr spencer on behalf of the committee on foreign affairs, security and defence policy and that we will have that reply tomorrow before the vote? it makes nonsense of a debate if there should be two institutions present. sir leon has given a full reply but the president-in-office of the council is totally absent. can you reply to that point? my group's attitude will be very much determined by your reply. mr brinkhorst, we shall ask the council for a written reply, but i cannot tell you whether or not we shall have it by tomorrow morning. i would now ask sir leon brittan whether he wishes to comment further. mr president, i just wanted to say a word about some of the points raised by the last three speakers, and i will be brief. i entirely agree with mr jarzembowski that it is essential that north korean military activity must not present a threat. he has spoken in a very clear way. i would agree with and endorse it, and what we are doing is designed to deal with the security issue as much as anything else. it is indeed put forward explicitly as a way to engage the north koreans and discourage them from the worst form of military threat that there could be - namely, a nuclear threat. it has to be seen in that context. mr kreissl-drfler suggest that we really should be focussing on other problems. all i can say is that you have to ask yourself - and i would address this to mr dupuis as well - the extent to which we are able to do so with a country like north korea. the fact of the matter is that the gravest threat that it presents to its neighbours is a security one and that in preventing that by the kedo programme or diminishing the risk of it in the kedo programme, we are actually making a contribution without which it would not be possible to think about any other sort of measures; and i would say to mr dupuis that the idea that a regime which has the horrific characteristics that he has described is one that is going allow our propaganda to enter, is frankly an unrealistic one. i will say however to him that the new aid programme, in fact, is conditional. we have paid particular attention to securing adequate commitments from the dprk on the monitoring procedures and on a reform policy for agricultural rehabilitation products with increased incentives for farmers, devolution of decision-making, revolving credit facilities and so on. in those circumstances, i really do think that, faced by what was hitherto regarded as an impenetrable regime, we have made substantial efforts both to engage them in the process of the reform and to reduce the security threat that they would otherwise present to their neighbours and the rest of the world. thank you, sir leon. as i have said, we shall ask for a reply from the council, which is represented by two officials here in the chamber. i have received a motion for a resolution tabled pursuant to rule 40(5). the joint debate is closed. the vote will take place tomorrow at 3 p.m. emigration from iraq and neighbouring region the next item is the report (a4-0079/99) by mrs terrn i cus, on behalf of the committee on civil liberties and internal affairs, on the influx of migrants from iraq and the neighbouring region: eu action plan adopted by the council on 26 january 1998 (5573/98 - c4-0124/98). mr president, as you have just stated, tonight we are going to debate an action plan on the influx of immigrants from iraq and the neighbouring regions. this report was adopted on 26 june 1998, though parliament was consulted only a few months ago, when the action plan had already been under way for almost a year. the committee on civil liberties and i would have welcomed the opportunity to prepare a report on the measures proposed in this action plan at an appropriate time, and we felt that it was somewhat ridiculous to be called on to do so a year after the plan had been implemented. in my capacity as rapporteur, i therefore wished to take advantage of the opportunity provided by consultation and present a political report on this plan and its implementation. parliament should not be criticised for failing to put forward its opinion at a more appropriate moment as it was consulted at an impossible time. as we prepared the report, we put certain questions to the council which, in our view, were crucial. we asked the council how many people were involved and about the extent of the immigration. we asked about the result of the proposed measures, which had already been in force on the ground for almost a year, and we also enquired about the impact of the action plan on illegal immigration and on the criminal activities of those who traffic in people. we also wanted to know how many people had sought asylum and been processed since the action plan had been implemented. i appreciate that such information can be hard to obtain. nevertheless, i most earnestly hope that someone somewhere is in possession of it by now, though the committee on civil liberties and parliament most certainly are not. we have not managed to find out anything. no information has been made available to us, and we received no response to the questions we asked. notwithstanding this state of affairs, i attempted to analyse all the various aspects of the council's proposal. it should be said in the council's defence that this action plan represents an attempt to adopt a global approach to a problem which parliament had already highlighted in a resolution on this issue dated 15 january 1998. certain aspects of the action plan have given me particular cause for concern. firstly, i am unhappy that very different situations are being jumbled up together and dealt with in the same way under the plan. when we refer euphemistically to 'immigrants from iraq and the neighbouring regions', we also include a kurdish area torn apart by a political conflict which has resulted in strong repression. we are therefore dealing here with a displaced population seeking protection in more peaceful areas. the action plan refers to this in passing, along with actions aimed at other population groups which are indeed part of the same flow of migrants but for very different reasons. mixed in with these we find actions directed against trafficking in people. we are in favour of measures against trafficking in people, but we believe that each of these specific issues should be tackled with the appropriate measures. a distinction should be made between asylum seekers, those who are fleeing a conflict, and the activities of those who traffic in people. although the composition of this flow of migrants is undoubtedly varied, we do not believe that this is a valid excuse for failing to make the necessary distinctions. in this context, we are also rather concerned about turkey's part in the action plan. given its geographical location, turkey is bound to be the first country to receive these displaced people. it is essential, however, that their human dignity be respected. turkey should allow the unhcr to organise the initial reception process, particularly since, for refugees from northern iraq and especially those from kurdistan, turkey is part of the problem and cannot therefore be considered a safe third country for these people. respect for human rights and for the rights of minorities in turkey must take precedence over cooperation and aid in this respect. finally, members of the council - i trust you are present in the house today, because if you are not, what we are engaged in is fairly pointless - could you please enlighten us as to what exactly an action plan is meant to be? we have no idea. we know all about joint actions within the framework of the cfsp, we know all about other procedures, but an action plan is something new, and we would like to be informed of the basis on which this decision was taken. it seems to us that the decision lacked a sound legal basis. we therefore call on the commission to present a new proposal in three months' time, and for parliament to be consulted before the council takes a decision. we would also like information regarding the budget allocation for all this. we sincerely hope that such information does exist and that it will be made available to parliament. mr president, once again the council of ministers is addressing itself to the european parliament rather late in the day. it is requesting parliament's opinion on an action plan, as the rapporteur has said, after this was adopted by the council in january 1998 without prior consultation, as required by article k.6 of the treaty. is the content of the action plan so insignificant that this oversight can be forgiven? quite the opposite. the problem that has to be solved is an enormous, complex and extremely difficult one. it has arisen in the most sensitive and inflammable region bordering on our continent. it is a running sore that is getting worse and spreading to many countries where streams of refugees are taking shelter. it is putting our humanitarianism and our civilisation to the test. the swarms of refugees and dispossessed persons, be they kurds from iraq or, for all kinds of reasons, outcasts from neighbouring countries, are being caught in the nets of those who trade in illegal immigrants and falling into lawlessness and poverty. every day we learn of appalling events, the victims of which include women and children. in her comprehensive and very thorough report, the rapporteur rightly calls for a new proposal to be submitted within three months and for consultations with the european parliament to take place. only in this way can member states participate in this action according to the letter of the law. the committee on civil liberties and internal affairs is unanimously agreed, and the committee on foreign affairs, security and defence policy has delivered a unanimous opinion. however, the rapporteur does not fail to point out the weaknesses, the naivety and the omissions that characterise this plan, which has been adopted in fits and starts. nor does she deny that illegal immigration must be tackled with great severity, but this severe approach must not be indiscriminately merciless. it is hypocritical of us to ignore the fact that, in this way, the notion of asylum is discredited, when rejection or repatriation is often tantamount to a death sentence. the fact that a central, governing role is being entrusted to turkey, which has just such a past, with its violation of human rights, the state of its penal institutions and, in general terms, its inability to function in a proper judicial way, is simply a joke in very bad taste. the fact that it is being entrusted with such a role by the council in respect of a problem which turkey itself is trying to eliminate through military operations can only be seen as a very poor joke. mr president, looking at the european union's action plan of january last, we see a great many sound measures, but also signs of panic. measures were of course needed to cope with the exodus from kurdistan and so on, but all those measures ought to have been taken much earlier. one might say that the council had been fast asleep for years, and by the time it woke up the kurdish migrants were already in italy. my first question is this: what has actually come of all the measures taken under that action plan? we have no clear picture of them. we think that parliament really ought to be properly briefed on this. on the subject of briefing, another sign of panic on the part of the council last year was that parliament as a whole was not properly involved in the decision-making process. the rapporteur, mrs terrn, made this point and it is outrageous. that is tough talk, i know, and i mean it. we as parliament should have given our opinion on these matters. last week saw the resignation of the commission, but i think that the council, in matters falling under the third pillar, has possibly treated parliament even worse. so there is work to be done here. it means, as paragraph 1 of the resolution says, that there must within three months be a good overview and a proper new proposal on which parliament is consulted. the european commission has to provide that. i trust it will be able to do so. this is also relevant to relations with turkey. they continue to be difficult, of course. the eldr group believes that the dialogue with turkey must continue on issues such as the acceptance of kurdish migrants in the region and the improving of human rights generally. on these matters too, both the european commission and the council must keep parliament properly informed. mr president, at this precise moment, when the subject of the kurds is very much on the agenda throughout europe, the measures proposed by the rapporteur, mrs terrn i cus, are urgent necessities. her criticism of the action plan is warranted too. the european union can use its policy as a means of ensuring that the people of that region are able to focus their lives on their homeland and to live on their native soil where they feel at home. as long as we in the european union cannot eliminate the root causes of these refugee movements, as long as there is no peace in the region and as long as the political repression of minorities is common practice, we need an efficiently administered asylum procedure as proposed by the rapporteur. my group also supports your proposals on dealing with turkey as the country of initial reception for refugees from iraq. it is very important to us that the organisation and implementation of this initial reception in turkey should be entrusted to the unhcr alone. we also subscribe to mrs terrn i cus's view that the commission must present a new proposal, on which the opinion of the european parliament must be heard, before the council takes its decision. that would be an exemplary procedure and would befit the serious nature of the matter under discussion. mr president, this action plan shows once again that the mechanisms and procedures of the third pillar are not working and that european policy is reactive, not proactive, and devoid of vision. it is important to devise a policy for the long term. the plan designed for large numbers of refugees is largely rendered inappropriate by the decline in the number of refugees. this may mean that the policy has worked. but we do not have the information which would allow us to assess its effectiveness. there is an urgent need for transparency and clarity in the assessment criteria. consulting the european parliament on the action plan was the first step. this policy must also be viewed in its foreign policy context. in this region where there is conflict, oppression and a flouting of human rights, we have to be very careful about sending back refugees. sending kurds back to turkey at present is inappropriate, to say the least. nor is iraq's record one which justifies sending refugees back. we must be careful not to close our borders before we have conducted thorough analyses. it is vital for us to look at the deeper causes and resolve the problems on the spot. let us hope that we can do so. mr president, in her report, mrs terrn y cus criticises the eu's action plan on the influx of migrants from iraq and the neighbouring region. the report is critical both of the contents of the action plan and of the fact that the european parliament became involved in this plan only after it had been adopted. on the question of form, i can understand the reason for her criticism. parliament should have been able to have its say before such an important document was approved. at the same time, the implementation of the action plan is now the subject of a review. as you probably know, the council has set up a special high-level group to prepare action plans for afghanistan, pakistan, sri lanka, somalia, morocco and albania and the surrounding area. in addition, the council has asked the high-level group to review the implementation of the action plan on iraq. the document which the rapporteur has laid before us is therefore extremely valuable. the task of the high-level group is to formulate proposals as to who should be eligible to take advantage of the possibilities offered by the eu under all three pillars. the reasons are obvious: the situation differs from one country to another, so our migration policy should be adapted to suit the actual situation in each case. naturally, the more political instruments we have at our disposal, the more flexible we can be. it also means making use of the whole range of possibilities offered by the union, and parliament's views are therefore also very welcome. as regards the financing of the project in turkey, the commission still firmly believes that it is only feasible if we receive guarantees that human rights are being respected. furthermore, it is also our confirmed opinion that the unhcr should be involved in any attempt to start up an asylum project in turkey. in the report, the commission is urged to introduce measures to speed up the asylum process. the house may be pleased to learn that on 3 march the commission, at my suggestion, approved a working document which includes proposals relating to that very issue. the purpose of the document is to initiate a wide-ranging discussion with parliament, the member states and voluntary organisations on the framing of future asylum procedures in europe. it starts by advocating a speeding-up of the asylum process, but without undermining the right of people to have their requests for asylum considered in a thorough and objective way. i passed this working document on to the committee on civil liberties and internal affairs on the day it was approved. the commission intends to put forward a formal proposal after the amsterdam treaty has entered into force. i assume that before then the commission will be informed of parliament's views. in her report, mrs terrn y cus also mentions the need to help asylum-seekers and refugees to return to their countries of origin. i should therefore like to recall that, in december 1998, i put forward a proposal to establish a legal basis for a budget line covering asylum provision and repatriation. naturally, i am very disappointed that the discussions relating to our proposals for temporary protection and burden-sharing have not made more progress in the council of ministers. i am still convinced that vigorous efforts are required to deal with the widespread smuggling of human beings that is going on all over europe. two protocols to the united nations convention on international organised crime are currently under discussion. the first is intended to step up the campaign against the smuggling of different types of migrants; the second to prevent and punish, above all, the smuggling of women and children. we have a unique opportunity to reach a common position in the council of ministers when the negotiations are resumed. we should therefore decide quickly on a european set of principles, so that we can defend what we consider to be an effective strategy in that area. the issue is now under discussion in the council of ministers. for that reason, today's debate is of great interest as regards the further implementation of the action plan. i gather that the council is not present and that none of the questions put to it will be answered. i would ask you, mr president, to inform the council that, as rapporteur, i find its attitude unacceptable and humiliating. i am grateful to mrs gradin for the explanations she has provided, and i agree entirely with her. mrs gradin has always adopted a positive attitude towards parliament and i truly appreciate it. her attitude contrasts sharply with that of certain people who have not even deigned to be present today, as we discuss a plan of action that has been in force for a year and three months, and on which we have belatedly been invited to express an opinion. mr president, i would ask you once again to convey my personal indignation to the council and also my hope that answers to the questions put to it may eventually be forthcoming. we shall certainly make that request. as i pointed out a few moments ago, the president announced at the start of the sitting that the council would not be present. in actual fact - and this also applies to the previous debate - rule 40 clearly stipulates that the institution to which a question is addressed has to give a reply. this is an unusual situation, and we shall therefore ensure that parliament makes a specific request to the council. the debate is closed. the vote will take place tomorrow at 3 p.m. application of community law the next item is the report (a4-0092/99) by mrs sierra gonzlez, on behalf of the committee on legal affairs and citizens' rights, on the fifteenth annual report on monitoring the application of community law (1997) (com(98)0317 - c4-0377/98). mr president, the commission's annual reports on monitoring the application of community law have two main functions: to provide information on how the commission is monitoring the transposition of directives by the member states; and to provide an account of the use made by the commission of its discretionary power as guardian of the treaties to initiate non-compliance procedures. concerning the first of these objectives, it has to be said that the commission has made a significant effort in terms of the transposition of directives, particularly the directives relating to the internal market. as a result, the number of directives transposed into national law increased in all the member states in 1997, and the results were particularly significant in some countries, such as finland, denmark and sweden. nevertheless, we must also point out that the national transposition measures taken have not always resulted in the correct transposition of the directives into national law. moreover, the majority of member states did not adopt the national measures needed to transpose the directives until after the deadline for doing so. with regard to the second objective concerning non-compliance, considerable progress has been made following the entry into force on 1 january 1997 of a new instrument - the voluntary notification procedure - which seeks to facilitate the swift and uncontentious processing of disputes on the basis of transparency and mutual trust. the introduction of this new procedure coincided with the proposal made by the commission to the court of justice to the effect that once non-compliance has been established, a daily fine should be imposed until compliance is achieved, and this has led to substantial progress. the threat of such a fine has had a particularly dissuasive effect. much still remains to be done, however, as regards the implementation of decisions arrived at. delays in their implementation have created a lack of trust in such decisions. in fact, 87 decisions handed down by the court in accordance with article 169 have yet to be implemented. nevertheless, this represents an improvement on the previous year, as in 1996, 98 decisions were still awaiting implementation. moreover, 34 decisions relating to article 171 have still to be implemented. not only do such delays in the implementation of the rulings detract from the credibility of the decisions taken by the court of justice, but they also have a deleterious effect on the image of all the institutions, making them appear inefficient. turning to other areas, an overall reduction in the number of infringement proceedings in progress has also been recorded, following the reform of the procedure to shorten the period of time between lodging a complaint or recording a case of non-compliance and the first decision on the basis. the number of infringement proceedings initiated concerning environmental issues and discrimination on the grounds of nationality has nevertheless increased in relative terms. despite the progress made - which certainly deserves recognition - much remains to be done concerning certain specific features of the procedures, such as the strict observance of the terms of any injunction and of the time allowed to evaluate a complaint or a petition, and giving plaintiffs the opportunity to have access to legal arguments which could affect the final decision on a complaint so as to facilitate possible appeals. all these issues will have to given serious consideration in the near future, in the interests of legal efficiency and of the transparency of proceedings as well as to guarantee the credibility of non-compliance procedures in the eyes of the public. to this end also, we will have to encourage more detailed knowledge of community issues among the legal profession and the general public. subsidising training programmes and simplifying regulations would help in this respect. in conclusion, i would simply like to say that it is unfortunate that this annual report has not followed up the recommendations made in the previous report, namely, extending the scope of the report to include new material relating to the implementation of international agreements the community is party to, petitions and the transposition of social policy directives. mr president, this report by mrs sierra gonzlez is characterised by new proposals and new improvements, involving the simplification of community law, better transposition of community law into the national laws of the member states, and easier access to community law for the people of europe. the fact that the committee on legal affairs and citizens' rights has unanimously approved this text is proof of its more general acceptance, for which the rapporteur deserves our congratulations. as rapporteur, i monitored the implementation of community law in 1994, and since then i have not ceased to stress how important i believe it is to familiarise jurists with community law. my amendment, which was incorporated into the motion for a resolution, calls once again on member states and universities to make such study compulsory. the schuman action plan to teach community law to lawyers is an important move in the same general direction. on the eve of the new enlargement of the european union, the procedures to successfully incorporate derived law into the national laws of the applicant countries are of almost self-evident importance. this is the basis of my other amendment, also incorporated into the motion for a resolution, which calls on the commission to provide all possible technical support. for the countries of central and eastern europe, there is of course the phare programme, but cyprus and malta, with which we hope negotiations will begin shortly, are not covered. the report now before us is the last in this fourth parliamentary term on the annual monitoring of the application of community law, and it gives us the opportunity to point out the improvements made over those years thanks to the pressure brought to bear by the european parliament, which has the power of codecision following the treaty of maastricht and is therefore a co-legislator. the progress made in incorporating community law into national law has been quite spectacular, and the implementation by the commission of articles 169 and 171 of the treaty, with the imposition of penalties, has, as mrs sierra gonzlez has pointed out, compelled member states to respect the decisions of the european court far more than used to be the case. in a few weeks, the amsterdam treaty will enter into force. the european parliament will gain significant new powers of codecision, as well as powers in other areas. i would like to express my firm belief that this change will make a significant contribution to ensuring that european community law moves closer to the people of europe, and that there will be more transparency in the decisions of the european union. mr president, i am pleased to see that the rapporteur, in paragraphs 9 to 15, adopts the same approach to community law as last year's report, as well as the larive report on business communications. we should like to see the procedures speeded up, for example by having regular three-monthly commission meetings on these issues, a six-month time-limit, and so on. i hope that the new incoming commission will adhere to any undertakings in this respect so as to ensure that the reforms can be effectively applied. we were also pleased to hear the rapporteur mention that there should be more rapid access to the reasoned opinions of the court of justice; my colleague mr wijsenbeek is still waiting for an opinion on his case from the ecj. much attention has also been focused on the clarity of community law. we know that parliament approved the guidelines set out in mrs palacio vallelersundi's proposal for better community legislation. unfortunately, i have to say that the comments of the language experts relating to these guidelines have not been particularly encouraging: no language experts have actually been consulted. at the same time, we know that the english translation service is forging ahead with its attempt to 'fight the fog'. the liberals have tried to focus attention on these efforts, but unfortunately we have still not succeeded in getting everyone to understand that parliament should put pressure on the other translation services to make them see matters in the same way. the written language should be made more user-friendly. it is not we who draft the legislation who have to understand it, but the people who actually apply it. this would also allow us to make considerable administrative savings. i hope and firmly believe that the finnish presidency will make this a matter of priority in the autumn, thereby enabling us to promote a better understanding of community law. mr president, it is difficult to say anything new when discussing a report such as the one before us today which enjoys such broad consensus. not only has it been approved unanimously, but it goes forward without a single amendment. i should like to congratulate the rapporteur and express my support for what mr anastassopoulos has just said. however, a moment's reflection is called for. the commission's annual report concerns the issue of monitoring the application of community law. so, it primarily relates to monitoring and thus the way in which the commission exercises the monitoring powers entrusted to it in the treaty as guardian of the treaties. these powers - i am referring in particular to article 169 and article 171 of the ec treaty - have been increased and strengthened. and yet as other speakers have already pointed out, we need to increase the transparency of this procedure, particularly as regards the administrative procedure, which takes place within the commission behind closed doors. the commission is currently under review and amongst other challenges it is being urged to devise a clearer and more transparent procedure with a timetable we are all aware of. but what is at issue here is monitoring application. application means knowledge, knowledge means understanding and understanding means clarity first and foremost. community law lacks clarity. mr anastassopoulos referred to a representative from a country in eastern europe, and i remember him saying to me: 'mrs palacio, you require us to incorporate the acquis communautaire , but you are constantly changing it'. we have had experience of this recently in the committee on legal affairs. we were dealing with a matter relating to consolidation. from the start of the consolidation initiative to the time when parliament began its report, two directives which should theoretically have been consolidated were amended twice. this is a typical example of the lack of visibility, the complicated web of rules which has such a negative effect on community law in general. this is what declaration no 19 of the treaty of amsterdam relates to. another declaration to mention in this respect is declaration no 39 annexed to the treaty of amsterdam on the quality of drafting. legislation is being drawn up in 11 languages, embodying legal institutions drawn from different legal traditions. all this needs to be harmonised, so we must make a special effort to ensure that the end product can be understood by everyone, as mrs thors says. crucially, it needs to be understood by the experts. initiatives such as the grotius and schuman programmes should receive every support, because if community law is to be correctly applied, the experts, the judges, the lawyers and, more generally, all the courts must to be the first to apply it correctly. however, i should like to conclude on a positive note. i believe that as mr anastassopoulos has pointed out, this review of the application of community law, the application of the articles on monitoring in the treaty and, in general, knowledge of community law have all improved since 1994. we must maintain our efforts in this direction as a great deal still remains to be done. mr. president, i have to compliment mrs sierra gonzlez on her admirable report. monitoring the application of community law is an essential part of what we are doing in europe. the task of the commission is to be a guardian of the treaty. we have to make sure that the citizens affected enjoy the benefits that europe provides, and i am grateful for parliament's support in this difficult, unending task. the fifteenth annual report for 1997 shows that we have taken several important steps in ensuring respect for community law; and mrs sierra gonzlez, in her speech today, has referred to a number of them. we have substantially improved our working methods. good examples are the efforts to speed up the handling of cases and to encourage the transparency of our actions and all that has been done in close cooperation with the ombudsman. to enforce effectively community law, we have used all the instruments that we have. cooperation and peer pressures are often an effective tool to increase transposition and correct implementation of community law. that is demonstrated by the successes of the single-market action plan and the bilateral meetings on directives with member states. i would also agree with mrs sierra gonzlez that producing simple and clear legislation is one of the best ways to avoid problems later. mrs thors was right to talk about the importance of having user-friendly language. i also agree with mr anastassopoulos and others who spoke about the importance of teaching law so that those who are lawyers understand what the community law is all about. that having been said, there are occasions when we have to use our powers under article 169 of the treaty to launch infringement proceedings; and we, of course, do so. we are currently handling more than 3, 200 such cases. our reforms have improved the working of the proceedings, and that is very important for citizens who are at the origin of nearly 50 % of the cases. we are handling cases much faster than a few years ago, and the main reasons for that are that we now decide letters of formal notice, recent opinions and referrals to the court on a more regular basis. cases are now decided on a bi-weekly basis. in the past, the system was more rigid and did not allow one to come to a decision as soon as the case was ready for action. secondly, decisions are implemented more rapidly. in the past, it could take several months to send a 169 letter. today, the formal notice will often reach the member state a week after the decision. and finally, we enforce deadlines for reply or compliance much more strictly although, of course, the rights of defence of the member state have to be respected. we use all opportunities to solve infringement problems as quickly as possible. only 10 % of the cases go to court, and reference has been made to the penalty system which now exists, and requests from between 7, 000 and 260, 000 euros per day have been put forward by the commission. it is all for the benefit of our citizens so it is quite right and normal that we should inform them of all the steps of an infringement proceeding which concerns them. here the european ombudsman as well as the parliament have played an important and instructive role. information on respect of community law in general must also be more widespread, and i welcome the support of the parliament to increase transparency in this area still further. to conclude, respect for community law is essential to bring europe closer to its citizens. we are using all the powers we have to prevent, and if necessary, pursue infringements by member states. that is what our citizens are entitled to expect, and that is what they are getting. thank you, sir leon. the debate is closed. the vote will take place tomorrow at 3 p.m. common system of vat (standard rate) the next item is the report (a4-0129/99) by mr secchi, on behalf of the committee on economic and monetary affairs and industrial policy, on the proposal for a council directive amending, with regard to the level of the standard rate, directive 77/388/eec on the common system of value added tax (com(98)0693 - c4-0711/98-98/0331(cns)). mr president, you have given the title of this proposal for a directive, on which the council has asked parliament to follow urgent procedure. it involves extending the existing system for the current year and, at the same time, establishing a band - between 15 and 25 % - within which the standard rate must fall. colleagues are well aware of the recent developments - significant ones - concerning taxation: there have been various proposals to coordinate the member states' taxation systems with a view to abolishing harmful fiscal competition and, on the other hand, allowing healthy fiscal competition to take full effect. however, alongside this much-needed coordination - which, as i said, has already occurred to some extent - other measures, by their very nature, require fully-fledged harmonisation to allow the internal market to operate smoothly. in the action plan for the single market presented at the amsterdam european council almost two years ago, the commission pointed to the need to work towards a common system of taxation in the area of vat, which would eventually replace the current transitional system, while at the same time modernising and simplifying it. a three-stage approach has been agreed: this will involve measures to correct the distortions in the present vat system, modernising the current system by extending it to new leading-edge services and, of crucial importance, establishing the definitive vat system by adopting the 'country of origin' principle. this approach will allow existing procedures to be simplified and will reduce red tape for national administrations and firms, while helping to resolve the serious problem of fraud in the community. it should also bring benefits for citizens and consumers, because greater transparency and competition between the systems of the various member states will bring about convergence towards more acceptable levels of taxation. but since, as a result of delays, we are still awaiting the definitive system, a directive such as the one now before us is required for the current year, 1999. basically, the proposed directive extends the present system for one year and sets a band - between 15 and 25 % - within which the standard rate must fall. i believe that we are bound to accept this request, even though it is already belated, given that we are now at the end of march. while coming out in favour of the commission's proposal, parliament's committee on economic and monetary affairs wishes to take this opportunity to emphasise the urgent need to adopt the definitive vat system. the committee has put forward an amendment on this point, stressing that in one sense this is the final extension, and at the same time calling for the definitive system to enter into force on 1 january next year. a second amendment, which i have tabled on behalf of my group, reformulates this concept as a recital, adding that the present system - the one providing the transition to the definitive system, as it were - has a whole series of drawbacks, including the ones briefly listed in my explanatory statement. i hope that these amendments will be taken up by parliament and viewed by the commission as an incentive to proceed towards the definitive system, which is talked about so much but seems to be some kind of remote and increasingly unattainable dream. mr president, ladies and gentlemen, i agree with many of the points the rapporteur, mr secchi, makes in his well-informed report. the commission's proposal which forms the background to his report deals with the harmonisation of value added tax in the member states and is an attempt to make up for the delay in reform. this is an important issue, which is being hampered by the fact that union's decision-making machine is not working. the rapporteur is quite rightly firm about extending the period of transition currently in force. the reform of the vat system must be brought to a conclusion. the commission's proposal is largely a technical one, but the subject in itself is mainly political. the relationship in principle between indirect and direct taxation and the idea of goods and services as a source of indirect taxation are linked to the question of social fairness. switching the focus of taxation to indirect taxes hampers progressive taxation, and it is through progressive taxation that the income gap will narrow. while the union is involved in the process of harmonising tax policy we should not ignore this important social tool. however, what we are discussing here is indirect taxation. at least as far as food is concerned, the harmonisation of vat in the union would ease the situation in finland, for example, where the vat rate on food is, at 17 %, currently about 10 % higher than the eu average. lowering the vat rate on food would improve prospects for employment through support to the food industry. consumers would gradually turn their attention more to processed foods. it is also a question of social fairness. the smaller a person's income, the more indirect taxation takes, in relative terms, from that income. lightening the tax burden on food would make an immediate difference to how much money people had in their pocket. furthermore, the level of vat in the production of services is one of the key issues of tax policy. from the point of view of employment, high levels of taxation on services and consumption have hindered growth and, consequently, prospects for employment. it is a sort of phenomenon of suffocation. we therefore have to lighten the vat burden on the labour-intensive service industries. however, a certain degree of harmonisation of the standard vat rate is inevitable. we can make a virtue of this inevitability, though, by tying the lightening of the tax burden to policy on employment and growth. easing the vat burden on food and services would therefore lend support to this policy. mr president, this is a very late hour and a quite improper one at which to be discussing such a serious matter. but we are not just here to keep mr secchi company while he presents his report on the common system of value added tax. it is not only the hour that is late: this amendment to directive 77/388 was supposed to come into effect on 1 january this year and to remain in force until the end of the year. the council has also been tardy in taking all the decisions necessary for the changeover to the definitive vat system, which is supposed to come into force as from 1 january 2000. that is why we are here at this late hour, to support the rapporteur in stressing the urgent need for universal adoption of the country of origin principle, to cut down on red tape, to facilitate commercial activity, to combat tax evasion and to reform indirect taxation with a view to total transparency. although the single market is operational, it has still not been completed, and here and in other areas there are signs of distortion of competition. the introduction of the single currency and the disappearance of exchange rate competition between the various member states has exacerbated the market disturbances caused by tax competition. whether you call it tax coordination or tax harmonisation, there is a set of measures that needs to be jointly adopted for all fifteen tax systems in the eu. we are talking here today quite simply about defining a band of between 15 % and 25 % as the range for the normal minimum and maximum vat rates to be applied by member states. however, the scope for applying reduced rates will have to be reviewed in the near future, because of the distortions in competition it causes between certain geographical areas and between certain products and services, whether it be between belgium and austria or between portugal and spain. vat, which is an intrinsically neutral tax, has ended up being a factor influencing company locations and trade flows. this harmonisation of rates and this changeover from the transitional system to the definitive system demands courage and sacrifices of all the member states if we are to achieve closer alignment of national tax systems, even if this is phased in under a timetable. unless we can end fiscal chauvinism, the single market and economic and monetary union themselves will remain weak and incomplete. mr president, the question we are discussing today may seem dry and technical, but appearances are deceptive. this is all about whether the union can summon up the strength to discuss or regulate properly the conditions of competition in the single market and to eliminate the opportunities for both tax evasion and distortion of competition that exist in the realm of value added tax under the recipient-country principle. that is indeed a crucial requirement. i can fully endorse what the previous speakers have said on that point. this is really the political point of the secchi report. i do not think we should labour under the illusion that it will be easy to meet this target of 1 january 2000. but it is right for us as a parliament to put this demand on the bargaining table again. that way, there is a chance that at least the fundamental principle will have been accepted by the target date. mr president, there are some perfectly legitimate aims in this report such as the simplification of the vat system, which is designed to prevent fiscal distortion between member states and to simplify procedures by adopting the country-of-origin principle. anything along those lines is certainly welcome. however, some of the underlying ideas are much more worrying. first of all, the determination to constantly regulate and increasingly limit the member states' scope for independent action is tantamount to reducing the fiscal sovereignty of the various nations that make up the european union. in our opinion, this amounts to a body-blow for fiscal democracy, in that decisions taken at the level closest to the public are becoming increasingly subordinated to decisions taken at more remote levels. secondly, following the introduction of the euro, we should certainly be concerned about the possibility of short-term asymmetric shocks, since the member states have fewer and fewer options open to them for regulating their economies. in the event of inflation, for example, if all taxation is harmonised, each country can no longer have its own monetary policy or apply its own fiscal policy. all that is left is wages and incomes policy, and that really represents excessive state control. the choices that have been made keep vat rates extremely high, with the standard rate planned at 15 to 25 %. why not under 15 %? the vat differential between the european union, the united states and japan is still huge, and is probably one of the things that is to blame for europe's unemployment rate, which is much higher than in the other two countries. this is why although this report is extremely good in the context of the current approach, we are not happy with it and we reject its recommendations on principle. mr president, the european parliament and the amendments which it has proposed reaffirm its support for the movement towards a new common vat system. the commission entirely supports the stated objectives. nevertheless, the adoption of a final vat system by the council between now and december 1999, i am afraid, does not appear to be realistic. indeed, in its programme the commission had sketched the broad outline of the vat system envisaged for the future as well as a timetable based on a gradual approach for the presentation of specific proposals. this programme proposed three main headings: modernisation, the simplification of the current system and the change of the place of taxation. the commission has already submitted several proposals, currently on the council table, which cover simplification and the modernisation of the current arrangement specifically with a view to meeting operators' immediate expectations, that is to say, the transposition of the recommendations for the slim ii exercise. these proposals are essential to progress towards the final vat regime. indeed, the passage from non-harmonisation to complete harmonisation, if it is to take place at all, can only be achieved in stages; and the proposal on the standard rate falls within this context. the council, however, does not show any readiness to follow the commission's proposals, preferring to maintain the status quo , which does not go in the desired direction of greater alignment of vat rates. nevertheless, the commission's view is that general simplification of the current vat system cannot be achieved without radically amending the current complex rules especially those relating to the place of taxation. consequently, the improvements to the current vat system constitute an essential phase for the passage to a new system which envisages a single place of taxation, the only way of ensuring the radical simplification of the vat system demanded by european businesses. i am afraid that at the moment the proposals currently on the table of the council, with a view to simplifying the system and to ensure more uniform application of the tax, are at an impasse while the european parliament of course has supported then unconditionally. i would like to thank you therefore for the support that you have given to this proposal and more particularly, the objective being pursued by the commission, that of the definitive vat system. thank you, sir leon. the debate is closed. the vote will take place tomorrow at 3 p.m. the sitting was closed at 10.55 p.m.

forwarding of texts adopted during the sitting: see minutes

7. framework programme of the european atomic energy community for nuclear research and training activities (indirect actions) (

action taken on parliament's positions and resolutions: see minutes

opening of the sitting (the sitting was opened at 10.05 a.m.)

statement by the president ladies and gentlemen, following hungary's ratification of the treaty of lisbon, slovenia and malta ratified the treaty yesterday. (applause) the slovenian parliament voted by a large majority for ratification. the maltese parliament, for its part, unanimously approved the treaty. this is an important political signal whereby member states have shown clearly that they want the ratification process to proceed rapidly so that the treaty can enter into force as planned on 1 january 2009. i congratulate slovenia and malta on this landmark decision. (applause) for domestic reasons, as you know, the slovakian parliament decided yesterday to postpone its vote until a later date. i appeal to all political leaders in slovakia to fulfil their great political responsibility.

action taken on parliament's resolutions: see minutes

approval of the minutes of the previous sitting: see minutes

7. the state of play of the euromed free trade area (vote)

