Information regarding Financial Markets Infrastructure Act (FinfraG/FMIA)
For Clients holding an individual account: Your classification and obligation

Against the background of the increasing pressure and demand for a regulation in the trading in Over-the-Counter (OTC) and Exchange-Traded-Derivatives market, Switzerland issued in 2015 the Financial Market Infrastructure Act (“FinfraG/FMIA”) and its Ordinances, which came into force on 1 January 2016. The new legislation is the equivalent to the Dodd-Frank Act in the US and the European Market Infrastructure Regulation (EMIR) in the European Union.

Derivatives subject to FinfraG/FMIA are generally subject to the clearing, reporting, risk mitigation, and platform trading obligations. The exact nature of these FinfraG/FMIA obligations, which may apply, to derivative transactions concluded between you and Habib Bank AG Zurich (hereinafter the “Bank”) depends on your classification under FinfraG/FMIA. FinfraG/FMIA differentiates between the following categories of Counterparties: Large or Small Financial Counterparties or Large and Small Non-Financial Counterparties (please refer to the definitions in Appendix I for further interpretation). Please note that these obligations will apply to you even if you are domiciled in a non-Swiss jurisdiction. Natural persons are generally not subject to the FinfraG/FMIA.

In general, both, OTC Derivatives and Exchange-Traded-Derivatives are in scope of FinfraG/FMIA. The obligations under FinfraG/FMIA are the following:

• Risk Mitigation Measures in case certain Derivatives are not subject to clearing;
• Clearing obligation of certain Derivatives designated by the Swiss Financial Market Supervisory Authority (FINMA) as being subject to clearing;
• Platform Trading obligation of certain Derivatives designated by FINMA; and
• Trade Reporting obligation of certain Derivatives.

We consider you to be a Natural Person based on the information available to us. As a Natural Person you are generally not subject to FinfraG/FMIA and the related obligations, however we would like to draw your attention to the fact that the Bank will have the legal obligation to report trades in Derivatives subject to FinfraG/FMIA to a Trade Repository authorized or licensed by the Swiss FINMA.

Please be so kind to inform us at your earliest convenience if this classification is not correct and/or whenever your classification will change in the future. You are kindly requested to fill in in such a case the form “Counterparty Classification” (“Form”) to be signed by a signatory registered with us. The Form can be downloaded here:
>> Counterparty Classification

Please send the Form to Habib Bank AG Zurich, Attention: Account Opening Department, Weinbergstrasse 59, CH-8006 Zurich.

We recommend that you get professional advice in case you have any questions related to FinfraG/FMIA and your obligations.

Thank you very much for your appreciated cooperation.

Best regards,

Habib Bank AG Zurich

Appendix I: FinfraG - Notes and definitions (for Natural Persons)
Appendix II: Counterparty Classification Form