¹ This order sets out the criteria to be met in order for a person to be considered a financial intermediary within the meaning of s. 2, para. 3, LBA. It defines the requirements relating to the professional nature of financial intermediation.

² Not considered financial intermediation:

A.

Physical transportation or physical preservation of heritage values, subject to s. 6, para. 1, let. C;

B.

Debt collection;

C.

The transfer of heritage values as an ancillary benefit to a principal contractual benefit;

D.

The operation of pillar 3a foresight institutions by banking foundations or insurance;

E.

The activity carried on between the companies of a group;

F.

The activity of auxiliaries of financial intermediaries who are authorised or affiliated to a self-regulatory body in Switzerland, if they meet the following conditions:

1.

They must be carefully selected by the financial intermediary and subject to the instructions and controls of the latter,

2.

They are integrated into the organizational measures of the financial intermediary to prevent money laundering and the financing of terrorism under s. 8 LBA and receive initial training and continuing education in this field,

3.

They can act only on behalf of, and on behalf of, the financial intermediary,

4.

They must be paid through the financial intermediary and not by the end customer,

5.

They carry on the activity of transmitting funds or securities only for an authorized or affiliated financial intermediary,

6.

Entered into a written agreement with the financial intermediary on the above conditions.

¹ This Order applies to:

A.

Financial intermediaries who have their registered office in Switzerland, even if they provide their financial services only abroad;

B.

Branches of financial intermediaries headquartered abroad:

1.

Which are entered in the register of trade in Switzerland or which are de facto branches, and

2.

Who employ, in Switzerland, persons who, in a professional capacity, enter into business for financial intermediaries in Switzerland or from Switzerland or legally bind them.

² It does not apply to financial intermediaries who have their headquarters abroad, to carry out cross-border financial intermediation activities and to hire staff from abroad only temporarily for certain Operations.

(art. 2, para. 3, let. A, LBA)

Not considered to be credit transactions:

A.

The activity of the credit-taker;

B.

The granting of credits without remuneration in interest or other charges;

C.

The granting of credits between the partnership and the partner, where the partner has a stake of at least 10 % of the capital or voice in the partnership;

D.

The granting of credits between employer and employee, where the employer is required to make social contributions to employees participating in the credit relationship;

E.

Credit relationships between persons close to the art. 7, para. 5;

F.

The granting of credits, if it is incidental to another legal act;

G.

Operational leasing;

H.

Contingent liabilities to third parties;

I.

Financing of commercial transactions, where the reimbursement is not made by the counterparty.

(art. 2, para. 3, let. B, BA)

¹ There is service in the area of payment traffic in particular where the financial intermediary:

A.

On the terms of office of its counterparty, transfers liquid financial securities to a third party and takes physical possession of such securities, makes them credit on its own account or orders a transfer to the name and order of the counterparty;

B.

Issues or manages non-liquid means of payment used by the counterparty to pay third parties;

C.

Operates transfers of funds or values.

² Transfer of funds or values means the transfer of heritage values consisting of accepting cash, cheques or other payment instruments, and then paying the equivalent amount in cash or cash by means of a Transmission, transfer or other use of a payment or compensation system.

(art. 2, para. 3, let. C, LBA)

¹ In particular, there is a trading activity where the intermediary financial intermediary on behalf of a counterparty the purchase and sale of banknotes, coins, foreign currencies or precious metals, as well as exchange.

² Also considered as a trading activity are:

A.

Trade on its own account of current currency and bank notes;

B.

Trade on behalf of third parties involved in the stock exchange, as well as that which does not take place on the stock exchange, provided that the raw materials reach a degree of standardisation so high that they can be liquidated in Any time;

C.

Trading on their own account of precious metals.

³ The securities trade is considered to be a trading activity only when it is carried out by securities dealers within the meaning of the Bursary Act of 24 March 1995 ¹ .

⁴ The incidental exchange activity is not considered to be a trading activity.

(art. 2, para. 3, let. E to g, LBA)

¹ Also considered are financial intermediation:

A.

The management of securities and financial instruments for a counterparty;

B.

The execution, as an investment advisor, of isolated mandates on behalf of third parties;

C.

The conservation and, where appropriate, the management of securities for a counterparty;

D.

The activity of the organ of home societies.

² Corporations, corporations, institutions, foundations, trusts, trust companies and similar constructions, which do not carry on a business or manufacturing activity, or any other activity, are considered to be resident companies. Operating in the commercial form.

¹ A financial intermediary carries on business in professional capacity as soon as it:

A.

Produces a gross product of more than 20 000 francs during a calendar year;

B.

Establishes a business relationship that is not limited to a single activity with more than 20 co-contractors in a calendar year or has at least 20 such relationships in a calendar year;

C.

Has the power of unlimited duration on heritage values belonging to third parties whose amount exceeds 5 million francs at any given time;

D.

Conducts transactions with a total volume of more than 2 million francs during a calendar year.

² The inflow of heritage values and reinvestments within the same deposit shall not be taken into account in calculating the volume of transactions referred to in para. 1, let. D. For bilateral contracts, only the counterbenefit provided by the counterparty is taken into account.

³ The activity of financial intermediary exercised for institutions or persons under s. 2, para. 4, LBA is not considered in the assessment to determine whether the activity is performed on a professional or non-professional basis.

⁴ The activity of financial intermediary exercised for close relatives shall be taken into account for the purpose of assessing whether it is exercised in a professional capacity only if the gross proceeds of a calendar year are greater than 20 000 francs.

⁵ The following are considered close relatives:

A.

Direct online parents and allies;

B.

The collateral online parents to the third degree;

C.

Persons with whom the financial intermediary has entered into a marriage or registered partnership, even if there has been a subsequent divorce or judicial dissolution;

D.

The consistency of the estate to the close of the estate;

E.

The names and substitutes of the legatee within the meaning of s. 488 of the Civil Code ¹ .

¹ Credit transactions are performed on a professional basis:

A.

If such operations permit the production of a gross product of more than 250 000 francs during a calendar year, and

B.

If the volume of credits granted exceeds 5 million francs at any given time.

² In order to determine the gross proceeds of credit operations, account must be taken of all the entries of funds related to operations, after deduction of amounts for the repayment of the credit.

³ If a person simultaneously carries out credit operations and another financial intermediation activity, the two areas of activity must be examined independently of each other to determine whether they are exercised in a professional capacity. If the criteria are met in an area of activity, the activity is considered to be performed in a professional capacity in both areas.

The transfer of funds or values is always considered to be carried on in a professional capacity, subject to s. 7, para. 4.

For trading activity, the determining criterion is the gross profit instead of the gross proceeds referred to in s. 7, para. 1, let. A.

¹ Anyone who moves from a non-professional financial intermediary to an activity in a professional capacity must:

A.

Immediately comply with the obligations under s. 3 to 11 of the BA, and

B.

Within two months of the change of status, have obtained membership of a self-regulatory body or have applied for authorisation to carry on the activity in a professional capacity with the Federal Supervisory Authority Financial markets (FINMA).

² As long as they are not affiliated with a self-regulatory body or the authorisation has not been granted by FINMA, these financial intermediaries are prohibited:

A.

Conclude new financial intermediation cases;

B.

To carry out, within the framework of existing business relations, acts which are not absolutely necessary for the conservation of the heritage.

FINMA is authorized to adopt the implementing provisions of this order.

The Order of the Federal Financial Market Supervisory Authority of 20 August 2002 on the activity of financial intermediary exercised in a professional capacity within the meaning of the Money Laundering Act ¹ Is repealed.

This order shall enter into force on 1 ^Er January 2010.