equal treatment of persons irrespective of religion or belief, disability, age or sexual orientation (debate) the next item is the report by mrs buitenweg, on behalf of the committee on civil liberties, justice and home affairs, on the proposal for a council directive on implementing the principle of equal treatment between persons irrespective of religion or belief, disability, age or sexual orientation - c6-0291/2008 -. mr president, on monday, the daughter of a friend of mine received a letter, a rejection letter from university. she had been rejected not on grounds of intellectual ability, but because she has a disability. the letter stated that the university was unable to offer her the care she needs. she got through secondary school fine, so it was no problem there, but now she has been sidelined. the report we are discussing today touches the heart of our society. do we want people to be considered second-class citizens on grounds of their age, sexual orientation, religion or belief, or disability, or do we prefer a society in which everyone can participate fully? when people are turned down for rented housing or loans on account of who they are, not only are they themselves unfairly treated, but society as a whole also sells itself short by writing people off. i have looked forward to today with eager anticipation. there is a great deal at stake in tomorrow's vote. the european parliament has been calling for european directives on equal treatment between persons ever since 1995, and the treaty of amsterdam gave us a legal basis for this at long last. in 2000 some important directives resulted from this: the directive implementing the principle of equal treatment between persons irrespective of racial or ethnic origin, whose scope covers both the labour market and the supply of goods and services, and also the directive intended to combat discrimination based on religion or belief, disability, age or sexual orientation - although the latter directive is restricted to the labour market. that began to cause problems, as discrimination is banned in more spheres even in the gender field. parliament has always opposed the hierarchy of grounds for discrimination that has arisen. after all, why should it be possible to refuse someone a loan for being homosexual, but not for being black? the protection should be equal. we have all argued in favour of this horizontal directive, and there are differences between us, in terms of the tone and sometimes also of the precise substance. yet up to now the vast majority of parliament has had the will to put right the current imbalance, and it is this message we must convey to the council tomorrow, so i hope for as broad a majority as possible. there are many people i should like to thank for their contribution to the report. first of all, the draftsmen, in particular mrs lynne of the committee on employment and social affairs. many of her suggestions have been incorporated into the text. i should also like to thank shadow rapporteurs mr gaubert, mrs bozkurt, mrs in 't veld and mrs kaufmann. in dutch we have a saying that translates literally as 'jump over one's own shadow', which means surpassing oneself - looking beyond the point one has always been harping on about - this is a good point for shadow rapporteurs. in my opinion, we have succeeded in doing this. i am really proud of the compromise adopted by a vast majority in the committee on civil liberties, justice and home affairs. it has improved. i also wish to thank many more people who contributed to this, but one in particular: mr cashman. i wish to thank him for all the advice he has given me, for all his lobbying activity, and also for his inspiration and friendship over recent years. moving on to the content, the report prohibits discrimination on four grounds. we had already regulated this for the labour market, but it now applies also to the supply of goods and services, social protection - including social security and healthcare - and education. not all distinctions are regarded as discrimination, however. for example, insurance companies are still permitted to differentiate according to age or disability, provided they can give an objective justification for this. provision must be made for many people with disabilities, but limits have been laid down as to what is considered reasonable. derogations are permitted under certain conditions, therefore, but equal treatment is the rule, and that is what the vote is about tomorrow. do we see europe as nothing more than a market, or do we see it also as a fount of civilisation? i must say that, in any event, amendment 81 shows where mr weber and 41 others stand. you do not want to see equal treatment legislation full stop. it makes no difference what compromises i attempt to reach, as you simply object in principle to anti-discrimination legislation. thus you are not making amendments, you are rejecting the whole proposal. this is where our paths diverge - no middle ground is possible. let us wait and see tomorrow which way the majority in parliament wishes to go. mr president, ladies and gentlemen, i appreciate the great interest in this proposal, the proof of which lies in the large number of amendment proposals it has given rise to. this shows that the fight against discrimination in everyday life is a constant priority for most of us, even during a serious economic crisis. i also welcome the excellent report submitted by mrs buitenweg and approved by the committee on civil liberties, justice and home affairs, as well as the remarkable contribution from mrs lynne and the committee on employment and social affairs. the draft report supports the ambition and the attempts of the draft directive submitted by the commission. in my opinion the rapporteur has managed to reconcile different viewpoints and to achieve a broad consensus between the various political groups. i would like to applaud the supporting role played by parliament in submitting the draft directive. as far as the proposed amendments are concerned, i agree with many of the improvement suggestions contained in the draft report. nevertheless i would like to say that this draft requires unanimous consent in the council and we must therefore remain realistic. i know that the problem of multiple discrimination is fundamental to you. i am fully aware of the fact that people who are victims of multiple discrimination are very seriously affected. however, at the same time i do think that as this directive applies to only four possible causes for discrimination, this problem cannot be definitively resolved at a legal level. in the commission communication on non-discrimination of july 2008 we committed to launching a discussion on this issue among the newly-established groups of government experts. the discussion has been launched. so the question of multiple discrimination is not being neglected. i could agree to a reference to multiple discrimination in the areas covered by this draft directive. i agree that we must define the division of powers between the eu and the member states more clearly. the directive will not change the definition as such, but our aim is to achieve the greatest possible degree of legal certainty. i also accept that freedom of expression must be taken into account when considering cases of alleged victimisation. however, we ought to be aware that the concept of victimisation requires strong proof. human dignity must be at stake and there must a hostile or humiliating environment. i agree to the inclusion of the concept of 'discrimination' by association" in the sense of the recent judgement in the coleman case, but this concept should be applied only where there is direct discrimination and victimisation. as far as financial services are concerned, i agree that there is a need for service providers to implement a certain level of transparency, but i have certain doubts about the formulation used in your draft. i fully agree that the directive should not apply to purely private transactions. the positions of the commission and parliament are very similar here. as far as the physically disabled are concerned, i can support a reference to the open definition of physical disability used in the un convention on the rights of persons with disabilities. i also agree in essence with some of the comments on the concept of physical disability that are included in your amendment proposals. however, i think it is necessary to point out that the wording of the legal regulation must be very precise. i agree with some of the other ideas that were expressed, but in my opinion it is necessary to ensure that article 4 is concise and intelligible. ladies and gentlemen, i look forward to hearing your opinions, which i will respond to in the debate. rapporteur for the opinion of the committee on employment and social affairs. - mr president, i would like to thank the rapporteur very much for all the hard work which she has put into this report and the close cooperation that we have had on this. we have worked very closely together, not just on this report, but, as she knows, along with other people, we have both been working on this issue for many years now, for the 10 years since i came into the european parliament. i remember that we sat together on article 13 hearings all that time ago. now, eventually, we have got to the situation where we are debating an anti-discrimination directive, a possibility at long last that we might push through anti-discrimination legislation on all grounds not covered - disability, age, religion or belief, and sexual orientation. we have waited many years for this. let us just hope that we get that large majority. i have campaigned on disability and age for many years, but i was convinced quite some time ago that we could not leave anybody behind. we could not just go forward with a disability directive, and then an age directive, because i thought sexual orientation and religion would be left behind. that is why, in the own-initiative report last year, i asked for a single directive to cover all areas that were not yet covered. i am delighted that has happened. i am also very pleased we got such a large majority in parliament for that own-initiative report. i know from the commission and the council that this was one of the reasons they thought it was safe to bring this proposal forward. that is why we have to get a very large majority for this report tomorrow. i would also like to say a very great thank you to commissioner pidla. i have thanked him at other times, but i wanted to thank him in the plenary because, without his support and help, i honestly do not believe that we would have this proposal on the table at present. so, commissioner, a sincere thank you from a lot of us, for pushing this forward. i know you have been doing a lot of work on this yourself. we got it through the committee on employment and social affairs and the committee on civil liberties, justice and home affairs. we now need that large majority. everyone should be treated equally across the eu. a wheelchair user or a guide-dog user should have free access anywhere within the european union. somebody of a different sexual orientation should be allowed to use any hotel room that they want to, and stay at any hotel when they go on holiday. all older people should have the right to have access to health care, whatever their age. people of a different religion should not be discriminated against. i urge all of you who are thinking of voting against this, please do not. this is the bedrock of the european union. we were founded on human rights and anti-discrimination. please vote for it. draftsman of the opinion of the committee on the environment, public health and food safety. - (it) mr president, ladies and gentlemen, in the committee on the environment, public health and food safety we have primarily looked at the need to guarantee equal treatment as regards health. other areas have been covered very well by other committees, and above all by the rapporteur and the commissioner, and we therefore decided to clarify the issue of health. our first step was to note the great disparities that still exist between member states in terms of access to healthcare. access to healthcare is a fundamental right confirmed by article 35 of the charter of fundamental rights, and it is one of the chief tasks of the public authorities of the member states to provide equal access for all to a quality healthcare system. therefore, while we are aware of the different competencies of the european union and the member states, it is important for the eu to do all it can in terms of guidelines, but also in terms of directives, which we are gradually tackling and drafting, together with resolutions and regulations. we must pass these on to the member states, where possible, with this essential objective. in particular, the amendments that we as the committee on the environment, public health and food safety have highlighted are those on encouraging the promotion of health literacy programmes, continuing to promote action to combat violence against women, fighting the denial of medical treatment on the grounds of old age, but above all - and i come back to this issue - promoting equal access to quality services in all member states. draftsman of the opinion of the committee on culture and education. - (de) mr president, as the committee on culture and education's rapporteur for the new anti-discrimination directive on implementing the principle of equal treatment between persons irrespective of religion or belief, disability, age or sexual orientation, i warmly welcome the commission's proposal and would specifically like to thank mr pidla. eurobarometer polls show that approximately three quarters of the population of the eu think that action needs to be taken in this field. the committee on culture and education called for amendments and additions in three areas. firstly, the inclusion of gender. we agree with the compromises achieved. we wish to guarantee access to media and education, and regulate against multiple discrimination; some good compromises have been achieved here. the socialist group in the european parliament has supported this comprehensive horizontal directive. if german conservatives and liberals now reject the directive in its entirety, they will be revealing their true colours: they want to continue to discriminate against gay people, and to broadcast propaganda. there is no need to fear extremists such as scientologists under the new directive: it will still be possible to reject advertisements or refuse to book assembly rooms. the committee on culture and education votes unanimously in favour of the horizontal framework directive. mr president, commissioner, ladies and gentlemen, i take the floor to report the positive outcome in the committee on women's rights and gender equality, and it is not by chance, as our committee is accustomed to conducting in-depth examinations on equal treatment, equal opportunities and prohibiting discrimination. the opinion we passed in committee sent out several strong messages, which will, i hope, be taken on board when the text is adopted. this directive does not close or complete a cycle. if that were the case, the field of gender discrimination could be weakened as a result. this directive should become an opportunity to revive work on the anti-discrimination directives, beginning with the addition of two new concepts that we all agree on: multiple discrimination, where two or more risk factors are present, and discrimination by association, which concerns those close to or connected with the person directly affected. both of those are crucial for women, as well as for other groups. this directive should represent an impetus to improve national legislation, above all in countries such as my own, where the tide must be turned. on behalf of the ppe-de group. - (de) mr president, commissioner, ladies and gentlemen, i hardly dare take the floor here any more; given the overall atmosphere here in plenary, i hardly dare ask questions any more. of course we are all against discrimination, but one dare not question the route we are taking here for fear of being pushed into a corner. ladies and gentlemen, we do all agree on the destination here, and i would appreciate it if we could all refrain from suggesting otherwise. what we are arguing about is the route, and that must be a legitimate subject for discussion, even by the group of the european people's party (christian democrats) and european democrats. first of all, i have something to ask the commissioner: given that the old directive, the existing anti-discrimination directive, has still not been transposed in ten of the member states - given that infringement proceedings are underway against ten member states - we seriously have to ask ourselves why we need to revise this directive when the old one has not even been transposed yet. is that a serious question that we are allowed to ask? that is why referral back to committee really is an argument that we should be allowed to raise here. on the second issue, too, we are allowed to talk about the content. for example, there is the question of why the churches, which were close partners of the left when it comes to the protection of refugees, are now coming to us. the churches, which used to be your partners, are now coming to us and saying that they have difficulties with certain wordings. when media people, newspaper publishers, come and tell us they have questions, we should discuss those questions seriously. when we discuss families, the commissioner says that he does not want to impose anything on the member states, but, of course, what we are doing with this directive is harmonisation by the back door. the list goes on. there are various arguments that could be raised that give our group cause for concern, considerable concern. it is possible to raise these things, even if one is committed to fighting discrimination. the left in this house today is very pleased with itself, because it is once again creating new legislation on a number of points. we should therefore be allowed to wonder whether, in the end, the legislative approach will actually bring many new benefits for the people we are trying to protect. there are other basic values that are worth taking into account: for example, if we are to include private contracts as the socialist group in the european parliament wishes - not just commercial contracts, but also private ones - we must be allowed to wonder whether contractual freedom is not an important basic value that we in parliament should be protecting. the group of the european people's party (christian democrats) and european democrats is opposed to discrimination, and will always work to combat it, but we must be allowed to argue in this parliament about how to do so. on behalf of the pse group. - (nl) tomorrow, we shall have a unique opportunity to take a historic step in the fight against discrimination by saying 'no' to this phenomenon. indeed, we have rather a strange situation at present, with differences in protection against discrimination. there is no reasonable explanation for the fact that the law against discrimination offers protection beyond the workplace to a black homosexual on grounds of skin colour, but not of sexual orientation. tomorrow, we shall be able to show that the european parliament no longer tolerates discrimination on grounds of age, disability, sexual orientation or religious beliefs. after all, europe is there for everyone. it is unacceptable that someone wanting to rent a car or a property should be turned down on grounds of his or her religion. in addition, wheelchair users should be able to use cash machines or have access to trains and stations like anyone else. there is no good explanation for a bank allowing someone aged 65+ to be thousands of euro in the red but refusing to grant them a modest loan. we are all growing a little older and if we think about it, these are things that will affect us too before long. the differences of opinion may not have made for easy negotiations, but we can be proud of the result achieved by the committee on civil liberties, justice and home affairs - to which, what is more, all parties committed themselves at the time. the proposal is reasonable and realistic. adjustments may be necessary in order to afford people with disabilities access to goods and services, for example, but this does mean they will be able to participate actively in society once more. these adjustments will not impose a disproportionate burden subsequently, and also due account has been taken of a good time limit for implementation. adjustments do not need to be carried out immediately; we do not expect member states to adapt railway stations straight away. what we do require of member states is that they already start taking accessibility for people with disabilities into consideration in future building and transport design. in addition, i cannot stress enough how important this report will be to european citizens - the people this is all about. we should bear in mind that, according to the eurobarometer, 87% of europeans would like to see measures taken on the grounds for discrimination under this directive. that includes your voters, mr weber. our group, the socialist group in the european parliament, is delighted with the proposals to combat the problem of multiple discrimination that now form part of this report. can you imagine that a black female wheelchair user can feel discriminated against? very few countries are familiar with the concept of multiple discrimination. in most cases, when reporting a case of discrimination, this woman would have to choose from possible grounds for discrimination. it is more likely that the various grounds are interconnected and there is not just one ground for her being discriminated against. this woman must have the opportunity to lodge a complaint and obtain redress and justice. therefore, we call on parliament to retain these important provisions. ladies and gentlemen, i would ask you to support this directive. this will enable parliament to state clearly and unambiguously that discrimination can no longer be tolerated and that parliament considers the rights of all its citizens equally important. let us take this step. on behalf of the alde group. - (nl) mr president, i should like to start by adding my heartfelt compliments and thanks to the rapporteur, who has done a fantastic job. my group is delighted that, almost five years after mr barroso promised to do so, a proposal for a directive is finally on the table. discrimination runs counter to the european treaties, the charter of fundamental rights of the european union, and the european convention on human rights. yet treaties, conventions and solemn declarations are of little use in court. european citizens must be given an instrument to enforce their rights. this, not milk quotas or public procurement rules or the structural funds, is the raison d'tre of the european union, mr weber, a european area where everyone is free to arrange their lives at their own discretion. a single european area where everyone is equal before the law, enjoys equal opportunities in society and is treated with respect. a directive alone will not suffice to bring this about, but it is a precondition. this directive is about europe as a community of values, and values cannot be negotiated by 27 governments in the course of the usual trade-off of national interests. we determine values together as citizens, in an open debate, and the european parliament is the appropriate arena for this. yes, mr weber, some areas are very sensitive, particularly the grounds of sexual orientation and religion. we have a responsibility towards all our european citizens, however, we cannot let europe turn into animal farm: 'all europeans are equal, but some europeans are more equal than others'. freedom of religion and of conscience are fundamental rights for which i would fight on the barricades. in a free europe, everyone must have the freedom to hold their own convictions. this is the cornerstone of democracy. freedom of religion must not be misused as a licence to discriminate against others, however. yesterday, the european union agency for fundamental rights published its second report on homophobia in europe. it is a disgrace that, in 2009, millions of people are still having to fear discrimination, hatred, violence and even murder in europe, merely on account of their sexual orientation. i can reassure mr weber that laws on marriage are and remain a national competence; this directive does not change that. in 21st century europe, a ban on marriage on grounds of religion, racial origin or sexual orientation is an anomaly, however. many people think it perfectly acceptable for the government to ban marriages or partnerships between two adults of the same sex. yet would we consider it acceptable if - as has happened in the past - the government were to ban marriages between jews and non-jews, catholics and protestants, blacks and whites? this is unacceptable. ladies and gentlemen, i urge you to vote in favour of this report, in the interests of the citizens we all represent. compromises are not ideal for anyone, ourselves included; but let us surpass ourselves, as mrs buitenweg says. finally, i would urge the council, too, to follow parliament's recommendations. it is true that each member state has its own issues, but the european parliament has shown that differences can be bridged and that we can agree on rights for all european citizens. mr president, the european commission maintains that this proposal is not aimed at amending matrimonial law and adoption law in the member states. the commission claims that it does not wish to change the legal status of the church and of religious bodies involved in care and education. the buitenweg report rides roughshod over these limits in every respect. it overturns guarantees for national family and adoption legislation in amendment 50. pursuant to amendments 12, 29 and 51 the report represents an attack on the freedoms of religious educational institutions. amendment 52 of the report undermines the guarantee of freedom for religious communities themselves in member states. it is abundantly clear that the european left wishes to reduce european integration to a single issue. in effect, it is obsessed with pushing through the latest homosexual demands by any possible means. this amounts to the most serious attack ever perpetrated against the credibility of this house. on behalf of the verts/ale group. - (es) mr president, i must insist on one fundamental fact. the european project will only have credibility if europe is perceived as a place where every kind of discrimination is outlawed. this is the basis for the today's debate. therefore, it is a surprise that some of my fellow members, who are so pro-european in all other debates, turn completely anti-european when it comes to rights and liberties. this attitude cannot be tolerated. it is unacceptable that anyone should suffer discrimination in the european union today, on the grounds of a same-sex relationship, disability, age, or for having a non-mainstream belief or religion, as has also been mentioned. this is not the europe in which i want to live, and is certainly not the europe that i am working for every day, both inside and outside of this house. for this reason, i believe the proposal for a directive was necessary. in its conception and principles, it is good. it may not be what i, or many of us here would have done, but it is a good starting point. i hope that the majority will vote for the buitenweg report tomorrow, as i intend to do, as i believe it to be the correct course of action. i am also very anxious that the other item dealing with the implementation or re-implementation of article 7(2) will be passed. this guarantees a fundamental issue: that all associations and organisations working in the anti-discrimination field must also be allowed to represent and defend victims of discrimination. we must remember that these persons form part of the most vulnerable groups, and we therefore need to have a guarantee that they can be represented and duly defended. on behalf of the gue/ngl group. - (de) mr president, ladies and gentlemen, first of all i would like to thank our rapporteur, mrs buitenweg, for all her work. this matter was particularly safe in her hands. parliament has been calling for this directive for years, which does indeed mean that it is of fundamental importance that it be adopted before the end of this parliamentary term. at the same time, it is vitally important for the commission to table a proposal for combating sex discrimination as soon as possible, so as to put a stop, finally, to the existing hierarchy of forms of discrimination. in other respects, i cannot help but be surprised that, in amendment 96, the group of the european people's party (christian democrats) and european democrats is trying to remove discrimination on the grounds of belief from the scope of the directive. so, ladies and gentlemen of the ppe-de group, do we really need to point out to you that the legal basis on which this proposal for a directive rests - namely article 13 of the ec treaty - has been in law since the amsterdam treaty entered into force in 1999, 10 years ago? do i need to remind you that all of the grounds for discrimination listed in article 13 are regarded as equal, without distinction? in addition, ladies and gentlemen of the ppe-de group, it cannot have escaped your notice that article 10 of the eu's charter of fundamental rights treats the religion and beliefs of every single person as equal. you know, mr weber of the csu, i have certainly heard your arguments, but i really must say that, god knows, they are antediluvian. your amendment 81, rejecting the entire directive, comes with a quite frankly cynical justification attached, namely that the transposition of the directive apparently - and i quote - 'entails excessive bureaucracy'. you know, mr weber, i simply cannot comprehend these attempts to deny people their rights, particularly with this justification, and i hope that your amendment 81 will be clearly rejected in tomorrow's vote in plenary. the eu must finally take another step forwards in the fight against discrimination in our society. on behalf of the ind/dem group. - (nl) mr president, this house champions civil liberties, one of which is freedom of education. an important freedom is parents' choice of a school for their children. christian schools and establishments in my country deliberately opt for an admissions policy that is in keeping with the identity of their school. the netherlands leaves scope for an admissions policy that is in keeping with a school's fundamental principles. requirements can be laid down that are necessary for the realisation of the school's purpose and fundamental principles. parents may choose a school that is conscientious in this regard and takes the bible seriously. this is an extension of freedom of religion, and respects the convictions of parents with regard to the interests of their child's education. however, amendments 29 and 51 restrict the freedom of schools to make these choices on the basis of principle, and furthermore i share the view of mr weber and others. this proposal does not comply with the principle of subsidiarity. aside from the administrative problems, this in itself seems to me sufficient grounds to reject the commission proposal. i shall be voting against mrs buitenweg's report. i hope that other groups, too, can see that this represents a serious infringement of our citizens' freedoms. anyone valuing freedom of choice for parents will not allow this freedom to be curtailed. (nl) mr president, reports on anti-discrimination directives always bring out the worst in this house; this is particularly regrettable, as they often contain a great deal of good proposals and ideas for helping people with disabilities, for example. this does not change anything in substance, however. the amendment by mr weber, amendment 81, does indeed state all the essentials; this commission proposal is not a good one. it has to go, not only because it entails far too much red tape, but also, in particular, because it essentially infringes the principle of subsidiarity. unfortunately, we all know that this amendment does not stand a chance, as this house never loses an opportunity to show its most politically correct side and always opts for more bureaucracy and more decision-making over the heads of european citizens. aside from this, aside from the infringement of the principle of subsidiarity, this report also contains numerous proposals that run directly counter to elementary democratic principles and principles of the rule of law. one example is amendment 54. while the whole report makes a big hoo-ha about not discriminating against people, this amendment advocates discrimination on grounds of non-politically correct beliefs - but then, at the end of the day, this is what a great many other aspects of this report set out to do. hidden in a catalogue of worthy principles and pseudo-good intentions lurks the judicialisation of political correctness. it is not about anti-discrimination measures, then, but very often about genuine muzzling laws to undermine freedom of expression yet more, and strengthen a kind of progressive opinion terrorism still further. the essential question is and remains: what on earth has this got to do with europe? leave to member states what is theirs, for heaven's sake. (de) mr president, commissioner, when the european union is, at times, seen as over-keen on regulation and quite rightly criticised for this, this can be traced back, quite simply, to reports such as the one we are now discussing. as much as i support realistic measures to combat any form of discrimination, i must also criticise the points being discussed here, because they are simply not justified and will not have the desired effect. it is unacceptable that, as has already been mentioned, faith schools, for example, can be sued for rejecting teachers of a different faith, or no faith, or that insurance companies can be sued for undertaking a risk assessment if it results in a distinction on the basis of age or sex, or that there is a risk of absolutely all residential buildings having to be constructed to be barrier free. yes, ladies and gentlemen, that is the direction we are heading in; we will no longer actually be supporting disabled people, but making all housing unaffordable. housing that nobody can afford, instead of assistance for disabled people - surely that cannot be what we are aiming for here. then there is the criticism of the reversal of the burden of proof. if i think that, as an mep with 25 applicants for an assistant's position, i could have a case brought against me just for the appearance of discrimination or a feeling of discrimination, i will simply not be able to work any more, but spend all my time battling with the evidence i need to provide just because the feeling is there, even though i have not discriminated in any way. on top of that, there is the vagueness of many of the terms. overall, this factsheet that has been published is a precursor to this directive, which starts to discuss whether we are still allowed to use 'miss' and 'mrs', or whether we need to get rid of all words ending in 'man', such as statesman or sportsman, because it could all be discriminatory. ladies and gentlemen, some of what is being called for here is quite simply nonsense, and i will therefore be voting against the report. (fr) mr president, first of all i wish to thank our rapporteur, in particular for the work she has done and the result that has finally been achieved. article 13 of the treaty is our cornerstone, and i must emphasise that member states can guarantee a higher level of protection. it is only a matter of minimum standards and, let us be clear about this, it is not possible to lower the current level of protection in individual member states on the basis of this new directive. this is because, to be even more precise, some member states have a very high level of protection; such cases do exist. freedom from discrimination is a fundamental right for everyone living in the european union. however, whether it is due to a person's appearance or simply their surname, we realise that discrimination does all too often exist. as regards people with disabilities, we must ensure that they are no longer discriminated against for using a wheelchair, because access to many places is all too often difficult. improving european legislation is a prerequisite for combating discrimination - i repeat, it is a prerequisite. we need this legislation. from a very young age our children suffer discrimination that traumatises them, and they carry the burden of this discrimination for the rest of their lives. i must draw your attention in particular to multiple discrimination. the commission omitted to include this in its proposal. we therefore propose a precise definition of these types of discrimination. it is absolutely essential that we strengthen legislation in order to make equal treatment effective whatever the differences. in this respect we ask for member states to take measures to promote equal treatment and equal opportunities regardless of religion, disability, age or sexual orientation. in conclusion, i must add that we hope that, for 2010, there will be a commission proposal putting gender discrimination on the same footing, as this would put an end to any hierarchy of rights. (fr) mr president, ladies and gentlemen, like those who have spoken before me, i would like first of all to thank our two rapporteurs, mrs buitenweg and mrs lynne, for the outstanding work that they have done in what was, i would point out, a context of enhanced cooperation. although i personally feel very much in line with the overall position defended by mrs lynne, i want to applaud the intelligence, openness and conciliatory spirit shown by mrs buitenweg throughout the discussion in our committee in order to try to end up with a report that is balanced and that would be supported by a large parliamentary majority. i hope she will be successful and that the more radical elements, on one side, i think, and sometimes on the other, will not succeed in affecting the vote. in this respect - and let me point out that i am not known as a left-wing fanatic - i have to say that i am surprised and dismayed by the amendment tabled by our fellow member, mr weber, whom i respect, and several others. mr weber, i listened to your speech, and none of the arguments you used seemed to me to have any intellectual basis. you have stated fantasies, you have not stated reasons. if one reads the justification for your amendment, one can only be dismayed by its weakness: refusing to combat discrimination because of fear of excessive bureaucracy. when you try to turn this proposal into a conflict between left and right, you are wrong. combating discrimination is not a matter of right or left, it is a matter of humanism and of respect for fundamental rights. (applause) that is why tomorrow, i hope and believe, you will be defeated. (it) mr president, commissioner, ladies and gentlemen, any initiative aimed at combating discrimination of any kind must be supported. recent statistics show that in europe, where society is so advanced, a minority of citizens say they have suffered discrimination. no one, therefore, can remain indifferent. however, the concept itself remains so wide and abstract that some clarification would be desirable. without prejudice to fundamental human rights, which remain unquestionable, we cannot fail to recognise the sovereignty of each member state to legislate in line with age-old traditions, civilisations and cultures. intervention of this kind is almost always a case of safeguarding a population's identity. let me give an example relating to sexual orientation: it is my personal opinion, but i believe that human dignity must be guaranteed irrespective of sexual preference. homosexuality is a choice that pertains to the private sphere and must under no circumstance be punished, but nor must it be protected. freedom of opinion: where does protection against direct and indirect discrimination begin, and where does it end? freedom of religion: at my niece's school, for the first time this year, there was no nativity play. the head teacher banned it because there were children of other religious faiths present. in my view, since the nativity play is a demonstration of culture more than faith, in order to prevent one form of discrimination, another was created. having respect for other people's religion does not mean, mr president, that we should be ashamed of our own! that is why - i shall finish here - our fear is that this proposal for a directive tends towards unnecessary reverse extremism, and the cure could prove worse than the original problem. (de) mr president, commissioner, ladies and gentlemen, this directive finally closes the gaps in anti-discrimination law, and allows the european union to meet its international obligations to protect human rights, as well as its obligations under the un convention on the rights of persons with disabilities. ladies and gentlemen of the group of the european people's party (christian democrats) and european democrats, your arguments against the directive are populist and misleading. what right do you have to deny people with disabilities unrestricted access to education, or older people equal treatment regarding insurance and financial services? what concept do you have of humanity? unrestricted participation in society is a human right, and for that reason we will fight for this directive and for equal opportunities for all. in my view, it is totally inhumane to require victims of discrimination to provide proof of the discrimination. if you, ladies and gentlemen of the ppe-de group, delete the shift in the burden of proof, you will be putting at risk the basic right of some groups to protection of their human dignity, and we find that unacceptable. we want equality for all in protection against discrimination, and we greens will fight for that. we will not allow human rights to become a plaything for populist scaremongering. i can predict right now that you will lose tomorrow; the majority of this house will vote in favour of the human right of protection from discrimination. of that i am certain. mr president, i will be voting against this report and this proposed directive for three reasons. first of all, i dissent from the belief that the eu, rather than national governments, should be legislating on these issues, believing every member state is best placed to decide if it needs to strengthen such legislation. if ever there was a subsidiarity issue, this should be it. my second reason is that the new offence of harassment has the alarming prospect of, in fact, curbing the rights in respect of freedom of speech and freedom of religion, particularly for those who proclaim a christian message. christians preaching the gospel, particularly in a public place to people of other faiths who take offence and who claim it is an assault on their dignity, could be breaching this law. likewise, defending and promoting a biblical approach to heterosexual marriage could allow litigious gay rights activists to claim harassment. the third reason is that the measures within the directive are disproportionate and inadequately balanced. it compels the christian printer, for example, to accept an order to print material which offends his religious beliefs, whereas he should be free to conduct his business according to his conscience. without essential balancing mechanisms, this directive will become an instrument which in fact creates discrimination. thus, to me, it is an unnecessary directive infringing basic rights, particularly of people of faith and conscience, and illustrates all that is over-reaching, meddling and wrong-headed within the eu. (ro) the commission's initiative to extend the application of the principle of equality of treatment to other areas of social life as well, using a global directive which bans discrimination outside the workplace, based on disability, age, religion or belief and sexual orientation, is, in principle, necessary to be able to finalise the anti-discrimination legislative package. the introduction of the concept of multiple discrimination and the special attention given to the rights of the disabled mark a step forward. this proposal for a directive remains, however, a delicate and controversial subject. this legislative text must maintain a balance between the european union's powers and member states' powers by clearly defining its scope of application. aspects of family law, including civil status, reproductive rights and adoption rights must not be included as part of the scope of application of the proposal for a directive, a fact which must doubtlessly be made clear from the legislative text. the use of the institution of marriage cannot be accepted in any way other than in the christian sense. another legally accepted designation can be found for other partnerships. the principle of subsidiarity must also be respected in aspects linked to educational content and organising national education systems, including denominational schools. the european people's party has always supported the promotion of diversity as an important objective of the european union and the fight against discrimination. unfortunately, the text contains provisions which are unacceptable from the perspective of religious doctrine. paradoxically, the left intends to discriminate in this way. in fact, it is me being discriminated against simply because i sincerely believe in god. mr president, it has been an interesting debate and it would be funny if it was not so tragic. most of the opposition i have heard this afternoon is, i think, sincerely felt and believed, but it is not based on the facts and it is not based on the text before us. nothing in this report undermines subsidiarity or proportionality. indeed, if it did, it would be corrected by the council of ministers. so i urge you, even now, to vote in favour and allow the council of ministers to do the right thing to make sure that it is absolutely proportionate and subsidiarity is respected. mr weber, europe was born out of the values of the second world war - a determination that we would never look away again whilst one group of individuals or other groups were targeted or made a scapegoat and led away to concentration camps and work camps. a determination that there would be no hierarchy of oppression. yet, sadly, you want to have a europe that is not based on those decent values, a europe that believes and respects that all human beings are born equal. those opposed to this have to answer to their conscience, to their religion and to their voters as to why you believe some people should be treated differently from others, that they should not have equality. i stand here fortunate, as a gay man - and if i chose to be gay, is it not interesting that one obviously therefore chooses to be heterosexual? - fighting for equality, not just for gay men and lesbians and bisexuals and transgender people, but for people on the basis of their age, their religion, their belief, their gender, anything that is perceived to be different that could be used to take equality away from them. i believe the litmus test of any civilised society is not how we treat a majority, which, interestingly, is made up of so many different minorities. the litmus test of any civilised society, as people listening in the visitors' gallery will tell you, is not how we treat the majority, but how we treat the minorities, and, in that instance, some member states are sadly lacking. shakespeare said, rather brilliantly, 'the evil that men do lives on, the good is oft interred with their bones'. look to yourself, imagine if it were you who was different - who had a different religion, a different belief, a different age, a different sexual orientation - would it be right that you should have your human rights taken away from you? the answer has to be 'no'. now is the opportunity for the house to do that which is right and just and good. at this point in the debate mr pidla will have to speak. he will explain better than i the reasons why he has to do so. i am giving him the floor immediately. member of the commission. - (cs) in a few minutes i will have to attend the negotiation proceedings over the working time directive, and you will surely agree that that is one topic which cannot be avoided. ladies and gentlemen, i have listened to the debate on the report and i have to say that i listened with some emotion, because it expresses the essential elements and the enormous depth of this problem. the basic question is what does this directive defend? this directive defends human dignity. we cannot believe that it is any less of an affront to human dignity to be discriminated against on grounds of disability, for example, than on grounds of age. we are talking about human dignity and it is the same for everyone. i have to say that this directive, as it has been submitted to the commission, is one which came into being organically, out of a profound debate in parliament and countless debates at commission level and therefore it is a directive which is well thought-out and which expresses a firm and clear approach to values. it was also said in the debate that non-discrimination is based on values which we applied and which we became aware of after the second world war. whether or not it is true that we developed a deeper awareness of the significance and constitutive weight of certain values after the second world war, these values have very deep historical roots. in antiquity there was no fundamental concept of human equality - the concept was first formulated in the christian religion. i well remember one encyclical or perhaps a papal bull from the 9th century called oriente ian sole which clearly stated, 'is it not true that the sun shines in just the same way on everyone?' from that moment this concept has echoed through the whole of history. of course, the debate included many questions of a technical nature or of a seemingly lower order than the questions we have been talking about just now. i would like to touch on them. the first question was about the creation of senseless additional bureaucracy. i think that this can be rejected for one simple reason. the directive does not require new structures or new bureaucratic bodies. the directive only extends the application of that which already exists, so it does not in any way involve more bureaucracy. there was also the open question of subsidiarity. this question was examined with exceptional care because it is a fundamental question. article 13 of the treaty is clear. it provides a firm legal basis and a directive which rests on this legal basis does not conflict with the principle of subsidiarity. another fundamental principle of this directive is the question of, for example, transference of the burden of proof. this question has already been resolved in previous directives, so there is no new discovery in this case either. however, i would like to say something about the burden of proof. the aim of this directive is to strengthen the ability of individuals to defend themselves - that is the fundamental aim. this would not be possible without transferring the burden of proof. irrespective of the fact that in many legal systems the burden of proof is already transferred for far less important reasons or for reasons of comparable importance. a classic example of transferring the burden of proof is the so-called assumption of paternity and there are many more examples. it was also said in the debate that some of the terms were too open. ladies and gentlemen, most constitutional terms are open and require interpretation in a given set of circumstances. for example, i remember in the german constitution there is the formulation 'possession obliges'. this is a typically open formulation which is redefined of course in different specific cases. ladies and gentlemen, there was some exaggerated talk of potentially heavy costs, especially in relation to the physically disabled. i can state that the directive does not propose any fixed or concrete matters but speaks about reasonable conformity and i can state again that that if reasonable conformity is applied from the outset there will not for the most part be any excessively high costs. i must say that if we regard potentially higher costs as acceptable in relation to health and safety at work, where we are protecting human life, then in my opinion any higher costs that are involved in protecting human dignity - although i do not believe that they will be substantially higher - also exist in proportion to the interest that is being protected, because equality and human dignity, ladies and gentlemen, are interests that have been woven into the treaty and they are interests that we must defend with all our might. in my opinion there is nothing more significant for the european union than the concept of non-discrimination. although i am a supporter of the internal market and although i am a supporter of many other areas of european policy, i believe that the concept of equal opportunities and non-discrimination is the deepest bedrock of all. mr president, it is clearly right that we end the complicated patchwork of laws, with different people protected against discrimination in different situations, in favour of a single equality regime. the woman refused a bank loan, the disabled person refused access to a building, the gay man refused accommodation, a black person barred from a club, and so on, should all be protected on the basis of similar principles. i just want to mention two issues. one concerns protection from harassment. it is rightly made clear in the text that what is barred is the creation of an intimidating environment for an individual, not perceived offence towards a group. it is important to be very firm about the preservation of freedom of speech, which is usefully stressed through a specific mention which is added by the parliament. on faith schools, i fully support the right of parents to have their children educated within the principles of a particular faith, so long as that faith itself does not propagate discriminatory and prejudicial attitudes. but we must not condone the creation of ghettoes, where only children of a specified faith are admitted to a school and others are excluded. the commission text allows discriminatory access and i am not persuaded that amendment 51 resolves the problem. i will probably vote against both. (lv) mr president, ladies and gentlemen, i do not think anyone in this chamber is in favour of discrimination. similarly, i think that people in this parliament are opposed to discrimination. this document - this proposal for a council directive - undoubtedly contains many fine proposals, but i think many of the proposals included here are based on a christian outlook and the christian religion. i would like to say that one directive cannot achieve what needs to be achieved during a long process of education, because that is a question of ethics and attitude. going further, while this directive, or proposal for a directive, includes many good things, there are, however, several places where it goes too far. on these points, in fact, by creating opportunities for one group of people, it restricts the opportunities of another group. indeed, i would go as far as to say that a series of points create opportunities to meddle in the sphere of private activity, and that is counter to our basic values. in addition, now the elections are approaching, and we are increasingly hearing questions from our voters, as well as criticisms. i think that the same thing will be happening in your countries. the most frequent criticism that we hear is that there is too much regulation from brussels, too many restrictions and too much red tape. we ought therefore to avoid infringing subsidiarity or creating excessive restrictions. i believe that this document should be reconsidered. (sv) mr president, i would like to begin by thanking mrs buitenweg, mrs bozkurt, mr cashman and others for an extremely good report. i, along with many others, am surprised and shocked at the leader of, and speaker for, the group of the european people's party (christian democrats) and european democrats, manfred weber, who proposed, in amendment 81, that parliament reject the proposal for a directive because it violates the principle of subsidiarity and would entail a disproportionate amount of bureaucracy, according to the swedish translation. commissioner pidla has commented on this. i am sure that all women with disabilities and all of the other groups who had counted on the european parliament to safeguard the human rights of citizens for their group too are deeply disappointed that the ppe-de group's leadership compares human rights with bureaucracy. i therefore urge the whole house to vote against the ppe-de group's amendment 81 tomorrow. i also think it is important that women do not continue to be discriminated against by insurance companies simply because they are women and older, but as a group are healthier and live longer than men. i hope, too, that parliament will have the courage to clarify that tax-funded education is there for everyone. religion is certainly important to many europeans, and i respect that, but we live in a secular society. no, mr weber, your market's freedom of contract is not as important as the fundamental human rights of citizens. ask the citizens of the eu - they are wiser and more up-to-date than you ppe-de group members. the expectations on us are high and i hope that everyone has the courage to vote in favour of this tomorrow and not against it as you have advocated. (nl) mr president, i should like to start by thanking the rapporteur. it cannot be said often enough, she has done an excellent job. it was no easy task. some fellow members seem to be particularly quick to take offence. the starting point of this directive is crystal clear: equal treatment for absolutely everyone - homosexual or heterosexual, woman or man, old or young, black or white, disabled or otherwise, religious or humanist, and so on. his right is her right, mr weber, our rights are their rights and your rights are our rights. this, mr vanhecke - who has left the debate yet again - has nothing to do with so-called political correctness. the shadow rapporteurs and the rapporteur herself have put in a great deal of effort to reach this compromise, a compromise that the group of the european people's party (christian democrats) and european democrats, too, would be able to support. no one considers the text flawless, and i can only hope that a substantial majority in the ppe-de group will come to their senses by tomorrow's vote. i am all for freedom of religion but, mr weber, you have some cheek setting yourself above others and treating equal opportunities as senseless bureaucracy with your hand on the bible. ladies and gentlemen, mr barrot will replace mr pidla for the final part of this debate. (it) mr president, ladies and gentlemen, the heart of a strategy of non-discrimination boils down to the following assertion: the person always comes first. we consider the person before considering the fact that he or she is in some way different - disabled, for example, or homosexual - and we therefore love, safeguard and defend the person; that is the heart of the strategy of non-discrimination. if this is true, it is true; therefore anyone who has a religious faith is a person, as the fact that he or she is a person comes before the fact that they have a religious faith. therefore, we must be careful, because the statement made in article 3 according to the wording proposed by amendment 52 of the report by the committee on civil liberties, justice and home affairs introduces a principle diametrically opposed to declaration 11 in article 17 of the treaty on the functioning of the european union. this amendment 52 negates the concept of preserving the status under national law of churches and organisations based on religious or personal beliefs, and at the same time, article 3 and the corresponding recital 18, according to the wording proposed by amendments 51 and 29 of the aforesaid report, limit - in my view - the scope of the competence of member states in terms of access to educational institutions based on religion or personal beliefs. in short, i am convinced that if we want to defend the person from the outset and in their entirety, we must also defend those aspects that characterise the person from a religious point of view. in addition, i think that amendments 92, 89 and 95 could be a reasonable point of contact for those who want the directive to be adopted, and we could therefore find an effective place for dialogue at that level. mr president, the chair of our committee, mr deprez, spoke for so many of us in this house when he said that this was not a report about sectional interests or a report of the left, but a report by mrs buitenweg, which was full of thoughtfulness, sensitivity and compromise where people were concerned. the rapporteur has created a report which does not bind business or over-regulate business, as we have seen in the long journey of the two previous directives - the race equality directive and the employment directive - which, i would say to mr weber, has not bound or over-regulated businesses in germany or in my country. she has created a directive about fundamental rights, which do not create that bureaucracy which mr pidla spoke about. i tabled amendments on strengthening equality bodies, which already exist. in the united kingdom we have the equality and human rights commission, who recently supported the case of a european citizen - sharon coleman, the mother of a disabled child - who brought a case against her employer for disability discrimination by association, something fundamental to mrs buitenweg's report. the european court of justice ruled in her favour and, as a result of this judgement, we have extended rights to britain's carers - people who care for disabled people. i would say to people in this house that you will grow old, you may be disabled and you may care for somebody with a disability. that is the reality for tens of millions of european citizens. that is what this report is about. it is not about sectional interests or concerns about who is going to dominate one other section of society. i would say that this report is not left or right - it is about fundamental rights. as mr cashman said in his speech, people out there, before the european elections, will look to see whether we protected fundamental rights without doing anything bad to our businesses and our economy. that is what this report does. let us support it. it is practical and it is right. (it) mr president, ladies and gentlemen, i would like to express my support for mrs buitenweg's work. as i understand it, what was supposed to be a compromise will not perhaps be a compromise at all, but that is not important. the important thing is that we manage to come to a decision. if anything, on some points my concerns are the opposite of mr mauro's. religious freedom? of course, 100%. freedom for religious educational institutions? of course, 100%. no religion can ever, under any circumstances, be a reason, an excuse, or cover for carrying out any kind of discrimination. there can be no prospect of tolerating exceptions whereby a church or religious institution can discriminate against teachers or students whose behaviour does not conform to a given faith, because of the risk of intrusion by the ethical state and the many religions that can lay claim to the same legitimacy. that is not the way forward. after all, our treaties and the european union already, unfortunately, extend more protection than needed to the national states with their lengthy lists of exceptions to fundamental rights and freedoms. let us not add further exceptions to those that already exist. (pt) mr president, mr barrot, ladies and gentlemen, i, alongside my colleagues from the group of the european people's party (christian democrats) and european democrats, voted for this report in the committee on civil liberties, justice and home affairs. that is because of the excellent work by the shadow rapporteur, mr gauber, towards trying to find a balanced compromise. i would also congratulate the rapporteur, mrs buitenweg, on her work and join her in calling on everyone to avoid a radicalisation of positions and to seek the broadest possible consensus. as in all compromises, there are points on which we successfully make our opinion prevail and others which we find harder to accept. we are talking about a compromise which has to take into account the legislation, accepted practice and various cultural traditions existing in the 27 member states. i consider the 10-year period in which buildings can be adapted to enable disabled people to access goods, services and resources to be positive, as well as the fact that, where difficulties at the structural level that are impossible to overcome persist, it will always be possible to find alternatives. i also add my voice to those expressing concerns in relation to insurance companies - the fact, for example, that they, as well as medical opinion, have been given consideration. i cannot, however, accept the idea of eliminating the reference - agreed on in committee - to the principle of subsidiarity in topics relating to the law on family, marriage and reproduction. these are exclusive competences of the member states. the same applies to article 8, which amendment 90 of the group of the european people's party (christian democrats) and european democrats aims to remove because, given the existing legislative traditions in many member states, it is not possible to accept the inversion of the burden of proof as that will cause insuperable legal problems. if these key points are adopted in plenary session, i will be unable to vote for this report. i will never, however, be able with a clear conscience to vote against a directive that prohibits discrimination between people irrespective of their religion or belief, disability, age or sexual orientation. in conclusion, mr president, it is also a case of defining which europe we want to help build. i am fully in favour of a europe that ceaselessly fights all forms of discrimination. (es) mr president, the proposal for a directive which we are debating today projects the principle of equality as a brand mark of the european project. as such, we must approach it with an ambitious focus, with the aim of working towards the inclusion of all citizens of the community, and we must implement it in both public policy and administrative operations, as well as in relationships between individuals. we must move forward to allow all citizens to exercise and enjoy their rights to the full, without discrimination on grounds of belief, disability, age or sexual orientation, or of course, multiple discriminations. we need to emphasise that the principle of equality, and the ban on discrimination, must be respected in the arenas of both community and national policy, so that we can turn the principal of equality throughout europe into a reality. we must also achieve an adequate level of protection against all grounds for discrimination listed in article 13 of the treaty. this initiative should arm us with better tools for fighting possible discriminatory behaviour, which to our shame, is still a reality today, as highlighted in yesterday's report on homophobia by the european union agency for fundamental rights. fellow members of the group of the european people's party (christian democrats) and european democrats, do not muddy this debate with empty excuses, because a vote against this report is clear evidence of an ideological viewpoint. the fight against discrimination is of crucial importance, and represents the bedrock of the european union's values. for this reason, we have both a responsibility and an obligation to take a step forward today, in this parliament, towards a commitment to, and defence of equality throughout europe. we cannot give up on our desires and hopes to make progress and simply relinquish such a fundamentally important matter, based on our values, to the category of hopes and dreams. the citizens of europe, and most importantly, the most vulnerable, would not forgive us. (hu) pursuant to the universal declaration of human rights and to the convention on human rights and fundamental freedoms, every citizen enjoys equal rights and freedoms and equal protection of the law without distinction of any kind, such as race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status. but i would like to emphasise that decisive and effective action is required against every form of discrimination, for discrimination is still strong in europe and affects many different layers of society. in many cases it is not enough to prohibit all forms of discrimination, the introduction of various positive measures is also essential, such as in the case of people living with disabilities. many countries - italy, france, finland and spain, to name but a few - have granted autonomy and adopted positive measures in the interest of protecting national minorities. the european union and its member states also have a duty to guarantee equal rights and equal treatment of citizens in institutional form. we need independent institutions working at european level that can monitor and guarantee that states commit themselves to the principle of equal treatment not only in theory, but also adopt concrete steps in order to implement this directive effectively. (el) mr president, commissioner, ladies and gentlemen, i want to ask you if you consider the fact that i am talking to you sitting down back here and have not risen like all my other fellow members an insult to this house. the european parliament was and must continue to be a supporter of the horizontal directive, which will guarantee equal treatment and protect european citizens from all forms of discrimination. this directive must supplement the existing european legal framework, especially as regards people with disabilities and the obligation to guarantee effective and non-discriminatory access. we have included important proposals. we have introduced protection against multiple discrimination, by stipulating in the report that effective and non-discriminatory access must be guaranteed. in cases where access cannot be guaranteed on the same terms and conditions as for people without disabilities, we must be given a proper alternative solution. the report sets stricter criteria in order to assess if measures to safeguard effective and non-discriminatory access will involve disproportionate costs. there are some points included in the report which do not satisfy all of us, which is why we shall support certain amendments which have been tabled and which strengthen cohesion. in any event, i consider that we should support the report, thereby sending the council a clear message that we must, at long last, have effective european legislation which puts an end to the discrimination which undermines confidence in the fundamental european values of equality and the rule of law. (de) mr president, ladies and gentlemen, as a journalist, i would like to draw attention to a change in this directive that is of great concern to me personally. specifically, i find it incomprehensible that, when the directive has not yet been transposed in 10 out of 27 member states, we are going a step further and trying to stick an additional directive on top of it. opinions may be divided on that, which is fine, but what really disturbs me, as a journalist, is the fact that it is damaging the freedom of the press in the member states. let me give you two examples of this. mr weber's proposed amendment, which merits our support, means that it will also be possible to limit the freedom of the press, for example, if a publisher is required to accept an advertisement from neo-nazis or anti-semites. i think that is totally inappropriate and goes completely against the principles we have in the eu, and i object strongly to it. we cannot allow this to happen. the same applies, of course, if we have anti-discrimination; then people who we do not want to encourage in the eu, but rather need to take action against, will have even more opportunities, for example in the property market. in my homeland, we see neo-nazis trying to buy property almost on a weekly basis. if property is being rented or sold, we cannot prevent left-wing or right-wing extremists from taking it. they will make use of this new amendment, and i object strongly to this and will vote against it. i am therefore in favour of supporting referral back to committee or, if this is impossible, of voting against it. mr president, over the years europe and the rest of the world have fought to battle discrimination on all levels. our progression as decent humans demands that we do just that, respecting perfectly the subsidiarity principle. as mrs buitenweg has stated, the commission has promised, for over four years now, to pass a broad and inclusive proposal on the human rights of all people. this is now coming, finally, to fruition. i strongly believe that no person should ever be discriminated against on the basis of his or her religion or belief, disability or age. on the contrary, as a christian believer i call upon the european parliament and each individual to not only stop discrimination but to help those who are being discriminated against because of their disability. this help can come from us in different shapes and forms. each member state has constantly persisted in improving equal access to those who need it the most. as europe continues to integrate, it is paramount that we remember that we are all different yet perfectly equal in all regards. (bg) mr president, commissioner, we are discussing an extremely important directive, which will provide an opportunity to resolve issues which are still controversial in the area of non-discrimination. i feel it is especially important that it reaffirms the right and freedom of religious beliefs and the application of the principle of non-discrimination in this area. at the same time, the directive explicitly refers to declaration no 11 on the status of churches and non-confessional organisations, in which the european union respects and does not prejudice the status under national law of churches and religious communities in member states. the right is also recognised of member states to draft and implement specific provisions in this area. it goes without saying that the european right must be harmonised with the right of member states to regulate individual areas. this is a complex subject. relations must be made clear so as to avoid infringing anyone's rights, including the rights of those who belong to the churches sanctioned by legal regulations. (de) mr president, rapporteur, ladies and gentlemen, since i am the one who has been quoted the most in this debate, i would like the opportunity to respond once again. i have said that anyone who asks questions is the bad guy in this debate. all the speakers who have vehemently spoken against discrimination have talked about the principle. once again i would appreciate it if we could not dispute the principle and instead work to combat discrimination. even when, for example, we discuss environmental issues and we disagree with regard to the prohibition on co2 emissions, then we disagree on the means to achieve it, but we all agree on the objective. why are we not allowed to disagree on the means with regard to discrimination and how we want to combat it? moreover, if newspaper publishers sit in our offices and express their concerns, we should be allowed to bring up those concerns here. mr cashman, you are not doing the issue and your concerns any favours if you marginalise anyone who simply asks questions. that is purely and simply what we are doing here. mr president, as the shadow rapporteur on the committee on employment and social affairs, on behalf of the socialist group, could i commend mrs buitenweg and also my colleague mrs bozkurt? thank you for your cooperation. on behalf the disability intergroup, i am delighted that the 1.3 million people who signed the petition calling for an extension of anti-discrimination rights to disabled people have had their call listened to. i am also delighted that we agreed across party lines that there should be a horizontal directive and there should be no hierarchy of discrimination - a promise made to us by the then portuguese presidency of the european union when the race directive was passed in 2000. frankly, this promise has taken too long to be realised. i condemn the conservatives who want to make that delay even longer. this debate is not just about showing our support in parliament, but is also about appealing to the council to get on and agree to this now. i would ask our german friends not to block it, please. there are issues about private contracts that you are concerned about, but on public duties you are far ahead of the game. let us actually raise our vision and get this agreed. i am delighted that today the future swedish presidency has committed itself to completing this in the epsco council before christmas. i hope very much you will be able to do that. mr president, it is incredibly hard for a rapporteur to do a good job when the largest group is conducting a kind of flip-flop policy. in the committee on civil liberties, justice and home affairs, the group of the european people's party (christian democrats) and european democrats supported this report, because it represented a reasonable compromise. we worked together with mr gaubert, who seems to have disappeared; at least, i have not seen him. in any case, however, we worked together on exactly the same text and now he is opposed to it! it looks as though the coordinator, mr weber, is primarily imposing the position of his german national party on the ppe-de group. mr weber, you yourself told me personally just last week that it was not about the substance but about sending out a political signal. is that not true? is that what you told me? well then, you cannot now hide behind details - if you wanted to do that you could have simply tabled amendments. you did not do so. what you really want is the rejection of the entire proposal. you simply do not want it, so do not pretend you have the same ultimate objective. i have heard plenty of things to which a straightforward answer can be given. for example, a great many people have asked what business this is of europe's. yet there are already a great many directives that have provided protection on the labour market for a long time now, and protection against discrimination on a great many other grounds is also provided outside the labour market, but the protection for some people lags behind, for example in the case of disability, age, sexual orientation and religion. we are not introducing a whole new invention, therefore, but rather repairing existing legislation. we are not introducing a new competence; we are ensuring that people are simply treated equally and that some categories are not regarded as more important than others. mr pirker spoke about the labour market. that is not what this is about at all; that was a different directive. this is not about the employment of teachers. let us please stick to the facts. the burden of proof is a tricky point, as the commissioner commented before. this, too, is nothing new; it is also contained in the other directives. it is absolutely not true that people will be able to simply accuse you and you will have to defend yourself. nor are we talking about criminal law here. people must first provide real facts in other fields to back up why they think they are being discriminated against, and then you have to give your reasons for accepting or turning someone down for a property. with regard to the media, as the text states, provision is already made for rejecting advertisements that are not in line with the identity of a publication: it is all there, in article 54. as regards the churches, they do not even need to comply with all these requirements in their entirety, although they do need to when performing social tasks. in the netherlands, for example, they perform some social care services. it is unacceptable for them to be exempt when performing social tasks purely on account of belonging to a church. these are the very specific points that are mentioned in the report. we have done our best. we have accommodated you throughout. indeed, your amendments are here in the text, and now you are going to vote against it after all, on account of all kinds of party-political positions. i must say, this is a personal blow to me, as i held out my hand to you. a great deal of your text has been incorporated into the report, and i think it disgraceful that you are now washing your hands of it! the debate is closed. the vote will take place on thursday 2 april 2009. written statements (rule 142) in writing. - (it) human dignity and equality are the two great values on which the modern culture of human rights is founded. however, it is often the case that grand words are used to disguise their opposites. equality, for example, means handling identical situations in the same way, but it also means handling different situations in different ways. my reservations regarding the report in question derive from this preliminary consideration. no one can have the slightest doubt that the group of the european people's party (christian democrats) and european democrats recognises the full dignity and equality of the disabled, the elderly, the sick, the poor, refugees and immigrants. i have the impression, however, that an attempt is being made to latch on to this established movement in order to impose discrimination against the family founded on marriage between a man and a woman and against religious freedom, especially as concerns religious schools. i will never tire of fighting for equality for the smallest, the poorest and the defenceless. for precisely this reason it pains me to see the europe of human rights, through its laws and practice, implement discrimination of the harshest kind, between born and unborn babies. we are not discussing this today, but it would be appropriate for it to enter the european consciousness when reflecting on dignity and equality. by some fate of the calendar we are discussing this directive today, while we are voting on it tomorrow, which is world autism awareness day. this augurs well. it is clear to us that in reality there are major discrepancies between member states' national legislation on the rights and interests of people whose life is affected by autism. the discrepancy is even greater if we compare the everyday lives of the people affected. there is a long way to go to achieving european standards, but some progress needs to be made. autism must be recognised as a separate disability among mental disabilities and specific strategies must be devised for it. this may seem costly to some, but receiving equal treatment is an absolute must, as it is for those suffering from other disabilities, so that we can respect ourselves and the values of european society. in writing. - (ga) this directive brings to the fore the very important recognition that discrimination is not something which only happens in the workplace. the main aim of the permanent commission's recommendation is to address discrimination based on religion or belief, on disability, on age or sexual orientation and the implementation of the principle that people be treated equally outside the work environment. i know, as a result of dealing with disability rights groups and disabled people in ireland, that this legislation will be warmly welcomed. mrs buitenweg is completely correct when she says in her report, 'to guarantee equal treatment of every person with a disability, the prevention of discrimination is not enough. positive action is required as well, in relation to measures implemented beforehand and through offering appropriate adjustments.' i also welcome the firm stand taken by the rapporteur and the commission to prevent discrimination on the ground of sexual orientation. discrimination of this kind has no place in a modern society and i reject the efforts of some political groups to weaken the legislation in this regard. in writing. - i am a socialist, which means i believe that all human beings are equal. we need to fight discrimination wherever it is found not just in the workplace. indeed, there can be no hierarchy among discriminations. everybody is different, everybody is equal. the purpose of the directive is to implement the principle of equal treatment between persons, irrespective of religion or belief, disability, age or sexual orientation outside the labour market. it sets out a framework for the prohibition of discrimination on these grounds and establishes a uniform minimum level of protection within the european union for people who have suffered such discrimination. this proposal supplements the existing ec legal framework, under which the prohibition of discrimination on grounds of religion or belief, disability, age or sexual orientation, applies only to employment, occupation and vocational training. discrimination is a serious problem in europe and beyond. according to a special survey undertaken by eurobarometer in 2008, 15% of europeans claimed to have been victims of discrimination last year. the european parliament has waited more than four years for the proposed directive. the latter represents an attempt to implement the principles of equal treatment of individuals regardless of religion, belief, disability, age or sexual orientation. this is to apply not only regarding access to employment, but also in relation to goods, equipment and services, such as banking, housing, education, transport and health care for example. in addition, the document defines minimum framework standards to ensure protection against discrimination. member states are free to increase the level of protection offered should they wish to do so. they may not, however, refer to the new directive in order to justify lowering existing standards. the directive grants injured parties the right to compensation. it also states that member states should not only express the wish to overcome discrimination, but also have a duty to do so. a significant number of member states of the union have already introduced provisions guaranteeing a varying degree of protection beyond the labour market against discrimination on the grounds of religion, belief, disability, age or sexual orientation. the present draft directive will allow the introduction of cohesive european provisions in this area. it will make a strong statement to the effect that europe as a whole does not condone discrimination. freedom from discrimination is a fundamental right and should be enjoyed by everyone in the european union. recently, equality of opportunity has been an increasingly strong theme in community decision-making. the objective of the proposed directive in equal treatment is to apply the principle of equal treatment of persons irrespective of religion or belief, disability, age or sexual orientation. freedom from discrimination is a fundamental right and should apply to every citizen of the european union. i firmly insist that we must combat every form of discrimination. the road we must follow in this regard is a long one, and it is clear as well that we can only move forward one step at a time. this entails, first, supplementing and consolidating legislation, second, transposing the legislation containing new, consistent and unified principles into national law, and finally their implementation in practice. although these would demand significant work and time if taken individually, our goal is to succeed, within a reasonable timeframe, in showing concrete steps forward and in living in a europe that is truly free of discrimination. i would like to congratulate my fellow member, mrs buitenweg, for her report, which opens up the way to supplementing the legal structure for eliminating all forms of discrimination. article 13 of the treaty on european union sets out the aim of combating discrimination based not only on sex and ethnic origin but also religion, belief, disability, age and sexual orientation. in spite of the adoption and transposition into national law of directives 2000/43, 2000/78 and 2004/113, there has to date been no common protection against discrimination on the four grounds mentioned above outside the area of employment. the proposed directive is intended to fill this gap and we hope that, in addition to prohibiting discrimination, it will provide a legal remedy for those suffering disadvantages in all 27 member states. the effective implementation of the directive under consideration and the compensation for the deficiencies noted in the course of transposing and applying the earlier directives would supplement the defence available to european union citizens against discrimination. in addition, adoption of the proposed directive does not require any change to the relevant national laws. therefore, i sincerely hope that the council will be able to guarantee the unanimous support required by the treaties and that each member state will contribute to enabling the european union to take an enormous step towards fulfilling our fundamental values and objectives. in writing. - (de) the legal basis used, article 13(1) of the ec treaty, is not appropriate considering that, in the opinion of the german free democratic party (fdp), the principle of subsidiarity is not being adhered to. it is not within the remit of the eu legislator to lay down the regulations in question, thereby seriously encroaching on the self-determination of the member states. combating discrimination of all kinds and helping the disabled to participate in public life are important tasks. however, proposing to extend the anti-discrimination regulations to practically all areas of life is out of touch with reality. the reversal of the burden of proof laid down in the directive will mean that it is possible to open legal proceedings on the basis of accusations not backed up by sufficient evidence. those affected would then have to pay compensation even if they have not actually committed any acts of discrimination but are unable to prove their innocence. defined in this sweeping way, this reversal of the burden of proof is therefore questionable from the point of view of its compatibility with acting as a state under the rule of law. it will create uncertainty and facilitate abuse. that cannot be the raison d'tre of a progressive anti-discrimination policy. a further consideration must be that the commission is currently pursuing infringement proceedings against numerous member states in relation to inadequate transposal of the existing european directives on anti-discrimination policy. there is as yet, however, no overview of those regulations that have been transposed so as to make it possible to determine the need for new regulations that has been claimed. germany, in particular, has already gone far beyond previous stipulations from brussels. we therefore voted against this report. in writing. - (fi) when it is implemented, the equality directive will be one of the most important steps forward this electoral term for a social europe and a europe of the people. when it applies to all groups of people and discrimination criteria, legislation on both active and passive discrimination has an enormous impact on the lives of many eu citizens. in this regard i would like to thank the rapporteur for her excellent work. both in finland and elsewhere in europe the daily lives of a huge number of people are being made difficult by discrimination in one form or another. this should not be possible in today's society, where there is respect for human rights and equality: everyone should have an equal opportunity to participate in society. non-discrimination is the hallmark of a civilised society. it is especially important that the directive covers all discrimination criteria. although there are huge differences between groups and individuals that face discrimination, we need to address the problem of discrimination as a phenomenon consistently, without specifying any particular group or groups. a fragmented approach would inevitably make different discrimination criteria unequal in value and would also cause fissures, which people, who encounter discrimination for all the many different reasons, would be in danger of falling into. in writing. - (et) the european union is based on the joint principles of freedom, democracy and respect for human rights and fundamental freedoms. article 21 of the european charter of fundamental rights states that any discrimination based on any ground such as sex, race, colour, ethnic or social origin, genetic features, language, religion or belief, political or any other opinion, membership of a national minority, property, birth, disability, age or sexual orientation shall be prohibited. [this is a direct quotation from the legislation] the recognition of the uniqueness of each individual and their equal right to the opportunities offered by life is one of the attributes of europe's united diversity, which is a central element in the union's cultural, political and social integration. although the development of many areas in the eu has until now been very successful, it is surprising that we still lack common rules to deal with violence or abuse against the handicapped or concerning sexual abuse, and not all member states sufficiently recognise those citizens' fundamental rights. we must recognise that the european legal framework for the struggle against discrimination is not yet perfect. i wholeheartedly welcome the new directive, which creates in the eu a common framework for action in fighting discrimination. the above-mentioned framework will probably lead to the implementation of the principle of equal treatment in member states more widely than just in the labour market. fighting discrimination means investing in the consciousness of a society whose development takes place through integration. in order to achieve integration, however, society must invest in training, awareness and the promotion of good practices, in order to find a fair compromise in the benefit and interests of all of its citizens. thus a great deal of effort is still required on our part in order to eliminate discrimination in europe. the right not to be discriminated against is a fundamental right which has never been questioned in terms of its applicability to eu citizens. equal treatment irrespective of religion or belief, disability, age or sexual orientation is one of the basic principles of european integration. this long-awaited directive, whose history is just as complicated throughout the consultations in parliament, is based on article 13 of the ec treaty and governs protection against discrimination, emphasising equality of treatment whatever the grounds. there can be no doubt at all about the need for this directive, given the large number of people, roughly 15%, who claim they are discriminated against at eu level. i would also like to stress the importance of comparing this new directive with those already in force for combating discrimination. this is a task which will be accomplished through cooperation between the commission and member states. i am pleased to be able to highlight, in this respect, the progress which has been made in this area in romania over recent years, as indicated by the european union agency for fundamental rights. last but not least, i believe that this directive will have a significant impact, given the social protection measures, the social benefits and easier access to goods and services, which it will guarantee.

