FinSA - Client Information
Based on the legal requirements of Art. 8 ff. of the Financial Services Act, we would like to supply you with this information sheet which provides an overview ofARX Capital AG (hereinafter referred to as the «Financial Institution») and its services.
A. Company Information
Address:
ARX Capital AG
Sihlstrasse 37
CH-8001 Zurich
Phone: +41 44 244 52 80
E-Mail: info@arxcapital.ch
Website: www.arxcapital.ch
The Financial Institution was established in December 2020.
Supervisory Authority and Audit Firm
With the new Financial Institutions Act (FinIA), financial institutions will require a license from FINMA to carry out their professional activities as portfolio managers. The Financial Institution already has the license from FINMA to perform the below services and is supervised by FINcontrol Suisse AG.
The Financial Institution is audited by audit firm Grant Thornton AG both from a regulatory and statutory obligations perspective. The addresses of FINcontrol Suisse AG and Grant Thornton AG are displayed herein below.
FINcontrol Suisse AG
General‐Guisan‐Strasse 6
CH-6300 Zug
Phone: +41 41 763 28 20
Email: info@fincontrol.ch
Website: www.fincontrol.ch
Grant Thornton AG
Claridenstrasse 35
P.O. Box
CH-8027 Zurich
Phone: +41 43 960 71 71
Email: info@ch.gt.com
Website: www.grantthornton.ch
Ombudsman
The Financial Institution is affiliated with the independent ombudsman FINOS, which is recognized by the Federal Department of Finance. Disputes concerning legal claims between the client and the financial services provider should be settled by an ombudsman's office, if possible, within the framework of a mediation procedure. The address of FINOS is stated below.
Finanzombudsstelle Schweiz (FINOS)
Talstrassse 20
CH-8001 Zurich
Phone: +41 44 552 08 00
Email: info@finos.ch
Website: www.finos.ch
B. Information on the offered financial services
The Financial Institution provides portfolio management, investment advisory and execution-only services to its clients. In the case of a transaction-based investment advisory mandate with the Financial Institution, a personal recommendation relating to individual financial instruments is provided to the client. The decision to buy or sell remains always ultimately with the client.
The Financial Institution does not guarantee any yield nor performance of investment activities. The investment activity can therefore lead to an appreciation or to a depreciation in value.
For detailed information on the material rights and obligations arising from a portfolio management or an investment advisory contract, please refer to the relevant contracts entered between the Financial Institution and their clients.
The Financial Institution has the necessary licenses to perform the above services.
C. Client Segmentation
Financial service providers are required to classify their clients into a client segmentation according to the law and adhere to the respective code-of-conduct.The Financial Services Act provides for «retail client», «professional client» and «institutional client» segments. For each client, a client classification is determined within the framework of the cooperation with the FinancialInstitution. Subject to certain conditions, the client may change the client classification by opting in or opting out.
D. Information on risks and costs
General risks associated with financial instruments transactions
The investment advisory and portfolio management services involve financial risks. The Financial Institution shall provide all clients with the «Risks Involved in Trading Financial Instruments» brochure prior to the execution of the contract.
This brochure can also be found at www.swissbanking.ch
Clients of the Financial Institution may contact their client advisor at any time if they have any further questions.
Risks associated with the offered services
For a description of the various risks that may arise from the investment strategy for clients’ assets, please refer to the relevant investment advisory or portfolio management agreements.
If unusual concentrations of risk within the client portfolio cannot be ruled out, the nature and extent of such concentration risks shall be disclosed to the client. Indicators of such unusual concentrations of risk are:
· A concentration of 10% or more in individual securities.
· A concentration of 20% or more in individual issuers.
Concentrations from collective investment schemes that are subject to regulatory risk diversification rules, such as UCITS funds and Swiss securities funds, are excluded. In the case of investment advice, the Financial Institution shall provide its retail clients with the basic information sheet of the recommended financial instrument.
Information on costs
A fee is charged for the services rendered, which is usually calculated on the assets under management and / or on a performance basis. For more detailed information, please refer to the relevant investment advisory or portfolio management agreements.
If it is not possible to determine the actual amount of remuneration or third-party services before the financial service is provided or the contract is concluded, the Financial Institution shall inform the client of the range of the respective remunerations, taking into account the different asset classes and financial instruments.
In the case of portfolio management and portfolio-based investment advice, if the exact amount of third-party remuneration cannot be determined in advance, the client shall be informed of the range of the expected remuneration in relation to the portfolio value and the agreed investment strategy.
E. Information about relationships with Third Parties
In connection with the financial services offered by the Financial Institution, economic ties may exist with third parties. The acceptance of payments from third parties as well as their treatment are regulated in detail and comprehensively in the respective Advisory or Portfolio Management Agreements.
F. Information on the market offer considered
The Financial Institution basically follows an «open universe approach» and tries to make the best possible choice for the client when selecting financial instruments. The Financial Institution's own collective investments can – where appropriate – be used in the portfolio management mandates or recommended as part of investment advice.
When the Financial Institution offers both its own and third-party financial instruments in its market offering, it shall take appropriate organisational measures, such as implementing a procedure for selecting financial instruments based on objective criteria customary in the industry. If the possibility of clients being disadvantaged cannot be excluded, the Financial Institution shall disclose this to its clients.
G. Appropriateness and suitability
Appropriateness test for transaction-based investment advice
In the case of transaction-based investment advice, the Financial Institution provides investment advice for individual transactions without taking into account the entire client portfolio.
In this case, the Financial Institution must ascertain the client's knowledge and experience before recommending financial instruments. In addition, before recommending financial instruments, it must be determined whether they are appropriate for the client.
In particular, the company must ensure that it is aware of the client's knowledge and experience in relation to each relevant investment category used in the financial service.
Suitability test for portfolio-based investment advice and portfolio management
When providing portfolio-based investment advice, the Financial Institution provides investment advice that takes into account the client portfolio. When providing portfolio management services, the Financial Institution must also take into account the entirety of the client portfolio it manages. In contrast to investment advice, it also makes the investment decision itself.
In both these cases, the Financial Institution must determine the financial circumstances and investment objectives as well as the knowledge and experience of the clients. In this context, the knowledge and experience relate to the financial service and not to the individual transactions.
The information gathered by the Financial Institution about the knowledge and experience of the clients must take account of the investment strategy, and the granularity of the survey must be adapted to the complexity and risk profile of the investment and the investment strategy. In particular, the Financial Institution must be certain about the knowledge and experience of the clients in relation to each relevant investment category used in the financial service.
