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Brochure published by the Swiss Bankers Association (SBA) to assist investor clients in making informed investment decisions and to enable them to compare different financial instruments.
INFORMATION RELATING TO THE FINANCIAL SERVICES ACT (FinSA)
The purpose of this document is to provide essential information on the Swiss Federal Financial Services Act (FinSA).
FinSA aims, on the one hand, to improve client protection, and on the other hand, to establish comparable conditions for the provision of financial services offered by different providers (banks, asset managers, etc.).
This document contains a presentation of Forward Capital SA (hereinafter “FWDC”), the manner in which FWDC classifies its clients, the services it offers, and the related protection measures.
Please note that the information provided is not exhaustive and may be updated in the future.
GENERAL INFORMATION ABOUT FWDC
Presentation
Founded in 2012, FWDC is a wealth manager and family office offering a wide range of tailored services related to wealth administration and investment management. It provides discretionary portfolio management, investment advisory, order execution and placement services, and family office services.
FWDC is a Swiss joint-stock company registered with the Commercial Register of the Canton of Geneva (IDE CHE-407.357.066), with its registered office in Geneva.
Contact:
Forward Capital SA
Quai du Rhône 8
1205 Geneva
Switzerland
Tel: +41 22 321 83 86
Supervisory regime
FWDC obtained authorization to operate as a portfolio manager from the Swiss Financial Market Supervisory Authority (FINMA, Laupenstrasse 27, 3003 Bern – +41 31 327 91 00 – ) in December 2022, in accordance with Art. 5, para. 1 of the Swiss Financial Institutions Act (FinIA).
FWDC is subject to the Supervisory Organization for Financial Intermediaries and Trustees (SO-FIT, rue Pedro-Meylan, 1208 Geneva – +41 22 700 73 20 – ) for prudential supervision, pursuant to Art. 61 paras. 1 and 2 FinIA.
SO-FIT monitors the compliance of its members’ activities to ensure adherence to legal provisions, authorization conditions, and the Swiss Code of Conduct for Independent Asset Managers. SO-FIT also acts as a self-regulatory organization under the Swiss Anti-Money Laundering Act (AMLA). SO-FIT itself is authorized and supervised by FINMA.
CLIENT CLASSIFICATION
Classification
As a financial service provider, FWDC is required to classify its clients into one of the following three categories: private clients, professional clients, or institutional clients.
- Institutional clients are state-supervised institutions such as banks, insurance companies, central banks, or similar foreign institutions.
- Professional clients include institutional clients as well as, among others, pension institutions, companies with professional treasury operations, and large companies.
- Private clients are all non-professional clients.
The level of regulatory protection associated with these categories may vary depending on the client’s knowledge and investment experience:
- Private clients benefit from the highest level of regulatory protection.
- Professional clients are deemed to have the necessary knowledge and experience to invest in all asset classes and to be financially able to bear the investment risks associated with the relevant financial service.
- Institutional clients benefit from the lowest level of regulatory protection.
Change of client category
Clients may declare in writing that they wish to change their category to one with a lower level of regulatory protection (opting-out) or, conversely, to a higher one (opting-in).
Private clients wishing to be classified as “professional clients” must submit their request via the form “Client Classification according to the Swiss Federal Financial Services Act (FinSA)”.
FINANCIAL SERVICES
Discretionary management mandate
By granting a discretionary management mandate, the client entrusts FWDC with the responsibility to manage the entrusted assets on a discretionary basis. This management is based on FWDC’s investment policy and follows the investment strategy chosen by the client, as well as any applicable restrictions. Transactions are carried out without prior notification to the client.
Advisory mandate
Under this mandate, FWDC provides investment recommendations with regard to the client’s portfolio and defined investment strategy. The client remains involved in the management of their assets, while benefiting from FWDC’s advice and retaining the final investment decision.
In addition, FWDC provides private clients with the required Key Information Document (KID) when such a document must be prepared for the recommended financial instrument.
Execution-only services
Services limited to the execution or transmission of orders (“execution only”) are intended for investors who wish to maintain full autonomy in managing their assets. FWDC does not provide investment advice under this service. The analysis of financial instruments and related risks is therefore the sole responsibility of the client.