4. ecb annual report for 2008 (

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2. early years learning (

sector of berries and cherries intended for processing (debate) the next item is the oral question by mr daul and mr janusz wojciechowski, on behalf of the committee on agriculture and rural development, to the commission, on the situation of the sector of soft fruits and cherries intended for processing - b6-0435/2006). mr president, we can see the growing importance of the market for fruit and vegetables. this is partly a result of increasing consumption, and of the interest farmers have in growing such products to improve their income. during the accession talks, despite the good examples of solutions for the markets for tomatoes, peaches or citrus fruit, there was lack of will on the part of the eu to positively resolve the problem of the berries market. 2004 was a difficult year for berry growers in poland. i sent my first letter about this to the former commissioner for agriculture, mr fischler, in july 2004. at the same time, the european commission started work on simplifying the common market in fruit and vegetables in the eu, on which it reported in august 2004. in march 2005 the european parliament adopted a position on this matter. as a result of numerous interventions and speeches by polish meps to the committee on agriculture, we succeeded in convincing our chairman joseph daul to speak on this matter. as a result, in april and july 2005 poland received experts' visits by representatives of the european commission who looked into the issue of the berry and cherry market in poland and drew up a report. in 2005 polish berry growers had to deal with negative returns on produce in that market. in 2006 the agricultural commission of the european parliament included in its programme a session in poland, enabling meps to see for themselves the hardships that their polish colleagues had been talking about. the commissioner, who is not present here today, was probably already well acquainted with the problem. by the way, i am curious to know whether anyone in the commission has counted how many speeches members have made in this matter. during the visit to poland, the european commission for the first time presented a report on the situation in the berry, cherry and cherries for processing sector. the report is incomplete as it does not take into account the lack of horizontal integration, that is to say relations between the farmer and the processor. also, it does not mention that growers are absent from the ownership structure of this industry, and that foreign capital is dominant. nor does it present scenarios for the likely development of the situation on the berries market in the future. it is stated that all the problems of this particular polish market have to resolve themselves. 2006, like the two previous years, has again proved extremely difficult for soft fruit growers, and has been a crisis year. the committee on agriculture has therefore requested that action on this be speeded up and intensified, the result being today's debate and the resolution which this house will adopt in tomorrow's vote. we now have the final version, so let us go through it. meps appeal to the european commission firstly to take action to improve the competitiveness of berries in the eu. secondly, it should take immediate action to limit the excessive import of berries from third countries at dumping prices. as we know, the anti-dumping committee yesterday decided to impose immediate duties on frozen strawberries exported by chinese firms. the additional duties will be 0%, 12.6% or 32.4% depending on the situation. thirdly, a support mechanism for grower groups should be introduced, which would give growers greater encouragement to form groups, for example, by doubling the rate of aid for groups that are formed and then recognised. fourthly, other instruments should be introduced, such as a special safeguard clause, entry price mechanisms or inclusion of berries on the list of sensitive products. a fifth recommendation is to implement a system to support the processing of berries such as strawberries or raspberries similar to that currently used for tomatoes, peaches or citrus fruits, to stabilise the market. as regards the final point, i know that commissioner fischer-boel, who is not present today, was rather sceptical about this, which is why it may be worth considering the introduction of a regional system of payments for growing berries for processing. this would be in addition to the current subsidies within the saps system. a similar solution is proposed for reforming the banana market, where there is a change in the rules for granting subsidies for products expressed in tonnes in favour of subsidies calculated by land area. in order to increase the competitiveness of the sector, these payments must be tied in with an obligation to join producer groups or organisations, and an obligation to sell produce within a contracting framework. the resolution also contains a number of other interesting measures and proposals. berry growers have lost three years, and at the rate things are going with the reform of the market, it seems they will lose two more. it is only in april 2007 that legislative proposals for solutions in the fruit and vegetable sectors are planned to be tabled. thank you for your question. as far as i understood, it contains six points, and i will address them one by one. point one: yesterday, the commission services presented to the member states at the anti-dumping committee a draft regulation to impose provisional additional duties on imports of frozen strawberries from china. the written procedure for adoption by the commission is under way. regarding the second point, the issue of the low level of organisation in new member states will be considered in the framework of preparations for the proposal on reforming the common market organisation for fruit and vegetables. on point three, the commission proposed recently to simplify state aid rules so as to facilitate crisis support. in particular, it is proposed that, under certain conditions, aid to compensate for bad weather would be exempted from prior authorisation by the commission. point four concerns crisis management. the issue of crisis management will be considered in commission reform proposals for fruit and vegetables. concerning point five, the commission is not in favour of setting up eu subsidised grubbing-up programmes. however, member states have the possibility to implement national programmes provided that they meet state aid rules. finally, point six: promotion is indeed an important aspect. eu funds are available for promotion of programmes, and let me remind you that most of the above-mentioned aspects are being examined in the preparation process for the common market organisation reform proposals that the commission will table in the near future. on behalf of the pse group. - (hu) the action plan prepared by the european commission is a good foundation, and the anti-dumping decision regarding chinese strawberries is positive, although this is not a lasting solution. the only reassuring, long-term solution would be for these types of produce - cherries, sour cherries, berries, mushrooms and corn - to be included among the produce intended for processing, and therefore among those that benefit from processing subsidies within the framework of the reform of the fruit and vegetable sector. this would be very important especially for the new member states, particularly since this year the producers in the new member states are receiving only 35% of the direct payments. if produce in this sector is not included among those intended for processing, there will be no significant help for the new member states. i have fought for this over a year and a half and will continue to do so. on behalf of the uen group - (pl) mr president, although we have been discussing soft fruit, we have had hard-fought battles over them since the beginning of this term. i am very pleased that the difficult situation of soft fruit growers has met with the understanding of this house. as a polish mep i would like to thank all my colleagues for this. i thank you for your sympathetic approach to the issue, which above all affects farmers in my country. i thank you for your solidarity, particularly our colleague from the agriculture commission who personally came to poland to meet farmers and see their situation on the ground. the draft resolution contains actions that will satisfy our farmers and bring about stabilisation of the soft fruit market, which is very important for the future of this important sector. protection against excessive imports, inclusion of soft fruits on the list of sensitive items, increased aid to groups of producers and compensation for fruit not sold during the crisis are all solutions that are badly needed. i believe that the statements in this resolution will not remain on paper only, and that the european commission will promptly put forward specific draft legislation. as co-author of the draft resolution, i ask you to vote in support of it. (pl) mr president, today's debate on the situation in the berries and cherries for processing sector is the culmination of over two years of discussions of this key issue for european growers and processors. the lack of protection for the internal market, dumping, natural disasters, low prices, and greed and unfairness among many buyers have resulted in huge losses for fruit farmers, particularly in new member states such as poland, which accounts for two-thirds of the output of such produce in the eu. the difficult situation on the berry market has had the biggest impact on farmers in the poorest region in europe, lubelszczyna, which produces one sixth of total output. in my parliamentary activities i have frequently raised this issue in various forms. i am therefore happy that today our debate will end with a concrete resolution which will allow us to repair the negotiating errors we made in copenhagen and provide a basis for the decision which thousands of farmers are waiting for. i therefore thank all the members for their cooperation and look forward to their positive support for the resolution in the vote. (pl) mr president, we are debating the soft fruit sector in a situation where the european commission has, after nearly two years of efforts on the part of many members, decided to impose anti-dumping duties on frozen strawberries imported from china. this is a long-awaited decision which, one hopes, will limit the threat of growing exports of frozen strawberries from china at dumping prices. i would like to express the hope that the european commission will soon also put into effect other proposals contained in the draft resolutions prepared by mr daul and mr wojciechowski such as protective clauses, entry prices, compensation for losses due to unfavourable weather conditions or a crisis on the market, and a strong support mechanism for producer groups and organisations. thank you for your contributions to this debate. i will inform my colleague, commissioner fischer boel, about the concerns you have raised. all these points are being considered and discussed at length in the framework of the preparation of the forthcoming fruit and vegetables reform that is just around the corner. i shall do my utmost to respond to some of the issues you raised. mr tabajdi's question centred around the idea that the commission should introduce support for producer organisations that sell soft fruit to the processing industry. another point he made concerned support for producer organisations that sell soft fruit to the processing industry at a time when existing schemes are being reviewed in the context of the reform of the sector. the commission considers that the introduction of such a support scheme would be inadequate from a technical point of view. it would also be untimely and would not be in line with the principles behind cap reform. 'the commission should devise and implement measures restricting excessive imports of soft fruit, in particular those which apply dumping prices'. it is true that some of the difficulties faced in the sector of strawberries for processing originate from low-priced imports of frozen strawberries from third countries. yesterday, the commission presented to the member states and the anti-dumping and anti-subsidy committee a proposal to impose provisional anti-dumping measures on imports of frozen strawberries from china. the procedure for adoption by the commission is under way. in the other subsectors, imports from third countries either play a marginal role - for example as regards blackcurrants and sour cherries - or have decreased in the last years - as is the case with raspberries, for example. in the case of frozen raspberries, poland has increased its market share in the last few years, at the expense of imports from third countries. mr siekierski, you were asking about support schemes for grouping producers: these exist both in the common organisation of the market in fruit and vegetables and in rural development legislation. in its report on the situation in the sector of soft fruits and cherries, the commission has indicated that, in the framework of the reform of the common organisation of the market in fruit and vegetables, the commission may propose specific additional support for member states with low levels of organisation, and this is being looked at in the context of the preparation of the reform. mr siekierski, mr wojciechowski and others want to include soft fruits on the list of sensitive goods and bring them under the special safeguards clause and the entry price system. the special safeguards clause was introduced in the uruguay round for products that had tariffs. in the case of fruit and vegetables, this concerned products under the reference price system. it is no longer possible to increase the list of products covered by the special safeguards. similarly, the entry price system applies to products that were previously covered by the reference price system. there is no possibility of including soft fruits under the entry price system. thank you, commissioner, for your information. cherries are my favourite fruit also, so i can sleep more easily. i hope that that goes for other members also. i have received a motion for a resolution) tabled in accordance with rule 108(5) of the rules of procedure. the debate is closed. the vote will take place tomorrow at 11 a.m.

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voting time we shall now proceed to the vote. (for the results and other details on the vote: see minutes)

petitions: see minutes

situation in albania (debate) the next item is the commission statement on the situation in albania. member of the commission. - mr president, thank you for inviting me to speak on albania this evening. although on the european mainland, albania was isolated for a large part of the 20th century. however, albania is now open and accessible. it has become a country with a european perspective. today, albania is in political crisis. the developments in tirana on friday, 21 january 2011, were tragic. the increasingly bitter political stalemate has resulted in four needless deaths. the tone in tirana needs to change. the dangerous downward spiral must end. the political crisis must be resolved. this is the shared responsibility of the political leaders in albania. that is what the citizens of albania expect, and they are right. democratically elected representatives must act as such: represent the people and find democratic compromise. if the solution to the crisis lies in domestic hands, we as outsiders must do all we can to help facilitate such a solution. the external action service managing director, miroslav lajk, visited tirana twice to meet the president, the prime minister and the leader of the opposition, and i am happy he has joined me today. his messages on behalf of the high representative and vice-president of the commission, cathy ashton, and myself were clear: first, stop the violence and investigate the events of 21 january correctly. these investigations should be conducted by the judicial authorities without political interference. second, stop the verbal abuse and the implicit and explicit undermining of state institutions. third, get the political dialogue back on track: acknowledge that you have a shared responsibility to secure a more positive future for albania. in the near future, this means jointly ensuring the conduct of free, fair and transparent local elections. fourth, begin the important task of implementing the 12 priorities outlined in the 2010 commission opinion. the government and opposition must do it together. the reactions of the political leaders and the general public to miroslav lajk's visit were encouraging and positive respectively. there is some momentum which can, and should, be used to turn the crisis into opportunity. the two albanian leaders welcome the attention given to them, but they are stuck in their own internal impasse, and european union goodwill and assistance cannot replace dialogue between the leaders. we can help to bridge the gap through our active engagement. however, we cannot do so before both sides signal a genuine willingness to put the european future of albania above party politics and personal mistrust. there is no place for cherry-picking. albania must meet all the copenhagen criteria, including interactive political dialogue and a functioning parliament - or nothing. the following is on the table for albania: an eu perspective in line with the council conclusions and based on the copenhagen criteria; a clear identification in the 2010 commission opinion of the 12 priorities whose effective implementation would enable albania to begin accession negotiations with the european union. these 12 priorities include, among others, improving the functioning of democratic institutions and the political dialogue, the rule of law and reform of the judiciary, the fight against organised crime and the protection of human rights. these 12 priorities and the copenhagen criteria are not just an exercise for politicians. rather, they bring clear, measurable benefits for citizens. albania's politicians urgently need to put the interests of albania's citizens first. let us turn these priorities into a european framework to address the current political challenges in albania. for this reason, i sent a letter to prime minister berisha one week before the january demonstrations, in which i set out a road map based on these 12 priorities, to help albania emerge from the current impasse. we all witnessed the tragic events that ensued. it is not too late. if we receive irreversible signals that there is a mutual willingness to use this european framework to gradually overcome the political stalemate and the recent crisis, then we will respond positively. the european parliament also has a vital role to play. you as politicians can send a clear message to politicians. a clear united message from this house and the whole european union with the readiness to engage would make all in albania reflect upon the best course of action. let me use this opportunity to call on the prime minister of albania, mr berisha, to create a truly inclusive political environment in albania. other political forces and civil society organisations would benefit from european integration. let me also call on the leader of the socialist party, mr rama, to ensure that his party is a truly constructive opposition - one which enjoys the benefits but also the responsibilities of this inclusive political environment we wish to see in albania. mr president, mr fle, ladies and gentlemen, firstly, i would like to thank you very much for your clear statement. i believe that it has been well received. i think that developments in the fields of democracy and the rule of law are essential requirements for the start of albania's accession process to the eu. this includes functioning democratic institutions which are used properly. the parliament is the place where democratic debates should take place. this is why the citizens have elected the members of the parliament. this forum cannot be replaced by events on the streets and particularly not in the way in which mr rama attempted to do on 21 january. i call on the socialist party to take full part in the parliamentary process and to come up with political alternatives in parliament. it is time to bring an end to the doubts about the election result. the socialist party should take responsibility for its role as parliamentary opposition. it should make use of the opportunity to produce specific proposals for the future, including in the parliamentary investigation committee. the organisation for security and cooperation in europe (osce) and the osce office for democratic institutions and human rights (odihr) have produced recommendations for improving the basic conditions of elections. it is also important for the socialists to be involved in this area too. i have heard that mr rama agreed, while he was here in strasbourg, to take part in the local elections on 8 may. i welcome his decision. i hope that his assurance does not involve any conditions or loopholes. mr rama is obviously listening to the good advice given to him by his socialist colleagues and also in the meetings with other groups. i can assure him that many people in our group are playing an active role on our behalf in albania and support the inclusive approach referred to by mr fle. this has enabled us to make a joint contribution to ensuring a positive future for albania. on behalf of the s&d group. - mr president, we could certainly call the political situation in albania today a stalemate. sometimes calmer, at other times violent, this crisis has no end. last year, this parliament adopted a resolution calling on all domestic political players to find a negotiated political solution to the crisis and to build a minimum national consensus. this resolution was ignored by the political forces, and by the government especially. likewise, the recommendations of the commission and of the council are being disregarded at this moment in time. it is inadmissible that exercising the right to rally and to protest in a country plagued by corruption be described as a coup d'tat. it is inadmissible that the credibility of the state institutions - the presidency, public attorney and others - be undermined by statements by the head of government. it is inadmissible that those who shoot civilian demonstrators be called heroes of the nation and promised an amnesty. new local elections will take place soon. in the present circumstances, they will be a political test for all political stakeholders. we ask commissioner fle and managing director lajk to do their best in order to assure international assistance and international monitoring of these elections in such a way as to make sure that they will be free and fair, or at least that we could assess their freedom and their fairness. we support the commission approach, and that of commissioner fle in particular. we support the action by mr lajk. we have to ask all political forces to bring this crisis to an end, because the alternative is the isolation of albania and the jeopardising of its european perspectives. on behalf of the alde group. - mr president, i had a very interesting day today when it comes to albania. i have spoken to the representatives of the two main political parties there. i asked both of them to share ideas on how to move the country forward and how to break the political stalemate to focus on problems affecting all citizens: fighting organised crime, ending corruption, creating employment and opportunities for the young generation. none of them was able to come up with an answer. the blame game seemed more important. it occurs to me that the political establishment in albania is more concerned with itself than with its people. i do not have to tell you how difficult it is for us to convince our constituents to join us when we are making the case for eu enlargement. despite resistance, the alliance of liberals and democrats for europe would like to see the western balkans become part of the territory of the european union. we believe that the eu is a community of values which has left behind a divided past, choosing a united future. we must call on the albanian authorities to do the same and not be suffocated by the shadows of the past, but to step into the light of the future. and let them not forget that it is their responsibility, first and foremost, to provide for the wellbeing of citizens and not to deny them a european future, because it is crystal clear that the political crisis hampers any and all progress. new elections will take place in may and the preparations are under way. they should be supported by all political parties. i welcome the suggestion that the eu should play an active role in ensuring that they are both free and fair. but democracy is a long process and it is certainly more than just 'one man, one vote'. it requires democratic institutions, the rule of law and its strength is determined by respect for minorities. democracy is not 'winner takes all'. eu accession is a long journey which requires hard work and shared commitment, and the reforms albania has made are best served by collaboration and continuing commitment to the eu process. mr president, the crisis in albania is nothing new. the crisis did not begin in january with the violence against the demonstrators, nor did it begin in 2009, when the socialist party boycotted parliament after the elections and when the hunger strike began. this crisis is a crisis of political culture. boycotts, hunger strikes, demonstrations, they are normal methods of doing business in albanian politics. so are corruption, manipulation of the media and political appointments. all of that is a world away from the kind of politics we would like to see in a country which is on the road to accession. i so, so hope that the citizens of albania eventually get a responsible government and a responsible parliament, with politicians who will put the welfare of their citizens above their own prestige and interests. both sides need to start to move in order to reach that stage. the government has a particular responsibility. governments have a monopoly on violence and governments have an additional responsibility to stand above party politics, in order to do what is right for the people. we should be able to expect this government to do everything possible to prevent the january events from happening again. we should also be able to expect it to cooperate fully with the launch of an independent inquiry into what happened in january, to clamp down on corruption within its own ranks, and to provide room for parliamentary debate. the opposition also has a responsibility. it, too, must do everything to prevent a repeat of the january violence, by cooperating fully with proper and fair elections in may and by participating in parliamentary debate, preferably on content, for once, such as the sky-high levels of unemployment in albania. how do you get both parties that far, though? i had every hope in november when commissioner fle put the ball in albania's court and said: no more progress until you resolve this. when that happens, we will be able to grant albania candidate status. unfortunately, that did not bring about any change. i am now hoping that mr lajk will succeed where others have failed: that is, in bringing both parties to the table and achieving a breakthrough. i am hopeful, but i am not very confident that this will be possible without us wielding a big stick. i think that we should hold the prospect of a sanction over them. it must be clear that failure in this negotiation effort will not be without consequences. the sanction must hit the political leaders, however, and not the citizens. that means that we must by no means tamper with albania's visa waiver, which is a suggestion i have heard in the corridors. we would really be harming the citizens if we did that. i would really like an assurance from the commissioner that visa liberalisation will not be abused in this political process. one idea we could start considering, however, is withdrawing the control of ipa funds from albania and putting it back in the hands of the eu. that would allow all major investments in the country to go through, but the government would more or less be placed under guardianship. that seems to me to be a sanction that would hit the politicians, but not the people. i sincerely hope that all this will be unnecessary, because both sides will be willing to compromise, and that mr lajk will succeed, in the interests of the albanian people. on behalf of the ecr group. - mr president, if albania is to make progress towards its eventual goal of eu accession, its political leaders need to engage in a more constructive, democratic and mature way. last month's violence was a reminder of the inherent instability of albanian politics. i also wonder whether the council and commission have considered revisiting last year's decision to grant albanians visa-free travel to the eu in the light of the bloodshed, which may, of course, generate more economic emigration to the schengen area if foreign direct investment dries up. such a step would certainly underline the fact that albania continues to fall well short of the eu's expectations. organised crime and corruption still flourish and the judiciary is too often manipulated by politicians. prime minister berisha even interfered with the arrest, ordered by the prosecutor-general, of guardsmen who had shot protestors, claiming that a coup d'tat was imminent. democratic institutions are weak and press freedom is scarce. the decision by edi rama's socialist party to boycott the parliament on the basis of alleged electoral fraud has compounded albania's instability. there is no way albania can even begin to enact the reforms necessary to regain the eu's confidence in the current political environment of instability. this instability may also now cause nato to reconsider its own enlargement policy, albania having joined the alliance less than two years ago. nato leaders must now question whether albanian membership was granted too soon. aside from my own concerns about albania's political instability and how it will impact on the country's eu aspirations, i am also sceptical about albania's strategic priorities. albania is a full member of the organisation of the islamic conference, an increasingly powerful and influential lobby in the un promoting the interests of its members and voting as a bloc on human rights and foreign policy matters. oic members include albania and turkey, both of whom are signatories to the cairo declaration on human rights, which cites sharia as the basis for human rights in muslim countries. albania, like turkey, must now decide between embracing western values, or whether to give primacy to those of sharia law which the european court of human rights here in strasbourg has deemed incompatible with european values, though so far, in my view, albania's membership of the oic, in fairness, seems only nominal. albania is, after all, a secular country in practice. it seems to have been designed by the albanian leadership that they join the oic in order to attract middle eastern money, rather than based on any strong religious convictions, but, of course, this could all change in the future. mr president, commissioner, i had hoped that, eighteen months after the last parliamentary elections in albania, the political impasse would have been resolved. i had hoped, following the recommendations made and the resolution adopted by the european parliament, that what we were saying would be borne in mind. i was convinced that albania's hopes of european integration would act as a strong incentive - as that is what the albanian people want - to resolve not only the political problem, but also the economic, social and democratic problems. unfortunately, the impasse persists. as to who bears the lion's share of responsibility, i believe that it is not our job here to judge the albanian people. unfortunately, however, things have got worse. once again, i would like to express my sorrow for the victims of the demonstration on 21 january. we are opposed to the escalation of violence; we call for repression to stop, for human and democratic rights to be respected, and for those responsible to be punished. however, i will not conceal the fact that i am concerned about the imminent local elections in may. we simply must do whatever we can to ensure that all the necessary safeguards are in place for them to proceed smoothly. we must persuade all the political forces to participate in this election procedure and these elections must be held on the basis of international rules for proper, democratic elections. i believe that our help, help from the european parliament and the european union in general - and i agree here with mr fle - must be supplementary, must be auxiliary and, obviously, must not be coloured by party affiliations and political friendships (if you will pardon the expression). it will not be for us to provide the solution to albanian society and to the albanian problem. this must be dealt with by the albanian people, by the political forces in albania. i do not agree with the thoughts voiced about threats to take measures, when most of the measures we have heard about are measures against the albanian people. i do not think that this will bring about any particular result. i believe that we can exert the greatest possible pressure through the eu institutions, within the framework of relations with a country which is knocking at the door of the european union, by stressing that, unfortunately, all these procedures are delaying its accession prospects. we must point out that the impasse will only be resolved by a responsible stand on the part of the political leaders, with a readiness for political dialogue and not, as we have heard, with a 'winner takes all' attitude and similar practices and conduct. i believe that, if the political leaders in albania insist on this sort of practice and this sort of approach, the impasse and the crisis will get worse, making it impossible for the country to address serious problems in addition to the political problem: problems that will arise - if they have not already arisen - from the economic crisis which has hit the neighbouring countries of italy and greece, given that money sent from these countries is, to a degree, helping the economic situation in albania. consequently, a solution to the political impasse, political responsibility and political dialogue are what will help the political leaders find a rapid solution to the problems facing albania. mr president, i visited albania as a journalist on several occasions in the 1990s. each time, i was impressed by the talented young people i met there. surely, a country with young people like that must have a future. last summer, my faith in albania's european prospects was renewed during a summer school in southern vlor county. this morning, i exchanged emails with a couple of albanian academics about this evening's debate. they are both in their thirties and they have both decided to stay in albania: they could earn much more abroad, but they are staying. they want to be of service to their own people and to their church. however, what can they do about the political impasse in their home country? in both cases, their message is clear, and it is a cry for help: 'europe, do not leave our political leaders to their own devices. because, if you do, they will destroy our nation's future. europe, force both parties, the socialists and the democrats, to negotiate until they reach a solution'. commissioner, i will be the first one to admit that this is easier said than done, but theirs was a cry for help, nonetheless. however, i am confident that you will want to do your best to fulfil the hope that many upstanding albanian citizens have placed in europe and in you, as the commissioner responsible. i wish you a great deal of strength and success in this. to conclude, there is another, equally important albanian issue which i would like to raise. an informant in tirana has alerted me to the danger that, this spring, a large number of albanian girls and women are going to travel to western europe and end up in prostitution rings. do you share this concern, commissioner, and what resources does the european union have at its disposal to take preventive action against the trafficking of women and the grooming of girls for prostitution in albania? (hu) mr president, the political life of albania has been at an impasse since the parliamentary elections in 2009. the parliament cannot exercise its supervisory role over the government, and parliamentary institutions are, unfortunately, not operating effectively. the fact that the socialists are accusing the government of electoral fraud and corruption, demanding its resignation and early elections before those due in 2013, as well as the fact that prime minister berisha is unwilling to resign and is accusing the opposition of attempting to come into power by force, indicate that negotiations with the european union are doomed to fail very quickly. the european union considers it vital for candidate countries to step up their efforts in the fight against corruption and organised crime. this is not only important for the eu, but is also beneficial for the society of the countries concerned, not to mention that it can contribute to the improvement of the image of the candidate countries. for this reason, the settlement of the current situation will definitely require the restoration of democratic institutions. mr president, the political crisis in albania has lasted for far too long now. yes, it is not deadlock, it is not a stalemate, it is a protracted political crisis. it is hurting the reputation of the country, its citizens and their ambitions for a european future. we should not allow this political crisis and tensions to go any further. what we need now is to send a common message that we want to have albania as a candidate country, but political leaders on both sides must show the will to solve political problems in full respect for the rule of law, the constitution and on the foundation of democratic institutions. we have tried for too long to help find a solution to the situation without any tangible results. we strongly condemn the violence which took place in the streets of tirana during the demonstrations on 21 january. the events that cost the lives of four people need to be properly investigated. albania is awaiting the local elections of may this year. this will be another check on democracy in the country. again, now is the time for the political leaders to concentrate their efforts on finding guarantees that the elections are not going to bring further tensions and prolong the crisis. in concluding, i wish to emphasise the importance of the political messages and proposals contained in the speech by commissioner fle at the beginning of this debate. the best possible contribution parliament can make in this situation is to put all its weight behind these proposals and, accordingly, send a clear joint message to the albanian political parties. (de) mr president, i would first of all like to thank mr fle for his clear statement today and for his commitment to this issue over a long period. i would also like to thank mr lajk for the dedication that he has shown over recent months. he is used to addressing and resolving tricky problems. i wish both of them the best of luck. this debate has resulted in a united front and in joint support for the efforts of both men to find a solution for albania. i admit that i was sceptical when this debate started. nothing could be worse for the development of albania than accusations being made by one side in this house against the other that are similar to those being made by the two major political groups, the government and the opposition, in albania. i am very pleased that we have been able to agree on a joint approach, at least until now. i hope that this remains the case. both sides, both political groups - the government and the opposition - must commit to finding a way out of this crisis. i agree with mr belder. not long after the fall of the hoxha regime, i went to albania. i was very struck by the mood there and by the enthusiasm of the young people. however, i am very disappointed when i look at what has come out of this and what has not. i must say that the political class in albania is not able to satisfy the wishes and the ideas of the people. of course, we still have our political affinities and our personal friendship. however, it is crucial for us now to tell both sides that they must sit down together and attempt to ensure that the local elections at least are transparent and open. we must also call on both sides to be prepared to implement the requirements drawn up by the osce office for democratic institutions and human rights (odihr) for these elections, either by means of legislation or practical action, so that there will be genuinely fair and transparent elections in future. i also believe that parliament should send as many election observers as possible, despite the fact that these are local elections, because the elections could represent the beginning of a new political climate in albania. this is what albania urgently needs. i agree with everyone who has said that if nothing changes in albania, it will find itself in an isolated position. however, we do not want albania to be isolated. we want it to start out on the road towards europe. (bg) mr president, i would like to start by saying that albanian society, and the albanian people, are a special case, but please do not misunderstand me. their history is different, and their cultural traditions are different, and some of these differences have survived in the national character, the way in which it has developed, to this day, and this affects the way they perceive political processes and develop them. therefore, if we are going to instrumentalise the problem under discussion, we will need to show creativity, flexibility and imagination. for example, i believe that we should contact not just the leaders of the two main political parties which are at loggerheads, but also the unofficial leaders of albanian society. some correct things have been said here about sharia and the islamic conference, but we must bear in mind that the albanians are tolerant towards all three main religions in their country, including the eastern orthodox and the catholic churches. all three of these communities have influential leaders, as do ngos and youth. we should also be addressing these leaders in our attempts to reconcile the two political parties. (de) mr president, mr fle, mr lajk, ladies and gentlemen, i would like to join in thanking mr fle and mr lajk for their hard work and their attempts to find a way out of this problem. i am also pleased that the debate today has not descended into squabbles between the political groups which are in conflict with one another in albania. it would have been very regrettable for parliament if this had happened and i hope that we do not reach this point. the institutional crisis in albania is really also a crisis in the political culture. it is all about verbal violence that has turned into violence on the streets and resulted in four deaths. i agree with those who say that this needs to be investigated. it is important to find out who is really to blame. however, this process of verbal violence becoming actual violence on the streets is something that could put albania's accession to the european union at risk. as mr fle has already explained, this is all about making it clear to the political opponents in albania that their job is to act in the interests of the albanian people. the route towards the european union means finding a solution for this political crisis, sitting down at the same table and putting an end to the constant blame game, in which one group always blames the other and fails to recognise that it, too, can make a contribution to changing things. that is what is needed. the constant accusations about who started the situation and who is to blame have no place in a european state. i hope that the opposing parties will learn from this and realise that this situation cannot go on. if mr rama and his party really take part in the local elections, as he has indicated to some of us today that he will, and appoint members of the election commission, i welcome this and i hope it is a first step towards ensuring that these local elections can take place in an open and transparent form and that the results will be accepted afterwards. the parliament fully supported the liberalisation process which has already been mentioned. my request to mr fle is as follows: i hope that the commission does not consider abandoning visa liberalisation for the citizens of albania as a possible sanction against the two opposing parties. i hope that will not be the case. my other question concerns the opportunities for applying more pressure if the two parties do not come to an agreement. one option is, as mrs cornelissen has already said, taking responsibility for managing the instrument for pre-accession assistance (ipa) funds away from the government and returning it to the commission. the other possibility would be to freeze the ipa funds. however, this would cause suffering among the population, which cannot be our intention. what are your plans in the event that no solution can be reached? one last point: in the marty report to the council of europe, the accusation was made that the albanian secret service was involved or supported organ trafficking. do you know whether the albanian secret service and the albanian justice system are prepared to cooperate? (sk) mr president, since the 2009 general elections, there has been political tension in albania arising from the close result of the vote, which the losing political forces have described as electoral manipulation. the albanian socialists, led by edi rama, accuse prime minister sali berisha not only of electoral fraud, but also of being responsible for extensive corruption and the deteriorating living conditions of the people. at a protest rally organised by the opposition in the albania capital, tirana, on 21 january, there were more than 20 000 demonstrators demanding the resignation of the government of sali berisha. however, police intervention involving water cannon, tear gas and rubber bullets resulted in four deaths and more than 150 injuries. the brutality of the police intervention, as well as the fact that sali berisha gave all members of the security forces participating in suppressing the demonstration an extraordinary reward amounting to one month's pay, is clear evidence of the fact that the albanian premier is buying the favour of the security forces and trying to win their support and to set them against the albanian people. in decent, civilised countries, government is usually decided by the citizens, the voters, and not by bribed security forces or the police. if mr berisha has forgotten this elementary principle of democratic government, then in my opinion, he has no business being the leader of a democratic state. ladies and gentlemen, i do not think any of us would like to see in europe the promotion of governments which build their power on electoral fraud and corrupt policemen, and which are represented by little dictators who do not know how to hand over power to others in the proper way in a country. we must therefore be more vigorous in defending democracy in albania. (de) mr president, mr fle, mr lajk, ladies and gentlemen, the issue that we are discussing did not begin on 21 january. therefore, we need to ask ourselves and i am also asking you: why did the commission and the other international bodies not put out the fire when the flames first appeared in mid 2009? the 2009 elections were the best that have so far taken place in albania and they were based on election legislation which, amazingly, was adopted following a consensus between the socialists and democrats. reaching a consensus is something entirely new in albania. i believe that this is important. all the socialist election boards, the osce office for democratic institutions and human rights (odihr), the election observers and we ourselves believed that the elections were managed correctly. the government which was subsequently formed was also something new for albania. two parties which cannot stand each other sat down and worked together. the democratic party, on the one hand, and the smaller social democratic party, on the other. two opposing groups have come together to help albania to make progress. it has joined nato and it has a visa regime, but unfortunately, it has not yet been granted candidate status. however, just at the moment when the government was formed, the opposition decided that the elections had not been properly conducted and called for the ballot boxes to be opened. what sort of government opens ballot boxes? not the sort that we have in my country or in yours. we have to go before the constitutional court or the election commission. protests like the ones which we have seen, the hunger strikes, and the refusal to cooperate in parliament to pass important legislation, are all simply unacceptable. it is important that we make this clear and that we face the facts. it is not always possible to bring everything onto the same level. i would like to find out what the most important and the most difficult issues are. the accusations that have been made both recently and right from the beginning concerned the issue of opening the ballot boxes. this is not possible, because the constitution does not allow it. how can negotiations take place about this if it is not allowed? now the situation has escalated and four people have been killed. it is good that you have attempted today to present a road map. however, it may be exaggerating slightly to describe it in that way. i would very much like mr lajk and you, mr fle, to use this road map to draw up a route towards a better future for the people of the country. mr president, i welcome the statement by the commissioner. i would also like to emphasise the contribution made by mr lajk in trying to identify solutions for overcoming the dramatic situation. the recent demonstrations in tunisia and egypt were certainly opposed by the local dictators who finally had to leave their country - but without major violence and executions like those in tirana as witnessed by the media. as for prime minister berisha's allegations that the demonstrations were nothing more than a coup d'tat led by the opposition, the president of albania, the prosecutor general and the head of the secret services - all appointed under mr berisha's leadership - are these people all now socialists or is something wrong with mr berisha? i would like here to quote thomas countryman, a deputy assistant secretary at the us department of state, who publicly rejected the hypothesis that what happened on 24 january was a coup d'tat. we need to be committed and as effective as the united states and nato right now in trying to push, assist and help the two albanian sides reach a negotiated solution, but i also call on all my colleagues who are giving mr berisha their unconditional support to stop their one-sided approach. it is important to put pressure on both sides so that the two blocs finally reach a solution. up until now, only one side has shown some readiness to implement both the european parliament resolution and the 12 proposals you mentioned before, commissioner. i call on the commission to be strong and committed towards an agreement based on the european parliament resolution and the 12 conditions you mentioned before, bearing in mind that without complete agreement from both sides, albania's european integration process might be completely frozen. (it) mr president, i should like to thank the commissioner for the road map he has set out for albania this evening, which i endorse wholeheartedly. i am totally convinced that this country has a european future and should therefore be a candidate for accession. the bloodshed of 21 january dragged tirana backwards by several years. it felt like we were watching the same scenes of protest and violence seen in the 1990s. i am therefore very concerned about the recent events and the short-term future of the country. during our last visit there in november 2010, in our capacity as the delegation for south-east europe and, on 3 and 4 may 2010, as the stabilisation and association parliamentary committee, together with other colleagues, i witnessed albania's difficulties with my own eyes. we did not manage to bring the negotiations to a close with a final resolution for an agreement. is it possible that we failed to address the country's true problems? aside from mere political alchemy, was the true social cancer of unemployment even mentioned? we need to recover our sense of responsibility, which is what we are crying out for. on this issue, in searching for at least some convergence on basic rules from both the majority and the opposition, it is necessary to guarantee, in all possible ways, that the next round of elections is hallmarked by the highest possible level of transparency and democracy. mayor edi rama will stand in elections for the district of tirana, so we will shortly have the chance to check and assess the political situation and standard of democracy, as naturally, we shall be present there. irrespective of the progress made by albania in this period, europe must never stop searching for dialogue and collaboration. i should like to thank the commissioner for the work he has carried out and will continue to carry out, because our presence in albania is important. (el) mr president, i have been following events in albania with a great deal of concern. the tragic incidents during the demonstration held against corruption, with people killed in clashes with the security forces, must be expressly condemned. the continuing political crisis harbours very serious dangers to the stability of the country. everyone bears their share of responsibility. however, the elected government should listen to the message being sent by the people, that the country needs sound governance. the creation of rule of law, by stamping out corruption, should be one of the albanian government's priorities. the people are entitled to demonstrate within the limits of the law when they feel that the government is acting against their interests. the european union must do whatever it can to help ensure that calm and caution prevail. we must all be involved in this process. i call on my fellow members in the group of the european people's party (christian democrats) not to overlook the government's serious responsibilities and blame the opposition alone for the political crisis. at this stage, i think that political dialogue should be resumed and that a solution should be found using the procedures laid down in the constitution and by law. (mt) mr president, when i look at what is happening in albania, it saddens me greatly because i recall my country's own history in the beginning of the eighties, thirty years ago that is, when malta was facing a similar situation: deep division, tension, political rivalry, threats and even violence. it was a suffocating atmosphere that did not make me proud of my homeland. in the same way, i believe that albanian citizens are equally saddened by their country's current plight, and are far from proud of what is going on. today, i am deeply proud of my country, because we have created a stable, democratic system, and above all, we are now part of the european family. the political environment has changed drastically. my wish for albania is the achievement of its aim of having a stable country that is part of the european family. however, it is clear that if the two main parties in the country persist in their stubbornness then this aim will never be achieved. it is a pity, but it is a reality. the european union is doing what it can; the visa requirement for albanians has now been removed. nonetheless, albania must also play its part, and for this to happen, then all the parties concerned, including the government and the opposition, have to adopt a different policy, one that embraces politics based on dialogue, on maturity and on responsibility towards the albanian people; politics that do not seek to divide, but to unite. it is not up to us to tell the albanians and albania what to do. we are here to tell them that the decision on whether albania is to find its place within the european family is in their hands. (sv) mr president, though the crisis in albania has been going on for a long time, it is only now that it has really started to escalate, and this time, the eu has acted immediately and in the right way. through the commitment of commissioner fle and others, the eu has shown that albania does not have to face its problems alone. this is a major problem that is damaging the country's credibility as one that is serious about drawing closer to the eu. it is not a question of who is right and who is wrong, but of the need to put the political dialogue back into the domain of the political institutions. we should not give our backing to any side as being right or wrong, and we must be extremely clear that the election in may must be a signal as to the direction albania is going to take - towards the eu or towards continued isolation. (lt) mr president, i share the concern expressed by my fellow members that the situation in albania is worrying and may have a negative impact not just on albania itself, but the future prospects of countries throughout the entire balkan region. at the end of last year, the european union expressed its confidence that albania and bosnia and herzegovina were making and could make progress initiating important reforms, and liberalised the visa regime for their citizens. however, the political unrest that began scarcely a few months later and resulted in several deaths suggests that albania has failed this test. this eruption of violence in albania calls for a rethink of long-term prospects for the region's integration, because european union policy is concentrated on regional stability and such an approach is right. there should therefore be solidarity between the countries of the balkan region and it should be in their common interest to maintain and promote greater regional integration and political stability. (ro) mr president, the tense situation which developed in albania at the end of january highlights how important it is to maintain certain boundaries in political debate. the extreme escalation of the disputes between the government and opposition has resulted in the loss of human life. i need to stress that in a democratic state, these conflicts should not go beyond parliament's walls. the street is no place for them. the assault by organised opposition groups against the government's building in an attempt to take power by force is a serious matter, while the ploy used by some authorities to hide those who are guilty is unacceptable. this is why i am calling on the leaders of the albanian opposition to return to the discussion process in parliament. the elections held in 2009 were fair and it is the political parties' duty to respect the will of the people. compromising state institutions is not the answer for expressing one's convictions or discontent. (el) mr president, i should like to make the following observation: it is most surprising that, while growth indicators for albania are constantly rising, with growth exceeding 2% in 2010, in the midst of global economic instability, and expected to reach 3% in 2011, social tension is, nonetheless, getting worse rather than better. obviously, commissioner, growth has not instilled a feeling of prosperity in the albanian people. on the contrary, it is equally obvious that disappointment - and with it the fear of a new wave of immigration to neighbouring countries - is increasing. we experienced this very acutely in greece in the 1990s. at this difficult juncture, therefore, europe has a duty, in addition to giving albania political advice, to pass on practices and examples, so that growth benefits all sections of society. the situation in which albania finds itself is best described as a cold civil war. political parties play the role of warring sides and are pulling the country into a downward spiral. the explanation is that both left and right believe that political parties should rule exclusively, as the communist party once did. once a polarisation of this kind has begun, it is very difficult to transform the situation into one that resembles the democratic norm, because in this context, exclusive power is completely rational, which is tragic. is there a way out? yes: catharsis. but only a major crisis or a grand historic compromise can bring this about. member of the commission. - mr president, i would like to thank you for this lovely debate and, before i share with you my concluding remarks, let me address the two questions which were put during the debate. the first one, put forward by mr belder, i will answer in written form, taking into account our primary focus in today's discussion. but there was another question: whether we are considering sanctions. no we are not. why is this? because in issues of enlargement, conditionality works very fairly, as is clearly the case here. if you fulfil the conditions, you are allowed to proceed with accession and eventually join the european union. if you do not fulfil the conditions and requirements, the process is slowed down and eventually stopped. unfortunately, this is the ultimate price that is being paid not only by the politicians but also by the citizens of that respective country. the high representative and i will continue to strive to facilitate dialogue between albania's majority and opposition. we have a clear idea of how to do this. we also need your support to make sure that the leaders of the main opposition party and the prime minister of albania understand our message. this could lead the country out of the political crisis and could allow positive steps towards its integration into europe. the european union made a commitment to all the western balkan countries that they would enter the european union. we stand by our commitment and will step up our efforts, provided the countries fulfil the criteria. albania urgently needs to implement the 12 key priorities of the opinion. these include addressing the fundamental principles of democracy, such as the proper functioning of parliament, separation of powers, the conduct of elections and respect for the rule of law. all of this will only be possible once the current political situation has taken a fundamental positive turn with the resumption of a full and constructive political dialogue in parliament, respect for all state institutions and the realisation that the citizens of albania have aspirations that require attention. the leaders of albania must act now for the benefit of their people. the european union stands ready to assist. the debate is closed. written statements (rule 149) the crisis under way in albania, which is jeopardising geopolitical stability in the balkans, is causing acute concern and alarm. the political standoff between the government and the opposition is calling albania's european prospects into question and president sali berisha has no intention of stepping down. although few parallels can be drawn between albania and recent developments in north africa, what they do have in common are poverty, unemployment, a corrupt, clientelist regime and a lack of democracy. although the crisis in albania has been temporarily averted, we need to work closely with albania in order to smooth out the political situation. the commission should explain how it intends to safeguard the rights of greeks and other minorities in albania, through the smooth, democratic operation of the system, and to strengthen frontex on the greek-albanian border, given the danger of an influx of immigrants into greece due to the political unrest. also, the commission should take serious account of the fact that albanian nationals no longer require a visa to travel to turkey, which makes it easier to breach the southern borders of europe from there, starting with greece as the first port of call, followed by the rest of europe.

