FINSA INFORMATION DISCLOSURE
The Financial Services Act (FinSA) aims to protect customers of financial service providers and to create comparable conditions for the provision of financial services, thereby strengthening the reputation and competitiveness of Switzerland as a financial centre.
Client advisors must have sufficient knowledge of the rules of conduct under FinSA and the specialist knowledge necessary for their work.
Based on the legal requirements from Art. 8 ff. FinSA, the following provides an overview of Aarbay Ltd and its services.
1. Company Information, Field of Activity, and Supervisory Status
Aarbay Ltd
Thunstrasse 23
3005 Bern
Aarbay provides investment advice in accordance with Art. 3 lit. c no. 4 FinSA. Aarbay’s advisors are registered in the Swiss advisor register via Regservices.ch, operated by BX Swiss AG.
2. Ombudsman
According to Art. 79 para. 1 FinSA, financial service providers must inform clients about the possibility of mediation proceedings at the Ombudsman Financial Service Providers (OFD). This information must be provided:
a) when entering into a business relationship;
b) when a legal claim by the client is rejected; and
c) at any time upon request.
Aarbay is registered with the OFD, a neutral body that can provide competent information and act as an independent mediator in disputes, helping to avoid costly and time-consuming legal proceedings.
Verein Ombudsstelle Finanzdienstleister (OFD)
Bleicherweg 10
8002 Zürich
www.ofdl.ch
3. Client Segmentation
FinSA requires financial service providers to assign clients to one of the following segments: private clients, professional clients, or institutional clients.
Based on Art. 4 para. 7 FinSA, Aarbay treats all clients as private clients, granting them the highest level of investor protection. Clients who meet the legal requirements may opt to be treated as professional clients, which provides access to a broader range of investment opportunities, more flexible portfolio management, and reduced regulatory formalities.
4. Financial Services Offered
Aarbay provides investment advice in accordance with FinSA. Investment advice may take one of two forms:
Transaction-based investment advice (Art. 11 FinSA):
Aarbay advises clients on individual financial instruments or transactions. An appropriateness assessment is performed to ensure the product or transaction is suitable based on the client’s knowledge and experience. The client retains full responsibility for the decision to execute any transaction.Portfolio-based investment advice (Art. 12 FinSA):
Aarbay provides advice in the context of the client’s overall portfolio. A suitability assessment is carried out, taking into account the client’s financial situation, investment objectives, risk tolerance, and experience with financial instruments. Recommendations are assessed for portfolio suitability and are tailored to the client’s overall investment strategy and goals.
While Aarbay itself does not provide discretionary portfolio management, it advises on portfolio management solutions carried out by FINMA-regulated third-party portfolio managers. In such cases, Aarbay typically acts as the investment strategy advisor, forming part of a trilateral agreement between the client, the portfolio manager, and Aarbay. Aarbay’s role is to ensure that the proposed investment strategy aligns with the client’s risk profile and investment objectives, while the portfolio manager executes the agreed strategy. The client’s assets are held in bank custody through a direct and separate agreement between the client and the custodian bank.
For pension solutions, the same setup applies. Aarbay itself does not provide discretionary portfolio management but advises on portfolio management solutions carried out by FINMA-regulated third-party portfolio managers. In such cases, Aarbay typically acts as the investment strategy advisor, forming part of a trilateral agreement between the client, the portfolio manager, and Aarbay. Additionally, a contractual relationship is established with a pension foundation. Aarbay’s role is to ensure that the proposed investment strategy aligns with the client’s risk profile and investment objectives, while the portfolio manager executes the agreed strategy.
5. Investment Risk Notice
When investing in financial products, clients should understand the risks associated with financial instruments, investment strategies, and services.
For more information, refer to the documents received when signing the contract and to the Swiss Bankers Association’s brochure: “Risks in Trading Financial Instruments” (link).
Key Risk Points:
Strategy and market risk:
Gains or losses depend on market developments and the chosen investment strategy. These risks are fully borne by the client.Product risk:
Financial instruments may fluctuate in value, potentially resulting in total loss. Specific product risks are outlined in the Swiss Bankers Association brochure.Information risk:
Aarbay’s recommendations rely on complete and accurate information from the client. Incorrect or incomplete information may result in unsuitable advice or strategies.Qualified investor risk (portfolio management):
Clients using portfolio management are generally considered qualified investors under the Collective Investment Schemes Act (CISA). This provides access to a wider range of investment products, some of which may be less regulated and involve additional risks (liquidity, transparency, or strategy-related risks).
Clients may follow Aarbay’s recommendations or choose a different strategy. If a client opts for a strategy that deviates from Aarbay’s advice, Aarbay explicitly warns of higher potential risks. Aarbay does not guarantee returns, and asset values may rise or fall.
6. Fees and Costs
Aarbay charges fees for its services, which may be fixed service-based fees for specific offerings or negotiated individually based on the client’s needs. For solutions where fees are calculated as a percentage of assets under advice, detailed information is provided in the relevant investment advisory or portfolio management contract. Information on service-based fees is available upon request.
7. Ties with Third Parties
Aarbay may have economic ties to third parties in connection with its financial services. Receipt and handling of third-party payments are disclosed in the corresponding contracts.
8. Market Offer Considered
Aarbay generally follows an “open architecture approach” to select the most suitable financial instruments for clients, aiming to provide the best possible choice.