Information on the absence of suitability and appropriateness checks:
In the case of an “execution only” service, the client is hereby informed that FWDC will neither verify the appropriateness nor the suitability of the transactions. FWDC will not reiterate this lack of verification in the future.
OTHER INFORMATION
Financial instruments and inherent risks
The main financial instruments and their associated risks are detailed in the brochure “Risks Inherent in Trading Financial Instruments” published by the Swiss Bankers Association (SBA).
This brochure also contains information on the risks associated with purchasing, selling, and holding financial instruments, as well as the obligation of banks to communicate information to issuers, other financial institutions, financial market infrastructures, or authorities involved in transaction processing.
Investment universe
For portfolio management or investment advisory, FWDC’s investment universe is based primarily on an open architecture model, characterized by the following key elements:
- Access to a wide range of financial products (equities, bonds, investment funds, structured products, etc.) covering the main asset classes and geographic regions.
- Selection of the best internal and external expertise.
Appropriateness and suitability assessment
Under FinSA, FWDC is required to carry out appropriateness and, in certain cases, suitability assessments.
Appropriateness assessment
In order to best serve the client’s interests, FWDC assesses the client’s knowledge and experience based on their classification. Prior to providing a financial service or entering into a discretionary management mandate, FWDC generally conducts an appropriateness and suitability assessment.
An instrument is considered appropriate if the client understands its functioning and is aware of the consequences of acquiring it. If the client does not possess sufficient knowledge or experience regarding certain financial instruments, FWDC informs them accordingly.
If FWDC concludes that a financial instrument is not appropriate for a client, it will duly inform them.
If the information provided by the client is insufficient to conduct the appropriateness assessment, the client will be informed prior to the execution of such a transaction and will bear sole responsibility in that case.
Suitability assessment
Before providing investment advice regarding a client’s portfolio or entering into/executing a discretionary management mandate, FWDC verifies whether the requested or recommended financial service and instruments are suitable for the client.
For this purpose, FWDC inquires about the client’s knowledge and experience, financial situation (including wealth, source and amount of regular income, and commitments), and investment objectives (including time horizon, investment goals, risk capacity and tolerance, and any investment restrictions).
One or more investment strategies are defined with the client, taking into account their knowledge and experience, personal investment objectives, and financial situation. These elements form the basis of the discretionary management or investment advisory mandate.
If FWDC concludes that a financial instrument is not suitable for a client, it will duly inform them.
If the information provided by the client is insufficient to conduct the suitability assessment, the client will be informed before the execution of a service or transaction and will bear sole responsibility in that case.
Order execution
FWDC provides a professional, fair, and transparent service based on the principle of best execution when the client buys or sells securities or other financial instruments.
FWDC transmits client orders to the custodian bank, which executes them upon receipt in accordance with its best execution principles. This principle also applies when the order is transmitted at FWDC’s initiative within the framework of a discretionary management mandate.
Costs, fees, and third-party compensation
FWDC charges fees for the services provided, generally calculated based on assets under management and/or performance.
Unless otherwise agreed, FWDC may receive and retain compensation from third parties—such as custody fees, administrative charges, brokerage fees, commissions, or remuneration related to the structuring of financial products—mainly from the custodian bank or fund/structured product providers. These amounts vary depending on the partners and the financial products used. More detailed information is available in management or advisory agreements.
Conflicts of interest
FWDC strives to identify, avoid, or mitigate conflicts of interest that may arise in connection with the services offered to clients. If the measures implemented cannot prevent a disadvantage for clients, or if the effort required to do so would be disproportionate, FWDC will appropriately disclose the conflict to the relevant clients.
Complaints
A complaint may be submitted at any time by mail to FWDC. It will be handled as quickly as possible in order to improve services.
Mediation body
If the client is not satisfied with FWDC’s response, they may initiate mediation proceedings before the following body:
OFD Ombudsstelle für Finanzdienstleister
Bleicherweg 10
8002 Zurich
+41 44 562 05 25
www.ofdl.ch