communication of council common positions: see minutes

13. turkey's 2007 progress report ( - before the vote on amendment 11: (de) mr president, we agree with our fellow members that we should give appropriate recognition to the role of the kurdish language in turkey. paragraph 11 requires some linguistic clarification on one point, however. i would therefore like to propose an oral amendment which has been agreed with the other shadow rapporteurs and the rapporteur. in the amended version, the sentence would therefore read as follows: 'including real possibilities to learn kurdish within the public and private schooling system and to use it in broadcasting, in daily life and in access to public services'. (parliament agreed to accept the oral amendment) - before the vote on paragraph 19: rapporteur. - (nl) we want to drop the word 'neighbouring' because we want the ombudsman to work with all european ombudsmen and ombudswomen. (parliament agreed to accept the oral amendment)

question time (commission) the next item is question time (b6-0001/2009). we are going to deal with a series of questions addressed to the commission. part one subject: ten years of the euro in light of the recent celebrations to mark the tenth anniversary of the adoption of the euro, can the commission comment on the key lessons learnt in terms of the coordination of fiscal policy across the euro area, especially in light of the recent financial and economic crisis? member of the commission. - while the experiences with budgetary coordination have, overall, been positive, some lessons can be drawn. the analysis of the first 10 years reinforces the case for strengthening the effectiveness of budgetary surveillance in good times. it also shows the need to address broader issues which may affect the macroeconomic stability of a member state and the overall functioning of economic and monetary union. fiscal policy coordination should better guide national budgetary behaviour over the whole cycle - that is, both in good times and in bad times. increased attention should be paid to monitoring public debt developments while medium-term budgetary objectives should be strengthened to address implicit liabilities. all these kinds of developments call for deeper budgetary surveillance. but surveillance should also be broadened to take account of developments within member states that may affect budgetary sustainability, such as the growth of current account deficits, persistent inflation divergences, persistent divergences in the evolution of unit labour costs, or trends of unbalanced growth. surveillance must build on the existing instruments. the key instruments for fiscal policy surveillance and economic policy coordination are clearly anchored in the treaty and, indeed, in the stability and growth pact. the recent adoption of the european economic recovery plan by the commission on 26 november last year also breaks new ground as far as governance and budgetary coordination is concerned. it highlights the commission's role as a catalyst for short-term emergency economic stabilisation policies. based on our own economic assessment, the commission has quickly set up a fully fledged and quantified economic response to the economic slowdown. the commission's quick delivery is a response to the clear risks of bigger-than-ever national economic policies at this juncture. the recovery plan recognises the inherent division of tasks embedded into the eu economic policy framework. since member states are responsible for budgetary policy, the commission set a global target for additional fiscal stimulus, taking into account the amount needed to kick-start the eu economy as a whole. member states are free to devise the size and composition of their respective fiscal stimulus. it now implies challenges in terms of coordination and surveillance of the implementation of national measures. the commission and the ecofin council will jointly monitor the implementation of the national measures in compliance with the principles laid down in the recovery plan. looking forward, judicious implementation of the fiscal surveillance framework will anchor expectations of future fiscal developments. together with the strengthening of national budgetary frameworks and rules, and the implementation of reforms curbing the rise in age-related expenditure, this will ensure that sustainable positions are restored. it thus contains adverse effects of expectations of rising deficits and debt on risk premia and private consumption and investment. commissioner, i very much appreciate your reply. in view of the fact that we have a common monetary policy, but given the ongoing problems, do you see a greater role for the eurogroup, while respecting the taxation policies in individual states? do you think that the implementation or the adoption of the lisbon treaty would in any way affect that area in relation to taxation? i think the important thing is that we need to work together. how do you envisage new ways of trying to generate stimulus in economies of the eu countries? member of the commission. - what is the role of the eurogroup? as you know, the eurogroup is right now, and will continue to be after the lisbon treaty comes into force, an informal body. so, the eurogroup cannot adopt formal decisions even when they relate only to euro-area members belonging to the ecofin council. but over the past three or four years, since we began with the presidency of jean-claude juncker, in particular, in january 2005, the eurogroup has improved the content of the discussion agenda. members of the eurogroup together with the commission and the ecb discuss this deeper budgetary surveillance and broader economic surveillance that i mentioned in my introductory remarks. the eurogroup often discusses other issues concerning the external role of the euro and the external dimension of euro are. tax issues, as you know very well, are a very delicate issue. according to the present treaty but also according to the lisbon treaty in the future, tax decisions require unanimity at eu level, and i do not foresee any kinds of changes in the decision-making framework in the near future. (de) commissioner, i am interested in the following point. over the last 10 years the eurogroup has been a huge success and, particularly during the most recent crisis, other countries have expressed an interest in joining the group. is the commission already planning which countries could possibly become members in future? are there other countries interested in joining the euro area because being a member has proved to be so worthwhile? (sv) firstly, i would like to ask the following question: if it has been so successful over the last 10 years, why do italy and greece, to take two examples, have a 10-year treasury bond rate that is a couple of percentage points above that of germany? secondly, why is sweden's 10-year interest rate 0.4 percentage points lower than germany's, and finland's 0.6 percentage points higher, when both are well-managed countries? member of the commission. - as you know, slovakia joined the euro zone on 1 january this year, so we now have 16 of the 27 eu member states participating fully in the emu and sharing the same currency. who will be the next? it is not up to the commission to answer that question. it is up to the candidates who wish to join the euro area to apply. at the present time we know which eu member states would like to join the euro area as soon as possible but unfortunately do not fulfil all the criteria required by the treaty - the baltic states, hungary and others - and we know that there are two eu member states, namely the uk and denmark, that got an opt-out so that they can be excluded from the responsibility of all eu member states to prepare themselves and their economies to join the euro area one day. i do not know who will be the first to join the euro area after slovakia. it could perhaps be one of the two member states with an opt-out. it is possible that in the coming months denmark, for instance, might decide to no longer have an opt-out and to apply to join the euro area. in fact, denmark fulfils all the criteria to join the euro area according to the treaty, but it is up to the danish authorities, the danish parliament and maybe the danish citizens in a referendum, to decide. this morning we were commemorating here the 10th anniversary of the euro. i am sure that in the next 10 years all - or almost all - the eu member states will join the euro area because, in these times of crisis during this difficult economic period, the advantages of being a member of the euro area have increased a great deal. those who have not yet joined the euro area realise that the advantages are much bigger and much more important than the responsibilities they must bear as members of the euro area, or the difficulties. regarding your remarks, if i were in your position i would not argue against the euro area in terms of interest rates. ask denmark what has happened with their interest rates during this period of crisis. denmark is a non-euro-area member whose currency is linked with the euro and whose central bank closely follows the decisions of the european central bank. the markets are not rewarding those who are not in the euro. they are putting higher risk premiums on them. subject: collapse in dairy prices on the eu market according to a commission working document dated 21 november 2008 on monitoring price trends, annexed to the communication on food prices in europe (p. 9), between october 2007 and october 2008 the price of butter on the eu market fell by 30%, while that of powdered milk decreased by 40%. both prices thus appear to be descending unstoppably towards the intervention levels. does the commission believe that the content of its proposal drawn up a year ago on raising the milk quotas, as approved by parliament and the council, should be maintained unchanged in the face of these market trends? does the commission believe that the limits existing under the current rules as regards intervention for powdered milk and butter are likely to be sufficient to prevent disastrous consequences for farmers' incomes, as in a region like the azores where farmers' activity is totally dependent on the market in dairy products such as those mentioned? member of the commission. - i shall start by describing what the situation looked like just a few years ago. we all remember that the dairy sector was very stable with very few price fluctuations, but over the last few years the situation has changed dramatically. firstly in 2007, i remember clearly in august and september, we saw huge increases in dairy prices and then we experienced last year the same or an even worse reduction in prices, so the situation today is that prices are very close to intervention prices and in some parts of europe even below intervention. i can assure members that i am extremely concerned at the quick deterioration of the european dairy market. we have support measures in place that can be activated to support the dairy sector and we have already taken action. contrary to the normal situation, where the private storage scheme for butter is normally activated on 1 march, we have decided to activate the scheme from 1 january, which means that the production that has taken place in december is also eligible for this scheme. intervention buying or granting export refunds are other instruments that are available to support the dairy sector or the dairy market efficiently. with regard to the intervention system starting in march - and therefore also covering the production that will take place in february - butter and skimmed milk powder may be purchased until the end of august. first, for fixed quantities at fixed prices, followed then by a tendering system should the situation so require. i would also like to remind you of the situation back in 2007. i think we all remember the immediate and quick reaction that was witnessed by the european parliament, by the council, by member states, that put enormous pressure on me to increase immediately - yesterday rather than tomorrow - to increase the quotas to ease the situation on consumer prices. i would also like to speak out very clearly today to try to stamp out misunderstandings which are circulating that the increase in milk quotas is to be blamed for the very weak dairy prices that we see today. the reality is that despite the 2% quota increase that took place after april this year, the production of milk has actually fallen. that is what we see now, due to the fact that an increase in quotas is a possibility for member states or for farmers to produce but it is certainly not an obligation. this shows clearly that dairy producers are reacting to market signals. the relatively small changes that we have seen in the quota system can therefore in no way explain the market volatility that we are seeing. the lower demand from consumers is probably a reaction to the high prices that we saw last year as consumers then tried or wanted to step out of the high-quality high-priced dairy products. then, of course, there is the economic climate in which we find ourselves these days. for the same reason it is important that we do not fool ourselves and think that by micro-managing the dairy market we decide for the whole sector. the conclusion must be that the quota system has not been able to deliver market stability in the market place. concerning the question of the azores, the portuguese authorities have used any opportunity to ask for increased milk quotas for the islands because of the fact that the azores seem to be extremely competitive and seem to be benefiting from the increased production. i am quite sure that the larger quotas, and the ultimate end of the quota system, will benefit the azores' dairy sector. that will be the case, i think, even in spite of the fact that those beautiful islands are quite remote and milk has to be moved around between nine islands. to conclude, i can assure members that i will manage our dairy policy instruments in a responsible way with a view to ensuring an effective safety net for the dairy sector. (pt) thank you for your clarifications, commissioner. i regret that i am unable to share your optimism regarding how these increases in permitted production levels will benefit the azores' production. i can assure you that these effects - according to a magazine published this week, they are already estimated at a drop of more than 60% in the world market price of powdered milk since august 2007 - are having a profound effect on the incomes of farmers in the autonomous region of the azores, and certainly also in several other parts of europe. these measures, which i hope will turn out to have some effect, have still had no impact. that is why, commissioner, i was asking you to devote your full attention to this situation. member of the commission. - you know that i am always very happy to have a dialogue and a discussion with you on the importance of the agricultural sector and also on the azores. we find ourselves in a situation today where the market is extremely difficult. this is not only the case for the azores, but is the general situation in europe, where we have to realise that prices are decreasing to a level that we would never have imagined just six months ago. i can only assure you - and i think that you believe in my ability to find the right solutions at the right time - that this is going to be the way that we will manage the system under these circumstances. happy new year to the commissioner, although the news is not good on dairying. could i specifically ask you, commissioner - because you have alluded to some of the factors which have resulted in the price fall - given that we were not clear on why prices rose so dramatically, is there a detailed analysis as to why prices have fallen so dramatically? are you confident that the reforms of the health check are sufficient in view of all this uncertainty? lastly, is a safety net enough if we erode producer confidence and they drop milk production, as is happening now? member of the commission. - firstly, i think there are various reasons for the situation of very low milk prices. perhaps the biggest reason is the fact that the russian market is of huge importance for the european union and just recently we have seen a huge devaluation taking place in the economic sector in russia, which means that prices for the russian consumer have increased dramatically. i do not know the exact figures, but the devaluation is at least 50%. the consequence has been that the possibility of selling our products in russia has been receding dramatically. there is also, as i said, the consequence of the high prices we saw in 2007, where people stepped back a little from the high price of dairy products - and obviously they have not returned. and then there is the situation today with the uncertainty in the general economic situation. ms mcguinness asked whether we think that what we did in the health check is good enough. the fact is that the health check does not start until 1 january 2010, with all the different tools available to support the different sectors. we have seen during the discussions that we have new challenges and we have reserved the modulated money for those new challenges. but these are not effective in 2009. that is why we have proposed to the european parliament, the council, and the ecofin council to spend some of the so-called unused money - eur 5 billion in total from agriculture, and for the rural development policy it is specifically eur 1.5 billion - now, in 2009. it is then in the hands of parliament and the council to see whether it is possible to spend some of this money. if you remember the list of the new challenges, the dairy sector was also mentioned. therefore, i hope that there will be an understanding in parliament as well to trigger some of this money to be used not exclusively but also on the challenges facing the dairy sector. subject: microcredits in may 2008 commissioner mariann fischer boel proposed reallocating eu funding that was previously used for export subsidies, price support and the storage of surpluses to microcredits, to enable farmers in the developing countries to buy seed and fertiliser. microcredits are unquestionably a major aid in combating poverty and an instrument for achieving the millennium goals. back in april 2008 parliament called in a written declaration for more resources to be released for microcredit projects. what practical action has the commission so far taken to follow up that proposal? is it not the practice to take two supplementaries after the questioner, and did i not indicate right at the outset of the question to the commissioner that i had a supplementary question to ask? why was it not called? mr allister, i was not at all aware that you had a question to ask. if i had known, i would of course have given you the floor. with respect, your staff indicated that my request had been noted. so, if your staff were aware of it, then, by implication, you were aware of it. why were you not informed? i am sorry, according to my staff, no one saw you. madam president, ladies and gentlemen, the discussions between parliament and the council on the adoption of the regulation establishing a european food facility led to the decision not to use the funds available under heading 2 of the budget to finance this facility, contrary to what was proposed by the commission. however, the regulation of the european parliament and of the council, adopted on 16 december 2008, did provide for a budget of eur 1 billion under heading 4 of the budget for the period 2008-2010. it will be used to fund measures supporting agriculture and food security in the developing countries worst hit by the food crisis. microcredit features largely in many of these measures, as well as others aimed at strengthening agricultural and rural production. parliament will have the right to examine the programming of the work funded by this facility, in accordance with the provisions of the comitology regulation. i am able to tell you that an initial package of approximately eur 300 million, involving 24 to 25 countries, will be presented in february, while the general plan for the use of the entire facility will in any case be presented by the commission and adopted by 1 may 2009. the commission is in favour of developing microcredit and microfinance institutions more generally. in addition to credit, the latter offer a wide range of financial services, including savings, insurance products, money transfers and payment systems. the commission is committed to helping the most disadvantaged individuals and those with low incomes to access these financial services. it believes that the greatest barrier to the development of financial systems for the most disadvantaged is not the lack of funding, but rather a lack of institutional and technical capacity. that is why the commission is focusing its efforts mainly on strengthening the institutional powers of microfinance operators. in addition, where access to capital proves to be a significant limitation for microfinance institutions, for example where a microfinance institution wants to develop its services in rural areas, the commission can fund the capital needs of these institutions through specialised financial institutions such as the european investment bank (eib), using credits to grant loans or to contribute to the capital. in certain cases, where new microfinance institutions are created, the commission may also decide to provide funding for these start-ups through specialised ngos. moreover, on the basis of these comparative advantages, the eib manages microfinance operations within the general framework of the facilities funded by the eu budget, namely the femip (facility for euro-mediterranean investment and partnership) in the case of the mediterranean region, or via the european development fund, which is the investment facility for the african, caribbean and pacific states. (nl) mr president, all of us here have welcomed the decision to earmark eur 1 billion for the poorest farmers in the countries which have been hardest hit by the food crisis, but my personal regret is that the commission's proposal to employ unused agriculture funds for this purpose has come to nothing, as a result of pressure from certain member states and also from one section of parliament. as the commissioner said, the commission attaches great importance to microloans as an effective instrument for combating poverty, but recently some questions and criticism have been raised, specifically as to their accessibility. people are saying that this is an urban instrument to which rural areas have no access. my question to the commission is: has an overall evaluation of this instrument been carried out? (fr) we are of course, as i said, working on preparing the mechanism that should allow us immediately to employ the financial resources that have been set aside for this purpose. in my view, neither the nature of the funds nor their origin presents a problem in terms of capacity. it is clear that, even in the case of rural projects, there will be no problem at all. i can therefore reassure you on this subject; there should be no difficulty and, in any case, the concern you feel will be largely addressed, as you will see, in the first package, which will come at the end of february and also in the general plan, which will be available by 1 may at the latest. (de) i have only one brief question. have you considered putting in place certain controls on these microloans to encourage people to focus on fair trade or organic cultivation and do you believe controls of this kind to be useful? or are you of the opinion that it really does not matter whether requirements of this kind are implemented or not? (fr) clearly i cannot get involved in the direct management of developing countries. developing countries generally have extremely fragile policies on these things. i think i have understood the heart of your question and i believe the approach you suggest sounds promising, in principle. i can see what you would hope to achieve by it, too. perhaps i might look again at this issue and try to incorporate it into the current discussions, and then come back to you to see how we might arrange it. i imagine you are thinking of incentives that would enable us to direct certain policies much more towards small family farms, and so on. i think that organic farming, in a number of developing countries, is undoubtedly an option, provided that it would be possible to create sectors. however, this is just off the top of my head. if we can create a sector, in a country where there is a surplus of agricultural production at any given time, that could of course represent an interesting diversification, with good added value. anyway, i can clearly see that your suggestion is useful and i promise to involve you so that you can work with my staff to see how we can incorporate it into our discussions. is the commissioner concerned that the issue of global food security, which is part of this question, has slipped down the political agenda because of the global economic crisis? what action is the commission taking to ensure that it is high on the political agenda, because 30 000 children are still dying of hunger and starvation on a daily basis? (fr) i am sometimes surprised by certain questions, and not because we are not talking about these things and working on them every day. your question implied that the commission does not appear to be keen to pursue the work that was largely in fact begun by the commission, with parliament's help and support. rest assured; i have to tell you that this is an interesting point since the fact that prices have fallen since the food crisis a few months ago could lead some to believe that the problem has been solved. although they have gone down, prices will not return to the relatively low level they were at before. you are therefore right to highlight this and to point out that the food crisis is still ongoing and will remain a real problem for many years. you may be assured that i will be monitoring this matter very closely; it will not be forgotten. subject: reforming the budget the outcomes of the commission's public consultation on 'reforming the budget - changing for europe' called for the commission to enhance the effectiveness and efficiency in the delivery of the budget by increasing transparency and public access to it. in addition to this the recent publication of the court of auditors' report 2007 made various recommendations in terms of cost/risk balance, monitoring and reporting, simplification of instruments, and improving the information and control provided by member states. can the commission comment on what steps it will take to address the main results of the public consultation and the court of auditors' report in terms of increasing performance and minimising administrative burdens? member of the commission. - i have two questions today on the budget reform, one more general and one more concentrated on agricultural matters. i am very happy to have at least two questions because we were asking for more interest from parliament. in response to the first question, this is more general and concerns more the delivery and efficiency of european budget delivery. part of the public consultation concentrated specifically on how to make delivery of the european budget more efficient, faster, simpler and more transparent. the public consultation has made a strong call for the improved effectiveness and efficiency of the european budget, in particular through the simplification and proportionality of the administrative budget and control. in this context, a number of issues were identified, some of which are already taking concrete shape in the commission. among those initiatives which are already in place is the european transparency initiative. thanks to this initiative, the commission has already provided a first response to the need for increased openness and accessibility to the budget. some other issues mentioned in the consultation deserve our serious attention. the first is the integration of expenditures currently outside the budget - the so-called budgetisation of the funds. this would obviously increase synergies, legitimacy and administrative simplification, but we have not been very successful over the years. you are aware of this with regard to some funds. the responsibilities of the member states are another important element. it is important to further strengthen the responsibilities of member states, who manage over 80% of the european budget, particularly in areas under shared management. a clearer allocation of responsibilities between member states and the commission is needed. this will also hopefully be partly improved if we have the lisbon treaty in place. the third element is the rigidity of our budget. the current european budget is still rather too rigid, recent examples being the negotiations for the food facility or the european recovery plan, especially in the current environment. then we have problems with the gas supply in europe where we are not able to deliver or have an agreement between the member states to invest in future projects such as interconnections or gas storage. that again shows how much we need to invest in the european budget's operational capacities to react. the third group of problems which has been mentioned in the consultations concerned minimising the administrative burden. the commission has also already made various commitments. in the action plan towards an integrated internal control framework, the commission has committed itself to making proposals for simplified rules on cost eligibility issues. this includes extending the use of lump sums or flat-rate payments wherever this is appropriate. in its recent communication on tolerable risk, the commission proposes to redefine the control system in terms of risk objectives and an acceptable level of error. we hope for the support of the parliament in these political discussions and later in negotiations with the council. the commission looks forward to the parliament's support in general in rationalising and simplifying budget delivery and then in examining future legislation in general. i thank you for the questions. this is the least attractive question we usually receive because it is sometimes treated as being too technical. no matter how good the political decisions being made are, good politics can fail if we do not have efficient delivery mechanisms. thank you for your comprehensive reply, commissioner. you spoke about the responsibility of member states. can you specify the progress being made in simplifying the basis of calculation of eligible costs and making greater use of lump-sum payments, particularly in the area of the structural funds? my second question relates to the consultation document itself and the largely negative response to agriculture. if we look at the consultation document, it lists tomorrow's challenges as diversity, scientific and technical progress, the knowledge economy, climate change, energy security, but it does not mention food security. so, is the negative response to agriculture unduly influenced by the document itself? (ro) i would like to mention the fact that 2009 is the european year of creativity and innovation. we also have another priority, climate change. we must not forget that, as part of the european economic recovery plan, the need to finance priority infrastructures, such as those for energy and transport, are also a priority. how is this reflected in the budget reform? member of the commission. - so, three additional questions. on the structural funds and what we are already doing: in negotiations with parliament in agreeing the 2009 budget, we already agreed and have made a declaration that we will accelerate the absorption and we will make the decision-making process more flexible for member states, including on how to use structural funds. this is also included in our recovery plan. it is important, and we calculate that it will help to accelerate use of structural funds of about eur 6 billion in 2009 alone. it is our obligation to parliament and we also agreed it with the member states in council, who supported these efforts. therefore, two packages of changes in regulations have passed from the commission and i hope it is already somewhere in parliament, at least in the committee on regional policy and planning, and in council and we hope that it will be passed very fast for member states to use it. on food security and cap relations: it is very interesting to hear your question and i can imagine what questions i will receive from other members. it is a very sensible question on cap in general. we have received a lot of criticism in the consultation process on the quality of cap, not against the policy but against the quality and capability to react and help on time. the policy is quite expensive by its very nature and that is how the participants mainly perceived this policy. and of course you are absolutely right, it is our understanding that this policy, in the near future and medium term, will be changing to investing more in environmental and health aspects, including food security. that is how we probably will see the medium-term future. but, of course, not everything suited all participants. we tried to be as objective as possible. we published all consultation materials. it was discussed in the november conference chaired by president barroso and everything is published, including our research on think-tank inputs, all consultation materials and our summary. so it is public; it is available. it is not yet our opinion. we tried to be objective and not to affiliate ourselves with an opinion, but we wanted to see the public's reaction. we wanted to give you an objective opinion on how we are seen from outside with our policies or budget, and for us to use it for our future preparation of the political decision. on the third question on priorities, you are absolutely right. everybody is discussing this. we know what we need to do. member states know, governments know, but do not always agree when it comes to money. negotiations on budget finalisation usually centre on juste retour negotiations. who returns the same? especially now during this downturn in economy - when we have such serious problems in energy and in the external world - especially now we need again to concentrate and not forget that the strategic goal, which we need to perform all together, commission and you, is to prepare the strategic paper on budgetary reform. subject: eu budget reform is the commission satisfied that the recent public consultation 'reforming the budget, changing europe' reflects the view of the majority of european citizens; or is the 'one message' gathered from 'hundreds of voices' really reflective of the whole of eu opinion? what are the key conclusions that can be drawn and what does the commission consider will be the big shifts in eu spending in the future? specifically, what does the commission expect to be the key reforms of spending on agriculture? member of the commission. - the question was given to me with the main emphasis on the agricultural outcome of agricultural consultations, but more general elements have been included in the question so i would like to start with some general remarks. as regards the consultations which we launched, we have been very satisfied because it was the first time in european history that the debate took place so openly, with all those who were capable and willing participating in the process. we had a huge input from ngos, governments, think-tanks, civil society, and that was very useful to us and will be useful to us. it reflects, of course, a very wide range of opinions and perspectives that cannot be reduced to one or two particular messages, but the contribution largely endorsed the commission's general approach on the budget reform aiming at a strategic vision to maximise the european value added from any euro spent in the european budget. they offer criteria to flesh out the notion and views on how to balance the stability and responsiveness of the european budget. many contributors agree that the budget has evolved significantly over time, but only few are fully satisfied with the current budget structure. the consultations convene a sense of priorities in terms of challenges that europe has to address, with climate change, global competitiveness at the top of the list. contributions also propose a range of possible reforms concerning specific spending policies, the financial system and the way the budget is being delivered. more detailed information, as i have already mentioned, is available on the commission websites. finally, on agriculture, the consultation shows a relative growth consensus on the need to further reform cap. some consider it best to continue reform along the same lines as the earlier reform health check, or mid-term review, others favour more radical changes. most contributors emphasise the necessity of turning cap into, or concentrating on, competitiveness of european agriculture, responsiveness to climate change, food safety and quality requirements, and other environmental objectives. opinions differ, however, on the nature and extent of the change that is needed. the commission's expectations with regard to key spending areas, especially in agriculture, are subject to ongoing work based on consultation, technical assessment, scientific inputs and sectoral policy discussions. they will be part of the political response that will follow later this year. the commission will then prepare our strategic paper, and i very much hope that we will be able in cooperation with you to perform our duty together. thank you, commissioner, not only for your response but also your comments in relation to marian harkin's words on food security. i think it is a big gap in the market. let me draw your attention to the report i drew up and which was voted through in this parliament today by an overwhelming majority of people supporting the cap and its role in global food security, and to the discussion we had about falling dairy farm incomes. we need to have some reality check here on those who suggest wild reforms. we are talking about food for european citizens and incomes for those who live and manage the rural environment. i would like you to bear those in mind as we go forward. (sv) i have a short question to ask the commissioner. i took part in the commission's excellent conference in december on the mid-term review of the budget. at this conference, the commissioner gave an excellent and proactive speech on the importance of tabling proposals for amendments now. however, we are now hearing rumours that there will be no proposal on the mid-term review of the budget until after the european parliament elections and after the german federal election in september. my question is simple: will the commissioner table a proposal for a mid-term review of the budget before the summer or not until after the german federal election? (lt) commissioner, i would like to thank you for your precise and open answers and to say that discussions on budget reform have been ongoing for some time, already more than a year. what is the influence of the financial crisis on these discussions? i would also like to know whether any ways out will be sought while reforming the budget, so that in future we can avoid financial crises like the one we are experiencing now? member of the commission. - concerning a reality check, i agree fully that any decisions we make, especially strategic ones, need to be very politically responsible. we should not change the best, but we need to get rid of what is old or not very effective. concerning the mid-term review, i think there is a misunderstanding. we have never been asked to prepare a mid-term review of the european budget. we have been asked to prepare the full-range budget reform paper by the end of 2009, and it is up to us to decide the timing - where politically it is more proper or where we can have a more efficient and effective response. personally, i would like it to be prepared earlier - maybe in the spring. but i have to take a serious reality check because we have elections, perhaps the ratification of the lisbon treaty etc. we should not waste a good proposal and allow operational events to overshadow it. let us leave it to president barroso to decide on the final date, but we are ready and this commission is ready to do its job. (lt) mr paleckis, your questions are really very important, very deep, i might even say so deep and important that not even the whole european budget would provide an answer. in truth your questions are strategic, whereas no budget could react effectively now or in the future to the sort of financial crisis which has occurred. the european budget represents just 1% of gross domestic product, but the financial crisis was largely caused not because of a lack of money, but perhaps i would say because of supervision issues, the globalisation of the financial system, its monopolisation and many other reasons. the european budget, like the budget of a very small international organisation, has no doubt a certain selection of instruments, but it really is not large. that selection largely consists not of actual finances or money, but rather regulating measures, control measures, recommendation measures, also including in the field of macroeconomic policy. this is probably even more important than how much money we actually have or can inject. at the moment we really have the globalisation adjustment fund, we have the flexibility instrument and others, but they are not really efficient or effective. it was precisely for this reason that in our recovery plan the commission proposed investing those eur 5 billion in strategic structural changes to energy inter-connections and other energy infrastructure projects and so far countries are in no hurry and are not very willing to discuss this matter. the crisis itself shows that investing in strategic energy projects and other strategic joint european projects is extremely important. i hope very much that this crisis will be one of those lessons, which europe should take very seriously. i also hope that it will help to concentrate and in future use the european budget where we can gain most benefit, as it is far too small to cover everything and solve everything. therefore, it is not easy to answer your very general questions, but as i mentioned, i hope very much that this crisis situation in the world and the economic recession, which can now been seen throughout europe, should really help politicians invest more in european strategy. subject: cybercrime with ongoing advances in technology and more and more people using the internet, it is becoming increasingly difficult to police the internet. what is the commission doing to fight against cybercrime at eu level? madam president, to answer mr neachtain's question, the commission has pursued a policy on combating cybercrime for many years, in close cooperation with the member states and other european union institutions. there are four ways in which the commission helps to fight cybercrime: by encouraging cooperation between member states, by facilitating public-private partnerships, by developing various legal instruments, and lastly by engaging in cooperation with third countries. the 2007 communication entitled 'towards a general policy on the fight against cyber crime' enabled the commission to promote information sharing in the field of cybercrime between member states' law enforcement authorities, either bilaterally or through europol. member states must designate permanent contact points through which other member states can request assistance or information. the commission also helped to draw up the council conclusions on a strategy to combat cybercrime, adopted last november. this strategy proposes a series of measures aimed at fostering cooperation between member states to fight against crimes such as child pornography, terrorism, attacks on information systems and fraud. a platform for reporting offences detected online must be put in place to centralise cyber-offences so that they can be collated by europol. at the same time, the commission is developing a partnership policy between law enforcement authorities and the private sector to take action against cybercrime. the justice and home affairs council of 8 december 2008 made recommendations on public-private cooperation against cybercrime. the commission also wants to set up a european financial coalition against commercial images of child pornography. the purpose of this coalition is to unite the efforts of various public and private parties to combat the production, distribution and sale of images of child pornography on the internet. lastly, the commission played a large part in drafting laws laying down minimum standards for harmonising applicable criminal legislation. this is the case with framework decision 2005/222/jha on attacks against information systems and framework decision 2004/68/jha on combating the sexual exploitation of children and child pornography. the commission is now looking at how to update and implement these instruments. i will conclude by saying that we must keep in mind that the internet is a global information network. the european union cannot regulate it on its own. that is why the commission hopes to encourage international cooperation in this area and will be organising a meeting this year with international organisations and eu agencies to try to coordinate the respective activities of these bodies. that is my answer to mr neachtain. (ga) madam president, i would like to thank the commissioner for that answer. i would like to ask you a supplementary question, commissioner. as regards cyber-bullying or denigration, which mostly affects young people who use social sites such as bebo and facebook, the denigration or bullying committed against young people on those sites should be stopped. what does the european union intend to do to ensure that the community draws more attention to this bullying? (ro) i would like to ask what measures the commission is considering for enabling member states to adopt the council of europe convention on cybercrime, what action plan the commission is considering for making improvements and fighting against cybercrime and also what measures you are considering for digital signature interoperability. if i could welcome the answer given so far by the commissioner but also ask him to make sure that human rights in this field are kept in mind at all times. in other words, i am all in favour of stamping out cyber crime, but can we make sure that internet companies are not, with police authorities and the like, too heavy-handed in dealing with the public who are using the internet for their own pleasure? (fr) madam president, you are right, and i will answer the question on human rights and the fight against cybercrime straightaway. we must indeed pay very close attention to ensure that there is a commitment to respect human rights when combating cybercrime; i would even go so far as to say that we must enforce respect for human rights. within the stockholm multiannual programme, running from 2010 to 2014, we will introduce an entire heading on combating cybercrime with, as i have said and would say again to mr neachtain, the aim of having the observation centre within europol, which will allow us precisely to better coordinate the monitoring of national institutions responsible for supervising questionable sites, from which child pornography is distributed to particularly vulnerable audiences. you are right; we must also learn the way in which young people are enticed to certain sites, leaving them at risk of being attacked in some way by the creators of these sites and those who visit them. that is what i can tell you. i would like to say again that this in fact represents a complete strategy to be conducted in an even more purposeful way than in the past, in light of our greater understanding of the risks of the web. i also have high hopes of the european financial coalition against commercial images of child pornography. we will bring together the different public or private bodies in order to tackle the production, distribution and sale of images of child pornography on the internet, and also try to locate and apprehend the criminals. if we reach agreement on the funding in the comitology procedure, i hope to launch this coalition in february 2009. i thank parliament for all the support it will be able to give on this matter. subject: terrorist threats we saw last november the terrorist attacks in mumbai, where many eu citizens' lives were threatened. in light of the madrid and london bombings in 2004 and 2005 respectively, it is clear that we are under threat from similar attacks on the eu. can the commission tell us what we are doing to strengthen and enforce information exchange between member states' police forces to respond to such attacks? madam president, i will answer mr aylward. the key to effectively combating terrorism and other forms of serious crime is to ensure that the right people have access to the right information at the right time, which is a huge challenge at european union level. we have tried to promote and facilitate effective information sharing between the police forces of the various member states. the framework decision of 18 december 2006, known as the swedish decision, which all member states had to implement by mid-december 2008, that is, very recently, creates a common legal framework for the rapid exchange of information and intelligence between member states' law enforcement authorities. this framework decision stipulates that, when the police force of a member state receives a request, it must be handled using the same criteria as those applied to national requests. that is one way in which we are addressing this issue. another example is the 'prm' council decision of 23 june 2008 which sets out a detailed mechanism for exchanging specific types of data, including fingerprints, dna profiles and information linked to vehicle registration, all of which can lead to successful criminal investigations. under the prm council decision, member states grant each other limited access to their dna and fingerprint databases in order to check for matches. this is very useful as this council decision makes for extremely effective sharing of dna and fingerprints. europol also has a crucial role to play. the europol information system, eis, enables member states to find out whether the law enforcement authorities of other member states hold any information needed at operational level. of course, for europol to play its part, the member states must contribute to the eis satisfactorily. it goes without saying that we must now plan new measures for information sharing in the next five-year programme that will succeed the hague programme. this five-year programme will need to guarantee a coordinated, consistent approach to information sharing, and should incorporate a european union strategy on information management. however, of course, information sharing also raises concerns about the protection of personal data. the strategy must allow an overall approach to information sharing that meets the needs of the police and is based on the interoperability of it systems. that is my answer to mr aylward. i would like to thank the commissioner for his reply. in a very brief supplementary question, what is the european union doing to confiscate the assets of terrorists within the union, and can the commissioner outline how many criminal assets bureaux are currently in operation in the european union? i would like the commissioner to indicate whether he is getting full cooperation between all 27 member states in relation to information exchange between police forces. if not, which countries are taking a different line, and has the irish government requested any opt-out in this particular area? (de) commissioner, i would like to ask you whether there is a security and safety policy relating to terrorist threats against nuclear power stations. (fr) we are currently in the middle of a study on the confiscation of assets generated by this illegal activity. in particular, judge jean-louis bruguire has been given the task of monitoring the swift terrorist finance tracking programme. his findings will be available soon. the european union has benefited from information produced by the terrorist finance tracking programme, and judge bruguire has been responsible for checking that it has all been done in compliance with data protection. i can say that this will, in the long term, help us to confiscate the assets of a number of individuals who have made illegal profits. as for information sharing, i have already told you that the europol information system could be much more effective if the member states were to contribute information in a more trusting and transparent manner. we will work on this. indeed, it is one of my chief concerns to build up this trust between the various intelligence bodies in the member states, so that we move towards more effective exchange of information. i have not heard anything about an opt-out clause in this field. i think i have more or less answered your questions. regarding the threats to nuclear power stations, the commission has also proposed a text designed to allow for improved surveillance of key infrastructure, which obviously includes nuclear power stations. subject: eu immigration policy given that eu immigration policy should have a major humanitarian element and guarantee respect for human rights; that it should help promote integration measures rather than repressive measures, and likewise measures designed to put the rights and obligations of immigrants on an equal footing with those of nationals and to encourage cooperation between the member states and between the latter and the countries of origin; that it should promote solutions which strengthen intercultural dialogue and respect for differences, for minorities and for freedom, and whereas the french republic has already signed protocols with various african countries, specifically congo-brazzaville, tunisia, benin, the mauritian islands, senegal and gabon, with a view to encouraging development and the possibility of legal immigration, what back-up and support has the commission provided for those member states which wish to initiate such processes? in answer to mr frana's question, the global approach to migration adopted by the european union in 2005 aimed to provide a more adequate response to the challenges that migration poses to the eu as a whole. this global approach is based on improving dialogue and cooperation with third countries in all aspects of migration, to build a partnership for better migration management. in order to give practical content to the global approach to migration, the commission supports cooperation initiatives with third countries, in the areas of migration and asylum. examples of this include the aeneas programme, which funded over 100 projects from 2004 to 2006, or the migration and asylum programme that succeeded it, which was allocated a budget of eur 205 million for the period 2007-2010. from the initiatives chosen in the context of an annual call for proposals, many are put forward and implemented by the member states in collaboration with third countries. let us take an example: on the basis of the aeneas programme, the commission funds a hispano-moroccan project managing seasonal immigration between the provinces of ben slimane in morocco and huelva in spain. this programme also supports cooperation between spain and colombia for developing circular migration. similarly, we funded the temporary return to cape verde of highly qualified cape verdeans who live in portugal, to inform and train potential emigrants in their home country. in addition to these measures, geographical financial instruments such as the european development fund and european neighbourhood and partnership instrument also help to give practical expression to the global approach to migration. for example, the european commission recently backed the creation of the migration information and management centre in mali, a project that a number of member states are very involved with. furthermore, as part of the global approach, the commission proposed new tools to encourage partnership with third countries and to develop greater synergies between community action and that of the member states. we now have the mobility partnership, a new tool being introduced by the european union, at present on a pilot basis. these mobility partnerships are a means of developing dialogue and cooperation between the union and third countries in the areas of legal migration, development, and the prevention and reduction of illegal immigration. we have signed the first partnerships with cape verde and with the republic of moldova, detailing specific offers of cooperation. for instance, under the partnership with cape verde, portugal proposed signing a new protocol extending the scope of an existing protocol on the temporary migration of cape verde workers, to provide work in portugal. other available tools include migration profiles, which consist of analyses of the migration situation in a given country, and cooperation platforms to bring together, in the third country in question, country representatives and the main funding providers concerned with migration. we have put in place a cooperation platform in ethiopia, on the initiative of the united kingdom, and we are planning another for south africa. lastly, the integration fund and the return fund can of course help member states to introduce pre-departure measures in third countries to assist potential emigrants in finding work in their country of destination, and facilitate their civic and cultural integration, or, on the reverse side, to introduce short-term support measures for returnees. there you have it, mr frana, i wanted to give you a whole series of examples, but most importantly i would like to say that i am completely convinced of the need for europe to manage migratory flows through this global approach that links migration and development and genuinely enables concerted migration management. this is the direction we should be taking, i believe, and it will make europe's migration management an example for the world to follow. (pt) mr barrot, i agree with you; i agree with your dissatisfaction. in truth, we must be dissatisfied with all these measures, which are sweeping. the truth is that illegal immigration to europe continues. the trafficking of human beings continues. there are areas in which there is a lot of immigration, specifically the mediterranean and heading for italy. france has come forward with a set of important bilateral cooperation agreements, but other member states have not been doing so. the commission must carry on without losing its enthusiasm for this policy of cooperation and aid for member states . (the president cut off the speaker) mr president, the question refers to eu policy having a major humanitarian element and guaranteeing respect for human rights. just recently in ireland someone was being deported even though the person's daughters would be subject to female genital mutilation. has the commission encouraged member states to adopt a common position on this? in some states in europe it is still not illegal, and would the commission encourage member states to adopt a common position on dealing with this very difficult issue? (fr) firstly i would like to assure mr frana that i will, of course, do my utmost to now develop the global approach through mobility partnerships between the union as a whole and third countries. you are right, some member states have concluded bilateral agreements, but this should also be the case for the whole of europe, and you were right to emphasise the risks of illegal immigration caused by a failure to organise legal migration successfully. next, the case that you mentioned, mr burke, is a case that clearly shows the wisdom needed in return policy. there can be no case for returning people to third countries where their life or their person will then be in danger. we must therefore conduct this policy wisely. i do not wish to go back over the return directive. it has been controversial, but it does, however, provided it is properly transposed in the member states, enable us to monitor to some extent the way in which these return policies are managed. i do intend, in any case, to keep a close eye on this matter. questions which have not been answered for lack of time will be answered in writing (see annex). part three subject: opening up of 'closed' professions in pursuit of the single market objective of the free movement of persons, goods and services, the commission is encouraging the opening up of 'closed' professions in those member states where they exist, which in general terms is a move in the right direction. are there cases in which the closed professions could remain so, provided they successfully serve society as a whole by providing services without creating problems? what are the possible negative repercussions of opening up some closed professions? has the commission carried out studies into the impact on local communities, particularly in regions with specific features (e.g. mountain and island regions, etc.)? member of the commission. - firstly i should clarify that the commission does not pursue as a general objective the opening of closed professions. however, in the context of its internal market policy, it considers that the legitimate need for member states to regulate certain activities has to be reconciled with the need to ensure the free movement of professionals throughout europe. it goes without saying that better quality and wider choice in professional services must have a positive effect on the entire eu economy. to this end, the services directive obliges member states to screen their national legislation for requirements applied to certain professions, such as quantitative and territorial restrictions, in order to evaluate their appropriateness in the light of conditions established in the case-law of the european court of justice. by 28 december 2009 member states will have to present to the commission their report on the results of this screening and evaluation exercise. this will give them an opportunity to identify the possible negative repercussions of opening up certain closed professions and justify any restrictions. on the basis of these national reports, the commission and all member states will undertake the process of mutual evaluation and will examine and discuss changes introduced in member states' legislation as well as any requirements that would have been maintained. on 28 december 2010 the commission will present a summary report to the european parliament and the council on the results of this mutual evaluation process. obviously, requirements to think about specifically regulating the professions will be discussed in this context. in addition, again with the aim of ensuring the functioning of the internal market, infringement proceedings have been opened whenever national rules are found to impose discriminatory or disproportionate restrictions in the area of regulated professions as regards, for instance, access to ownership, incompatibilities or compulsory tariffs. finally, the commission's work in the field of competition also seeks to stimulate appropriate patterns of review of the existing professional rules within each member state, as provided for in the two commission reports on competition in professional services. national competition authorities are invited to check, in the light of competition rules, whether a regulation has clearly defined both a public interest objective and the least restrictive means of achieving that objective. (el) madam president, commissioner, i realise that what the commission is trying to deal with is the creation of a single internal market and the free movement of professionals. on the other hand, there are certain professions which i called 'closed' and which can only be exercised once a sum of money has been paid. i refer to taxi licences, which in many member states of the european union are costly, and the profession of pharmacist, which is exercised under demographic and distribution measures. i should like to hear the commissioner's thoughts on this issue. (de) are you of the opinion that local knowledge and regional regulations should be a basic requirement to ensure that these professions can be carried out accordingly? i am not sure if bookmakers and tote operators and operators of the pari-mutuels qualify under the professions, but certainly in terms of the single market and free movement of services it is an issue. where is this debate at? i do know that the commission's offices have been involved and i am still receiving quite a lot of vexed representation in this area. secondly, as regards recognition of the professional qualifications directive and the whole area of mutual evaluation which the commissioner referred to, are any problems likely there? are we comparing like with like if we are opening up professions in one member state to another? member of the commission. - there are two separate issues being spoken about here by the various members who have addressed this subject. one is the scope of the services directive; the other is the regulation of professional qualifications. the services directive has in its scope all of the services in the european union with certain limited exceptions. the question about pharmacists was raised by mr angelakas. he may be aware that we do have some infringement proceedings against some member states in this particular area. on the question of mutual evaluation which is required under the services directive, each member state has to go through all its rules and regulations before 28 december this year and then we will have a mutual evaluation to see what is proportionate and what is not. the question that mrs doyle raises is that of gambling infringements. she will be aware that we have, in one form or another, some actions pertaining to at least 15 member states at this particular time. there has been court jurisprudence on this particular matter. gambling is a service that comes under the scope of the services directive like everything else, and these matters have to be addressed. there are various stages of proceedings against member states in this area. we are also inundated with lots of other possible infringements in this area. subject: credit rating agencies the commissioner responsible for the internal market and services, mr charlie mccreevy, recently stated the following in connection with the regulation of credit rating agencies. 'i want europe to play a leading role in this sector. this proposal goes further than the rules existing in any other jurisdiction. these very exacting rules are necessary to restore the confidence of the market in the ratings business in the eu.' will the commission say why it did not propose the adoption of a more exacting regulatory framework at the stage preceding the financial crisis? member of the commission. - the commission has closely followed the activity of the credit rating agencies (cras) over the past few years. following the european parliament's resolution on credit rating agencies in february 2004, the commission considered very carefully what legislative measures would be necessary to regulate the activities of credit rating agencies. in line with the advice received from the committee of european securities regulators (cesr) in march 2005, the commission adopted in 2006 a communication on credit rating agencies. in this communication the commission concluded that various financial services directives, combined with self-regulation by the credit rating agencies, on the basis of the iosco code of conduct, the methods for cras could provide a satisfactory answer to the major issues of concern in relation to credit rating agencies. it is stated that this approach would require continuous monitoring of developments by the commission. in addition, the commission asked cesr to monitor compliance with the iosco code and to report back on an annual basis. at the same time, the commission indicated in the communication that it might consider putting forward legislative action if it became clear that compliance with eu rules or iosco's code was unsatisfactory or if new circumstances were to arise, including serious problems of market failure or significant changes in the way credit rating agencies are regulated in other parts of the world. the financial crisis shed a new light on cras. since august 2007 the financial markets worldwide suffered from a major confidence crisis. this financial crisis is a complex phenomenon involving multiple actors. the credit rating agencies are close to the origin of the problems that have arisen with subprime markets. the crisis highlighted poor performance by credit rating agencies. an explanation could be found in the unsatisfactory way the agencies managed their conflicts of interest, the lack of quality of the methodologies they issue, insufficient transparency around their activities or the inappropriate internal governance in the agencies. the subprime crisis demonstrated that the framework for the operation of credit rating agencies needs to be significantly reinforced. that is why in june 2008 i announced that the commission would take regulatory action in this area and on 12 november 2008 the college adopted the proposal covering regulatory activity of credit rating agencies with the agreement of this parliament and of the council. (el) madam president, commissioner, you personally said in reply to a question of mine in 2006 that, in keeping with the recommendations of the committee of european securities regulators, the commission would not be tabling any new legislative proposals in the credit rating agency sector. the massive financial crisis occurred and now here you are telling us that we need a stricter legislative framework. we do indeed need a stricter regulatory framework. my question is: do you acknowledge that the commission's regulatory reflexes were sluggish in this matter? i know that the commission has put forward proposals on credit rating agencies and other initiatives that address instability in financial markets to try and ensure that a similar crisis does not reoccur such as crd, deposit guarantee schemes and member state balance of payments. could i ask him, what proposals does the commission plan to put forward to encourage growth and competitiveness in the real economy, especially in the sme sector which is particularly important now as more and more european economies are experiencing recession? member of the commission. - in reply to mr papastamkos, let me refer to the report in 2005. we did say at that particular time that we would keep the activities of credit rating agencies on watch, and in 2007, when the subprime crisis reached its peak, i met with the credit rating agencies and expressed our dissatisfaction as to how we perceived they had conducted their affairs. the questioner will be aware that in december 2007 i wrote to cesr and to esme for further advice as to what i should do in relation to certain areas. i made quite clear in speeches and in comments at that time that leaving the status quo as it was just not an option. as a consequence, we came forward with the commission proposal in 2008 and that mater is now being debated by parliament and the council of ministers. i think that in the past, when keeping the activities of the credit rating agencies under review, i made it quite clear that we would consider the matter in the light of changing circumstances. and in the words of a person in the last century, far more famous than me - when the facts change, we change too. and that is what has occurred. mr ryan, as to what we will do in the areas of financial regulation to which he has alluded - the proposals on credit rating agencies and the capital requirements directive - he put forward a legitimate question concerning what the european union was doing to address the problems in the real economy because although the changes to do with financial regulation has undoubtedly been timely in areas where there was a lacuna in financial regulation, it in itself is not going to galvanise and kick start the european economy. mr ryan will be aware that in the past couple of months the commission was at the centre of coordinating the approach of financial stimulus which was adopted by the european council at its december meeting. of course it still remains the prerogative of member states to affect their own financial stimulus if they deem it appropriate because those matters remain the prerogatives of the member state governments. but the commission in responding to that stimulus package also committed some funding within our remit and coordinated with the agreement of the other european players as to how we will kick-start things there. i remember even before that we did adopt in the commission some initiatives which should help to stimulate small business activity in the sme sector - such as the small business act, such as the european private company statute - and hopefully they will contribute in some small way to assisting in the turn around of the general economy in the european union. subject: financial crisis in the light of the ongoing financial crisis, has the commission changed the rules of the internal market in order to make it easier for individual member states to take protective action concerning their economies and industry? member of the commission. - at this time of financial crisis and economic recession, both european governments and the european institutions need to show determination and flexibility, as mentioned by president barroso in the preface to the recently adopted european economic recovery plan. to show this flexibility, the commission will, for instance, put in place a simplification package to speed up decision-making on state aid, allow for the use of accelerated procedures in public procurement in 2009 and 2010 for all major public projects, and request that member states take corrective action in case of any excessive deficit in timeframes consistent with economic recovery to allow their economies to adjust. however, this flexibility does not mean that the commission has changed or will change the rules of the internal market. a modernised approach to policies set out in the single market review of november 2007 needs to be pursued further as foreseen. the 16 december 2008 progress report called 'the single market review: one year on' highlights a series of recently adopted measures that will help create the conditions to relaunch the european economy. they include, most of all, stronger contractual rights to enhance consumer confidence, lower costs and administrative burdens, and a single company statute for smes. it is also evident that we need to restructure the european regulatory and supervisory framework in order to minimise the risk of future crises. over the year, we have been working alongside parliament and the council to, among other things, increase protection for bank depositors, dissuade banks and other financial institutions from taking excessive risks in the future and better regulate the credit rating agencies. the rapid adoption and implementation of these proposals is elementary. we need to demonstrate that europe can provide concrete answers. over the coming months, the commission will formulate in a comprehensive manner how the current regulatory and supervisory framework should be further reformed to bring back stability and confidence. we should strive for a more stable system that does a correspondingly better job in providing opportunities to trade, hedge, diversify and pool risk, allocate resources and mobilise savings. this calls, among other things, for better cooperation and coordination between national regulators and supervisors, as well as avoiding any protectionism. to foster longer economic growth we need to reduce the cost of capital and to enhance capital allocation. it will clearly require a further strengthening of the internal market. this flexibility certainly does not mean any changes to the single market principles. on the contrary: at a time of financial economic downturn, both european governments and european institutions need to hold firmly to the principles of the single market. it is essential that any measures to tackle the crisis are guided by the fundamental freedoms and the principles of non-discrimination and proportionality. for instance, a framework for national rescue plans is already in place to prevent any negative spill-over effects amongst uncoordinated national actions. a level playing field which has benefited member states' consumers and businesses so much since 1992 needs to be maintained and safeguarded. this is essential as any measure which would undermine the single market could further aggravate the impact of the financial crisis on the wider economy. i hope the commissioner's voice gets a little bit better. let me thank the commissioner for his reply and say to him that i am glad to hear that protectionism is not on the way back because that would indicate that there is not going to be a recovery. there will be a recovery in europe. could i invite the commissioner to start talking about that recovery? the most hopeful thing we have heard in some time were the comments made by president trichet reported in today's press, where he said that he could see a recovery coming in 2010. could i invite the commissioner to start talking about the future so that we do not lose hope and also to talk about the opportunity there is for europe to become more competitive while this particular crisis is ongoing? madam president, i would like to thank the commissioner as well for his response and advise him that a drop of whisky, some hot water and a slice of lemon is very good for clearing the throat. with regard to your answer, and in particular concerning the economic recovery plans and so on, what has been highlighted over the last number of months has been that coordinated action is the only response that can deal with the present financial crisis. the question i want to ask is whether any plans have been made or any initial contacts been made with the incoming american administration - the obama administration - to see what further coordinated action at financial level is required? member of the commission. - i undoubtedly agree with mr mitchell when he says that protectionism is not the answer. but i am sure that there are many member states which probably see a possible opportunity to engage in some protectionist measures, but i would say two things on that. firstly, we will be vigilant in enforcing eu law in order to prevent any measures which are contrary to the rules of the european union. secondly, i would say to those member states: if people believe in that particular approach, it would be my view and i know that of mr mitchell that that would prolong the duration of the economic downturn. but there have always been differences of opinion regarding this particular approach and there are probably many members on other sides of this house who would not agree with either myself or mr mitchell. i also agree with mr mitchell that it would be appropriate to balance all this negative talk of economic downturn - which there is - with a sense of realism and not to be overly pessimistic. i am afraid that in the world in which we live - whether it is in the member state we know best or in other member states - there has always been a predisposition to concentrate maybe overly on the negativity of the economic downturn. now we have to balance this with realism because there has to be realism in economic forecasting as well and people will have to be realistic. but there is a balance to be struck between being overly pessimistic and being realistic. confidence is a very fragile thing and it takes a long time to recover it and it can be gone in a flash. so, i welcome the comments of the president of the european central bank in today's paper as to the scene in the next couple of years. but, as i said, there should be this balance and people should be aware of where this balance should be struck. mr crowley asked a legitimate question as to what arrangements we have made to discuss these economic and financial matters with the us administration. there is a very strict protocol in place in the united states, as you are undoubtedly aware, even for people who are in the transition administration as to what is done by them and they guard it religiously. but as soon as the new administration is in place, we will be in contact with the new treasury secretary. we already have a lot of fora in which we discuss matter, such as the transatlantic economic council, the financial markets regulatory dialogue, which are ongoing the whole time. as soon as the new obama administration takes office next week, we will be making contact with our new counterparts in that regard. questions which have not been answered for lack of time will be answered in writing (see annex). (the sitting was suspended at 7.30 p.m. and resumed at 9 p.m.)

