Art. 106

(Art. 15 and 78 para. 3 CISA)

1. Units or unit classes of an open-ended collective investment scheme that are permanently listed on a Swiss stock exchange and for which at least one market maker in accordance with Article 41 letter c FinIA¹ensures that the value of the traded units or unit classes does not deviate significantly from the indicative net asset value are deemed to be exchange-traded funds (ETFs).
2. A collective investment scheme may only be designated as an ‘exchange-traded fund’ or ‘ETF’ if all units or unit classes are structured as ETFs.
3. The prospectus must contain the following information on ETFs in particular:
   1. information on the listing and indicative net asset value of the ETF and the market maker;
   2. information on where and how often the composition of the ETF's portfolio or its basket of securities is disclosed;
   3. a description of the ETF's trading on the primary and secondary markets and the associated risks;
   4. reference to the right of secondary market investors to redeem their units directly with the fund management company or the SICAV, stating the associated conditions and cost.
4. For ETFs that track an index, the prospectus must also contain information on:
   1. the index provider and the index being replicated;
   2. the replication method and the associated risks;
   3. the projected replication error under normal market conditions.
5. If the ETF is actively managed, this must be stated in the fund contract or in the investment regulations, in the prospectus, in the key information document and in the advertising. The details of the implementation of the investment policy must also be included in the prospectus.
6. If a collective investment scheme contains both ETF and non-ETF unit classes, then:
   1. the suffix ‘ETF’ must be used in the designation of unit classes structured as ETFs;
   2. the prospectus must disclose the details of the structuring of unit classes as ETFs, in particular with regard to their mode of operation, trading and other differences from the other unit classes, as well as the associated implications and risks for investors;
   3. it must be stated on the first page of the fund contract or investment regulations, the prospectus and the key information document, as well as in the advertising, that the collective investment scheme contains both ETF and non-ETF unit classes.