decision on urgent procedure first of all, we shall vote on the request for urgent procedure on the proposal for a council regulation on the conclusion of the protocol setting out the fishing opportunities and financial contribution provided for in the fisheries partnership agreement between the european community and the islamic republic of mauritania for the period 1 august 2008 to 31 july 2012 - c6-0199/2008 -. mr morillon has the floor to give the opinion of the committee on fisheries. (fr) mr president, this request - some here in this house are bound to recall, mr president, president-in-office of the council - relates to the fact that at the end of last year we had to renegotiate the practical arrangements for the implementation of this partnership agreement with the republic of mauritania. this renegotiation required close collaboration between the commissioner for development and humanitarian aid, louis michel, and commissioner borg, and i applaud this. it resulted in the setting up of a joint committee, which has, in agreement with the islamic republic of mauritania, come up with an agreement that now satisfies both parties: the european union and the republic of mauritania. that said, it is now a matter of being able to pay the emoluments due to the republic of mauritania from 1 august. in agreement with all the political groups, we are asking the commission if the vote on this report could take place not during this part-session, but during the july part-session. this is simply to allow our appointed rapporteur, mrs fraga estvez, to explain the exact terms of this report to us on the afternoon of wednesday 25 june, so we can vote on it on the morning of thursday 26 june, therefore making it possible to put it on the agenda of our next plenary in july. i think this should be satisfactory to all three partners and, of course, to the republic of mauritania. (parliament rejected the request for urgent procedure)

legislative and work programme of the commission for 2007 (debate) the next item is the debate on the legislative and work programme of the commission for 2007. president of the commission. mr president, honourable members, ladies and gentlemen, when the lights went out across europe last week, our interdependence as europeans was laid bare for all to see. in a flash, greater integration ceased to be some abstract ideal. for millions of our citizens, it became a necessity. the incident - dare i say it - was illuminating. the argument for more europe has not so much been won, as rendered superfluous. it is now clear to everyone that we face more shared challenges than ever before - thanks in part to the forces unleashed by globalisation. and shared challenges demand shared solutions, whether they relate to growth and jobs in an increasingly competitive world, climate change, energy security or, indeed, international terrorism. we can be proud of our response so far to this rapidly changing landscape. first, we renewed the lisbon agenda and placed the emphasis squarely on growth and jobs. as a result, it was possible to restore confidence in the stability and growth pact, putting it on a more realistic and workable footing. europe's leaders agreed to put globalisation at the centre of its policy agenda, and the commission has been busy equipping the european union with the tools it needs, and using those tools, on a whole range of concerns that european citizens share. to boost growth and jobs, the european institutions have continued work to unleash the full potential of the single market. at the same time, we have renewed our commitment to social solidarity, including the setting-up of the globalisation adjustment fund, a useful shock absorber for the powerful motor of globalisation. to ensure that europe thrives in the knowledge economies of tomorrow, innovation became a central part of our economic and social strategies and today innovation is at the core of the concerns of european leaders. the establishment of the european institute of technology will help reverse the fragmentation of research, education and innovation efforts, which has stunted progress so far. the document 'europe in the world' tackles the need to develop a global voice which matches our economic weight in the world. this will also reinforce our efforts in areas where we have already exerted leadership, notably in the debate on a future international climate change regime. and we have successfully steered romania and bulgaria towards european union membership. we have proposed the two new commissioners and allocated the portfolios. one will be responsible for consumer affairs and the other for multilingualism, to protect and to reinforce european cultural pluralism and diversity. intercultural aspects are more and more important in the europe of today. i am very proud that this further step - romania and bulgaria joining the union - has taken place and that my commission has made an important contribution to it. i think we should all be very proud of what has been achieved through successive enlargements. let there be no doubt: in centuries to come, historians will say that enlargement was the greatest instrument for peace, prosperity and stability of our generation. (applause) on that note, i would like to say it is more than time we stopped talking about 'old' and 'new' member states. more than ever before, we are now one europe, united in all our diversity, and that is something we should celebrate. we have also laid the groundwork in many other areas that concern us all - sustainable development, maritime policy, and energy efficiency, to name just a few. we still have much to achieve by the end of this year. i hope that the european council will approve the enlargement package we adopted last week. we need to move forward on immigration and innovation policy and we still have important proposals to adopt in areas like labour law, copyright levies, neighbourhood policy, co2 emissions from cars and emissions trading. so the first years of this commission, working in a spirit of partnership with this parliament, have meant renewing, reorienting and re-tooling, to create a europe of results, a europe fit to face the shared challenges of the 21st century. these efforts are already bearing fruit: growth has been revised upwards to its highest level in six years; unemployment has dropped to its lowest level since we started collecting eu25 data in 1998. now 2007 - the year we celebrate 50 years of european construction - will mark a turning point. it will mark the moment when a europe of 27, after careful preparation, throws the full weight of the union's re-tuned machinery behind the delivery of solutions to our citizens' shared concerns. it will mark the moment when a new budgetary framework unlocks modernised financing programmes, which move towards europe's new agenda. so this is the context for our 2007 work programme. it is a new type of programme that has greatly benefited from input from this parliament, the council and the other institutions: valuable input that will continue with this debate and the resolution you adopt. this work programme addresses many of parliament's concerns that have been conveyed to me and to the commission. this new work programme is more political. it is focused on a smaller list of 21 strategic initiatives. the commission is committed to delivering all of these next year, and they will not be subject to a mid-term review. a second list of priority initiatives fills out our work in other important areas. in addition, we have responded to calls from parliament to include a list of simplification measures and withdrawals of legislative proposals in the work programme. this underlines the message that better regulation is now an integral part of the commission's day-to-day tasks. today, in the college meeting, we adopted our strategic review of better regulation that takes stock of progress to date and sets out an ambitious programme of new initiatives. this includes new action in the following areas: impact assessment, where we will establish an impact assessment board; simplification, where we will add important new initiatives to our rolling programme; and administrative burdens, where we will suggest a target to the spring european council next year to cut such burdens at european union and member state levels by 25% by 2012. in parallel, we will present an action plan in two months' time defining priority areas for action. we are also continuing to screen, and in a number of cases withdraw, pending proposals. we are recommending that future commissions do the same at the beginning of their mandates as an expression of the changed political composition of a new commission, so showing the importance of political legitimacy and political leadership. this review responds to a very large extent to the priorities of the european parliament, as expressed in several reports earlier this year. i hope you will give your full endorsement to this package, including to its practical implementation. so what does the 2007 work programme feature? let me highlight some key areas, those i believe to be politically very sensitive. first, energy. building on our green paper and measures for greater energy efficiency earlier this year, we will present the first ever strategic energy review for europe. this will include the building blocks for an integrated european union energy policy, for example measures to complete the internal market for electricity and gas; to accelerate take-up of new low-carbon technologies; and to diversify and secure supplies both within and outside europe. the goal is a common european energy policy that will ensure our security of supply, while maintaining europe's competitiveness and safeguarding our environmental objectives. closely linked to this - in fact i could say they are two parts of the same agenda - will be action on climate change. we will put forward options for a european union climate change policy and perspectives for international cooperation post-kyoto. a revision of the european union emissions trading scheme will provide greater stability for investments and accelerate the momentum to cut greenhouse gases. europe's demographic squeeze calls for greater efforts to attract economic migrants, particularly those who are skilled. a european regime for labour immigration will give such migrants a secure legal status, while clarifying their obligations and their rights. in order to reduce illegal immigration and exploitation of workers, this will be coupled with a clampdown on unscrupulous employers of third-country nationals who enter europe illegally. european public policy can have a fundamental impact on the way people live their lives. to be effective, it must be properly attuned to the needs of modern society. the commission will undertake a fundamental stocktaking of european society, which will serve as a basis for european policy-making into the next decade. as i have said several times, europe is more than a market. europe without the concept of solidarity is not really a european union. (applause) our core business, in terms of our competences under the treaties, will not be forgotten either. the commission will continue to defend, extend and modernise the single market. a key target for 2007 will be the defence industries and markets, which have been fragmented for far too long. we will also set out the way forward on services of general interest in the coming weeks. a final area of concern to all our citizens is security. the commission will bring forward additional measures to combat terrorism, with a particular focus on fighting terrorist propaganda and the sharing of expertise - on explosives for example - for terrorist purposes. the year 2007 will also mark a turning point in our search for an institutional settlement. the berlin declaration, marking the 50th anniversary of the treaty of rome, will allow europe's leaders to renew their commitment to an enlarged, global and competitive europe, where solidarity is a central principle. i believe it should be a short, sharp political declaration, affirming what unites us and - above all - making clear where we want to go and what we want europe to be for the next 50 years. following my initial proposal, i am happy to see that everything is now moving in the direction of having a joint statement, a statement by the member states, the european commission and the european parliament, thus showing that the commitment to the european union is today a shared commitment of the main political institutions of our union. i am pleased to see that the search for an institutional settlement is also a priority for the german presidency. so i am confident that the elements are in place for an important breakthrough. this is important, because europe needs an institutional settlement. there are indeed serious costs derived from not having a constitutional treaty. we need the constitutional treaty because, as a european union, we need to be more effective in our decision-making, more coherent in our external action and more transparent and democratic in our working. make no mistake: the commission will be an active player in the search for solutions here. when this commission took office, there was unfinished business to deal with and to reform. with the help of this parliament and the council, these things have been dealt with, put behind us, or turned around: we now have the financial perspectives; we now have the revised stability and growth pact. in fact i hope tomorrow we can say we will have the revised services directive, to be approved by a parliamentary vote. that shows that we are solving some of the planning problems and proposals. it has been hard work, but it is already bearing fruit. the 2007 work programme builds on these new foundations. so we can conclude the work on decisions that were already in the pipeline but also launch new, very important, projects for the work of europe, such as energy policy. for the first time we have the chance to have a real common approach to energy, to be more ambitious in the fight against climate change, to look at the entire field of justice and at the fight against illegal migration. this is a new frontier for europe and we need to take a european approach. so we see that europe is on the move. there are problems. we know the problems that exist, but there are great possibilities and there is, more than ever, the need for a strong europe. so as we celebrate europe's 50th anniversary next year, we can do so with much greater confidence. once again, i believe europe will be able to show its relevance by reinventing itself for the 21st century. to show our commitment to practical results and to working hard for a stronger european union, this can be a fitting birthday present for the 50th anniversary of europe, a birthday present for europe and all its citizens. (applause) - broad policy guidelines on behalf of the ppe-de group. - (fr) mr president, commissioners, i should like first of all to congratulate the european commission, which is presenting us with a much more political programme today and which, for the first time, is going all out for simplification by presenting a reduced number of priority sectors in its legislative and work programme for 2007. that will be useful to us in a year that promises to be crucial for the european union, as it is celebrating the 50th anniversary of the treaty of rome. it will indeed be necessary to breathe new life into european integration by renewing the link with our fellow citizens. you are, indeed, presenting to us a series of 21 strategic initiatives - perhaps rather too many for some people - which will be at the heart of the commission's activities in 2007, as well as a series of priority initiatives which will have to be adopted in the course of the next 12 to 18 months. this legitimate demand for flexibility appears, at least to our group of the european people's party (christian democrats) and european democrats, to entail two possible disadvantages. firstly, the drawing up in parallel of two lists of priorities inevitably creates some confusion concerning the relative importance to be attached to each type of objective and concerning the links between the two categories. secondly, spreading the programme out over 18 months means that there is a danger of slowing down the work of the commission. our group therefore believes that it would be more appropriate to retain annual, twelve-month, structuring and, above all, to require ourselves to respect the deadlines, something that does not always happen at present. we also need to remain alert to the fact that many of the ambitious objectives announced by the european commission need to take account of the budgetary provisions in force. nor must pointless structures constantly be created. i am thinking, for example, of the creation of new agencies in order to solve this or that problem. one has the impression in the end that, when no solution is found to a problem, the decision is taken to create an agency. that being said, a number of agencies manifestly continue to be effective, on the model of the european medicines agency. before going on to create other structures, however, let us firstly take stock of the existing structures. otherwise, you are in danger of one day proposing to us the creation of a new agency designed to divide up and supervise the agencies in each member state. do we really need to have 27 agencies because we shall have 27 member states? costs must remain reasonable and produce what our anglo-saxon friends call proper value for money, that is to say a sound cost-benefit ratio. the commission's work programme also emphasises the importance of impact studies and re-states the commission's intention to create a new body responsible for supporting such studies and monitoring their quality. parliament will keep a watchful eye on these impact studies and emphasises the need for objectivity so that they are carried out with the greatest possible transparency. in order to improve european competitiveness, we shall ensure that there is a reduction in all forms of bureaucracy and that any superfluous legislation is done away with. in this area, it is important to involve the european parliament more and to improve the ex post evaluation of the measures adopted. for this reason, mr president, our group believes that the number of strategic initiatives needs to be reduced so as to avoid the pitfall of having too many of them. there is indeed a risk of moving away from a practical work programme - a development that could harm the european union. our group is nonetheless very pleased with the six priority areas defined by the commission for 2007. i shall not go back and list these priority areas, but i should like to emphasise a number of points, including the energy issue. the european union's growing dependence where energy is concerned is a factor of which account needs to be taken from now on, and that is all the more the case since last week's power failure. the eu will have to seek other means of reducing the harmful effects of energy dependence. our group believes that energy efficiency, the increased use of renewable sources of energy and a structured dialogue with the producer countries and with consumers will enable this objective to be achieved. a number of studies suggest that the european union could create a million direct and indirect jobs in the energy efficiency sector. thus, not only would the search for greater efficiency enable the european union's economy to save considerable sums. it could also make a major contribution to competitiveness and employment, which are key objectives of the lisbon agenda. we would also ask the commission to continue to play a pivotal role in the fight against global warming, which has consequences in economic and social, as well as strictly environmental, terms. the european union will have to bring all its weight to bear in requiring the use of certain ecologically more effective products. what is more, 2007 will be the year of an important new stage in the historic process of enlargement of the european union, as it is then that our bulgarian and romanian friends will join us. moreover, you yourself, mr president, have just told us that enlargement of the eu is the most important tool for peace of the last fifty years. it is therefore essential for these priority areas to be seen as challenges that will have to be taken up. it is also, however, a question of communicating more with all europeans. our group welcomes, moreover, the commission's initiative in making communication one of its strategic objectives. in conclusion, i would point out to you that, having arrived at the half-way point of our term of office, we almost want to say: let us stop talking about programmes, as our fellow citizens hate lists of promises. the watchwords are: action, more action and still more action. mr president, we are ready to support you as we go down that route. on behalf of the pse group. - (de) mr president, ladies and gentlemen, if you, as i have done, read the commission programme for 2007 carefully, you will actually say, with some satisfaction, that this is a good programme. if all this becomes reality, we will be able to be satisfied, proud and happy. nevertheless, though, one gets, on reading it, the feeling of having been here before, of having read it already. where, though, i asked myself, and so i had a look in my archives and dug out the legislative and working programme for 2006. aha, i knew it: i really had read all this before! i then came to the conclusion that this is not an argument against the 2007 programme; on the contrary, indeed, it is actually evidence of continuity in the ideas that the commission is putting forward to us today, and there is nothing wrong with that; it is not a bad thing, for the goals set out in the working programme are good ones. yes, indeed, climate change is the number one challenge; that energy policy must be central in the coming year is not a matter of doubt. since all those who hold power under you are present here, mr president of the commission, let me tell you and them, speaking as a father, that the safety of children's toys is indeed important, and vitally so. doing away with roaming charges will be a tremendous thing; as one who uses the phone a lot, i am behind you all the way on that. reducing bureaucracy is vitally important if we are to make the eu more efficient. all these things are important, and i could turn to any and every one of your commissioners and tell them: 'your portfolio is the most important of all!' nevertheless, i ask myself the question as to why, when we are doing all these good, right and important things, we are not getting through to people. why is it, then, that, despite all these things, people are not enthusiastic about the european project? i think i have found the explanation for that. for years on end, the radical free-marketeers, not least in the commission, have been telling us that all that is needed is to deregulate, to do away with the rules and regulations, and leave it to the market to sort everything out. they have been telling us that the internal market will create the economic dynamism that we need in order to create jobs, to guarantee living wages on which people can live securely, but reality is something else! yes, go on, applaud! it is you radical free-marketeers who, with the deregulation of the european internal market, have enabled us to achieve the highest unemployment figures that europe has ever seen; that is what the reality of this internal market has turned out to be. (applause) that, mr president of the commission, is why something you have said, in this debate, something you have said for the first time in a long time, may well be more important than the work programme as a whole, and the important statement that you made was that, without solidarity, without social responsibility, the internal market will not come to be. if that is the line that the commission is taking, if that is the spirit motivating your working programme, then you have our backing. mr poettering's spontaneous applause shows that he is both christian and social, and i think your statement is one of the most important that you have made to this house for a long time, and it is for that reason that the approach you have set out today is a good one. (interruption: 'cdu, not csu!') while we are talking about this strategic work programme, perhaps i might say something else to the president of the commission about his new commission, for the commission sitting here is an old one, to be joined by two new commissioners. i have read, mr president of the commission, that you want to give the romanian candidate the job of commissioner for multilingualism. i am sure that, as the hearings progress, i will find out more about what is meant by that, but i have to say that i think it rather insubstantial. the multilingualism portfolio is not worthy of mr orban, nor does it make sufficient demands of a commissioner, and so i do not understand why he is being given such a thin portfolio. i surmise that it reflects the view that we have to watch out for europe's diversity, that we have to safeguard and sustain the european union's multilingual character, and that we think is absolutely the right thing to do, so why not create a proper portfolio for it? something that this house has had to discuss over and over again during the last few plenary sessions is the threats facing minorities in the european union, among them a growing potential for extremism, not least of a right-wing nature, for xenophobia and anti-semitism, for minorities, even in the european union, are increasingly under threat, under attack, and in need of protection. minorities, and, for example, their languages, are a sign of the diversity that makes europe so strong. it is for that reason that i recommend to you that you give some thought to expanding this portfolio and including within it not only multilingualism, but also the protection of minorities in general. that would make it all the clearer what you intend to achieve by it, and then - or so i could well imagine - you could get even wider support for this proposal in this house. speaking in general terms, i would have been glad if the presidency of the council had been present to take note of the commission's strategic work programme, for many, many things that the president of the commission has come here with his commissioners to put before us can be realised only if the men and women in the individual governments of the eu, whom the council represents, put into effect those things that the commission proposes and we enact. their absence from this debate is symptomatic of their attitude towards this european union. (applause) mr president, commissioners, researchers into time found out this past week that the second half of life passes much more quickly than the first, and that which is true of life is also, of course, true of the lifetimes of legislatures, so, since your commission has not much time left, it should be all the more ambitious in its approach to doing its work. what that means in terms of the work programme is that it ought to have been the prelude to a final spurt, aiming high and promising speed. can that, though, be said of this document? the liberals and democrats take the view that it cannot, for it ushers in nothing of the sort. let me begin, though, by talking about the good things we have found in your programme, like the focus on the reduction of bureaucracy, on the assessment of the costs that legislation will entail, on simplification, in other words the emphasis on better lawmaking - and certainly on less of it; that is a very good thing to aim at, and in that respect we are wholeheartedly behind you. what i want to say for the benefit of those who fear that the eu is turning into a neo-liberal, completely deregulated market economy - and in saying it, i will also highlight mr poettering's spontaneous applause for something mr schulz mentioned as an example of what the grand coalition is all about - is that those who think the eu is a neo-liberal market economy probably also think that cuba is a democracy. now for my second point: you prioritised communication with the public, and that, too, is something we think is a good thing; we are glad that you are doing this, for, if the eu loses its basis and fails to build a citizens' europe, then it will not achieve anything worth mentioning either. the eu needs the public as its constant partner in dialogue; it is on them that a single european union will be founded. if i may turn to the structure of the document - and mr schulz should read it more carefully - it differs substantially from last year's, in that it is clear how the text and its annex fit together, whereas their failure to do so last year was something of which we were critical. we urged to you to make the connection between the two clear, and you have managed to do so, so many thanks for that. it even specifies the legal basis for each legislative initiative, and that, too, makes a great deal of difference - and you provide explanations of them, which makes the whole thing so much more manageable. why, though, are the existing legal acts, the ones to be continued in 2007, not listed alongside them? why, too, does the structure not make it even clearer what is about legislation and what is not? why, then, are you - in essence - changing the picture? let me add something on the subject of multilingualism. i have heard speculations in this house to the effect - mr barroso - that this was your very subtle way of highlighting the possibility of there being too many commissioners, and that this portfolio was intended to show this up in, so to speak, a symbolic way. in the course of this debate, my colleagues will be discussing the various policy areas, energy, climate change and legal policy among them, but i would like to take this opportunity to give you an idea of what overall impact your programme has had on our group. we very definitely see ourselves as having the role of accompanying you in your work in a spirit of constructive criticism, and that, of course, means cooperating with you, but with an emphasis on constructive criticism. we see this programme as a puzzle with many individual pieces, one that cannot really be put together in such a way as to produce a big picture. we cannot find in it any clear policy guidelines, nor any answers; not even attempts at answers to the big questions facing the eu in the shape of enlargement and the constitutional treaty. nor can we understand why it is that there is not one word in the whole document about humanitarian aid and help with development, areas in which the eu is the biggest player on earth, so why are they not mentioned? even though your commission has not achieved much - to put it politely - where the completion of the internal market is concerned, you are carrying on down the same path, and there is no evidence we can see of a holistic and comprehensive approach. innovation, too - which is quite crucial to europe, being at the heart of the lisbon strategy - is mentioned, so to speak, only in passing and in terms of the european institute of technology and the seventh research framework programme. our view is that what innovation needs most of all is freedom and the right conditions rather than institutions and more support measures, which tend to take us in the wrong direction. this year's programme does not, in fact, have a title. why not, then? it does rather give the impression that not only are the pieces of the puzzle difficult to put together, but also that some of them may well be missing. on behalf of the verts/ale group. - (fr) mr president, mr president of the commission, commissioners, in drafting these few lines on your work programme, i wanted, in the brief time allotted to me, to draw attention to the draft constitutional treaty's motto, 'unity in diversity', as i think that, in the current international and european political context, we have more need of unity than of diversity in the european union. we need unity, and it is for the commission in particular to be the standard bearer for this unity. i also believe that, in view of the current weakness of a divided council - i am thinking, for example, of the failure of the working time directive - we do not expect the commission to anticipate the divisions of the council but to be bullish in the proposals it is to put to us. when objectives are not achieved and when self-imposed obligations to produce results are not met, there must be no question of lowering one's sights or reducing one's targets. on the contrary, more resources have to be demanded and, in these conditions, i think that you will have parliament's support. of a number of areas to which the strategic priorities shared by ourselves apply, i want specifically to quote the example of the subject on which my group has probably worked most during the last two and a half years, namely that involving the climate, energy and transport. we have sent to your department and to the departments of your colleagues details of an energy policy strategy that would enable us to achieve a 30% emission rate for co2 and greenhouse gases between now and 2020. mr barroso, the european union must fulfil its commitments under the kyoto protocol, but it is not at present doing so. that is why we think it necessary to put restrictive arrangements in place, similar to those with which we are familiar in connection with budgetary discipline. by that, i mean that the european union should not only assume obligations in terms of results but also give itself sufficient resources. that is why we think that the emissions trading system needs to be improved and to be coordinated by the commission and that it needs to be possible under the system to impose sanctions on member states that do not respect their own objectives. in the case of renewable sources of energy, we think that the commission needs to propose sectoral objectives and not only general objectives. as for energy efficiency, we are waiting for the commission to propose a revision of the 'buildings' directive to cover all buildings. as mrs grossette has indicated, the construction industry also creates economic activity, as you well know. in this area of the climate, energy and transport, we must, in other words, reduce gas emissions, reduce dependence on energy imports and reduce the risks. it is because of this last concern that we continue to be opposed to nuclear power. we must finally, in nairobi, make serious preparations for 'kyoto 2'. i should like to quote another example where european unity should be in evidence: the imperative need to introduce common minimum social standards at european level. we cannot give up this commitment. that is why we want the commission to propose a framework directive on services of general interest. on behalf of the gue/ngl group. - (de) mr president, even though i do not doubt that the commission's staff, in drafting the work plan for 2007, did their work with great exactitude and precision, i have to say that i do not think that either the priorities for the work to be done or the tendencies it highlights really respond to the demands of the present time. they have to do with problem areas for which the eu does indeed bear responsibility, but which go well beyond its bounds. i am thinking here of such priority areas as poverty, social exclusion, growing inequalities and divisions in society, or, indeed, the commercialisation of social life, the destruction of nature and culture, and of such issues as the loss of democracy, repression, war, militarisation or, speaking more generally, the way in which global problems are addressed and commitment to the achievement of the millennium development goals - something that we ought particularly to care about in view of the fact that the un has again found that the number of people going hungry is increasing further. the fact is that these problems and conflicts are not at the heart of the work programme, and it is not on them that the commission is concentrating its efforts. despite the good things in the working programme, which we certainly endorse, i do believe that its being put into effect will entail these problems getting worse, for what is still central to the commission's efforts is the implementation of the lisbon strategy, which has competitiveness as its objective, and i believe that will lead to global social and economic problems becoming more acute. there is no room in all this for the question of social models, which we in this house have debated for so long. what that ultimately boils down to in the commission's work is the issue of greater flexibility, and i have to tell mr barroso that such a narrow view will not, i think, enable the social dimension of the european union that he has announced to become reality. there is a second priority area that i would like to address. it is stated in the programme that what economic life demands is more internal market rather than more regulation, and the programme prioritises the creation and development of a european internal market for armaments. perhaps i might make bold to ask that someone might tell me of just one deficit within the european union that this european internal market in weaponry, thus created and brought in through the back door, might actually remedy, and also inform me as to who actually authorised the commission to develop one. it was, after all, not least because of something of that sort that the draft constitution failed and was rejected. i regard this as irresponsible, and i think that adjustments are needed here as a matter of urgency if policy is actually to be developed in the european union instead of people merely throwing slogans around. these adjustments must result in people once more being able to identify much more strongly with the european union. general statements about people's fear of the dismantling of social services are of no use to us: we have to actively do something to counteract it. what people need is real projects and initiatives; that is why we have to address the real issues. there are alternatives, though, and i believe they can be summed up in three projects: making the eu democratic, making it socially and environmentally sustainable, and making it into a force for peace, one that endeavours to resolve global problems democratically and in a spirit of solidarity. on behalf of the uen group. - mr president, i would like to welcome president barroso and the members of the commission to the chamber. two points struck me immediately in the speeches and comments i heard earlier on. firstly, when did it become a sin to be radical; when was it ordained that we should not try to create something new and different and, when we see mistakes, not try to right them? in particular, the fact that we live in such a rapidly changing world brought about through innovation and technology requires a more rapid response from the european union to ensure that we can defend as best as possible the interests of all eu citizens. secondly, there are obviously going to be carry-over issues from one year to the next on which agreement has yet to be reached. we have already seen this when dealing with the services directive over the last six years, where even now we are only at second reading. we will have to deal with many more issues like that. i would, however, like to make three points. firstly, with regard to the lisbon agenda, there is still so much lacking in terms of the necessary legislative framework that must be put in place to make lisbon a reality. the whole area of innovation, research and development is one that we talk about a lot, but in which concrete legislative action to protect design, patents and copyright, and to allow for proper investment in research and development, in financial terms, is still lacking. i have spoken many times in this chamber on the european institute of technology and the wonderful advance and focal point for excellence that would represent. however, this is the positive side of things, and we seem to be regressing in other areas. the commission is talking about a harmonised taxation system, but wherever harmonised taxation has taken place it has been contrary to good competition, economic growth and employment growth. tax competition within the european union has been healthy for growth and has been beneficial and of assistance. one must of course have a level playing field as regards state aids and other similar areas, and we do have this. we can quite rightly bring member states under control when they go above and beyond what is allowable as regards assisting industries or assisting employment creation opportunities. however, taxation is solely a national interest issue. it is one that still requires unanimous agreement, and i think it behoves us to stand up and say that the legal bases of the treaties do not allow the commission to come forward with a proposal for tax harmonisation. they do not allow it to force countries to increase taxes, and they do not allow it to force countries to lower taxes. finally, the cfsp has been one of the european union's key successes. take kosovo, africa and other developments around the world, where the european union has responded positively to putting peacekeepers and police forces in the field and to promoting other constructive developments on the ground. we must continue to enlarge and expand that role. mr president, mr president of the commission, it is just as well that the commissioners do not have voting rights. otherwise, we could soon be voted down in this house. it is also good that the commission is proposing more voluntary coordination through communications instead of binding rules, but i fear that the compulsory dimension will, rather, come from the european court of justice and from the commission's own use of rules governing competition and state aid. that is, of course, what the commission has done, for example, with its communication on music rights. parliament had adopted one position, which the commission did not like. the commission then turned to matters relating to the abuse of monopolies and adopted a communication instead of rules, which it would perhaps never have been possible to adopt. the european parliament and the national parliaments should demand that all draft communications be submitted to them. in that way, we can make it known whether we want to have binding rules or a cocktail of communications and of decisions by the european court of justice. i wish to commend the commission for having, every week since 15 september, sent proposals to the member states for submission to the proximity and necessity test. as far as i know, the parliaments have not, however, responded once. how lazy can they be as representatives of the people? on monday and tuesday, the national parliaments will come together for the cosac meeting in helsinki and they should not miss the opportunity to put some order into the jungle of laws from brussels. let all the specialist committees and european affairs committees colour-code every single proposal: black, if the national parliament wants to see binding eu laws; green, if there are to be minimum provisions with the option of better protection for welfare, health, the environment, the working environment, security, consumer protection and animal welfare; yellow, if the desire is merely for voluntary coordination instead of binding laws; and red, if the eu is to steer completely clear of a matter. with colour-coding like that, it would be very easy for the commission to see at a glance what is wanted. in this way, it would be possible to obtain bottom-up european cooperation instead of the centralism that we have at present. (nl) mr president, i gather from the work programme that the commission - and i quote - would like to listen more to the citizens in order to involve them more in the policy process. as the dutch cabaret artist wim sonneveld might have said: nou breekt m'n klomp, 'that takes the biscuit' - or something very like that. perhaps i might remind the commission that the european public, to whom it is referring, has already made its opinions abundantly clear, for example about the so-called european constitution, and that they have, by means of referendums, consigned this project to the wastepaper basket in the netherlands and in france, and that the commission, despite everything, repeated only a few weeks ago that the spirit of this constitution - whatever the citizen may think - should in any event remain intact. listen to what i have to say about citizen involvement but do not, whatever you do, judge me by my actions. incidentally, there is no reference in the document to the petition of a million european citizens about the travelling circus, swallowing up millions, that is the european parliament. i know, strictly speaking, it should be the council that should be lectured on this, but the commission - which interferes in god knows what anyway and whose own budget, moreover, is being slated year after year by the court of auditors - could have sent out a signal about the fact that the european citizens are fed up to the back teeth with the eurocrats' squandering of money and enjoyment of privileges. we should no longer keep quiet about this. then there is public opinion to consider. it is indisputable that the european citizens reject en masse the accession negotiations with turkey - which is not a european country - and yet these negotiations are simply continued, undoubtedly also beyond december. this proves, in fact, that the so-called 'open ending' of the negotiations is nothing but total bunk and that the eurocracy, including the commission, decided a long time ago that the turkish accession must, come what may, be rammed down the throats of these european citizens that have - or so they say - been listened to so well. i should like to finish off with a final comment about an important matter, namely what is termed economic immigration and the idea that new immigrants must be attracted, which, if it was up to the commission, would certainly not just be a handful of highly educated individuals. this view has just been confirmed by the president of the commission himself. the absurdity of the idea that massive immigration of non-europeans is economically profitable in order to alleviate the effects of the demographic situation in europe has been demonstrated before. the immigration that we have experienced first-hand is an immigration of people who cannot read or write, combined with religions and cultures that cannot be assimilated. putting it bluntly, we are importing even more unemployment, even more rootlessness, along with the effects of this all, namely crime, run-down areas and de facto apartheid. this also involves enormous economic costs. for those reasons, and many others, i conclude that we can do no other than express our disapproval of this work programme that is so full of platitudes and good intentions that cannot be kept and in which the essential concerns of the european citizens are completely overlooked. mr president, i would firstly thank the honourable members for their comments. members do confirm that this is a more political programme, as recognised by mrs grossette, whom i thank for her general support for the programme. our objective is, indeed, to join with the other institutions, notably parliament, in better targeting the priorities each year and placing them in the context of europe's overall efforts. since i cannot reply to all the specific questions, i shall reply at least to those that i think particularly important, beginning with the principle of annuality. this principle is not called into question. far from it. we are establishing very clearly the 21 strategic initiatives for next year and committing ourselves not to withdraw any of them once they are under way. at the same time, however, we are offering parliament and the other institutions the opportunity to acquaint themselves, in the course of the next six months, with what we are including in our programme and the opportunity to draw their conclusions in advance if the work is complete. this is a good example of the combination of flexibility and security. secure in the knowledge of what may be done in the course of next year, you have increased flexibility which, in turn, means that parliament can do a better job of setting out its programme. that is what we aim to achieve, and i also hope that it is in keeping with what you need in terms of your work. mr schulz recognised a number of features from other programmes. true, there is a degree of continuity. we want to maintain an element of coherence. the work done by the commission and by the other european institutions cannot consist in re-inventing the wheel each year. one of my country's great thinkers said that in speaking the truth, one cannot be original every day. there is some truth in that. we are sticking to these objectives. we need to keep the pressure up and show great determination. the achievement of a large portion of these objectives does not depend simply on the commission and parliament. it also depends on the member states. that is why we must continue to be coherent over time, and to be so in the interests of a europe that is not only more competitive but also characterised by greater solidarity and by greater resolve on the world stage. in the light of this, there is indeed an element of continuity, which is also to be found in the motto 'unity in diversity', referred to by mr jonckheer and other members. to reply specifically to mr schulz's question, i would say, as i have already done to mr orban, that my idea is for the commissioner appointed by romania to assume responsibility not only for multilingualism but also for interculturalism in europe, so supplementing the work done, under my direction, by the bureau of european policy advisers (bepa), which organises meetings on this subject. it is also what commissioner figel' does on the subjects of education and culture. as soon as his appointment has been confirmed by the institutions, mr orban will therefore be given responsibility for multilingualism, which is a very important subject for europe. it is by no means a 'second class' portfolio. when you think how many languages are used in the eu, a policy not only on multilingualism but also on interculturalism seems to be more and more necessary if we really want to respect the diversity of the eu. dialogue between the various cultures needs to be established, and efforts made to integrate the different communities, without of course neglecting the minority communities within the eu. i believe, therefore, that it is a highly important portfolio that will be entrusted to mr orban as soon as his candidacy has been approved. as for the question put by mrs koch-mehrin, i accept, above all, the point on which we most agree, namely the need to go all out for less bureaucracy and more efficiency. this is not a mere statement of intent. at the meeting of the college that took place this very day, the commission approved a reduction in the obligations imposed on small and medium-sized enterprises in europe to supply statistics. instead of asking them all to make the presentations designed for statistical purposes, we shall ask for information on a sampling basis and confine ourselves to requiring only a portion of the information otherwise available. i believe that this is a practical measure to reduce the administrative burden on our companies, and particularly on small and medium-sized companies. we shall, of course, study the proposals for combating climate change presented, in the person of mr jonckheer, by the group of the greens/european free alliance. be assured that we want very much to continue to be a world leader on this issue, and we in the european commission have, in particular, committed ourselves to strengthening the emissions trading system, to attaching more importance to renewable sources of energy and to working to achieve better levels of energy efficiency. perhaps there will be a number of differences in terms of practical objectives, but i believe that there is a convergence of views between our institutions about the point of the actions to be taken and the ambition behind them. regarding the issue of climate change, i want to tell you that, in our view, it is closely linked to the energy question. in this area, we do see the solid outlines of a possible accommodation between the concerns of those who, like yourselves, are more ambitious where the environment is concerned and those who are more ambitious when it comes to competitiveness. the two sets of concerns are not mutually exclusive. on the contrary. contained therein are extraordinary economic opportunities for the europe of tomorrow. in the same way, i think that there is an opportunity to be seized in the area of innovation and, in this connection, i would particularly thank mr crowley for his support for the european institute of technology, which i think will be europe's workshop of the future. more and more, the work that needs to be done is that on combating climate change and on pursuing a coherent energy policy and a europe that is not only more competitive but that also derives its strength from a sustainable economy marked by solidarity - all of which presupposes, of course, greater investment in innovation. in conclusion, i shall try to reply to the question put to me by mrs koch-mehrin, who was wondering what was the main theme that drew everything together. at first sight, it is difficult to see the connection between such diverse areas. the common theme resides, however, in the objective of preparing europeans to confront the age of globalisation; not to submit to it, but to face up to it; and not to see it as the end of europe but, on the contrary, to have the courage to affirm our values and interests while, at the same time, helping - by means of our beliefs and our values of democracy, freedom and, indeed, solidarity - to shape that very globalisation and the future of the 21st century. therein lies the common theme linking the areas of energy and climate change to the areas not only of justice and home affairs but also of innovation and education. that is our programme. - growth - employment - competitiveness on behalf of the ppe-de group. - (nl) mr president, i too have great appreciation for the policy statement by the president of the commission, mr barroso, and i am delighted that he now has a grasp of dutch. he can understand dutch. the commission president understands dutch. i should like to make five comments with regard to the statement. i am delighted about his remark that europe is more than just a market. when you say this, though, you also have to follow it through. this means to us - and we will be putting this request in the resolution - that you have to outline the consequences of the internal market on the european citizens. once those consequences have been mapped out, it is possible to respond adequately. i would like to make a second remark by way of priority. the combination of work and family, more people within this labour market, is also one of the priorities in the lisbon process. we would like to see more action on this score. thirdly, a green paper on labour legislation is pending. we have seen this announced for a long time, but when exactly will it be issued? fourthly, president barroso mentioned attracting immigration. when i hear this, i wonder how i should justify this to the colleagues from poland, bulgaria and romania who will be approaching us shortly, where this free movement of workers has not even taken off yet. i would appreciate a response to this. fifthly, i should like the social affairs commissioner to attend more to all matters that are still outstanding in the council, namely posting of workers, working hours legislation, but also the mobility of pensions, which i happen to know leads to major problems and to which a number of improvements are now being made at commission level too. we as a group in parliament are happy to have further discussions with you on these matters. mr president, we have taken note of what the president of the commission has had to say about the new commission, particularly about the new commissioner, mr orban, and i have to tell him that a certain amount of clarification is still called for, not least in consultation with commissioner figel', as regards, among other things, the question of who is to have responsibility for dialogue between cultures and religions, although it has to be said that this sort of expansion goes some way towards meeting the expectations of social democrats like ourselves. secondly, and still on the same subject, we will of course be asking the new commissioners about their commitment to the programme for a social europe and to solidarity, to which you have made reference. it is because the commission is a collegial body that we will be questioning all new commissioners as to their actual commitment to this social europe. thirdly, mr president of the commission, there is growth and social security; you were right to describe this as a political programme, and important steps have indeed been taken in this direction, but let me give you two examples of where we see progress as being needed. the energy sector, for example - although commissioner piebalgs appears not to be here - is an important factor in terms of growth and job creation, but when a head of government asks how we are meant to run a single european energy policy when everything is geared to liberalisation and nothing else, then that is when the commission must establish a political framework for the european energy policy. if i may turn to the trans-european networks, indirect reference has, today, been made to your having at one time been very much in favour of using measures taken by the individual countries as a means of pressing on with coordination, and it is this coordinating role that i would ask you to exercise. i would also emphasise once more that we see solidarity as the principal objective of the european union. on behalf of the alde group. - (sv) mr president, commission, fellow members, ladies and gentlemen, i intend to devote my speaking time to three elements of the commission's work programme, namely global competitiveness, green growth and energy. all three of these issues are crucial dimensions of a competitive europe. firstly, then, global competitiveness. europe's future lies in competing at the cutting edges of research with quality and with skill. only in that way can we retain the european model. the seventh framework programme is therefore the most important document on industrial policy for many years. i am afraid i have to say that there is to some degree a lack of drive in this work programme. it is a good and important thing to engage in space exploration, but where are the ambitions in relation to the medical industry? why is it mentioned only in the context of it crime? if i were to express one wish, it would be for a more cohesive strategic plan to enable us to compete in the 21st century. secondly, the environment and growth. all too often, when documents such as this are presented, one gets the feeling that the environment and growth are somehow mutually opposed. i am convinced that this is not so, something that i think is proved through the work of reach. in the next few decades, the world will be forced to do something about the climate issue. this will involve new technology for saving energy, new technology to power cars and so on. there will be an enormous market for environmentally friendly technology and for energy-efficient products. that is where our european companies should be. i therefore wish that, over the next year, the commission might devote more energy to developing environment-driven growth. thirdly, energy. europe's competitiveness stands or falls according to whether or not it has a secure and economically feasible energy supply. it is easier to fight for your principles than to live up to them, but i hope that the commission manages to do the latter when it comes to global competitiveness, green growth and a secure and sustainable energy supply. on behalf of the verts/ale group. - mr president, i would like to point out to the commissioner that we are going to have to carry on talking about old and new member states for as long as we have the transition periods to which my colleague, mrs oomen-ruijten referred. however, i was also very pleased to hear mr barroso talking about dealing with unscrupulous employers. i assume by that he means those employers who keep people in conditions approaching slavery, pay them extremely badly and exploit them, with this applying, of course, not just to those who employ not only third-country nationals but also eu nationals, as we have been hearing about recently. i assume that measure will be part of driving up job quality, as we have talked about so often, by getting rid of low-quality, poorly paid employment, and i look forward to seeing that mentioned more explicitly in the commission's programme. as others have said, we are very pleased to see as well this continued mention of sustainable development and linkage with climate change, which is something we have long argued for, and i agree entirely with what mrs ek was saying about environmentally-driven growth. we therefore look forward to the action plan on sustainable production and consumption next year, which we assume will be a move forward in terms of eco-efficiency and in spelling out how we are to decouple environmental damage from growth. we also look forward to the stocktaking social reality document, which is extremely important as regards benchmarks of wellbeing. we assume this will also include environmental factors, given that we know that the poorest people often live in the poorest and most degraded environments and housing, with the effects that has on mental health. we would rather have seen a framework directive on social services, but will nevertheless be looking to see whether the proposals brought forward also take into account the effects of existing european legislation on the future of services. finally, we would have welcomed something that picked up on the sustainable development strategy as regards the issue of targeted training for professions in helping to meet climate change requirements. if you cannot fit solar panels and cannot repair your energy systems, you are not going to meet your climate change targets. (applause) on behalf of the gue/ngl group. - (pt) mr president, reading the legislative programme and listening to the presentation of the commission's work for 2007, we can but conclude that we are in for more of the same; more of the same neoliberalism, which is undermining social and labour rights, which is making work more unstable, which is returning to old methods of exploitation, which is promoting the liberalisation of services, including public services, leaving no one in any doubt as to the intentions behind what is referred to as the lisbon strategy. in the name of flexibility, the completion of the internal market and globalisation, employment contracts are being trampled underfoot, and there is a danger of more multinational company relocations, as in the case of gm opel in azambuja, johnson controls in nelas and portalegre, and lear in valongo, to name but a few of the most serious cases currently threatening thousands of workers in portugal, where unemployment is already very high following redundancies in the textile, clothing and footwear industries. it is these unemployed workers who are now at the mercy of temporary employment agencies and other unscrupulous bosses, as in the recent cases we have heard about in the media of hungry and penniless portuguese workers in the south of the netherlands. is this the social responsibility of business in action? at the same time, in the name of the single currency and price stability, the european central bank regularly raises interest rates and governments use the stability and growth pact to undermine manufacturing, hinder social development, undermine micro and small enterprises and create a culture that is conducive to the shameful exploitation of emigrant and immigrant workers and their families. we therefore stress the need for a sea change away from these neoliberal policies. the time has come to prioritise social development and welfare policies and i should like to call for solidarity in the case of hungry, exploited portuguese workers such as those in the south of the netherlands whose cases have just come to light. on behalf of the uen group. - (pl) mr president, european integration is just part of the solution to the question of economic growth in europe. the member states themselves, making their own decisions relating to public finance and economic reform, have a key role to play here. in this respect we have many examples of good practice. the success of domestic reforms in some countries has allowed them to quickly absorb enlargement in 2004 and to adopt the principles of the common market in all areas. the success of countries such as ireland, finland, holland or great britain has allowed these countries to regard world competition more calmly. on the other hand, a social model based on rigid and short working time, and on avoiding competition not just at a global level but at the level of the common market is the road to social and economic crisis. this political and economic alignment of forces within europe gives me serious doubts as to whether the oft-mentioned constitutional treaty is a good solution to our economic pains. it will give those countries which are less adept at resolving their internal problems increasing influence on eu affairs. we will lose the balance between different models and restrict competition between systems. this diagnosis of the alignment of forces has come as a result of the debates on services, working time and worker delegation. speaking figuratively, i am worried by a treaty which as regards legislative and regulatory matters will give us less britain and more germany and france. of all the activities the commission plans to undertake in 2007, the most important to me are those in respect of better regulation. it is a disgrace that an organisation that has for 50 years given voice to the four basic freedoms enshrined in its treaties, today costs business eur 600 billion per year. and it is an even greater disgrace that despite the agreements made in the last year, it has been impossible to reduce red tape and or to improve european law. i hope that 2007 will mark a breakthrough in this respect. however, this will not happen if we cannot honestly answer questions about the reasons for this failure in 2006. how is it that proposals for streamlining, codification and unifying european law face resistance? and who is resisting them? where are the gordian knots that we have not managed to cut? i would very much like to hear an answer to these questions today. on behalf of the ind/dem group. - (sv) mr president, legal certainty means that the exercise of power and the administration of justice can be anticipated on the basis of legal rules. it is clear from its legislative and work programme for 2007 that the commission expects the draft constitution to be implemented. this is despite the fact that large majorities in the netherlands and in france have rejected the draft. the struggle between the political establishment and the peoples of europe continues apace, then. the european project is on a dangerous road. the european court of justice will lose its legitimacy as a result of the arrogant attitude it displays towards the popularly elected governments of the member states. the court of justice is, in reality, a self-appointed power in europe. it chose to declare itself the guardian of the principle of the separation of powers even before the amsterdam summit of 1998. it did this without any democratic or political basis whatsoever. the court of justice has also made clear to the national courts that they cannot regard themselves as independent, but rather that they represent the extended arm of the court of justice, through which it performs its judicial activism. i would therefore call on the members of this house to think things over before it is too late. the eu does not need more concentration of power with no democratic basis. the eu needs competition, not just between companies on the market in order to create better products, but between countries in order to come up with sound political solutions to the problems of the day. mr president, the commission will review the operation of the single market, and about time too. i hope that the commission will read the report by the conseil d'analyse economique, a high-powered economic committee of the french government chaired by prime minister dominique de villepin. that report says 'economic integration has stagnated and no longer promotes growth'. it says that the euro's creation has not produced the knock-on benefits expected. then it gets serious: 'we are convinced that the situation we describe is perilous'. it says that poor economic performance is driving away investment and damaging employment and social provision and it speaks of 'a manifest exhaustion with community procedures threatening to trigger a vicious circle which will unravel the acquis communautaire'. i hope the commission will note the estimate by its own vice-president, gnter verheugen, who says that the costs of excessive regulation in the single market amount to eur 600 billion a year. that is nearly four times the commission's own estimate of the trade benefits from the single market. in a recent uk study of more than 1000 ceos commissioned by the think-tank open europe, a clear majority felt that the eu was doing more harm than good and that britain should renegotiate its relationship with europe to something more like a free- trade deal. the position is very clear: europe's share of world trade is shrinking fast. membership is costing far more than any benefits it offers. eu regulation and the eu social model are doing huge economic damage. the eu is making us poorer and less democratic and less free - and we have had enough of it! (de) mr president, commissioners, ladies and gentlemen, i am sure that mr helmer would defend the british internal market, which he sees as geographically limited, without wishing to undermine the principle of the market economy. i think, mr schulz, that we may have a semantic problem here. for me, the market means meeting customers' needs and providing a range of services and products that the public actually buy. that is my understanding of the market. that, i think, is why your speech received so much applause. we must not design the european single market and determine what we offer on it in future without taking into account the needs of the public. the second thing - and it is something i see as very important - is the energy issue. energy - together with agriculture - is going to be one of the big issues full stop. we will need more initiatives to be taken on the renewable energy front, and, on the food front - considering the way prosperity is on the increase in china, india and many other countries around the world - we will need a lot of energy for new and relatively high-quality foods. we see the opening up of markets on the international level as having absolute priority. we should be creating new openings for our farmers and food producers to sell their products in future. moving on to the co2 debate, i would like to ask what we are supposed to do when a barrel of crude oil sells in russia for 8 dollars - and to heavy industry, too - whereas here one has to fork out anything up to 80 dollars and emission trading also means that we have to pay the co2 levy, so that our energy - and hence our raw materials industries - are subject to double taxation? how, this being so, are we supposed to keep jobs in europe? a debate on the subject of these disparities on the market is urgently called for - and in the sphere of foreign policy too. we will indeed see whether russia allows its neighbours to pay the same prices as it charges at home; this will make for exciting debates in the future. from the employment and social standpoint, i find this work programme very disappointing. yet again we are promised little more than a raft of green and white papers and communications, recycling the same old material. we are about to get a green paper on labour law that lists questions that were put and answered ten years ago by allan larsson while he was the commission's director-general for employment. the communication hails flexicurity as a means of realising opportunities offered by european labour markets. in reality, it has been shown to have no positive meaning for working people. for millions flexicurity is a weasel word, a codeword for exploitation, insecurity and uncertainty. we need an eu legislative framework to tackle unfair and exploitative employment and quasi-employment relationships. all workers in all regions deserve access to decent work to give them and their families the chance of a decent life. in the meantime, social europe is at a standstill. the last piece of eu legislation in the social field was adopted over three years ago. the commission's lack of ambition reflects its own imbalanced policy perspective. better regulation means no legislation in the social field but also reflects the poor prospects for any proposal in the employment council. employment ministers need to begin to play a positive role and they could start by doing something positive on working time and temporary agency work. lisbon promised more and better quality jobs. what has been done to deliver that promise for working people? precious little. so my message to both the commission and council is this: let us stop the rhetoric and start to deliver. (applause) demographic change is one of the greatest challenges for european competitiveness. we want to make it a priority to bring people who are excluded into the job market, elderly and disabled people included. that is why the 2000 employment directive should be fully implemented. but we must do more, especially as 2007 is the european year of equal opportunities. however, i welcome the commission's commitment to cutting down on unnecessary legislation. that is why i ask the commission to reaffirm its intention to withdraw the temporary agency workers directive and also to consider separating the issue of calculating what is considered as working time where someone is on call, from that of the individual opt-out from the working time directive. if we are really to achieve growth and competitiveness, legislation should only be brought forward in the employment field if it cannot successfully be enacted at local or national level. in the field of health and safety it should brought forward only if scientific and medical evidence prove the need for it, as is the case for an amendment to the 2000 biological agents directive to protect workers from needlestick injuries and contracting hepatitis or hiv. can the commission tell us when it will bring forward that amendment to the biological agents directive, in line with the own-initiative report that was adopted by the european parliament? (el) madam president, i wish to comment on three points in the european commission's programme on employment. the first relates to the commission proposal to encourage the creation of common principles to strengthen job flexibility and security. the commission even notes that this combination has been recognised as a necessity. by whom has it been recognised? obviously by the employers who approve the framework of the pure market. however, no one should cite the workers, because it is they who suffer from minimum working times, breaches of working times and flexibility of the market. my second comment concerns the question of immigration. the commission says that, because the needs of the market have increased, immigrants need to be approached. that is exactly the message which the exploiters are waiting for in order to import cheap labour and use it to 'break' domestic markets and reduce wages. immigrants should not be used as battering rams, but as people with the same rights alongside local workers. finally, as with the directive on the liberalisation of services, the same with the commission programme: the workers and citizens are not suffering from a problem of reduced perception, as some have said; they simply disagree and no one should misinterpret that. (it) madam president, ladies and gentlemen, i speak on behalf of the new italian socialist party. the commission communication on competitiveness is a necessary step towards implementing policies aimed at improving the union's economic performance in the global context and within the framework of the lisbon strategy. it is important, as proposed, to create a framework encouraging technological development, innovation and support for the area of industry that, through research and development, is capable of expanding the eu's competitiveness in the more innovative sectors. i therefore support the proposals for the globalisation adjustment fund, the new generation of cohesion programmes and the guide to innovation proposed by commissioner hbner, which encourage the regions to focus more closely on development, and which, i hope, will provide sufficient information and support to allow our smallest and most vulnerable enterprises to respond to the new energy and commercial challenges in the international environment. in fact, i believe that is fundamental to support a key factor in the european economy: small and medium-sized enterprises, in particular those in manufacturing, which are, by nature, less inclined to innovation and more vulnerable to the globalisation of the economy. while i welcome the adoption of good internal practices, i also believe that it is essential for small and medium-sized enterprises to be suitably protected, above all in the area of international trade, particularly in connection with markets that exploit unfair competition and often do not reject practices that damage workers' rights and at times even violate children's rights to childhood. (it) madam president, ladies and gentlemen, i too should like to address the commission with some thoughts and suggestions. since within europe there is a desire for europe, i believe that the responses that people expect are those of a strong europe that is able to provide, to direct and to propose. this is the main reason why i believe that we need to put across a clearer summary of the truly significant propositions of our programmes. furthermore, i believe that the commission, parliament and the council are making quite good progress, having succeeded, in recent years, in delivering a series of directives and regulations responding to the demands for quality of the environment, quality of life and greater integration. there are, nonetheless, important areas of european and international policy on which we must be more adventurous. these areas have been pointed out to us in many of the speeches made today: the environment, energy, employment, security and immigration. a common thread runs through all of these topics, that of equal opportunities for all: for young people facing the world of work, who have a level of training that differs too much across the various member states, and equal opportunities for women, who, in this old europe, have not yet managed to attain the equality to which they are entitled even in the world of work. (fr) madam president, commissioner, you should say to mr barroso that, despite the high ambition of what he said, we look forward to seeing his words converted into deeds and that what we therefore need, if we want to win back our fellow citizens' confidence, is both better regulation, which does not necessarily mean less regulation, and what, in the english turn of phrase, is called the capacity to deliver. in the field of the ecology-energy partnership, which the commission is extremely keen to see put in place and which parliament will most certainly support, we need to give some thought in advance to the resources required for bringing this about. these do not amount solely to that capacity in terms of competence that the constitution would supposedly have given us, but also to capacity in budgetary and taxation terms. the commission needs therefore to lose no time in setting to work on revising the financial perspective so that this exercise is not simply compensatory but is marked by an ambition equal to what is at stake for the european union in the 21st century. of the 21 strategic initiatives, only one falls within the competence of the committee on economic and monetary affairs: the idea of a communication - a further one - on social services of general interest. there is not a word about the proposal you withdrew from the commission's work agenda - a move unanimously condemned by parliament. i am talking about the withdrawal of the proposal on mutuality. ask mr barroso what has become of the initiative in this area. parliament is awaiting a proposal. in the area of financial markets, the exercise we are involved in is a dialogue between institutions. we had made some definite and practical requests concerning micro-credits, alternative funds and rating agencies. the commission proposals have nothing to say about these subjects. finally, i would ask you to take relevant action in the field of accounting, so enabling the european union to be equal to the ambitions we need to espouse. (es) madam president, madam vice-president of the commission, commissioners, mr almunia, better and better legislation requires better and better budgeting. there is, and there will be, no new legislation or new initiatives for next year unless the community institutions, the commission in particular, carry out a full assessment of the availability of funds and of how to allocate the resources in the manner demanded by the union's citizens. in other words, the union, and the european commission, need legislative priorities and budgetary priorities that are in unison. at the moment, the commission's current work programme is not consistent with the resolution adopted by the european parliament for the annual political strategy or with the first reading of the european parliament for 2007. i would remind you of paragraph 47 of our resolution on the annual political strategy, in which we insist that the european institutions must reach an agreement on this legislative programme in december 2006, in order to coincide with the end of the budgetary procedure for 2007. i shall end by mentioning the budgetary principles laid out by the european parliament for the conditions for releasing the reserve for european commission staff posts in 2007. when it comes to these conditions, parliament is the european commission's ally here, rather than the council. in particular, we are asking for a commitment to improving the procedure for delivery to the european parliament of the commission's legislative and work programme which leads to the presentation, in february 2007, of a legislative work programme for that year and which takes account of our budgetary vote in december. you, and the commissioner responsible for budgets in particular, are perfectly aware of the situation and we therefore hope that we can reach an agreement at the conciliation on the 21st. (es) madam president, commissioners, the president of the commission, who has discourteously failed to attend this debate, has justified the correction of his programme in an extraordinary fashion by quoting an anonymous philosopher from his country who defended truth. since the infallibility of the commission is not laid down in the treaties, i believe that it would be more appropriate to quote the old proverb 'rectificar es de sabios [to rectify is for the wise]'. the commission has rectified two points that are important for next year. firstly, the president of the commission began to speak, i would not say passionately, but at least with a degree of enthusiasm, about the european constitution. i welcome that. secondly, the commission has introduced immigration as an urgent issue. i would like to refer more specifically, however, to an issue that is very important and that cuts across everything we are talking about, and which the president of the commission has not mentioned: the need to re-direct the doha round of development negotiations. it is an absolutely crucial issue, which has a very direct influence on europe's policy towards globalisation, and about which not a single word has been uttered. are we going to continue along the line proposed by commissioner mandelson? is the bilateral going to be given priority over the multilateral? how are we going to coordinate this issue with the environment policy and the human rights policy? i believe that this is an issue that the commission must take into account and that it has not mentioned today. (es) madam president, i too regret that the council is not here. the council's absence from these debates has become far too frequent and i believe it would be good to remind it that it should be here and that it should take good note of that. it was not here for the presentation of the court of auditors report this morning either. although mr weber, president of the court of auditors, has met with ecofin, the political debate amongst those of us representing the citizens takes place in this chamber. i therefore disapprove of the finnish presidency's absence. this morning we read the report of the house of lords, which gave us a real pasting: it says that we do things badly, that we do not control our spending. furthermore, we have once again been presented with the report by the court of auditors, a report that has always been negative, ever since i joined this parliament in 1994. for the last twelve years it has said that the commission and the council is making an effort, but it has not given its approval. as franoise grossette has said, the commission's programme is a political programme and i therefore believe that it is right for the commission to aim high, but it is doing little in terms of controlling spending. i would like to say to the commission, which is here today - i regret that the vice-chairman of our committee on budgetary control is not here and i thank mr almunia for listening - that unless we spend properly, the council will continue to reduce the budget and we will end up without any community policies. if your work programme says nothing about controlling the europeans' money, what will happen in the end? we will not even reach the 1% threshold. next year we will have 0.9% of the budget and we will end up with no community policies in europe. get your act together please. state that we want to spend well, better than the member states, that we want to put the member states in a position in which that can say that they agree with the way spending is carried out. the citizens must be aware that, if money is spent badly, it is not just the commission's fault, but also the fault of the member states, of the agents. let us get our act together, let us do something, not just for transparency, but for good spending. (de) madam president, ladies and gentlemen, i would like to start by following the chairman of my group, mr schulz, and highlighting something mr barroso said to the effect that, 'without solidarity, the internal market will not come into being'. he got that absolutely right, and it comes up again in the text of the work programme, in which the commission commits itself - and i quote: to 'the delivery of an active policy agenda focusing on citizens' expectations and needs'. that is precisely what is needed. it is not, however, enough simply to keep on saying that; it also has to be brought to life. it is evident to me, from looking at the measures, that the ones that really matter in the internal market are not there, particularly those needed for the protection of consumers. the term 'consumer protection' is nowhere to be found. now you are looking to appoint a new commissioner to handle it. does that mean that you want to have a rethink or a closer look and see to it that consumer protection really is put centre stage in policy? if you do, that is something that really will get across to the european public. i also note the lack of any progress towards harmonisation in european policy that might point to the member states sharing in it, that might indicate an opening-up of borders in the services market and elsewhere, for these things need to be tackled with much more vigour than they have been, and there is plenty left to do on those fronts. finally, the most important thing is that the primary competence should be political. you are always talking about impact assessments, but what sort of impact assessment should be carried out? any impact assessment should also take into account social life, gender policy and other areas as well. - cohesion - protection of natural resources madam president, there is a tendency for all speakers to consider their issue as the most important in the debate. as we are talking about the european commission's legislative and work programme, i wish to say - as i shall be referring to regional development - that we shall not have very important issues to debate next year. this year we passed the legislation and the major challenge for the european commission is for this legislation to be applied correctly. we need to start the application of programmes promptly, so that the appropriations are taken up and, more importantly, european taxpayers' money is used for the benefit of social and economic cohesion. this is the major endeavour and parliament wants to participate actively in this endeavour, which we must jointly make together with the member states and the regions. we shall be present, therefore, to control what the european commission is doing. within this framework, the fourth report on cohesion which the european commission is to present and which we are awaiting will obviously also be important. within the framework of the purely legislative initiative, there is the question of the solidarity fund; in other words, the fund which covers problems which arise from natural and technological disasters. here we have finished the first reading, but there is an unjustified delay in the council. the old regulation is out of date and the european union needs to demonstrate its solidarity in the areas affected, especially when we are talking about major disasters, because that is how it gets closer to its citizens. the commission, therefore, needs to stand by parliament. we need together to convince the council which, for some reason - perhaps because the ministers of finance, who are competent, do not want to give any more money - does not understand the need for us to proceed further. we are therefore waiting for tangible proof from the european commission. on behalf of the pse group. - (fi) madam president, the legislation that applies to the european union as a whole needs to be based on an analysis of where we are, which of the measures that have already been taken have been effective, and what new measures are needed for us to achieve the targets that have been jointly set. this sort of approach is vital in environmental policy in order that we can focus on those matters that require swifter attention than any of the others. the european commission promised to put forward a proposal to revise the sixth environment action programme this year. we have not received one. it is not included in next year's action plan either. it would nevertheless be a concrete instrument for specifically evaluating where we are and what should be done in the future. the commission says that it intends to examine the environmental technologies action plan next year. that is good. we also, however, need to look at areas other than developments in energy technology. one challenge we face is legislation on chemicals. harmful chemicals need to be replaced with new, safe ones, and for that we need technology. we need technology to find solutions to air quality. we need new technology for material efficiency, and in this way we will also be able to redeem our promise of improved competitiveness. (applause) on behalf of the alde group. - (fr) madam president, commissioners, ladies and gentlemen, there is a time for words and there is a time for action. i think that quite a number of those who have spoken this afternoon, on various subjects, have demonstrated the absolute necessity for the european commission to take action. we want more innovation, more security, more solidarity and more competitiveness, and i am disappointed to see that the text presented to us by the commission includes just a few lines on what is certainly the main heading in the european union's budget, given that the 2007-2013 financial perspective allocates eur 308 billion to the structural funds. however, if we want to provide real answers for ourselves and for our fellow citizens, with the member states and with the various players, we need to make good use of the tools provided by the financial measures included in the structural funds, amounting, as i said, to eur 308 billion. what, therefore, is the issue for 2007? are we going to use the billions at our disposal to give our fellow europeans real answers in the context of the regulations we adopted in this very house in july, or, mired in administrative mazes and in many and varied problems, are we going to reach 31 december 2007 without having got much further forward? i and my colleagues in the committee on regional development brought these matters up with mrs hbner; we are disappointed that the commission's document before us today pays hardly any attention to how the commission intends to set out to achieve its objectives. we want these objectives to take particular account of circumstances in the new member states, which will receive funds but will also need to be in a position to use those funds wisely. we have made proposals, as mrs hbner knows, and we are now waiting for practical responses to help these countries to use this money properly. there is another point that i, as chairman of the urban housing intergroup, must obviously not neglect: how can towns and cities act as a real driving force in a europe that needs to be more competitive and more innovative? on this matter, too, we are waiting for further action from the commission. finally, on behalf of my colleague mr davies, who cannot be here because he is at another meeting, i would like to say to the commissioners that the group of the alliance of liberals and democrats for europe is partly satisfied with the proposals on the environment, but that, as in the case of the previous point on the structural funds, we expect practical implementation - we expect action. in conclusion, commissioners, we have no complaints about your communication skills, but we now expect practical action. on behalf of the verts/ale group. - (de) madam president, commissioners, ladies and gentlemen, it is evident that the commission is pressing on with the policy that deeply divided european society last year. were the riots in the suburbs of paris not warning enough? having seen them, we in europe surely cannot continue with a policy that writes off some members of our society. how, having had this experience, is it possible that the commission should seek, in the new work programme, to address social issues quite separately from the growth strategy? why is it abandoning the former consensus according to which social inclusion policy was part of the lisbon strategy and hence an expression of social cohesion? are we, in future, to have a state of affairs in which everyone will no longer be allowed, irrespective of where they live or of their social status, to share in europe's economic successes and in its prosperity? our group does not accept such a thing. it does not accept that people such as those in the banlieues of paris should no longer be allowed to benefit from europe's strategy for prosperity, for a policy of social division will demand a high price from all of us. the work programme, lamentably, perpetuates this general trend. as well as the one-sided lisbon strategy, the gothenburg strategy is also to be treated in isolation, with economic growth being treated as having higher priority than sustainable development in what is a completely backward-looking policy that represents the selling out of our living resources and amounts to writing off our rural areas, thus abandoning the interconnection of our economic, social and environmental goals. how does the commission justify using ear-marking within the structural funds as a means of taking money away from territorial cohesion and sustainable development for all regions and making policy only for prosperous cities and thriving economic hubs, while many european regions, the young people in the banlieues, and their counterparts in rural areas, are treated as less important? that will not do. sustainable development must be brought back to the heart of european politics. madam president, on behalf of the committee on the environment, i thank our commissioners for the work we do with them - often constructive, often with great thought, often with what i hope is constructive criticism. i say to the commissioners that we look forward to what they are going to be doing in the coming year, although perhaps i could start with what they are not going to be doing, because it would be helpful to hear from them again a new list of steps that they are not going to take. we have had the first tranche of that as part of the lisbon agenda. we would like to know a little more about where the commission is pulling back so that it can concentrate on the things that really matter. linked to that, in terms of better legislation, we look forward to the development of environmental and health impact assessments in such a way that they are seen to, and really do, contain an element of independent assessment. i would suggest that we need a panel of independent experts, not a new building or agency, but people on whom we can call to help to ensure that the impact assessments are effective. i believe we would also want to ensure that the agencies for which we are responsible are efficient and effective. there are some key ones in health, medicines and food safety which need sustaining. they are mostly new ones and doing good work. i would like to see prioritisation between agencies as well as good support for those that we cover. we would want to see proper enforcement as well. so perhaps the package is to do less than we have done in the past, but to do what we do even better. in our committee we look to the work in the health sector. we have seen that prosperity is not an alternative to wellbeing. healthy people and a healthy environment are prerequisites for healthy economic growth, competitiveness and jobs. we want to see more work to improve health promotion, collaboration between health services, not only on patient mobility, patient safety and the new areas of mental health, but also on continuing areas such as flu preparedness. the environment goes hand-in-hand with growth and jobs. eco-innovation is a major component in winning the fight against global warming. i certainly call on the commission to lead initiatives in the post-kyoto process outside the european union, developing the 'green diplomacy' concept. having recently been in gaza and seen the devastation to people in the hospitals there, we urge that, with the new opportunities coming from the appointment of the new prime minister of the palestinian authority, the european union should work closely with that authority and the israelis to stop what is happening in gaza and to promote real reconciliation and peace. (fr) the legislative programme before us today is just a quiet renewal of the programmes for previous years. even so, i find it quite remarkable that the commission has not said a single word on two major reforms on which it is currently working, namely the review of the financial perspective and the mid-term review of the common agricultural policy. these are politically very difficult issues, but we cannot just ignore them. the fact that the constitutional, budgetary and agricultural debates are all taking place in 2007 means that the institutions really need to prepare themselves. with regard to the reduction in administrative costs set out by the commission, the vision of european policy that underlies it is, in general, very simplistic and penny-pinching - it is a short-term vision from which our political priorities will suffer. instead, we should reconsider whether the resources, particularly in terms of staff, provided to the commission are adequate for the implementation of the policies we are seeking to promote. true, the solutions proposed by the commission in its citizens' agenda are based on the idea of a proactive political programme targeted at the needs and expectations of europeans. unfortunately, though, i cannot now find in this document any specific or new proposals for how to achieve the objectives of this programme. the same is true of the lisbon strategy, which we are told has been relaunched. i cannot share your optimism. finally, let us not forget that, every year, the overall budget allocated in fact contradicts the document that you are presenting to us today and distorts the political will demonstrated and voted on by our parliament. does this document today not ultimately come down to words and pious hopes? (fi) madam president, commissioner, our competitiveness and prosperity depend on our ability to develop sustainably. research and innovation are therefore essential. new energy efficiency technologies such as hydrogen, fusion, led light, and solar and wind power are important, for example. energy consumption in europe is growing, even though it should be falling. we cannot live like this. the high cost of energy hits the poorest. in my view, the commission should establish a social programme for the supply of energy for our poorest citizens. it is said that without solidarity there will be no union. i suggest introducing a barometer to gauge solidarity throughout the eu. in addition to the results of opinion polls and internal market infringement proceedings, eurostat and the commission should publish a wider comparative evaluation of the member states. we need to find out openly and simply and in comparative format to what extent countries are fulfilling their promises - in other words, how much solidarity there is between us. the schemers should be penalised. is the publication of a solidarity barometer appropriate and necessary? what does commission vice-president wallstrm think? it might at least help the public understand better what is going on. it is important that we get the framework programme on research and development through, and certain other programmes as well. (applause) (es) madam president, i wished to stress how strange it is that there are no concrete legislative proposals for a common policy such as the common fisheries policy. the fact that the commission's document takes a very horizontal view of the priorities cannot be used as an excuse for the lack of commitment to a policy which furthermore is at a crucial moment both internally and internationally. fishing management is going to be affected - it already is - by a whole series of measures, programmes and policies that respond to the union's very diverse commitments within the framework of the law of the sea, the johannesburg summit, sustainable development, environmental strategies, climate change and biodiversity, amongst other things. within this context, the commission's general attitude to the fisheries policy is marked by a surprising lack of legislative activity, a lack of political impulse and lack of ambitions and commitments in the face of these challenges. legislative activity in the field of fisheries is increasingly focussed on routine matters and minor day-to-day modifications, and on the rare occasion when the big outstanding issues are dealt with, they are dealt with by means of mere communications with no legislative weight, as in the case of discarded catches, or which come extremely late, as in the case of eco-labelling, or which are at risk of fading to nothing, like the proposal on the mediterranean. this gives the impression that, faced with the challenges i have mentioned, the fisheries policy has chosen to remain at the lowest possible level and allow itself to be led by the priorities of other policies, ignoring the fact that fisheries has a lot to say. madam president, in order to deal specifically with certain matters which remain outstanding and which are extremely urgent, we would call upon the commission to make immediate rigorous and coordinated legislative proposals on undeclared and unregulated illegal fishing. - internal affairs on behalf of the pse group. - (fr) madam president, up to now europe has stuck to developing measures to combat illegal immigration. it has tried to project the image of 'fortress europe'. the commission is going to make two decisive proposals with regard to the immigration of manual workers and of highly skilled workers. we are absolutely opposed to accepting undeclared, exploited workers. we therefore also need to provide legal immigration routes for people looking for work. the plan is for the european parliament simply to be consulted, but we would like to obtain commitments, so that we can be fully involved and our voice can be heard in the discussions on these two decisive directives. we also welcome your proposal to set minimum penalties for employers who exploit immigrants by forcing them to work illegally. my group recently went to the puglia region in italy, where hundreds of immigrants have been reduced to slavery on agricultural holdings. as we are all aware, this is not just an italian problem: the enslavement of thousands of people is a problem throughout the european union. we are therefore calling for common provisions to protect immigrants' rights in work, for uniform penalties for exploiting illegal labour and for support for employers who regularise the status of their workers. thank you. on behalf of the alde group. - madam president, two years ago the european parliament gave mr barroso's commission the green light, but only after he pledged to make fundamental rights a top priority. however, it seems that mr barroso - who unfortunately is no longer here - forgot his pledge the very next day, because fundamental rights have disappeared altogether from the strategic objectives. the work programme for 2007 lacks vision, ambition and courage in this respect, which is very cynical in the year of equal opportunities. better lawmaking is a good thing, but we actually need more action on fundamental rights, not less. parliament has repeatedly called for a horizontal directive banning all forms of discrimination. we called for urgent action against discrimination against homosexuals and against rampant homophobia. none of this is in the work programme. why are human rights not the centrepiece of the union's external policies? security is indeed a priority, but not the selling-out of democracy and civil liberties. measures are being taken in backroom deals that are not subject to parliamentary scrutiny or judicial review. they are neither proportionate nor effective, and citizens are increasingly defenceless against abuse and mistakes by the authorities. where are the commission proposals addressing this issue and aimed at resetting the balance? finally, on democracy and transparency, the commission floated proposals for a european pnr policy and positive profiling at an informal gathering of ministers, so how is it that these proposals do not feature in this official document? and why is the commission going along with the council in informal get-togethers on security policy, such as the ones on 16 august or with the us last week? i would very much like answers to those questions. on behalf of the verts/ale group. - (nl) madam president, my speech follows on seamlessly from what mrs in 't veld said. you may recall the exciting plenary debates that accompanied this commission's appointment. after all, in his speech, in which president barroso asked for the confidence of this parliament for his team, he referred to the much-debated nomination of mr buttiglione and he said - and i quote: 'however, one good thing will have come out of this unfortunate incident: it has highlighted the importance we attach to decisive political action by the european union in the fight against all forms of discrimination. for this commission, civil rights and an anti-discrimination approach will be top priorities.' (nl) a group of commissioners that would mount concerted action against discrimination was said to be on its way, and i should like to know how often this group meets, what is on their agenda and what has, in fact, been achieved so far. why have you not yet floated any proposals, as was suggested here a moment ago, to raise the scope of the directive for equal treatment irrespective of sexual orientation, religion or conviction, age or disability to the level of the race directive, since the latter does not only cover the labour market, but also the provision of goods and services? after all, could you, madam president, perhaps explain to me why, according to european guidelines, a black heterosexual man may not be discriminated against when he applies for a loan from a bank or when he rents a house, but a homosexual man, to all intents and purposes, can? on 16 january, commissioner frattini said that he wanted this straightened out, but that the commission would not propose it because it would not attain the required unanimity in the council of ministers. well, madam president, that is not leadership. will the commission in future only make proposals if the council is already in agreement? this is the wrong way round, in my opinion. moreover, we should capitalise on the increased openness displayed by the council of ministers. the member states should own up to the fact that they are opposed to equal treatment. let a cross-border, public debate take place on this subject, because i would be interested to see whether commissioner wallstrm would agree with me that only then would europe come nearer to the citizen. 2007 is the year of equal opportunities, and it appears to me that, as a result, we have no time to lose. since the commission has not yet done a great deal in this area, i wanted to make the life of the european commission a little easier. i have already put a proposal for a new directive on paper on your behalf. that way, there will be no more excuses. it is now up to mr frattini to translate commissioner barroso's fine words from october 2004 into action, and i will presently hand the proposal for a directive to the commission. on behalf of the gue/ngl group. - (it) madam president, ladies and gentlemen, i note that the commission's strategy has changed: before, we used to have such sound proposals, now, even these have disappeared. president barroso's speech leaves us very concerned. in fact, as regards the commission's priorities for action in 2007, we feel that there is a lack of drive by the commission to ensure that a practical common policy on immigration is launched. simply acknowledging that we need to marry security and solidarity does not strike me as a positive legislative principle for 2007. it seems a somewhat empty statement, void of real meaning, which does not contribute to building a genuine policy on legal immigration safeguarding economic immigration and abandoning the current prohibitionist approach that is leading more and more people to their deaths in the mediterranean or in the atlantic ocean, and is encouraging more and more migrants to arrive illegally on our territory and to remain here illegally. i believe that the commission should provide real drive, by proposing a policy on legal entry to our territory. in my opinion, it is not enough to state that security is a priority, although this may well be true: we also need to agree on what security means. i believe that europeans should be reassured of the fact that there will be no more illegal flights by the cia in europe, that european citizens and asylum seekers will no longer be kidnapped, and that the systematic checks on europeans will be dropped - i refer to swift, to pnr and to data retention. therefore, when discussing security, i believe that, first of all, europeans should be reassured that their rights are being protected. i do not think that the commission's efforts are heading in that direction. on behalf of the ind/dem group. - madam president, looking at the commission's programme for 2007, i am struck not just by the new areas in which the eu seeks to strip more power away from my country and from the ex-eu slaves and eunuchs who run it, but by the brief mention of the term 'constitutional treaty'. my submission is that the hidden agenda and programme for 2007 will include a resurrection of the constitution, that slain vampire, after a small blood transfusion. the nationals of those countries who rejected it will be told to vote again because they did not understand that it was compulsory. the commission hopes to obscure the principal issue, namely its quest for legal personality or eu sovereignty. yet every year the eu takes more of the powers of nationhood. i object to the concept that british nationals are assumed to be in favour of all this power theft, without being allowed to vote on the subject. i also note a proposal from the council to improve cooperation between eu police and security forces. this contains a proposal about sharing information at european level, including sharing with europol. this has been questioned and resisted before. it is an infringement of the rights of british nationals, some of whom already have an eu criminal record for plane-spotting. my countrymen want an honest answer to the question of what the eu thinks it is and what happened to the concept of trade. (nl) madam president, i should like to start by congratulating the commission on its intention to reduce the administrative burden by 25%. this is a very important objective, and i would advise you to be as practical as possible in pursuing it. in the netherlands, we have now managed to bring about a 25% reduction, but communication with businesses and citizens has resulted in continued complaints about far too much bureaucracy. the citizens and businesses did not feel much of the effects, because the reduction was mainly at macro level. at micro level, however, bureaucracy persists. i can think of a very simple way of solving this problem, for example, by raising the bottom threshold in public tenders. i live in a village of 25 000 people where a new swimming pool is being built that, in accordance with european rules, must be put out to tender, with all the red tape that this involves. is this really necessary, or could we not raise the lower limit a little so that it is only really important projects, where real international competition is needed, that fall under this rule? turning to impact assessment, we in the european parliament have repeatedly demanded this, and that it should be comprehensive, including fresh legislation, comitology that affects citizens and businesses, and soft law. after all, an increasing number of issues are being regulated using soft law, which may trigger an administrative burden of its own. secondly, we have repeatedly said that we would like the quality of this impact assessment to be subject to an independent review. so far, we have seen a great deal from the commission in this respect, but none of it was satisfactory. we want this independent review, since this can also generate more transparency. it is, of course, a step in the right direction that this should under mr barroso's presidency, be brought within the commission's remit, but, since there is no transparency within the commission, i fear that we will be waging a bureaucratic trench war between the office that falls within mr barroso remit and the commission offices that are required to draw up the impact assessment. (de) madam president, i have taken the liberty of carrying out a brief statistical analysis of the commission work and legislative programme, and have counted 57 non-legislative acts and only 37 of a legislative nature, so it would appear that the vast majority are non-legislative, and that strikes me as confirming a trend that has made itself clearly visible in recent times, that being that the commission is more inclined to take refuge in non-legislative acts such as green papers, white papers, communications, and so on, thereby in part circumventing its own legislature. it is clear to me that soft law instruments appear - at first sight, at any rate - to fit better into the 'better regulation' agenda, but it has to be said that such instruments are neither enforceable nor binding and will end up as sources of even more disappointment for the public and for businesses. i would like to highlight on the basis of my own working experience a number of things that i find lacking in the work and legislative programme, namely initiatives that the commission has promised in other contexts, but are not to be found here, such as the standardisation of the consumer protection acquis, the term of protection of copyright, further developments in patent law and the applicability of eu law in sport. the ecj has produced a new ruling that fundamentally changes the position in this area and makes for greater legal uncertainty in it. together with the first batch of initiatives to be withdrawn, the statute for mutual societies and the statute for a european law governing associations went back as well, and, in the debate at that time, vice-president verheugen promised us that this would be reviewed and consideration given to the possibility of improved initiatives in this area, but i cannot see them here; perhaps they are not regarded as having high priority. it is a matter of complete indifference to me whether they are or not; what matters to us is that we should know whether or not to expect their appearance. (de) madam president, there are two points in this work programme that i want to say something about; one has to do with basic freedoms and the other with civic participation in the european union. reference has frequently been made in this debate to the problem inherent in the lack of any preferences or priorities on the part of the commission in the field of basic freedoms and third pillar, a problem that we need, firstly, to address as a matter of urgency, before, secondly, establishing the cause of the lack of political will. reference has been made to the fact that mr barroso, at the beginning of this legislative period, set up a working party made up of commissioners and tasked with addressing the issue of basic freedoms. i find myself wondering what this working party has been up to over the last two years, since no report has been forthcoming. so have they been doing nothing? drinking coffee? in all seriousness, though, we must, if we are to take this subject seriously, know what is to be discussed in this context. what i find worthy of criticism about this work programme is the fact that - in parallel with the efforts by g6 states to do something about legal migration and by the few states gathered around the federal republic of germany that have launched the prm convention - parallel structures are developing into a third pillar outside the third pillar without the commission - whose role as guardian of treaties is about more than making laws - intervening or making any kind of forthright public comment. the fact is that, if we are to act on the judicial and police cooperation front, we have to do so within the framework set for us by the treaties. since my time is running out, i will conclude with a brief point, which is that, on page 10 of the programme on civic involvement is written, in english, the following - and i quote: 'this includes a commitment to listen and to deliver.' (de) we have done so. we have handed one million signatures to the commission and the council concerning the seat of parliament. two-and-a-half months on, we have yet to receive a reply. i believe that, as far as 'listen and deliver' is concerned, the ball is now in the commission's court. (el) madam president, one of the main measures for 2007 is border control. this will be achieved with the second generation schengen information system, the vis, the operation of frontex, broader use of biometric data and the creation of central databases. the pretext for all this is the security of citizens and the management of immigrants entering the union. in reality, however, a european fortress is being created, emphasis is being given to policies to stop immigrants, protection notwithstanding, and, at the same time, the creation of a police state is being served. as regards collaboration between the public and private sectors in the field of security, as proposed, the question which arises is who will exercise control of the honest function of private individuals and how. the possibility of intervention by private individuals - with interests often politically controlled - in the configuration and management of security policies is unsettling. furthermore, one of the commission proposals refers to combating terrorist propaganda and the question we are asking is where are the limits of freedom of opinion set and who will set them, politically and ideologically impartially, when today liberating movements are condemned and political parties are called terrorist organisations. madam president, i wish to begin by addressing the question of the internal market. i think i am out of sequence, because the internal market was discussed earlier by some of my colleagues. however, i want to welcome the review of the single market strategy on behalf of the members of our group. i am pleased we are now focusing on the name 'single market' because that describes much more accurately what we are working for. we will therefore give the commission a lot of support for that and indeed for other initiatives to make the single market work better. that leads me onto a broader concern i have on the work programme and the priorities as presented to us. it is a big improvement on the one we had last year, of which i was very critical and in which there was a very long list of unprioritised proposals. we still have a long list of proposals. i think there are 21 initiatives and, as my colleague, mr grosch, said, the difference between strategic initiatives and priorities is not entirely clear. i would again make the point that a list of priorities longer than five is not a list of priorities at all. however, i want to make the fundamental point that the issue of delivery, which i am pleased to say is included, is picturesquely described as 'delivery a daily task' as if it were a routine issue - we still have daily milk deliveries in england and i am pleased to say in pint bottles. however, it is not a routine issue but a fundamental one! i really want to know what resources the commission is putting behind the implementation of its policies. on the single market, we know that mr mccreevy estimates that 90% of the legislation is already in place. delivery is fundamental. where does it say what resources the commission is putting behind its initiatives? where does it say what resources the commission is putting behind a transposition plan for the services directive we will approve tomorrow, which is a fundamental piece of work? if the commission does not put the resources behind it, it will not be delivered. i should like to ask commissioner wallstrm, whom i understand is responsible for communication, for the next package to be grouped together. i do not want to see the single market policy scattered throughout this document: i want to see the priority for the single market set out with the actions next to it, the delivery resources next to that and the commission's simplification plan next to that, and i want all this to be lumped together with the percentage of resources the commission is putting behind it. that would be a logical and clear document and clear communication. finally, on the services directive, i am delighted mr schulz is here, because i note from a press release he issued today that the services directive is an enormous success for the socialist group. well, colleagues on this side of the house, it is an enormous success for this parliament and all of us working together. i hope people will have the humility to accept that. however, i notice that he has finally joined our liberal club because the release states that he supports the flexibility necessary to enterprise and the promise of new job creation. welcome to the market liberalisation club, mr schulz! (de) madam president, 2007 will certainly be an important year in terms of whether citizens are won over to europe or whether they continue to distance themselves from it. i should like to make three comments on this. the first is that the berlin declaration represents a good opportunity for us to demonstrate the idea of europe and the european project. i hope that this declaration concentrates on the future rather than focusing too much on the past. europe has its origins in the field of energy, and this same field may also present a vision for the future - if, for example, a large-scale energy project were proposed that met all the criteria we are aiming at. i am thinking here of the solar-hydrogen economy, which would be a real challenge for this continent and even for the international community. the second is that we need to make progress with the constitutional process. this is the responsibility of the presidencies, of course, but also of the other institutions. i hope that the commission does indeed provide input to show citizens what they stand to lose if the constitution is not ratified, and that it also makes proposals for overcoming the crisis. the june summit spoke of 'additional elements' that need to be developed, and i hope that 2007 sees the commission, too, proffering some thoughts about what that means in practice. the third, madam vice-president, concerns democratic infrastructures. we have european citizens' initiatives. one million signatures must not go to waste. i think that we need a framework for how the institution receives mass petitions such as this. these are important tasks for 2007. (pl) mr president, it was with real pleasure that i welcomed the points of the last two parts of the programme presented, that is to say the part containing strategic initiatives and priority strategies. it specifically addresses communication, and i would like to thank commissioner wallstrm for preparing this unusually important section, particularly in 2006, as 2007 is to be a crucial year. in 2007 internal reforms will have to be undertaken, and preparations made for constitutional reforms primarily geared towards the introduction of the european constitution. however, i fear that the commissioner was left without support here, and that the commission does not attach sufficient attention to this area, and is not giving her sufficient assistance in the preparations needed for reforms, even though they are her own. i would like to ask the commission what it has done to enable it to operate under new conditions in 2009, under a new treaty, and will there be a greater number of commissioners or not? the final matter i would like to raise are the internal affairs of europe, which should be a better and safer place for all of our citizens to live. this is the expectation of all citizens of the european union, but the citizens of the new member states are in a less favourable situation. they have fewer rights in many areas and are discriminated against in areas such as cross-border travel, where the sis and schengen are concerned, and i would like this element to be eliminated. if this fact were eliminated, we would no longer be discussing forced labour camps in europe. foreign affairs on behalf of the ppe-de group. - (nl) mr president, whilst i should like to thank the commission warmly for this communication, i have to start with somewhat more worrying observations. i deeply regret to have to say that a clear development standpoint is what is lacking in the commission communication. i should like to remind you of the three objectives of the european development policy, as described in the treaty, namely sustainable development, the fight against poverty and the gradual integration of the developing countries into the global economy. although these deserve a special mention in the communication, they are not there. in addition, i should like to appeal to the commission to tackle the problem of the relationship between other areas of policy and development policy more effectively. i am particularly thinking of the relationship with fisheries, trade and migration. this is an important criterion in order to be able to achieve our own development goals and also to make a meaningful contribution towards achieving the millennium development goals which we all agreed upon. finally, i am appealing to the commission to include in the list of priorities communications in the following areas: the latest with regard to the eu's contribution to the development goals; secondly, any headway made in european development policy with regard to the wto's development round, and thirdly, the implications of the commission proposal on more highly educated immigrants on the brain drain in developing countries. finally, particularly the absence of the millennium development goals and the fight against poverty are striking and disappointing in the paragraph that describes europe as a global partner. on behalf of the pse group. - (fr) mr president, i would first of all like to congratulate the commission on having attached a high priority to a communication policy and, in particular, on having already implemented it within parliament. i can say that, with regard to foreign affairs, we are now in constant, constructive contact with the commission. however, this just adds to the consternation with which we look at the commission's programme on foreign policy and human rights. in my view, communications in this regard have been elliptical, and almost subliminal. there has been radio silence on the mediterranean. so, what has happened to the spirit of barcelona and the concept of an alliance of civilisations? little or nothing has been said on policy towards africa, beyond the development policy, and you have been very tight-lipped regarding latin america, even at a time when the european parliament is involved in establishing eurolat. last but not least, there has been absolutely no reference to our human rights policy, even though it is our brand image for the outside world and even though we have just managed to obtain a specific instrument for it. in this regard, it is worth bearing in mind that the conclusion of the action programmes with israel, moldova and ukraine is going to result in difficult negotiations about which the communication has nothing to say. finally, foreign policy, as presented here, seems to be based more on the european union's bilateral relations with certain countries than on a regional policy or a policy of great communities. it is all rather lacking in ambition, attractiveness and life, and that is a great shame for the people of europe. on behalf of the alde group. - mr president, 2007 will be the key year for us all to find our own way to escape from the constitutional crisis and i am very pleased to hear from president barroso that he plans for the commission to play a central part in that exercise. the commission strategy for change across the policy spectrum must be framed inside a constitutional context. policy reform will be given practical effect by its connection with the issues of the eu's competences, the instruments, the powers and procedures. as far as external affairs are concerned, for example, the union needs its legal personality. public opinion supports the eu as a global actor. we need success on completing the doha round for trade and development. we should be stalwart in persevering with enlargement, despite the problems that we experience at present, some of which at least are clearly foreseen and foreseeable. the commission and parliament must be steadfast to support the deployment of so many european forces, not least at present in south lebanon, as this exercise surely provides the greatest test for the development of our common foreign security and defence policy. on behalf of the verts/ale group. - (de) mr president, ladies and gentlemen, as foreign and security policy coordinator for the group of the greens/european free alliance, i should like to make a number of critical remarks. a few points have been raised. mrs de keyser expressed exactly what i feel when she questioned where we stand. we can see the arc of crisis over iraq, iran, libya - the middle east. europe, a global player, makes professions yet comes up with a static work programme consisting of, on the one hand, a banal statement of the problems devoid of political substance and, on the other, instruments that - those of them that are actually new - the commission does not even acknowledge as a quantum leap. at this point i should like to express our disappointment that the five new external-policy instruments that are due to enter into force as of 1 january, and that will support the commission's external policy, civil conflict prevention, crisis management and reconstruction work for the first time, are not given due attention, but instead constitute just a single indent in the work programme. then there is the commission's concept of 'neighbourhood policy'. the commission must clarify in political terms what it means when people now talk of 'neighbourhood policy light'. a political definition is no longer being given for this. any old words are being used, and i have the impression that a political definition is virtually being avoided. i should like to finish with a positive comment. i welcome the fact that the commission is tackling the defence-equipment market at long last; it is just that what the programme has to say about this it has been saying for years. parliament has given the green light, and awaits results at long last. consequently, i am afraid we are not satisfied in this regard. on behalf of the uen group. - (pl) mr president, the european union has done much to raise its visibility in the world arena in recent years. in order to enable this process of emancipation to develop, we have to face up to significant problems. since the enlargement of 2004 we are neighbours with a very troubled part of europe to the east, where in recent years we have seen russia return to a policy of coercion in respect of its neighbours, countries which today are also neighbours of the european union. often these countries - such as georgia and ukraine - are included in our neighbourhood policy, which the commission rightly believes should be strengthened. however, a successful reform of financial aid instruments is not everything. in order to play an important role in the world, particularly when we think of the european union as a 'soft power', takes credibility. this credibility is a vital test, and we cannot be a global or even regional player if we do not protect belarus from annexation by russia, something which may only be a matter of months away. we will not become a global player if we trade human rights in russia for gas, or if we close the door to the pro-european, democratic and pro-western policies of ukraine and georgia in a cowardly way. these are key objectives for our instruments in external policy. if we do not succeed in using them successfully, the world will see a growing gap between our often moralising declarations and the reality. the world does not need such a european union, and the world would certainly have little respect for such a european union. mr president, how is 2006 ending? what is our foreign policy? we saw it in finland the other day. we are cursing russia and caressing turkey. that is the reality. we are cursing russia, with whom we have an energy-dependent relationship, and we are caressing turkey, which says provocatively, 'i am turkey and can impose whatever i choose on europe'. as you see, it is insisting that we talk with it at a time when it does not accept the 25th member state of the european union, cyprus. that is our policy. we do not see what is happening in gaza. when, at long last, will the european union see what is happening in this area of the world, where children are being killed every day? there have been about 500 000 deaths in iraq. when will we take an initiative at long last? when there have been a billion deaths? so what is europe? europe is on the american car carrier which drives us wherever it wants. fine, we have handed them the steering wheel, but let us at least take over the brakes, so that we count for something. otherwise we are no more than servants of the foreign policy of america, which drives us where it wants, when it wants. what are our relations with china? do we know? are they hostile? are they friendly? how do we address this factor? a sino-russian axis is developing. what will we be? the ham, the salami in the sandwich which the united states of america wants to fix? let us decide on a foreign policy of our own. let us draw up our own policy. we cannot see it anywhere. we cannot see europe's policy anywhere. we follow america's policy and i do not think that it leads in the right direction, to proper democratic developments. (applause) mr president, as coordinator for the ppe-de group i would like to stress the following points. we realise the importance of the external competitiveness aspects of the lisbon agenda and the coordination of internal and external actions, and we reiterate our commitment to the multilateral approach in trade policy and support for the wto as the principal forum for the management of globalisation. we therefore deplore the suspension of the wto negotiations and strongly urge the commission to come forward and fight for a settlement on the doha round in 2007. we welcome the eu communication on global europe competing in the world. we stress, however, that bilateral regional agreements should remain supplementary, as i said, to the multilateral trade system. but here i have real concerns, and i would like to question the commission on this particular point. why have we not made progress with the usa on regulatory issues between the eu and the us by completing the transatlantic single market? we must make a commitment to that over the next decade. we cannot have a free-trade agreement with the us; that would undermine multilateralism. but we can have an agreement on regulatory issues which are outside article 34. finally, something that is particularly close to my own heart: there is grave concern over the growing feeling of protectionism and trying to set goals that are outside the lisbon agenda. member states are increasingly using protectionist methods. if we are going to have a settlement, we have to move away from that. finally, i have serious concerns about epas and economic partnership negotiations, and i support the commission in its proposal. we must go ahead with it and push it forward. it is a real chance, probably the last chance we are going to have, to do something to help those poor countries. if we can get an agreement on that, it will be a great thing. i look forward to that in the coming year. (nl) mr president, many citizens are sceptical about present-day europe, and its mission is ambiguous. too much money is being spent on the old priorities, such as agriculture, while the new priorities, the europe of the future, such as education, migration policy and fair trade, are being neglected. europe must be social not only inwardly, but a social europe is needed outwardly too. just like soft power, a cohesive, united europe can make the difference in the world. we do not need unilateral actions like the invasion in iraq, but active commitment in darfur with the help of the security council. no relapse to bilateral trade agreements, but a multilateral trade agreement in the world trade organisation that respects national public services such as water, education, social security or public housing. no export subsidies that bring about unfair competition for africa. these hugely distorting agricultural subsidies and dumping must cease before 2013. the funds that are freed up as a result can be used for the development of regional agricultural markets in africa. we must also open our markets for products with value added from those poor countries. aid and trade, you are arguing in favour of sound initiatives for more coherence and coordination. in the areas of migration, agriculture and trade, massive inconsistencies continue to exist. these inconsistencies could seriously hamper the conclusion of the regional trade agreements that are currently being discussed. on the subject of migration, you emphasised the suppression of the problem, but an effective solution to prevent the brain drain is absent. why not go for a green card initiative? finally, you have accepted the development co-operation instrument (dci), but no attempt is being made to streamline the cotonou agreement in the same way. also, there is no energy or time for the real implementation in 2007. for national policy documents, this involves consultation over there and over here. it means working with public documents. it means creating real ownership in the developing countries with the local ngos, the parliaments and governments. just as the dci is deployed, our parliament here must be given real influence and control in the same manner. 2007 will be the year of truth for the commission. will unilateral market thinking at european global level persist or will fair competition and solidarity prevail, and will we europeans prove to africa that the millennium objectives are achievable after all? africa is going downhill. 2007 should be the year of the u-turn. - closure of debate vice-president of the commission. mr president, first of all my warm thanks, on behalf of the whole commission, for all your important and constructive contributions to the debate on next year's work programme, which i have been listening to since 3 o'clock. my first comment will be a political one and then i would like to say something about the process. but what i have heard is really a common call for sustainable development, meaning that a majority of you have mentioned the need to create jobs and growth. this is the start of the debate, but we have to respect the most important resource we have, people, and make sure that we have a social security and social protection system that reaches out effectively to all citizens. it has to be sustainable growth, which means we have to take account of natural resources, energy issues and environmental constraints. that is exactly what sustainable development is all about, making sure that we do it the european way, ensuring that all these three elements are covered by an ambitious policy for jobs and growth in europe. i have heard these calls for quality jobs and investment in education and innovation, research and development. as you know, this has been part of our political agenda from the first day of the barroso commission. we propose to respond to this, because it is totally in line with this commission's political ambitions, and we propose reforms in this work programme. we propose social cohesion and i think it is important to mention in that context, since there was also a debate about regional policy, that we now have in place all we need - budgets, regulations, etc. - for a regional policy for 2007 to 2013, and that we are negotiating right now with member states on the programmes. we hope for close cooperation with parliament on implementation. the urban dimension is taken very seriously by the commission. the earmarking takes account of the needs of both more and less advanced regions in europe, because there have been references to unfair cohesion policy and we say that all three dimensions of cohesion must be taken seriously. this is also reflected in the new regulations, where partnership is in principle obligatory and 82% of the structural funds goes to poorer regions. investment in people is one of the three objectives of the cohesion policy and i think that point should come out in the debate. we are also proposing security measures. security includes making sure we can live free from terrorist threats and crime and from environmental pollution. we say we need to approach this with a lot of optimism and in partnership with all the stakeholders involved, but engaging with member states. this has to do with the issue of soft law. many of you have mentioned soft law, compared with other measures and legislative acts. it is important to mention that this commission work programme for 2007 contains 34 legislative proposals, representing 36% of the total, 57 non-legislative proposals and one negotiating mandate. that is more than last year's 24 legislative proposals, 57 non-legislative proposals and five negotiating mandates. this figure shows that the proportion of legislative initiatives has increased from 27 to 36%. at the same time, the proportion of non-legislative proposals has slightly decreased. with a more diverse europe, we also have to invest more in working with member states to ensure that we prepare for good and better regulation and legislation that will be implemented. therefore we need better consultation and better-prepared proposals in order to see better results, and that also applies to working methods. mr harbour asked about resources. in some cases, perhaps the commission should ask the european parliament to give us the resources we need. as you know, at the moment we are discussing how we can have enough resources to do everything parliament has put on its wish-list. i have heard so many proposals for things that ought to be added to the list and things that you have missed - initiatives or legislative proposals - that should be on this list: energy initiatives, migration initiatives, the single market review, the social reality stocktaking, the emissions trading scheme, a european strategy for social services, a community framework for efficient health services, etc. these 21 strategic objectives cover exactly the three pillars of sustainable development. if we are to add more of these initiatives or more work, we also need the resources and we cannot pretend otherwise. we are concerned about the budget for the commission. we have to explain to our auditors, the european parliament and the other institutions, how we use our money. however, we can discuss the structure until the cows come home, but in the end we have to choose and we have chosen to make this a more political document and explain the priorities of the barroso commission. the different structure you propose makes a lot of sense, but i think this is the way to ensure we can have a real political debate about priorities. that has been our wish from the beginning, in engaging with the european parliament to discuss the work programme. this reflects the kind of dialogue we have had with the european parliament for a long time, with contributions from all the individual committees. i think i am speaking on behalf of all my colleagues when i say that we have welcomed this and have enjoyed that debate and interaction with the european parliament. i would also like to say that when several of you ask for things that you feel are missing, that is in a way the tip of the iceberg. so much is being done all the time in the commission and our departments. here you find the strategic objectives, the strategic initiatives, that we say we will give priority to. at the same time there are a number of things in the pipeline. you are right on that point, mr harbour: you have to decide to give priority to a number of them. you will also find a list of communication priorities. that is in response to some of the very important remarks on human rights and anti-discrimination. as you know, next year will be the year of equal opportunities. that is one of our communication priorities, on which we will definitely engage with the other institutions. whether or not there should be a directive will be debated constantly with the european parliament, but we can only present directives when we are ready and the circumstances are right. that will be debated later with the different committees. anti-discrimination and human rights are part of everything we do and clearly a political priority in all our activities. we welcome your contributions. i find in your comments support for the high ambitions that the commission has for 2007 and i also welcome your firm support to work together to achieve them. we are also committed to listening to citizens and to delivery, to becoming more accountable, transparent and effective. we thank you for your support in pursuing and strengthening our efforts towards better communication. now the commission will study the content of the resolution you will be adopting in december. the commission will respond in the most appropriate and timely manner. the presentation of the annual policy strategy for 2008 could be the moment when the commission explains how it intends to take account of the resolution on the work programme. i should like to reiterate that the commission attaches the greatest importance to our framework agreement. it has proved a solid basis for productive working relations between our two institutions. it should remain our common objective to make the best use of it. mr duff, we meet regularly in discussions about the constitutional treaty and, as you already heard from president barroso, we have great hopes also for next year. we shall now start preparing to move the institutional issues and hopefully the constitutional treaty forward next year. we will have to work with member states and engage in a dialogue with them as to how we can do this in a balanced and effective manner. but it is clear that the problems addressed by the constitution have not gone away. they are there and accentuated by next year's enlargement. that is why we have to come back to the issue. we have to engage in a debate. however, it has not been a detour to say that we also have to have a period of reflection and that we have to engage with citizens. that has given us a lot in return. it has been necessary, because we can see a change of debate and atmosphere in many member states. it is important to know that we can mobilise that support in trying to find a solution to the constitutional issue. the debate is closed. the vote will take place during the december part-session. (the sitting was suspended at 6.10 p.m. and resumed at 6.30 p.m.)

the next item is the commission statement on employment prospects in the eu automobile sector. . mr president, honourable members, ladies and gentlemen, the ever-increasing speed at which technology advances and the increasing pressure of competition on global markets are compelling car manufacturers to adapt their production methods and also their business structures to changed conditions. it is important, in this context, that firms should learn how, at an early stage, to recognise what measures and investments are needed to secure the continuity of their economic activity, and to actually put that knowledge into practice. restructuring, though, is often synonymous with job cuts, and frequently associated with dire consequences for the social fabric, especially in regions that have little or no potential for job creation. this is especially true of the motor vehicle industry, in which changes in production processes and the opening up of new markets have significant effects on employment. the commission is very well aware of how difficult this balance is and of how much citizens and workers need a minimum level of security in these difficult times. we are persuaded that dialogue at every level, founded on comprehensive and transparent information, is of the essence if they are to adapt successfully to change. the commission has invariably acted in accordance with certain principles, which it has repeatedly emphasised. the first is that decisions on restructuring are and shall remain the prerogative and task of management. what this means is that enterprises, when planning courses of action with potentially significant social implications, are meant to actively seek out a solution that is as compatible as possible and does the least damage. secondly, when redundancies cannot be avoided, everything possible must be done to enhance the employability of those affected. this will require foresight, and these procedures must be prepared in good time and managed in an appropriate way. thirdly, if an employer neglects to fully and effectively inform and consult employee representatives in good time before publicly announcing such steps, then that can in no way be justified. employee participation is, in every case, and especially when an enterprise is restructured, not merely a fundamental right, but also a necessary precondition if such measures are to be regarded as socially acceptable. at european level, we have laid down minimum rules with which all member states and all enterprises must comply in the event of large-scale job reductions or other measures potentially affecting workers. the directives on collective redundancies, the transfer of undertakings, and european works councils constitute our legal framework for protecting workers' rights and for guaranteeing fair standards for information and consultation at national and supranational level. most recently, we have also enacted the information and consultation directive. all these measures enable us to help europe's workers successfully rise to the challenges of change, by making it possible for their employability and adaptability to be developed at an early stage. the development of effective procedures for information and consultation will also be among the main elements needing to be discussed by the social partners in europe when the commission begins revision of the european works councils directive. what is even more important is that the commission very much hopes that europe's social partners will find a way to devise proven restructuring procedures throughout the eu, as they decided to do when they responded so positively in last year's consultation on this issue. these tried and tested procedures will make for further advances in the information and consultation of workers, including, among other things, the anticipation of market trends or technological developments, as well as long-term investment in people and the encouragement of employability by the use of education and training, careers advice, alternatives to closure and redundancies, and, wherever this is possible, the redeployment within the enterprise of workers affected by restructuring measures. it is to be hoped that these procedures will help the ford workers, too, to deal with their present difficulties. more knowledge about the future prospects of the motor vehicle industry ought to benefit all interested parties. the commission is currently examining developments in this sector in order to identify the elements required for restructuring and the long-term competitiveness of industry in the eu. it is planning to make the results of its analysis available in about a year's time. it is the most recent restructuring operations that are our immediate concern today, and i need to make it clear to you right at the outset that i share your deep regret and grave concern at the potential social consequences, for the persons concerned, of the decisions to close down plant and cut back jobs. i hope that every effort will be made, by means of a dialogue between the parties concerned, to avoid, or at least to alleviate, them. - commissioner, the tragedy caused by the drastic streamlining measures at ford genk has exposed a number of painful areas in the european car industry. there is the slump in sales, 5% since 1999 to be precise, the environmental burden against which europe may have taken various, but insufficient, measures, as well as the powerlessness of the member states to have any impact whatsoever on international company strategies. this is why i urgently call for a european initiative to support the further development of the industry within the context of a policy, instead of waiting passively for yet another reorganisation. this european initiative should consist of a number of elements; first of all, the further development of a concept for a sustainable car. whoever is the first to introduce this onto the market and is most advanced in this respect will achieve the highest sales figures. if china and india switch over to generalised car traffic, the environmental burden will become untenable. secondly, new technological developments need support and staff. europe must take on the competition with quality and added value as its main assets, rather than cost control. for the latter is beyond our powers! for this to happen, it will have to anticipate the ever-growing component of electronics in the added value of a car. thirdly, large-scale reorganisations have a social dimension. by 2006, the next programme of structural funds must be approved. i hope that the commission, during the revision of the european structural funds, particularly in the light of limburg, will inject more resources into providing support during far-reaching industrial transformations. following that, there is something to which you have already alluded, namely the issue of the renault directive. it must be evaluated as an absolute measure. people on the ground tell me that the procedure established would lead to the mechanical application of the directive. employers are so frightened of making a procedural mistake that consultation is actually prevented from the word go. we should therefore evaluate this directive as an absolute priority. these are only a few initiatives; there are still many more around which europe could work. finally, it is not all doom and gloom in belgium's car industry: volvo, opel and volkswagen are continuing to invest and ford has decided to further develop the new mondeo in genk. in principle, we should not fear the relocation of the european, and hence the belgian, car industry. after all, the products involved are highly technological with an ever increasing knowledge component, the end production of which will take place ever more closely to the market. commissioner, i truly hope that it will be possible to develop a policy for industries for the future. mr president, ladies and gentlemen, the commission has just described the ways in which industry, especially the motor industry, must constantly be modernising its plant. we know that there is no getting away from this and that every investment in technology results in the loss of between 9% and 25% of jobs. we must indeed find the means to counteract this loss of jobs, which occurs as a result of technology. i was interested to hear the commission's statements to the effect that we had minimum rules for workers' rights. such a statement is, of course, no use whatever to the workers in genk. i hope, though, that the commission will remember this statement when it amends the european works councils directive, as it is shortly to do, and will at last take account of something that has, in some places, become common practice, that is, making the european works council responsible when european mainstream issues are under discussion in a firm, and will also extend the rights of information and consultation in such a way that rights of participation - and i am not talking about consultation, but about participation - are built in. thirdly, it is essential that the commission should learn how, in the social dialogue, to make it clear to the social partners that they have to expect penalties for failing to abide by these agreed ground rules, or else such rules will become a joke. - in the automobile industry, a number of painful decisions have been taken recently, and one of those has resulted in very painful consequences for thousands of people in the region where i was elected. they have resulted in nothing short of tragedies, both on a personal level and for the region. this has forced us to examine not only the role of the automobile industry, but also the role of industry as a whole. i agree with the commissioner when he states that a company must be able to reach its decisions independently, but i think that companies should also deliver on their promises. if they claim at some stage that investments will be made, then they cannot simply delay these investments, because that is very detrimental to both their workers and the authorities of the region where they are active. companies require from the government a stable business climate. i think that we can also ask companies to aim for the highest possible level of stability and transparency: why do they take certain measures and why do they take them at a certain location and not at others? the implications for a region can be very serious indeed and, as mrs smet mentioned a moment ago, i think that when we revisit the structural funds, we should, for example, also look at what we can do for the limburg region. this is, after all, a very badly hit region, which, in fact, also has a very painful history on that score. we could list a whole host of things. in any case, people say that in the next couple of years, there will be further cutbacks in employment in industry. i think that if you, commissioner, were to examine the state of the automobile industry, this might be a little late, and if you were to focus on the automobile industry alone, that this might be a little restricted, that you should take a much broader view. it is often said that we are heading towards a service economy, but i take the view that a service economy without an industrial basis is a very precarious matter, because products and marketing go hand in hand, and the same applies to services. should we not, therefore, closely examine the developments within the industrial market and the link with the service industry as a matter of urgency? in that way, the european union does not lose its industry and can match it with a very strong and better manned service industry. in the european union, we have previous experience of a situation in which an industry saw its employment dwindle, namely in agriculture, an example with which you, commissioner, are very familiar. despite all the measures that we took in that sector - democratic staffing, subsidies, and so on - we have not been able to prevent employment from going down. let us therefore take a more sensible and global approach this time round than we did then with regard to agriculture. mr president, commissioner, ladies and gentlemen, the collective redundancies at genk announced by ford are not the first of their kind and no doubt they will not be the last. they simply reflect, i believe, the current business philosophy of global enterprises. collective redundancies are almost invariably a means of compensating for the reduction of profits as a result of diminished demand, a purely managerial and, i might add, unimaginative approach which the economic order must, as a matter of policy, counteract if increased demand is to be ensured. looking at current policy, one can see that the cutbacks that are made in all areas of society do not stoke up demand, but, on the contrary, stifle it still further. one particular demonstration of the truth that management can secure employment strategies by means other than collective redundancies is to be found in the motor industry, in the works contracts at vw or, most recently, at opel, which reduce working time to thirty hours and thus share out the work among more people. if current reports in the media are to be believed, though, it is evident that other, politically motivated considerations are involved in what is going on in genk. according to these reports, at any rate, ford is concentrating collective redundancies on locations - of which genk is one and cologne another - in those countries that did not acquiesce in us policy in the war on iraq. the reason why the debate in this house today is so important is that the planned redundancies are not in line with parliament's resolution on the social consequences of industrial conversion - not in the way they have been thought out and not in the manner in which they are being put into effect. let the commission re-examine how the rules have been complied with. redundancies on this scale are anything other than a milestone on the way to fulfilling the lisbon agenda and result in devastating upheavals in the regions concerned. if we really want not only to become the strongest region in economic terms by 2012, but also, as was stated at lisbon, to create full employment, then the commission, too, has to go about things in an entirely different way. - it is true that the automobile industry is in crisis, but there will always be a need for individual transport. the set-up may be different in future: there is a market for more environmentally-friendly cars and there will be a market for hydrogen-powered cars, so there is a new market that can certainly be opened up, and this industry certainly has a future. in times of crisis, we need to handle these crisis situations intelligently, which we have not done in the past. in belgium, we had the tragic case of renault, the closure of the factory in vilvoorde, now ford genk, and there are also other cases. however, there are also examples of a better approach: at opel in germany, for example, people have opted for a shorter working week of thirty hours. this is a method that we europeans should defend and spread as an example for other factories. i think that this could also be a possible solution for a case like genk. - a few years ago, the ceo at renault, mr louis schweizer, who had, incidentally, been the principal private secretary in the cabinet of france's socialist prime minister in a previous life, decided, in the interest of his shareholders, to close down the renault factory in vilvoorde and make a few thousand flemish workers redundant in the process. today, with the drastic streamlining measures at the ford genk factories, flanders is yet again facing a tragedy in the car-manufacturing sector. although i hope that mrs smet's optimism will prove to be justified, many people fear that the dismissal of 3 000 workers in genk is simply heralding the factory's final closure and relocation. you sometimes hear fatalists claim that, due to increasing globalisation, nobody can prevent these relocations, but we should still maintain that the belgian government has a massive responsibility in this area. commissioner, the truth is that the belgian government has known since january 2002 that the genk car manufacturer was in serious trouble. after all, different media, including the weekly magazine , have also reminded us that flemish managers warned the belgian government that belgium, and thus flemish industry - which is already being weighed down by excessive labour costs - has been placed in a bad light in the united states. many people in flanders suspect that the ill-considered action by, , the belgian foreign affairs minister, may have played a part in the decision of the ford management to streamline the genk assembly works. if europe wants to avoid tragedies of the kind that have unfolded in vilvoorde and ford genk in future, far-reaching measures will need to be taken across all eu member states in order to guarantee to industry, too, the , community preference, which has, quite rightly, been applied in agriculture for decades. if they are not, a region like flanders should be able to outline socio-economic policy of its own. mr president, firstly, may i say to many colleagues here who are directly affected in the limburg region, that i represent a region in the united kingdom, the west midlands, which has probably been more affected by structural change in the automotive industry than any other region in europe. i want to say to colleagues from limburg that we have had that experience and we now have a thriving automotive industry in the united kingdom; we have more international car manufacturers assembling cars in the united kingdom than any other country in the european union. if colleagues from limburg would like to come and talk to me about our experience in the west midlands, we can show you the programmes we have put in place, not just to retrain and redeploy people, but also to help those smaller companies in the supply chain affected by changes in production. so please colleagues, do not be overly depressed about it, there are ways forward. it is important that we are having our debate today in the context of the future of the automotive industry because the issues surrounding the decision that ford was forced to make at genk go to the heart of our thinking on how we need to secure a long-term sustainable future for automotive manufacture in europe, the technology and the jobs that go with it, and i and many colleagues here have a huge interest in that. we know that the car companies will continue to make and must make huge investments in the next generation of lighter and more fuel-efficient cars that we want, and our colleague from the green party made that point earlier; but those investments will come from profits - there is not going to be any state subsidy for those - and what we want are profitable car companies. i want to give you an important figure which relates to the genk issue. 70% of the world's car industry's profits are generated in the united states market because that is where they sell larger cars. the reason for the lay-offs at genk is because demand for one of ford's largest models has fallen off dramatically. ford has announced that it is going to make the next generation ford mondeo at genk and our job is to ensure that we have a demand for that car. my conclusion for you, commissioner, is that we want joined-up policy. if your colleagues in dg environment continue to press the industry to make smaller, lighter cars without any commercial regard for what is going on, then we will be back here again. if we have joined-up policy-making, however, we will have a long-term, sustainable future for automotive manufacture in europe. - commissioner, ladies and gentlemen, in the context of this debate, i should like to ask you two urgent questions in connection with the reorganisation at ford and, more specifically, the collective dismissal of about 3 000 workers in genk. i do not think that i have to convince anyone of the fact that this is a real tragedy, not only for the people at ford genk, but also for the suppliers and for the region as a whole. however, commissioner, the way in which this reorganisation is being managed is shocking, and in my view, contravenes european rules. the fact is that ford has been in breach of contract on two occasions, the first time by failing to comply with the collective labour agreements that were concluded with the workers in 2002, and in which investments were planned. the second case, commissioner, is, however, for europe to deal with, as it has to do with a failure to consult the european works council in this matter. the reorganisation at ford is clearly a european matter, because the cancellation of investments at ford genk has repercussions for two other establishments in germany. moreover, jobs have also been scrapped in cologne and the jaguar factory in barnsley is being closed down. this clearly illustrates, therefore, that this reorganisation is a european matter that should be dealt with by the european works council. however, as it happens, commissioner, the works council was not consulted in this matter. ford is deliberately entering into negotiations on a company-by-company basis. this, in my view, clearly contravenes legislation concerning the european works council for which we voted here in 1994. after all, no attempt whatsoever is currently being made to find a solution for this reorganisation at european level. as my fellow meps have already pointed out, this could have yielded alternative solutions, for example, by spreading the work among various people in, for example, the framework of a shorter working week. my first question to the commission is whether it intends, on the basis of european legislation on european works councils, to require that the ford management start negotiations within a european framework at this stage. a second question on this subject, commissioner, concerns the following. the regulation concerning ford's european works council is apparently based on the notorious article 13, the so-called voluntary agreements, to which the directive and annex with minimum provisions do not apply. would this not yet again constitute a reason for the commission to impose these famous minimum rules on all agreements concerning european works councils? mr president, all those who are not resigned to the absolute domination of unrestrained capitalism are disgusted by the successive crises in our industries and, in particular, by that in the automobile sector. in my country, catalonia, this sector saw 31 so-called social plans - , in catalan - in 2001-2002, as a result of which 5 200 employees were made redundant. the closures of companies manufacturing automobile components, such as lear and valeo which have shut up shop, are deeply shocking for my fellow countrymen. one does not have to be an expert to understand that competition with eastern european countries is now unviable. automobile companies, and others, are relocating because, over there, the costs of skilled labour are much lower than ours and, in this area, our companies cannot compete. if, some day, these countries succeed in genuinely converging with our own, companies will relocate still further to the east, outside the eu, following the cold logic of the market economy. we are told that, in order to avoid such evils, greater flexibility in the employment market is required. greater flexibility means fewer guarantees for workers and, hence, less social cohesion. for all those who believe in the european social model, that is unacceptable. mr president, the theory that made its choices about restructuring according to political criteria seems to me to be very tenuous. italy is a country that is home to a large automobile manufacturer, which is italian and which has restructuring policies that it implements, of necessity, in italy. the issue is, as has been said, that the automobile market is a mature market; automobile production has shifted, little by little, to many countries, in particular countries in the far east, and there are probably lots of members who have bought korean, japanese or even indian cars. the issue is that firms need to be restructured because the market changes and greater competitiveness is needed in the sector. i do not think that it will help us to discuss the choices made by individual firms; in my view, these choices should be left to the firms themselves, for the sake of competitiveness of the system and long-term employment: there is no point thinking that you can sustain employment today when there is a risk of losing it tomorrow. what can be done is to guarantee a great deal more than the institutions do today; a lot more than the european commission - which currently assigns its budget to agriculture and declining sectors and not into innovative sectors - has done to date; to insist on the quality of the workforce in general, on training and on technological innovation. we need employment and we cannot expect it to come from declining sectors that need to be restructured. we must create the conditions for the workforce to be in the sectors of the future and not those of the past. the commission does not allocate funds; the commission follows what the governments decide regarding agriculture and other sectors. - in this debate, a great number of references have been made to agreements between renault and ford, but i do not think that these agreements actually exist. for what was the case at renault? it is true that the provisions with regard to the european and national works councils were completely ignored. that was the big problem. it was, above all, an issue between the workers and the company. here, we have, in fact, another problem. there is, of course, also a problem between the belgian government and the company. that is the crux of the problem and, in my view, there are two or three reasons for this. the first reason is, i fear, the very complex system of belgian social security. it is simply the case in belgium that, relatively speaking, the whole surreal business is funded by social security to a far greater extent than in other countries, but that, of course, leads to a bad competitive position compared to those other countries. it is not, however, for ford to solve this; it is a task for the belgian government. the second reason, of course, why matters have been brought to a head, is that it has taken far too long to comply with ford's requests to do something about the shift bonus. then it suddenly transpired that the german companies were more competitive, although wages there are higher than in belgium. who then is to blame, is it the workers? no, it is the belgian government. the belgian government should take responsibility for this and should prevent this from happening again. this, i believe, is the main conclusion that we can draw from this. if there are problems with legislation, it is fortunate that there is a directive, so they should refer to it and start legal proceedings. in the case of renault, it has transpired that this can have a positive outcome. that is the method, but we must in this matter look for a solution that is different from that in the case of renault. mr president, although i am of course unable to make any statement about the state of affairs at ford in genk in the brief speaking time available to me, but i would like to make it perfectly clear that there has been no breach of the european works councils directive. the european works council has been notified, and there has been a breach of belgian law on collective labour agreements. as regards the european works councils directive, i can explain it to anyone, as i was its originator. i was myself chairman of the works council of ford europe for six years. i would recommend waiting to see what comes out of the discussions between the trade unions and the european works council, as i am sure that ford genk will get compensation for what it was promised in the collective labour agreement. there is no wages bargaining in the european works council; that is a matter for the parties to the collective labour agreement and not for the european works councils. - mr president, whether or not this or that piece of legislation has been breached, i think it is appropriate to express our solidarity with the people who are being hit by ford's decisions, first of all, of course, the workers of ford genk, but also the people who work in the supplying companies and in other companies that have been affected. the commission has told this house that it will carry out a study into the future of the sector. even though, of course, studies have already been carried out and their results have been made available, i am surprised that the commission has announced that it still intends to go ahead with this. in belgium, however, there are economists who claim that employment in the western european car assembly sector is set to halve within the foreseeable future, because the potential market is unable to follow increased productivity. similar predictions are being made for other sectors in industry. assuming that the commission has collated some research material of its own, i should like to ask it whether it shares these gloomy expectations. i hope that they are a little less gloomy, but industry is in any case facing a few changes. i should like to ask the commissioner whether it is not necessary after all for the government to provide some support while industry is going through this transition. the social partners should definitely be involved as well. in my view, however, the government has a role to play here, as do the european authorities, which certainly have a coordinating task. i have another two specific questions. reference has been made to the structural funds, and to the fact that they will be subject to a review in 2006. the current programming periods are still running. i have asked the commission what scope the structural funds could offer limburg at this stage. i was told that there is still a percentage of 4% in reserve that can be tapped into at any time. my question is whether, further to the problems at ford genk, the flemish government has asked the commission to tap into those 4% or whether it has been silent on that score. finally, i should like to say the following. this issue has naturally been discussed in the belgian parliament, and the finance minister has stated there that he would contact the european authorities to see whether it would be possible to join forces again with 'conversion partnerships'. these are partnerships that receive certain fiscal benefits during a certain period of time. on that front too, i should like to find out from the commission whether or not the belgian government has been in touch to date. mr president, i would like to make a personal statement, given your extremely polite reference. i assure you that the comment on institutional responsibilities as regards the budget of the european institutions did not pass me by. i was referring to the budget - and also to the commission, but not just to the commission - however, the objective is to reformulate the european budget. i was absolutely certain that you were perfectly aware of the functioning of the institutions. i was giving the information to our visitors, to our guests, not to you, mr della vedova. . mr president, honourable members, ladies and gentlemen, i have closely followed this debate, in which a range of issues have been raised and ideas have been put forward. i will pass them all on to the commissioner responsible so that they may be carefully examined. i mentioned most of the points that have been made in my opening remarks, and i do not therefore wish to repeat them. there seems to be general consensus as to how to deal with the crises resulting from the need to adapt and from industrial change and restructuring. let me reiterate one thing, and do so clearly. effective, timely and comprehensive information for, and consultation with, workers' representatives constitutes a key element in our response to situations such as these. another important element in this context will be following up the ongoing consultation with the social partners on the restructuring of enterprises. i am sure that you all understand how necessary it is to identify good practice for this, at european level, and, where necessary, to develop it further. further to mrs van lancker's and mr kuckelkorn's discussion, i would like to point out that the commission has not, to date, received any complaint from the responsible workers' representatives in relation to this matter. moreover, if the directive in question has indeed been breached, then that is a case for the belgian courts; it is they who must then consider the issue. as i have already announced, though, we will in any case be launching a revision of the directive. nor must we overlook the fact that, while changes in industry have economic effects and consequences for employment and social cohesion, they can also offer opportunities, especially when they are anticipated, prepared for and managed. in relation to this, mrs weiler, you mentioned the need to make a financial request or to examine the possibility of applying structural funds for this purpose - my experts here tell me that no such application has as yet been made to the commission. dialogue, transparency, genuine worker participation, foresight, risk avoidance and the encouragement of employability - such are the key elements in a european response to all these occurrences. let us all work at them and do our utmost to create the instruments - whether legal acts or in some other form - to further develop these concepts. - however much i admire the commissioner for his agricultural policy, i do not think it right that there should be nobody from the commission following these proceedings, given the huge importance of the debate on the automobile industry's future and the relevant social dimension. although i am grateful to you for being here and congratulate you on everything you do for agriculture, i have to say that, normally speaking, a commissioner should be here for industrial policy and social policy who can reply to the questions. the next item is the oral question to the commission (b5-0412/2003) by mr bouwman, on behalf of the committee on employment and social affairs, on the mid-term social policy agenda review. . mrs smet, thank you for the comment you made a moment ago; i agree with it, and that also applies to this subject. naturally, we cannot deal with the mid-term social policy agenda review established in nice in her absence. incidentally, it is nice to see that mr fischler is present, and therefore the commission too. i would have liked to have had her answers, particularly because we had already discussed the mid-term social policy agenda review with her in our committee. nevertheless, there were still a number of questions left unanswered, and that is why we are putting these questions verbally today, without a resolution. the nice social agenda is very important for the perfectly simple reason that europe and european citizens are expecting the social side of europe to develop further after the introduction and coming into force of emu, the euro, and the stability and growth pact. this is indeed necessary; it not only costs money, it also delivers benefits; this has been clearly demonstrated by the commission in its study. this agenda naturally includes creating more and better jobs, anticipating working environments, fighting poverty and social exclusion, modernising social protection, promoting gender equality and ultimately social policy as part of enlargement. at the end of my speech i would like to ask a few questions which we would like the commission to answer. in the meantime, i note that the european parliament has already expressed its objections relating to this social agenda three times during the annual scoreboards. each time, we asked that attention be paid to the points brought forward by parliament - some existing points relating to the social agenda, some new points connected with current events, such as the events currently taking place at ford genk. in other words, therefore, we are asking for the new policy initiatives to be properly implemented, but also for an indication as to the means by which this will be done. we are also of the opinion that there is often a great deal more to be done - including legislative activities - than is currently being done: deliberation, consultation, expert groups etc., all of which takes time. when i came in here, i thought we were going to deal with the european works council, but this will still not have happened by the time i leave, and it may not even happen during the next legislature. this is causing us problems all the time in practice; today's debate is proof of that! in other words, we are not satisfied with the way in which a number of proposals on this agenda are being dealt with at the moment, and i would like to list a few examples. the most important is naturally the question of the european works council. we have already let it be known that we believe that consultations have been going on long enough, including in the area of social dialogue. the partners have had more than enough time to exercise influence on this. now it is time for measures! we had already expected these in 2002, but they have still not arrived! this is in fact nothing new for the commission, and it is nothing new for the commissioner. the same applies to the working time directive. we asked that attention be paid to this area as well. at the moment, a number of countries in europe are avoiding the working time regulations, and that is exactly what we do not want, as it distorts competition. we want to see measures introduced in this regard, and as soon as possible! the commission should take the initiative on this point, and it should do so quicker than is currently the case. we could go on like this for a while, including with regard to aspects such as the new occupational diseases. i could give you a whole list of rapporteurs we have had on this subject: mrs van lancker, mrs smet, mrs hermange and finally mrs figueiredo. new occupational diseases, the social sides of competition policy, intervention procedures in the area of the delocalisation of companies; we have been asking for these for some time now. these points seem to be repeatedly left off the agenda, however. as far as social and fiscal measures are concerned, we want to put the effects these have on cross-border working on the agenda as soon as possible. we want the regulations to address the question of gender inequality. we could go on like this; the legal basis for what we call the 'civil dialogue' is also one of these points. in other words, what i said was not yet exhaustive. taking all this into consideration, we would like to ask the following two questions: how does the commission intend to use its right of initiative (in other words its right to take active steps) to implement the social policy agenda, both with regard to the old points and with regard to the points we have put forward on behalf of the european parliament? in doing so, we must bear in mind that these should contribute to creating full employment, the fight against social dumping and discrimination and improving the quality of employment in europe. that is our first question. our second question is this: how does the commission envisage improving employment and social policy after the enlargement of the eu? we have been highlighting the problems in detail for some time, including the follow-up and implementation of the legislation, the and the development of social dialogue. these are not easy subjects for the accession countries. in this connection, i would also like attention to be paid to progress in european employment strategy and the use of the open coordination methods with regard to social exclusion and social protection. . mr president, honourable members, ladies and gentlemen, i would like once again to apologise for the fact that mrs diamantopoulou cannot be here and ask you to be tolerant, as you have to make do with me. as you are aware, the nice european council laid down the social policy agenda. it was also agreed that a mid-term review should be carried out in 2003, the object of which was to be to target more specifically the actions and measures considered necessary and to present a timetable for the second half of the period ending in 2005. the mid-term review, adopted by the commission at the end of june, is based on an overall evaluation of the first years of implementation, which have been the subject of annual reports in scoreboards and on a review of the most significant challenges and of the drivers of change. the review also sets out the commission's thinking as regards the realisation of the eu's overall objectives, and the creation of more and better jobs and also greater social cohesion, all within the context of the further pursuit of the lisbon strategy. the commission has announced a comprehensive package of initiatives and actions, in which all the relevant actors will be involved. let me say, in response to your two questions, that the commission is using its right of initiative to propose the specific measures that are required and that have been announced in the mid-term review. these include, for example, new draft legislation, such as the proposal for a directive on temporary workers, or the simplification of existing ones, such as those in the area of health and safety at work. the commission is also availing itself of its right to consult the social partners and to join with them in discovering those problem areas that still remain to be attended to. one of them, for example, is the issue of the portability of occupational pension rights. another is the following-up of the revision of the working time directive. this has to do with the european employment strategy, in particular with the proposals for guidelines and recommendations relating to it. at the same time, the commission is encouraging the member states to work together in modernising social security and promoting social inclusion. as regards your second question, i have to stress that the mid-term review's priorities as regards the structuring of the next few years' work are twofold. one is to further develop the agenda for an enlarged european union. the other is, as a matter of priority, to monitor the transposition and implementation of the in employment and social affairs and to ensure that this is done properly. in order that this goal may be achieved, it will be necessary to pay particular attention to involving the relevant networks of national representatives, who are to perform a supporting role in transposing and implementing european law, and also to make use of the monitoring instruments still at our disposal. although the primary emphasis will be on assistance and advice, the commission will not hesitate to apply appropriate enforcement measures or, where appropriate, to take legal action. that applies, though, not only to the new member states that will be joining the european union next year, but to all the member states. mr president, commissioner, thank you for your answer. when i look at the social policy agenda and see where we are at the moment - we are mid-term - we are a year away from elections, and enlargement is also just around the corner. i think that we cannot avoid taking this into account. if we have to choose between the priorities, then for me, enlargement is the top priority. there are numerous social directives. we are encouraging the development of social dialogue. we are encouraging the creation of administrations, services and institutions that can guarantee social security in these countries. we all know that despite the fact that these countries are acceding, it is still very difficult to implement a large number of these aspects. if this implementation does not go well, if social dialogue does not take place, if there are insufficient institutions in place to apply all of this, this will cause a delay everywhere. including here. it goes without saying that this will entail a delay. after all, you cannot simply concoct a whole series of new directives when the countries that are joining next year - thus creating a global union of 25 countries - are unable to comply with a particular dimension of this european union. it is extremely important for social policy to develop in the enlargement countries. it is developing much too slowly and on much too narrow a scale. i therefore believe that this is a top priority, because it will adversely affect the growth of social policy at a european level, whether we like it or not. our second priority is employment. i think that the commission is making a good choice, including in its priorities. i agree with that. as we can all see, the things that were proposed in lisbon, namely an employment level of 70% and so on, are progressing extremely slowly. when the new countries join, employment levels will naturally fall, not increase. we will therefore be even further away from the lisbon targets than we are at the moment. the whole policy surrounding employment must be stimulated and supported. then there is a third point: the review of certain directives. i think we can do that, for example the review of the renault directive, the review of the works council directive, even the review of the directive relating to health and safety at work. a great number of our directives need to be reviewed. for me, that is the third priority that we could introduce. if we want new directives, we will really have to make choices and establish priorities. we are no longer in a position to introduce 40 new directives, not even 10. i think we must limit this and i think that one of the priorities in new directives should be to do something for the disabled. we have already had an extensive debate on this. this social group still has a difficult time accessing the labour market. i think that we need to regulate a number of things specifically for them. mr president, the commission's mid-term review is actually an exercise in marking time. it is full of hot air with very little substance. there are a range of issues outstanding. we now have a three-year delay in the revision of the european works council directive, despite the recent occurrences at genk and a whole series of earlier problems. there is a blockage in council on the temporary agency workers directive, a vital part of our effort to balance security and flexibility. we have a very uncertain timetable around the revision of the working time directive and an end to the scandalous abuse of the opt-out in my own country. there is an outstanding call from parliament for a directive on individual dismissals and the social security aspects of atypical working: no action on those fronts has been taken at all. i also share mrs smet's concerns over enlargement, the , the application of the - particularly in the area of occupational safety and health, the development of social dialogue, open coordination in the european union as it will be this time next year. all of these things are causing us deep concern and we have seen little, if any, action on all of these important issues. let me make it clear that we fully understand the pressures and the obstacles being put in the way of commissioner diamantopoulou and her efforts to deliver on these important issues. some of these come from inside the college of commissioners, some from council, some involve governments of a socialist complexion. all i can say is that we will redouble our efforts to try to ensure that we support her in overcoming those obstacles and moving the social agenda forward. that is vitally important. unless we can deliver and move the social agenda forward, there is a very real danger that the overall, carefully-balanced policy mix established at lisbon will be destroyed. if that happens it will be a major disaster for the future of the whole of the union. madam president, the increase in unemployment, in insecure employment and in social exclusion cast doubt upon the concept of a europe that champions social justice and solidarity. we know that there are more than 15 million unemployed people in the european union and more than 60 million who live on less than 60% of the average national income. these are problems that mainly affect women, but also the elderly living on very low pensions, immigrants, children, people with disabilities and workers in insecure and badly paid jobs. the situation is considerably worse in the candidate countries that will be joining the union in may next year. in light of this worsening socio-economic situation, measures must be adopted that are different to those used to date, because disparities have increased, cohesion has weakened and no real progress has been made as regards gender equality policy. the current situation calls for absolute priority no longer to be given to complying with the stability pact and, on the contrary, for this to be suspended so that its irrational criteria for nominal convergence can be reviewed. the current situation calls for the primacy of monetarist and competition policies to be ended and for resolving these serious social problems to be put on the agenda, for compliance with the social policy agenda and for an effective public investment policy in order to create the fifteen million jobs that the european union needs. consequently, as stated in my recent report on implementing the social policy agenda, which this plenary adopted in september, priority must be given to solving the serious problems of unemployment and poverty - including persistent poverty - in all community policies, specifically in competition policy (and since the commissioner responsible for the common agricultural policy is here with us, this could at least help us to look at farming issues and here too amend policy, with a view to combating poverty and social exclusion), not forgetting the structural funds and the stability pact. we regret the fact that the commission is not only failing to comply with the nice social agenda, but also still has no plans to present new initiatives in areas already requested by the european parliament, which has insisted that these be drawn up rapidly. this is a long list, which other speakers have already referred to, but which we also adopted at the sitting of 3 september and for which i once again express my support, in addition to agreeing with all the questions that have been put here. i repeat the need for effective measures, for mechanisms for intervention in the field of company relocations, and of the directives on article 13, both with regard to women's rights in all the various areas of employment and to people with disabilities. we must make good the delays in improving the directives intended to promote health and safety in the workplace, specifically for women, and the proposals that this parliament has approved must be implemented. madam president, commissioner, i share mrs smet's view that the great challenge in the socio-political area too has to do with enlargement. the introduction of the eu's socio-political legislation on the working environment and labour law will mean a very great deal for wage earners in the new member states. it will also, however, mean something for the present member states. the risk of social dumping between our countries will be much reduced, something that is incredibly important. another important issue in connection with enlargement is the dialogue between the two sides of industry. in many of the new member states, there is no dialogue up and running, and no employers and employees used to participating together in the socio-political agenda. a third issue is the lisbon cooperation, which we must review and stick to. this must not, however, mean that we do not put forward proposals in new areas, for example in the area of the working environment in response, for example, to atypical jobs. we must therefore cope successfully both with enlargement and with new risks and new socio-political challenges. in the committee on employment and social affairs earlier this week i already really let fly at the commission on one point on the social agenda; the posting of workers directive. it is incomprehensible that the evaluation of this directive has not been seized as an opportunity to better assess the problems of cross-border employment of workers and to take new initiatives in this area. enlargement is just around the corner, and i have already told commissioner verheugen and commissioner diamantopolou that this transitional period is absolutely not a solution to the problems that enlargement may bring with it. we must pursue a proactive policy and we must create better conditions for active workforce mobility. my fellow mep stephen hughes has already mentioned the temporary agency workers directive. the impasse we have reached in this area must naturally not be taken as a reason for not doing anything else in areas relating to the situation of non-typical jobs, including in connection with this directive. i am thinking of the position of the self-employed who are not actually self-employed but are in fact employees, for example, and the social security of the non-typical employee. if we do not create a better framework of definitions and labour and social regulations in europe, this social will soon only apply to a small minority of employees, and they will not be the ones who need it most! finally, a word of warning. i think that if we do not manage to implement this social policy in europe, a lot of people will turn against europe. . madam president, honourable members, ladies and gentlemen, let me say, very briefly, that i have taken written notes of all the suggestions, demands, and aspirations you have expressed here today, and that i will pass them on to mrs diamantopoulou. basically, the one thing i can tell you is that i share your view, firstly, of the enormous significance of the policy set out in what we term the lisbon targets, and also of the tasks we are presented with in the field of future social policy. i also agree with you that it is now in particular, so to speak on the eve of enlargement, necessary that we have to give particular attention to how these issues fit into this context, and, like you, i believe that this is a matter of urgency. fundamentally, i believe, we have to continue to take action on both fronts, for we must not overlook the close connection between issues of employment and social security and the question of whether we will succeed in recreating proper growth in europe. that is one of the basic conditions, and we will bring about growth of this only if we take appropriate action regarding the various elements that are necessary if our european economy is to be restructured. on the other hand, though, it should not be thought that this is only about growth, in other words, only about the economy; it is also, of course, about social protection. i have already told you in my opening remarks what the commission's current plans are. i hope that these measures will indeed enable us to make the necessary improvements to the situation. the debate is closed. the next item is the report (a5-0333/2003) by mrs dybkjr, on behalf of the committee on women's rights and equal opportunities, on election 2004: how to ensure balanced representation of women and men [2003/2108(ini)]. we are in the middle of an exciting and demanding period in the history of europe. we are increasing the number of eu member states, and we are at the moment devising and debating a new framework for treaty-based cooperation based on the nation states and the people. there are quite a few prior conditions of involvement in eu cooperation, but one of them is the need to practise democracy and observe human rights, that is to say people must have equal opportunities to develop, and exercise control over, their lives. when we look at what is actually happening in europe, who is it that takes the decisions? who determines the laws? who manages daily life in international, european, national, regional and local assemblies? who personifies public power? the answer is quite simply that it is the men who do this. if there is any doubt about this, it is enough to try asking how many women there are among heads of state or government. the answer is, none. if we look at the family photo from copenhagen in 2002, there are 64 people in that picture, including just eight women. is that the case because there is a shortage of women in europe? is it a case of our constituting a minority? there are, now and again, people who tell us that we do, whereupon we are placed among other minorities. in that case, we must, however, tell ourselves that, no, this is not the case. we constitute at least half the population. women form at least half the electorate, so it is not therefore a question of there not being enough women. is it, therefore, a case of there being no competent women? no, that is not the reason, either. there are in actual fact women - and, as time goes by, more women than men - who enter higher education, although that is no longer, of course, always a criterion for participating in political life. it is not this that forms the background to the situation. there are quite a few reasons why there are not enough women, and these apply everywhere. in this case, we shall concentrate on the election we face next year. as has been said, we are at present building the new europe. women constitute half the new europe, and it is absolutely fundamental that this half should also be involved in deciding the framework for, and content of, further cooperation. one of the places in which they can do this is, moreover, in the european parliament. today, we are in a situation in which 30% of members of the european parliament are women. we are now enlarging the eu to include ten new countries and, in that connection, we are obliged to take a brief look at how women are represented in those countries. unfortunately, matters do not look too good. obviously, not all the countries are right at the bottom of the table, and the fact is that we also have, among the member states, countries that are low down on the list where women's representation is concerned. all the same, we have to say that the average is low. what, therefore, we have to concentrate on in the forthcoming election is getting more women to stand and finding out why others do not wish to do so. are they in actual fact just not invited to stand, or does the old classic pattern apply whereby no one voluntarily surrenders power, neither men nor women for that matter. personally, i believe it is the classic situation. naturally, men do not voluntarily relinquish power, just as we women also find it extremely difficult to give up so-called power over our children. none of us are saints. it is now important, however, for us to try to discuss this matter and to understand that, if we are to have this eu cooperation accepted among the eu's populations, it would perhaps be a good idea if we were to try inviting women to participate and if, above all, we were to devise systems that might give women opportunities to be elected if they were finally to appear on the lists. gaining acceptance of eu cooperation will certainly take some doing. over there sits a swedish commissioner and i, who speak now, am a dane, and if there is anywhere it is hard going obtaining grass-roots acceptance of european cooperation, it is in sweden and denmark, with the greatest scepticism among women. experience in the scandinavian countries shows that it is not, therefore, a case of women not being elected. if they stand on an equal footing, they are in actual fact elected. the fact is that, if there are women who have any chance at all of being elected, then elected they are. it is not therefore a case of voters generally believing women not to be up to scratch. on the contrary, they are happy to vote for them. the truth is that they have no opportunity to vote women representatives in. it is extremely important that we discuss this matter now because, at present, 31% of meps are women. among the new countries, matters appear lopsided. in a parliament with greater influence upon european legislation than we have ever had before, we are thus now in danger of having far less than 30% women, because women are so poorly represented in, for example, the new countries. there are two countries that have sent no female observers at all. it really is unbelievable that democracy can be practised and human rights observed on that basis. i think we must all try to help each other ensure that there is a proper proportion of women in the european parliament so that people feel represented in this house. madam president, that was an excellent contribution by mrs dybkjr. i am able to concur with it 100%. it was an excellent introduction to what this debate needs to be about. first of all, i naturally wish to congratulate the european parliament, in particular the committee on women's rights and equal opportunities and also mrs dybkjr as rapporteur, for having taken the initiative regarding this report. this too emphasises the importance of bringing about balanced representation for women and men in the decision-making process, especially in the run-up to the elections to the european parliament next year. we must take democracy seriously and take account of the equality issue in decision-making. if we profess democratic values, the representation of the people and citizens' active participation, we cannot at the same time exclude half the population from the bodies in which the decisions are taken. increased participation on the part of women also means better opportunities for society to take care of its citizens. we lose out on both resources and experience if women cannot be a part of political life. women must be given access to the labour market and to politics in order to be able to advance professionally at a pace commensurate with their qualifications. in that way, proper use will be made of their skills. unfortunately, it has so far been too often the case that men have been elected. that is something we must change. as pointed out in the report, all the member states have committed themselves to implementing the un's action plan from the 1995 beijing conference, together with a series of other international programmes in support of the principle of equal participation by women and men in decision-making bodies and in the decision-making process. these constitute the international framework within which we must all work. balanced representation for women and men in the decision-making process and in all areas of life is also the central theme of the commission's 2003-2004 work programme. the work on assessing which projects are to be subsidised from the gender equality programme is in its final phase right now. i am also pleased to inform you that the commission is at present developing a database on 'women and men in decision-making'. the database is one of a series of measures for developing and maintaining statistics, which are also important as a tool and for providing background information. the preparations for publishing the initial results from this database are currently under way. at the beginning of 2004, the content will be presented on the commission's web site. it will then be updated each year. the main aims of the database are firstly to measure progress in relation to the commitments made and, secondly, to bring about increased awareness in the present member states, the eea countries and the candidate countries of the situation regarding women and men in decision-making positions. may i also mention the measures on decision-making which were recently adopted by the italian presidency with the support of the commission and to which attention is drawn by the report. the syracuse conference, together with the subsequent informal meetings between the ministers for equality, emphasised the need to maintain the efforts to achieve balanced representation of women and men in the decision-making processes at all levels. it was also proposed that, by agreement between all the political parties, at least 30% of candidates they appoint to stand for election to the european parliament should be women. the parties should, moreover, actively strive to achieve the objectives laid down by the lisbon and barcelona european councils, particularly those affecting women directly: an employment rate among women of at least 60% by no later than 2010, together with regulations concerning access to good childcare at a reasonable cost. these objectives are also among the tools and basic conditions that will enable women to participate in political life and the life of society generally. madam president, commissioner, i would like to begin by congratulating the rapporteur on the important report she has produced and at a time such as this, on the eve of the european parliament elections. we all know that equality between men and women is a fundamental principle in community law, as enshrined in the treaty of amsterdam, which included equality between men and women as an objective in all programmes. we therefore call for concrete measures to facilitate the presence of women in electoral lists and, therefore, in the european parliament. in this case, this request could be extended to the other regional or national parliaments in which the representation of women is still low in comparison with the percentage of women, who make up half the population, and in some cases rather more than half the population. we know that when there is no special assistance, through positive action measures, with laws to facilitate this great presence of women, we women have real problems accessing institutional posts, political posts and therefore political decision-making posts and positions of power. we have had experience over recent years of the presence of women continuing to increase slightly, but in no case has it passed much more than 30% and we are right to fear that in the next european elections it may be reduced. as the rapporteur has said, the presence of women amongst the observers coming from the enlargement countries is really low; some countries have not presented women at all as observers, and we fear that, following the elections to the european parliament, this presence will be no greater than 15%. it is precisely for this reason that it is important and significant that we are stressing this at the moment, and we are not forgetting the countries which currently belong to the european union, in which the percentage is no greater than 30% in the majority of cases - with the exception of the nordic countries - and in others that percentage is even lower and women are still facing significant difficulties in terms of accessing decision-making positions. they are still significant because there are no electoral laws - with the exception of two countries - laying down the obligation for women to be present on lists and because our ability to be present in decision-making bodies and parliaments depends essentially on the political parties, on the mentality of political leaders and on the awareness we are able to communicate to society on the importance of this issue. this is therefore the appropriate time and it is a task which we, as women committed to the presence of women, but also men, and members of parliament and political leaders must take on: this challenge of achieving greater presence for women within the political institutions. only the political will of leaders, of parties, when it comes to making decisions, will ensure that there are really more women following the elections and therefore a better balance between men and women in decision-making. madam president, it really is curious, after 50 years of european policy on gender equality and 100 years since the right of women to vote was claimed and recognised, that we are trying here to persuade everyone of the self-evident, in other words that men and women should share all the responsibilities and all the obligations of both private and public life equally and fairly, that there should be a balanced participation of men and women in democratic institutions and in all political decision-making centres. in the run up to the european elections in june, mrs dybkjr's truly exceptional report is of particular value, because it sets the framework within which all the member states should move, especially the accession countries, in order to ensure that the percentage of women in the house as a result of the european elections should at least be no smaller than it is at present, which is 31%. and i should like to name the two countries, estonia and slovenia, which did not bother to send even one woman, even one as an example, with the observers they sent to the european parliament. our fears are also reinforced by the traumatic experience we had last year, with 17% participation by women in the constitutional convention for the european constitution. that is why our committee, the committee on women's rights and equal opportunities, has put promoting the democracy of equality at the top of its priorities and has taken initiatives to mobilise governments, national parliaments, political leaders and women themselves in order to achieve this objective, an objective which does not simply concern the application in deed rather than just word of gender equality, but also the financial and social development of europe through the rational use of the valuable human resource which women represent. the lisbon strategy, like other ambitious european policies, urgently needs the full participation of women at all planning and decision-making levels in order to achieve its objectives. the future of europe cannot be planned in the absence of women. in the run up to the european elections, we need additional strategies and legislative measures, positive action, quotas or political agreements which will safeguard the balanced participation of men and women in electoral combinations and in the elected bodies which result. i hope the new european parliament of the 25 will attain this objective and will operate as a shining example and standard for the other parliaments in the world. i would also like to warmly congratulate mrs dybkjr on this report. it has come at exactly the right time, just before the european elections, and it has been mentioned here by several speakers already: we will have to do our utmost to match this turnout percentage of 30-31% that was achieved for the european parliament elections. this is certainly not helped by the accession countries, where we only have 14% at the moment. i therefore believe that in the context of the verification of these countries, we will have to ensure that gender equality forms part of our future fundamental community law, and that we must therefore make sure on an internal level that this is also done in the relevant parliaments. it is all very well pointing the finger at other countries, however; but we also have examples of women being seriously short-changed in our own countries. in my country, it was not so long ago that only one female minister was appointed. there was a great deal of protest against this, but fortunately that cabinet soon fell and we now have five female ministers and five female secretaries of state. to my great regret, neither of the two ministers appointed by my own party, which purports to do a great deal for women, is a woman. not because there are no capable women, but because there are always other people who are more important and who have to take priority. as long as we carry on in this way, women will have no chance. i am also of the opinion, however, that we ourselves must keep hammering on about gender equality and that we must keep a very close eye on it. for example, i would have nothing against following examples like those mentioned in mrs dybkjr's report - like in france where party financing depends on the number of women on the list - because we cannot stand still, we must do something. i would therefore like to ask the commission to pay additional attention to this point in its consultations with all member states. madam president, mrs dybkjr's report deals with something of which all of us in this house have very long experience: actual life in the political organisations in which we participate. commissioner wallstrm said that men elect men. yes, men in political parties, especially, elect men. they elect men to a greater extent than the electorate does, a fact that is very interesting. when women enter politics, the organisation of political work changes, and new issues appear on the political agenda. what is more, women naturally have different political and ideological perceptions. in the course of last year, we saw the composition of the convention and the way in which issues of equality were manipulated when it came, among other things, to the legal status assigned to equality. we still see, after many years of decisions to use 'gender mainstreaming' as a method in decision-making, that this is completely absent from most areas of politics. it is now also proposed to cut back on the areas of competence of the committee on women's rights and equal opportunities. this is completely contrary to the trend. it is even a phasing-out of gender equality in politics. it is rather ironic reading the council recommendation from december 1996, which stresses that the under-representation of women in decision-making posts leaves their experiences unused and undervalued and thus constitutes a loss for society as a whole. i do in fact agree with the council recommendation but, when the council's own composition throughout the years is examined in the form of photographs shown after the council meetings, it is seen still to hark back to another era. - madam president, commissioner, ladies and gentlemen, my warmest thanks go to mrs dybkjr for this eminently timely and important report. we all share a concern about how balanced the representation of gender is going to be in the european parliament in the next legislature. we have a good six months to work hard to dispel this concern and we should not be afraid. equality is one of the european fundamental values which the new member states have also committed themselves to respecting. there can be no genuine democracy if women are unable to participate in decision-making at all its levels. the fact is that the establishment of pluralist parliamentary democracy does not in itself guarantee equal participation of women and men in political decision-making. we could have rid ourselves of the problem entirely by developing a common european act regarding elections, in which gender equality would be guaranteed. female politicians have to be made strong professionals in their field with the help of training and financial and moral support. this way the reasons for the lower areas of competency with regard to the women in a quota system compared to their male colleagues would become groundless and fade away. the aim of an equal society is dimly visible as decision-making without the need for quotas, with the highest decision-making bodies representing the genders equally. it would not seem, however, that we will achieve this without an interim stage, with the eu, the member states and the political parties actively involved in working jointly on behalf of equality. the political groups should agree common policies to reach a position where in the end equality becomes a reality in economic, political and social life. i now want to throw down the gauntlet, as it were, and ask the male members of the european parliament here to think about whether they have ever voted for a woman. furthermore, if you are also influential in your country's political arena would you propose a woman as president of the commission? moreover, if there is an office of president of the eu, who might the woman be whom you would vote for as president? madam president, i am able to support what mrs dybkjr has said about gender equality, so i shall instead use my speaking time to talk about a genuine success where such equality is concerned. i was elected to parliament as a representative of an all-party movement, the june movement, which has now operated for ten years on the principle that we should draw half of all our parliamentary candidates and half of our party's leading members equally from both sexes. we have just recently prepared a new list of parliamentary candidates, consisting of ten women and ten men, with the vacancies divided on an alternating basis between male and female candidates. for a long time, we had more men than we could make use of and only half the women we needed to have been elected. we therefore began searching through our membership, and we finally obtained the list we wanted and needed. the outcome would, however, have been a lopsided list if we had not adopted regulations committing ourselves to having a list divided equally between both sexes. the outcome was that gender equality operated to the advantage of the men. some of the women did in fact obtain more votes at the party conference than some of the men but were listed beneath men with fewer votes because, according to our rule, every other person on the list must be a woman. this outcome was not intended, but i can sincerely recommend all parties to introduce gender equality for all their lists. women consistently hold back, even in those countries that are most advanced in terms of gender equality. women do not want to put themselves forward unless they feel certain of being on top of everything, ideally more so than their male colleagues. we also know this from job applications. when men apply for a job, some of the many qualifications they reel off have to be discounted. when women apply, qualifications have to be added. that is the way things are, but it is something we can counteract by requiring the same number of candidates from each sex or, as i would prefer, at least 50% women. if, as a result, qualified men were deselected in favour of less qualified women, i should not recommend the system, but, in the case of ourselves in the june movement, the system has operated perfectly at each election, given women the necessary helping hand and provided us with a list that better reflects the electorate. this is, then, an arrangement i should like to recommend to everyone. we have also made a conscious effort to get young candidates onto the list. nine of our candidates are under 40 years old and seven of them under 30 and, what is more, all of them are qualified. our youngest parliamentary candidate, who is only 18, also has several years' experience of eu issues. we have no special quota arrangement for young people but have made a conscious effort at renewal so that it is possible to give women and young people a real chance to compete with us old men. it is a pleasure to be able to contribute a success story from the real world to the debate on equality. in the eu convention, mrs dybkjr and others fought bravely for gender equality but, unfortunately, this was only incorporated into the values of the danish edition. the other countries' editions just talk about equality rather than gender equality. madam president, commissioner, ladies and gentlemen, the issue we are debating today refers of course to the forthcoming european elections, but it also has wider significance for the participation of women in political life. the rapporteur's report contains interesting data on the current situation in the member states and in the european parliament. it also touches on all the aspects of the problem and makes interesting proposals on dealing with it, proposals which come mainly from the experience of the various countries. i think that promoting exchanges of these experiences is very important because it raises the awareness of the competent agencies, it gives them ideas about applying measures and evaluating progress. the european commission should, i believe, provide facilities for such action. this year is dedicated to the action programme on equal opportunities for women to participate in positions of responsibility. i should like to know if there have already been any results from the application of the programme. however, i suspect that it has nothing interesting or progressive to tell us, because the initiatives of the non-governmental organisations, to which the programme mainly refers, cannot bear fruit if there is no public dialogue in the member states on the subject which will engage the parliaments, national and regional, where they exist, and will bring parties, local authorities and social agencies face to face with their options and responsibilities, in order to make the whole of society aware of the issue of the participation of women, an issue which concerns the future of the whole of society and not just the future of women. we also need an open dialogue between the parties themselves so that everyone is informed and aware, from the leaders to the regional cadres, of the deficit in the participation of women and the need to apply a strategy to support and promote women cadres to positions of responsibility. finally, i should like to say, in the run up to the european elections, that we need to raise the awareness of and inform women as citizens and voters about the meaning of these elections and their importance. plebiscites and referenda, where they have been held, tell us that women are the citizens most distanced from the issues of european policy and the most euro-sceptical citizens. this is a challenge which concerns us all, at both european and national level, and the european elections give us an opportunity to demonstrate our determination to face up to it. madam president, commissioner, ladies and gentlemen, it can only be a source of delight today to see two front page headlines in the popular press devoted to the positions that the commission and the european parliament wish to adopt in order to ensure the equality of the sexes as regards both their access to goods and services and their representation in parliament. at last these matters are being talked about. we can only congratulate our fellow mep, mrs dybkjr, who emphasises the wide-ranging importance that the change in attitudes to integrating women into political life on an equal basis with men may have for the entirety of the social and political contracts we have with our fellow citizens. it is acknowledged that positive action is crucial if the balanced representation of women and men is to be achieved. it is acknowledged that involving both sexes in policy development improves policy and makes it more relevant to a varied population. the transparently weak representation of women in the decision-making process raises the problem of the legitimacy of the political structures, for the operation of a democratic system reflects the society it advocates or defends. equality is a european value, which the member states must respect. we cannot sustain this incoherence on the eve of enlargement when we wish to maintain, and even enhance, the representation of women in a house, which must spearhead this new trend and, at the same time, be the crucible that enables new behaviours and new strategies to be imagined. if this is to be possible, and not only desirable, we need from now on to act in such a way that the 2004 campaign affirms and brings to fruition the principle of effective democracy in which both sexes are represented, for the slightest decline in our representation would be a signal that might be misinterpreted on the eve of enlargement. i would like to draw your attention to the greatest inequality of power that exists: the one between men and women, and i would like to thank the for her report, which once again emphasises the need for parity. we still have a long way to go even in this parliament, where one third of us are women, and the best performing country, sweden, has recently gone from 40% to 45%; still not parity, although we all envy sweden. we have made progress in belgium, going from 11% to 23%. the new countries could learn something from this, as we have put a lot of effort into achieving it. if we leave it to the goodwill of, let us say, men, nothing will change. if we leave it to a change of mentality, then we could still be having this discussion when our great-granddaughters are meps. we must make the effort ourselves, and that applies just as much to the new countries. none of these countries reaches the 30% mark which we are already used to here. only three countries have more than 20% representation by women. only 14% of their representatives in this parliament are women. if we have 100 new members of parliament, then in the worst-case scenario, if the same ratio applies, we will have 86 men and 14 women. this is a general regression for women in the european parliament. it should not be the case that the accession countries help our parliament to become even more male-dominated. that is why we in the european parliament want to give firm support to all women and to all governments who want to change things for the better, because nothing will happen without voluntary action. the quotas are often criticised for not being justified, for having to leave everything to the spontaneous evolution of democracy. ladies and gentlemen, we are lawmakers, and a lawmaker knows very well that you cannot leave everything to spontaneous evolution and that action is required. the countries where the best results have been achieved have been those governments which have amended their legislation. let me quote you the example of belgium, where it is not permitted to have three candidates of the same gender at the top of the european list. we want an equal number of candidates to be put forward now too, and i hope that the excellent recommendations made in this report will be adopted by governments. i expect the commission to introduce an initiative, i expect initiatives to be introduced by the council, so that equality in this parliament, both and does not decrease but improve after accession. - madam president, i share the concern expressed in mrs dybkjr's excellent report regarding the under-representation of women in the european parliament. it is unfortunately true that, as i look around now, there are noticeably few women here, particularly young women and women with families. as many have commented, in the light of statistics the situation seems even more alarming than before with regard to next year's elections after enlargement. the proportion of women working in the national parliaments in the new member states is not more than 30% at best and in more than half of the new member states the proportion of women members of parliament hovers around the 10% mark. we must nevertheless remember that things could also be better in the current member states, including my own country, finland, although finland can be considered one of the pioneers of equality between women and men. why are women not being voted for, then, if more than half of the electorate are women? the report identifies constituency parties and the selection mechanisms as the main reasons for the under-representation of women. systems like the finnish election procedure have guaranteed an equal representation of women and men. here in the european parliament almost half the finnish delegation are women, so there is probably nothing wrong with the system. instead of parties employing long and hierarchical systems of listing names, in the finnish election system you vote for both the candidate and the party, and in practice the european parliamentary elections have been to a large extent about electing an individual, with candidates given priority over parties, which stay very much in the background. in these conditions women have done well. of course traditions and election culture also have an influential role to play. it nevertheless shows that women are voted for if they simply stand for election. why, however, are young women in particular not interested in politics? why are women not encouraged to participate in the wielding of power to a greater extent? these i think are questions that furthermore give cause for introspection. why is the eu not interesting? women often see eu decision-making as too distant, abstract and highfalutin. women are workaday heroines who like to stick to more concrete things. the work situation is often difficult, especially for women with families. i myself have come to realise, whilst expecting my first child, how hard it has been to combine motherhood with the career of a member of parliament. the eu's rules on maternity leave directly oppress young women. maternity leave is not really a familiar concept and, for example, in parliament it is put on a par with absence through sickness. there is much room for improvement in this matter and the situation is reflected in the situation regarding employment in europe as a whole. women are not sufficiently encouraged to establish a career and start a family. the result is that many women deliberately put off having children. the message coming from the eu should not be either career or motherhood. madam president, commissioner, we have now heard a great deal about a very old topic, one that we have already been discussing for years - always, in fact, on the same level - and i wonder what progress we have made. we take pride in the 30% of members of this house who are women. if we had 50%, that would be parity. we content ourselves with only 30%, or tell ourselves that we have made progress because we have done very well in comparison with other countries. what this means is that, for a century, we have been progressing one millimetre at a time, and that what we have achieved is far from being secure. when i say that there is the danger of us sustaining more setbacks in this area, i am not just referring yet again to the new member states, but also to the present ones, which have to make enormous efforts to get that sort of quota into this house. yesterday, when the progress reports were presented, i heard not one word said about the under-representation of women. this is something else that we should take into account and incorporate into progress reports of this kind, enabling them to show what is lacking and where changes still have to be made where equal opportunities policy is concerned. if we say there is a lack of women candidates - something of which we are very often accused - then we have to give some thought to how women are supposed to combine career, family and politics when they are constantly, too, having their consciences pricked by questions like: how can you do this, that, and the other, as well? this, i think, is where society has a part to play, and this is where there must be consequences for those member states that fail to do what they have undertaken to do, namely create really equal opportunities. i find myself wondering what mechanisms there are and what are the consequences when they fail to do that. madam president, firstly, i wish to thank you for this discussion, which really has illustrated the importance of the roles we all have to play. the commission must accept its responsibility. i am aware that my colleague, mrs diamantopoulou is right now investigating the possibility of organising round-table discussions in the member states and the candidate countries in order to discuss the issue of gender equality. i believe that these discussions must cover everything from nominations to the way in which subsidies and forms of support might be designed to enable us also to promote gender equality. in this area, there is, of course, also a very important role for the political parties, the european parliament and the non-governmental organisations. they must work closely together on improving women's representation. in the run-up to the european parliament elections, it is quite clearly an important task to ensure that we maintain, and ideally increase, women's representation. all the contributions have also made it clear that the new member states too must be made aware of this, if we are to ensure that women are well represented right from the start. this is an issue that, for better or for worse, we shall have to live with for a long time to come, for we unfortunately live at a time when it is easier to split an atom than to overturn a prejudice. the debate is closed. the vote will take place at 11 a.m. the next item is the vote.(1) colleagues, i am delighted to inform you that the members of a delegation from the national people's congress of china have taken their seats in the official gallery. i extend a warm welcome to the chinese delegation. they are here to attend the 20th ep-china interparliamentary meeting, and are led by mr wang yingfan, vice-chairman of the foreign affairs committee of the national people's congress of the people's republic of china. we look forward to a constructive dialogue, and we wish you all ! we now continue with the vote. . mr president, i have risen before on a vote on reports like these and no doubt i will be doing so again in the future. i would normally rise before each report, but if you are agreeable, i shall make this statement once and we could accept it for all three reports in the culture package. rule 63a of our rules of procedure states that we have to ensure that all reports are financially compatible. to make sure that we are in line with that rule, i would propose that we add an oral amendment to all three reports which would read 'considers that the financial statement as amended is compatible with the ceiling of headings 3 and 5 of the financial perspectives 2000-2006'. . - mr president, i strongly urge parliament to adopt this amendment. parliament's legal department has stated that the earmarking of cultural organisations is clearly in contravention of the financial regulation. this proposal will make possible a gentle period of transition, which is to say earmarking can continue in any case until next year. mr president, i wish to ask the house to really stand up for its rights. earmarking is the only thing that we - by which i mean we rather than the commission - can really do for culture. that concludes the vote. . it is crucial to develop a true picture of immigration in the various countries making up the european union and we should, therefore, support all initiatives, in particular in line with un recommendations, that promote knowledge of this extremely important situation, which encompasses situations of unacceptable and inhuman humiliation and exploitation such as trafficking in human beings or the exploitation of a labour force that has no rights whatsoever. this situation needs to be better understood, so that we can better combat its underlying causes, which are social injustices and inequalities or wars and all those who exploit these, particularly those who take advantage of the countless people in an 'illegal' situation. we must understand the situation, but only in order to provide meaningful support for the victims of criminal networks - men, women and children who are simply fighting for an opportunity, for the right to have a better life. it is another matter to use this necessary effort to communitarise immigration policy, by proposing, as the report does, to establish 'binding european legislation'. it is another matter altogether to get a picture of the reality to strengthen the implementation of today's repressive immigration policies, in order to create a 'fortress europe'. this is something that we reject. . standardising the statistics used by national authorities and organisations, which are currently all compiled on different bases, is one of this communication's more interesting points, mainly because of the ease and frequency with which statistical data is manipulated by the bodies that publish them. there is a need to improve the collection and analysis of community statistics in a common area as important as asylum and immigration. i regret, however, the excessively belated presentation by the commission of its communication - to which the rapporteur also referred since the action programme corresponds to the period 2002-2004, whereas the communication dates from april 2003! . i also support the rapporteur when, in calling for transparency in the collection of statistics and for them to be intelligible and accessible to the public, he suggests that the new european migration network will be able to fulfil the role previously conferred on the european migration monitoring centre. bearing in mind that one of the consequences of the action plan will be a substantial increase in the production of statistics, we cannot exclude the possibility, as the rapporteur reminds us, that future budgetary rules might have to be revised. i therefore supported the positions advocated in the report and voted in favour of it. we would defend subsidiarity and assert that the eu institutions should not interfere with the member states' electoral systems or the political parties' systems for establishing their electoral lists. we have therefore chosen to vote against the own-initiative report by the committee on women's rights and equal opportunities on 'election 2004: how to ensure balanced representation of women and men'. it is very good to want to abolish discrimination in election candidacies, as proposed by the dybkjr report, but it is still better not to add to the discrimination. the french law of 11 april 2003, which regionalises the method of balloting for the european elections, clearly puts the small to medium-sized parties at a disadvantage. in these conditions, it may be maintained that this law infringes the decision of the council of european ministers of 25 june 2002 according to which, when - as is the case in france - a european ballot taking place in a single national constituency is regionalised, the reform must take place 'without affecting the essentially proportional nature of the voting system'. strangest of all, the european decision of 2002 has, in accordance with article 190(4) of the treaty, been adopted by france by means of a law enacted only on 16 october 2003. in other words, the proper procedure is now apparently to adapt the french law of april 2003 to the european decision approved in october. unfortunately, it has also to be said that no provision has been made for removing such a contradiction between national and community law. . this initiative, which is intended to promote a more balanced representation of women and men in the composition of the ep following the 2004 elections, is to be welcomed, although it has limitations. increasing the participation of women in social and political life is a concern and an objective that we support, but simply calling for more women to participate in political life is not enough. as we know, progress in the field of women's rights and in genuine equal opportunities is only achieved when these rights have solid foundations and as the outcome of social advances that have been won in battles by workers and women for their rights and not merely through elitist, artificial and administrative measures. i must underline the need, however, for greater participation by women in the social and political life of every country and in the ep. the problem is that the current neoliberal capitalist offensive to dismantle countless social achievements affects, today as in the past, but even more harshly, working women. working women are the main victims, in particular as regards exercising their rights, including the right to have a job and to be elected to participate in social and political life. lastly, i simply wish to recall that, in the elections to the european parliament in 1999, on the lists of the (unitary democratic coalition), of which the portuguese communist party is a member, 11 of the 25 candidates were women, as was the candidate heading the list. i had tabled a host of amendments to the draft report by the committee on women's rights and equal opportunities, and a number of them have been adopted. their purpose was to qualify certain proposals and requests made to the political parties and national governments, not in order to weaken such proposals and requests but in order to respect the principle of subsidiarity and the independence of parties and governments and to prevent interference of doubtful quality which would, moreover, be in danger of being counter-productive. in my opinion, asking for quotas to be introduced by means of legislation or insisting on legislating on the principle of parity democracy is going too far. i therefore consider that, in this area, there must be no head-on clash with countries and parties that - often, incidentally, out of respect for women - do not want quotas for women, such quotas implying that women are apparently incapable of carving out a place in the parties and in the eyes of the electorate. that place may also be won through the endurance, courage, aptitude and quality that should also be shown by the men who wish to take their places here. i was keen to make these points in order to prevent this report, for which i voted, from being counter-productive in terms of its objective, which i share. . it is no longer the case that certain family duties and certain careers are reserved for men or women. policy is no longer determined by what men think is important. women are no longer expected to leave the most important decisions to men. this development contributes to greater equality between people. unfortunately, this is not happening simultaneously throughout europe. we can see from the number of women elected to national parliaments that the scandinavian countries and the netherlands are in the lead, that the southern european and english-speaking countries are trailing way behind, and that the role of women in the east has even been forced into a decline. there is a justifiable fear that after the enlargement of the eu, the number of women in the next european parliament will be lower than it is at present. we will only be able to bring about change in this area through the greater participation of women in areas where there are conflicts of opinions and interests, and through their participation in the organisations involved. we must eliminate the obstacles to this. electoral legislation may contribute by abolishing systems based on districts, but not by legislating on the composition of candidate lists. my party, the socialist party of the netherlands, has lists for the upper and lower houses which comprise 50% women in electable seats, but we do not do this through coercion but through conviction. the feminisation of politics is achieved from the bottom up and by pursuing the struggle outside parliament. voting against this report should not, of course, be construed as any show of hostility towards the representation of women in politics. apart from the fact that the general philosophy of the report - namely, positive discrimination - is contrary to the constitutional traditions of certain member states and, in particular, to the republican universalism on which french law is based, rejection of this document is based solely upon respect for the distribution of competences between the eu and the member states. in the event, and in the absence of a uniform electoral procedure, the european union has no competence at all to intervene, as this report invites it to do, in defining the rules governing the organisation of the european elections. as a result, the european parliament cannot legitimately ask the national political parties 'to introduce quota systems, such as [what is known as] the zipper system', whereby men and women appear alternately on the lists, 'and/or [to] take measures so as to promote a balance in participation' or to ask the commission to distribute information on the mysterious concept of 'parity democracy' or to urge the funding of 'awareness raising campaigns' on the subject. . i voted against this report because i disagree with the measures the rapporteur recommends to ensure a balanced representation between men and women. i totally reject this illegitimate attempt to interfere in the internal political organisation of the member states and the ongoing confusion between equality and egalitarianism. adopting legislative measures for positive discrimination that facilitate women's access to political posts must always be considered very carefully, so as not to distort the genuine rules of democracy and of free choice and also not to offend and discriminate against women who, of their own free will and on their own merits, have risen to the highest positions without any artificial mechanisms to promote them. the approach adopted by the rapporteur belongs to the radical feminist clique, which appears to have hijacked the committee in which this report originated. this approach does not match the vision and the concerns of most european women who, on a daily basis, prove their worth without any complexes about their standing and without giving in to or wanting to impose a sexist approach. i must also emphasise, to add a little humour, both the veiled threat of civil disobedience that the rapporteur slipped in, on the grounds of a supposed breakdown in the 'legitimacy of decision-making' and the arrogance of 'rewriting' the 'social contract' by decree. . in this report, the commission is being asked to distribute information on the concept of parity democracy. the commission must not be allowed to respond to this call. parity democracy hinders the complete emancipation of women as citizens. parity democracy aims as a last resort to introduce electoral laws that specify that half the seats in elected bodies should be reserved for women and half for men. this boils down to 'sexual apartheid' and implies a contravention of the free and individual right to elect and be elected. parity democracy is based on the philosophy of differentiation and assumes that there are 'essential' differences between men and women. it is not the task of the commission to implement these one-sided, dangerous concepts. i share the opinion of the french philosopher elisabeth badinter that the state must not be allowed to reduce people to their sex. the commission must provide objective information on the effect of different legislative and other instruments. interestingly, the best results have in the past been achieved in countries in which political parties have taken the initiative themselves by putting more women on their candidate lists and where the dogma of (legally enforced) parity democracy has virtually no support. . as a liberal, i am always in favour of dialogue in parliament. that is what democracy is all about. and as rapporteur, i have always tried to be an honest, objective intermediary and maintain dialogue between the various european standpoints in the committee on development and cooperation and between the various organisations. right from the beginning i could see that there would be a problem. i have tried to defend a compromise in the committee on development and cooperation. one regulation with two chapters. i am sorry that this has ultimately turned out not to be the official point of view of parliament, but i will remain at your disposal. i have abstained from the because i want to be in a position to maintain the dialogue between all the institutional players involved in this issue, which is so very important for asia and latin america. we have only one aim: to accept a definitive regulation in the near future with consensus between the various standpoints. mr president, in view of the words of the rapporteur, mrs sanders-ten holte, who did not manage to have her point of view endorsed by the committee on development and cooperation, nor in plenary, she has recognised that she cannot share the conclusions or the result of the vote. i believe, mr president, that the most honest and reasonable thing for mrs sanders-ten holte to do would be to relinquish her responsibilities, since she cannot accept the opinion of plenary and since she has not been able to win the support of the committee on development and cooperation. we have voted against the sanders-ten holte report on would-be 'community cooperation with asian and latin american countries', except in the case of a few amendments concerning humanitarian aid in the hope that this will not disappear into the hands of corrupt local political leaders. in our view, the amount of this aid is derisory. it is enough to note - and this is something we denounce - that a pretended increase in aid to latin america entails a corresponding decrease in aid to asia. spread as thinly as this, such aid is quite incapable of offsetting the drastic consequences of the plundering that has always been engaged in, in these regions and in others, by large companies or european and north american financial establishments. by seizing raw materials at low prices, by carving out areas of influence for themselves or, again, by imposing their services at high prices, the rapacity of large european companies, wedded to that of their local friends, is the very source of the impoverishment of the populations of these continents. in recent years, this has even led to the collapse of several national economies on these two continents. that is because, far from eradicating poverty, all these economic trends in the european union serve, instead, only to increase it. . british labour meps had to vote against the amended report due to serious concerns about duplicating and complicating legislation, a reduction in resources for asia, and benchmarking. the parliament has an agreed position in favour of simpler rules and procedures, and it makes no sense for a technical, legal regulation to do the work of country strategy papers and national indicative programmes. creating two separate regulations will undermine the objective to streamline and clarify development policy programmes and, as the world's poorest region, transferring funds from asia to latin america cannot be justified. we could not support amendments 1 and 2 to split the regulation; 93 and 94 to reduce funding for asia and increase funding for latin america; 3, 18, 56 and 97 on benchmarks and a bi-regional solidarity fund for latin america (creating a cumbersome and wasteful extra layer of bureaucracy); or 18, 28, 29, 56, 57, 95, 96, and 99 which create a rigid framework for programmes intended for poverty reduction. it remains to be seen what the implication of today's vote will be in the commission and council. the result could be that we have not served the interests of either asia or latin america. . the purpose of eu aid is to fight poverty. the greatest proportion of the world's poor live in asia. it would therefore be a mistake to transfer eu funds from asia to latin america. furthermore, we believe that, as proposed by the commission too, a single regulation for asia and latin america with a separate chapter for each of the two regions would be a sound solution. this would help prevent bureaucratic red tape and duplication of effort. unfortunately, parliament today voted in favour of two regulations, which will lead to a long drawn-out process involving the council. for these reasons, we have voted against amendments 1 and 2, to the effect that the regulation should be split into two regulations; amendments 18, 56 and 97 concerning the creation of a solidarity fund for latin america; and amendments 93 and 94 about transferring financial resources from asia to latin america. . we agree in principle with the idea of providing more support for young people, but this commission proposal, showing a clearly federalist attitude, which is unacceptable, gives more or less sole priority to large organisations, many of them supranational, such as the european youth forum (eyf) and ngos in the field of youth. this is happening at a time when the involvement of young people is clearly geared towards youth movements on a national and local basis, which is totally ignored in the aid being granted. the so-called eyf is a body that is nothing but a sounding board for the eu: it is far-removed from the european youth movement and completely ignored by the millions of young people throughout europe. the proposal that has been tabled clearly demonstrates the eu's desire to confer legitimacy on its own youth policies, in which funding is only given to 'youth superstructures' in an artificial attempt to promote the non-existent participation of young people in eu policies and to contribute to stifling the critical spirit of young people and of the youth movement. consequently, even though the report makes some positive proposals, they are clearly inadequate given the serious problems facing young people today. . i fully share the rapporteur's surprise at the fact that the european commission only adopted this proposal at the end of may, thereby forcing the awarding of the first parts of the grants to the beneficiary organisations to be postponed. the budgetary allocation proposed for youth organisations, as the rapporteur also emphasises, must be increased, particularly as a result of enlargement. the demographic structure of developing countries and the need to stimulate the interest of their young people in european issues requires just such action. also to be praised is the suggestion to the commission to ensure that the funding programmes which have been announced and embarked on are properly implemented and, specifically, to reduce the number of applications which are rejected for purely technical or formal reasons. i supported this report and consequently voted in favour of it. . the commission white paper advocates the principle of public participation in defining and implementing policy, which is to be welcomed. nevertheless, the eu's broad policy guidelines are being implemented without and sometimes in opposition to the will of the people, particularly of young people. although the financial assistance that is proposed for education and training bodies proves that there is a desire to contribute to developing our education systems, it has an elitist vision, which is far removed from the problems facing young people today and does not match the needs of each member state's educational systems. the attempts to contribute financially to actions that will help to improve education and training conditions are, however, to be welcomed, especially if they take account of the seriousness of early school leaving in some countries, such as portugal, ongoing illiteracy, the need to end child labour and to promote education and training. also to be welcomed are the proposals for a debate on these issues and for the programme to be monitored by the member states. mr president, i wanted to speak briefly on the explanations of vote on the iivari report in order to thank mrs iivari and to declare that it was with much conviction that i voted in favour of this report, which has now clarified a number of points and created the conditions for the necessary means to be used, especially where the european bureau for lesser used languages and mercator are concerned; whilst, of course, the other issues in this report are close to my heart, this one is particularly so. i believe that this house has, recently, been consistent about this, and that it is taking the lead, and i hope that the commission, just as it has attempted to clarify these matters, will continue to do so by way of the languages action plan and will demonstrate in practice the further commitment that parliament has demanded. . this proposal is intended to establish a multiannual programme (2004-2008) for awarding grants to promote cultural organisations, in order to establish a legal base for existing grants, which were previously included in the commission's administrative expenditure. now, however, following changes to the financial regulation and rulings of the court of justice a legal base is required for these grants. this line must be approved so as to ensure that existing cultural organisations receive community funding, in particular the cistercian route line. it is a pity that the budget has fixed a total of only eur 30 million for the entire period. lastly, i welcome the rejection of the proposal for an amendment attempting, unacceptably, to give nazism and fascism equal standing. . as is to some extent implicit in the oostlander report on the 'action plan for the collection and analysis of community statistics in the field of migration' - on which we have also voted in this plenary session - what is here expressed quite explicitly is an initiative to create an instrument intended to achieve the communitarisation of a repressive migration policy, in line with the idea of 'fortress europe'. just look, for example, at the political interpretation made by the committee on foreign affairs, human rights, common security and defence policy: 'the creation of the immigration liaison officers' network can be considered as a step in the direction towards the establishment of a common external service of the eu .' as a matter of fact, the stated aim for the activities of 'immigration liaison officers' is, as the rapporteur points out, to combat illegal immigration - as the individuals responsible for implementing this policy in the countries in which this immigration originates, including the task of compiling ten categories of information that these officers will have to gather. the rapporteur states that, as regards the aim of 'contributing to the management of legal immigration', 'the form which this management might take is never spelled out elsewhere in the regulation'. hence our vote against the report. . i support the creation of a network of immigration liaison officers in order gradually to implement the coordinated and integrated management of our external borders. as the commission stated, close links already exist between immigration liaison officers, and the aim now is to ensure that this informal cooperation is placed within a framework that would strengthen it and increase its effectiveness. in this area, as in others, i believe it would be positive and useful to adopt instruments for coordination, with the aim of addressing issues that affect some or all of the member states. this applies specifically to the enhanced - and by this i mean more precise and more efficient - exchange of information between liaison officers, to a better definition of the type of information exchanged, to the nature of the channels of communication used for the purpose and to the time limits to be observed when a request for information is received. the proper training of such agents takes on particular importance, as the rapporteur points out, primarily because, according to the survey conducted by the commission amongst liaison officers, this is a for the creation of a genuine network. i have therefore voted in favour. mr president, i would like to talk about the way in which a temporary committee has finally been approved to investigate the effects and consequences of the unfortunate accident off the galician coasts. the group of the european people's party (christian democrats) and european democrats has made great efforts to prevent this committee from investigating everything that happened in the days preceding and during the unfortunate incident. we finally have the committee and i hope it can shed light on all of this. i would like to insist, however, on something: despite all the measures this parliament has wished to implement in the european union to prevent any similar accident, if today we had a case such as the we would run the same risk; because the was not entering or leaving any of the european union's ports: it was simply passing through our community waters, and we have not yet got to grips with this, that is to say, we have not taken any decision to control 'floating dustbins' - such as the - which sail through our waters on a daily basis, and this is a challenge which we still have before us and which we must deal with if we want to prevent unfortunate accidents such as the in the future. . setting up a temporary european parliament committee on improving safety at sea is the commitment that will enable us to overcome the hostility of our colleagues on the right to any initiative that would help to determine the causes of the major disaster that resulted from the shipwreck of the and to determine who was responsible. i refer specifically to the possibility of setting up a committee of inquiry, as we proposed. the creation of this temporary committee, which we welcome, is therefore the outcome of a long and persistent process of negotiation. we want the results of its work to make a real contribution to improving safety at sea, achieving the aims for which it was created, which are: - to study maritime disasters, in particular those of the and ; - to analyse their social and economic consequences, with regard in particular to fisheries, industry and tourism, as well as the environment and health; - to assess current international safety standards and the way in which these are applied; - to help to ensure implementation of the recommendations that have already been adopted by the ep and to complement them if necessary. in the ep's recommendations that must be implemented, i would highlight, amongst others, withdrawing single-hulled petrol tankers, increasing resources for inspections, appropriate training for seamen, increasing resources for emergency pollution control measures and setting up safe havens, equipped with emergency apparatus. basically, the june movement believes that suspects and defendants in criminal proceedings should enjoy the greatest possible legal certainty. the report deals, however, with a proposal from the commission intended as a further step in the slow development of a european legal area. the june movement is naturally unable to support such an initiative. the june movement has therefore voted in favour of all the points and amendments aimed at introducing minimum standards for suspects' and defendants' rights, but has voted against the report as a whole. . this recommendation should be seen in the context of the debate about the green paper on procedural safeguards, in particular of a proposal for a framework decision on common minimum standards governing procedural law, in which the rapporteur highlights various rights that need to be safeguarded and advocates including a non-regression clause for standards already established in each country's legislation - bringing these into line with the highest levels. it is regrettable and significant, however, that parliament has not adopted the proposals for amendment tabled by my group insisting on the 'entry into force of the framework decision on procedural safeguards being a precondition for the entry into force of the european arrest warrant and for the full implementation of the principle of the mutual recognition of final decisions in criminal matters in the european union'. as some of my fellow members have stated, it is hard to understand how, by not making the framework decision on procedural safeguards a precondition for the entry into force of the 'european arrest warrant' the rights to a defence will be safeguarded in this context. i would recall that we fully rejected the 'european arrest warrant', which is about to enter into force. . i have abstained because amendments 1 and 2 have been refused. we must bear in mind that the new reform of the spanish penal code, proposed by the pp and supported by the psoe, opens up the possibility of holding incommunicado for 13 days. lawyers will not have enough time to prepare the cases, and for basque political prisoners, an impediment will still remain to their being assisted from the time they are arrested, by lawyers they can trust. . setting common standards for all member states on respecting and protecting the individual rights of suspects, defendantsor those convicted in criminal proceedings, as the commission proposed in its green paper, would be useful. the laws must be understood and justice must be predictable and, as we know, an arbitrary approach will always result in unpredictable justice. furthermore, ignorance of the law is no excuse for not obeying it and does not benefit wrongdoers, who must know that criminal proceedings await them. this takes on even greater importance when the individual in question is a foreign citizen. i therefore agree with adopting common basic standards for procedural safeguards, which will increase the confidence both of the public in the judicial authorities and of the various agents of each member state in other states' judicial systems. what has really turned me against this report - in its final wording - is that it promotes standards that far exceed the 'minimum', for example, the register of translators, 'compensation' in the event of insolvency or the presence of a psychiatrist. in other words, i disagree with the recommendation for an extremely lengthy list of changes, which would ultimately lead to better safeguards for foreign citizens than for nationals. unfortunately, therefore, i could only vote against the report. . the opportunities provided by the information and communication technologies (ict) and the contribution they make to changes in society are self-evident. the aim of the information society is also effectively to provide information that is immediate and at prices that are feasible for all citizens. imbalances remain between men and women in the field of training and employment in the new ict and i therefore voted in favour of the report. - the european commission and the member states must draw up policies that will help to increase the participation of women in ict. - ict must be integrated into education from the most elementary levels to higher education and vocational training. - the structural funds must be used to provide courses for specific training in this field that will enable women to enter or re-enter the labour market. these measures must also be implemented in the candidate countries and in the developing countries in order to increase women's opportunities in the labour market, and to ensure that information is exchanged in various areas. . the decision to draw up an own-initiative report on promoting women's participation in what is known as the 'new information society' was a good one. i welcome in particular: - its condemnation of the policy for the development of new ict, which has largely been focused on economic aspects, and in which control is left mainly to the private sector, without any assessment of the social impact or proper incentives policies for equal rights of women and men. as the report states, this approach leads to the inappropriate perception of open participation to all. - its warning about the growing danger of social exclusion caused by the inability to use icts - so-called digital illiteracy - which mainly affects women. - the need to pay particular attention to women, particularly older women, unemployed and low-income women, migrant women, women belonging to ethnic minorities and women with disabilities. i do not agree, however, with the uncritical tone the report adopts towards the neoliberal policies advocated in the so-called 'lisbon strategy' and in the 'guidelines for employment', consequently sweeping under the carpet the main causes of inequality and social injustice, of which women are the main victims. . i have voted in favour of this report for the sole reason that i believe the european union must focus its policies on promoting everyone's access to the rights that legitimately pertain to them, in particular those relating to knowledge. in this context, women - and also men, incidentally - must not suffer discrimination. i regret the fact, however, that the text is unable to resist the temptation to indulge in feminist rhetoric and populism, in the guise of supposedly neutral language. because it is so keen to serve a radical agenda of ideas and language, it does not even realise how totally ridiculous it ends up being as a result of its pretentious commonplaces and plain stupidity. take the rapporteur's irony, for example - when she explicitly states her desire to combat stereotypes - but then suggests overcoming the social exclusion of 'girls and women - immigrants, women with disabilities, the poor, single mothers and women farmers', women belonging to ethnic minorities and the elderly, by providing role-models of 'successful, independent and satisfied women' in the field of information and communication technologies. can anyone take this seriously? i also share the concern the report expresses at linguistic diversity on the internet, and consider it to be a universal factor for social exclusion, although it needs to be said in this context that the situation is exactly the same for men as for women. better coordination of the member states' taxes on cars may appear necessary, but it must not be the opportunity to put a european tax system in place. taxation of passenger cars cannot be divorced from a general tax system involving vat, excise duties and income tax or corporation tax. it constitutes, moreover, an instrument of budget revenue and, as such, comes under the sovereignty of the member states. nor am i happy with the environmental approach chosen by the european commission. taxing passenger cars at european level, as proposed, seems inappropriate to me because, as a result of persistent lobbying, many sectors that cause a greater amount of pollution are not affected and because the structure of the automobile market is specific to each member state. there are, for example, small countries and large countries, flat countries and mountainous countries, countries with little in the way of road infrastructure and countries with long traditions of public transport. these are differences specific to each member state, and they cannot be levelled out all at once through the harmonised taxation of passenger cars. . mr president, it is important to eliminate the final obstacles to achieving the completely free movement of people, goods and services. i have therefore no hesitation in agreeing with the proposal of the european parliament to call on the commission to come up with a concrete proposal for abolishing registration taxes. the differences in the taxation of passenger cars in the eu are resulting in great differences in car prices, fragmentation of the passenger car market, double taxation and a whole heap of red tape. people in the eu pay too much for their cars and are prevented from taking their cars with them when they move to a different country. with this proposal, the eu has an opportunity to fundamentally improve the free movement of people. a chance we cannot afford to miss! . i supported mrs honeyball's report because i believe it demonstrates the european parliament's support for the commission so that this institution can open up a real debate in the council on the crucial harmonisation of tax in the automobile sector. this proactive attitude is what the vast majority of european citizens want because they associate the excessive red tape and high administrative costs, and also the fragmentation of the car market, with the difficulties in consolidating the internal market. i wish to add that the crucial environmental dimension, which is covered adequately in the reports, requires a new attitude to the taxation of cars. the honeyball report tackles the differences in taxation of passenger cars between one european union country and another, together with the resulting administrative and financial problems when people move to other countries. it advocates increasing the annual circulation tax rather than the registration tax and, above all, systematising the fight against pollution by applying principles of harmonised taxation. we do not feel at home with this method. of course, we are disgusted by the absurd and socially unjust development of urban organisation and of the transport system and by its effects upon the environment. it is, however, particularly hypocritical to cause wage earners who purchase cars, including the most ordinary ones, to bear the penalties for pollution. changing the transport system so that it is more efficient and less polluting means, in the first place, hugely extending public transport, drastically reducing the proportion of road transport by lorry in favour of less polluting and less dangerous forms of transport, and imposing stricter anti-pollution standards upon manufacturers. the change to the transport system should be funded from profits and from direct taxes that increase progressively on the basis of income. because we reject the dissipation of responsibilities proposed by this report, we abstained from voting on the latter. . although this report contains many positive ideas, i do have some difficulties with the excessively lengthy passages on environmental taxes. the 'polluter pays' principle is generally acknowledged, and has even been incorporated into the ec treaty, but the introduction of an environmental tax on fuel is highly controversial and should be dealt with at national level, as closely as possible to the public, so that there can be proper public debate. i can only advise against introducing it through the european bodies. in many member states, my own included, people have for the last few years heard about nothing other than tax increases planned or decided on by the eu. let me only remind you of the debates on the excise duty on alcoholic beverages, the plans to impose vat on postal services, the proposed abolition of the lower vat rates, the introduction - as part of the energy package - of minimal taxation on fuel, and so on. if introduced, the environmental tax that is being called for would have a catastrophic effect on the eu's image, especially at a time when various member states have announced referendums on the adoption of the european constitution. to introduce tax increases would be to play right into the hands of anti-eu populists and would be counter-productive in terms of our efforts to stimulate economic growth. . as the rapporteur quite rightly points out, as long ago as 1998, the european parliament declared itself in favour of strengthening the internal market in this field and fought to end double taxation - specifically through the registration tax (rt) - in support of the european commission proposal. the council has still not delivered an opinion. the council has not delivered an opinion despite the fact that most citizens agree on the need to establish more equitable conditions for car buying within the european union. look at portugal, for example, where one tax - the car tax, - makes the final selling price much higher than in other countries in the european union. the proposed links between levels of taxation and co2 emissions are to be praised, as is the much-desired closer harmonisation of market conditions and the observation the report makes that competition between member states in the field of taxation is reasonable and advantageous for strong economic development in the eu. furthermore, i must recall that this subject falls, objectively - see article 95(2) tec - outside the eu's sphere of action. since these ideas go considerably further than being simply recommendations, i decided to vote against the report. that concludes the explanations of vote.(1) i would like to get my thoughts on the discussion between mr salafranca and the rapporteur off my chest. i think that the rapporteur has behaved courageously, and that it is a pity that it is so difficult to bring about change in the european parliament. mr president, i would like to express my astonishment at the opinion expressed by the rapporteur, mrs sanders-ten holte, because although it is true that everybody exercises their votes as they can, as they wish or as they see fit, this report for which she has been rapporteur has been the subject of much debate in our committee on development and cooperation, and the vote today has been very clear; therefore, i believe her proposal that we must seek a solution to be inappropriate. i believe that the solution has been expressed by this parliament, through very clear votes, in favour of there being two separate regulations to eradicate poverty in asia and in latin america. i declare adjourned the session of the european parliament.