Art. 76

(Art. 26 para. 3 and 55 para. 1 let. a and b CISA)¹

1. Securities lending and repurchase agreements may only be used for the efficient management of the fund's assets. The custodian bank is liable for the proper, efficient settlement of securities lending and repurchase transactions.
2. Banks, brokers, insurance institutions and securities clearing organisations may be used as borrowers in the context of securities lending, provided they specialise in securities lending and furnish collateral which corresponds to the scope and risk of the proposed transactions. Repurchase transactions may be conducted under the same conditions with the institutions mentioned.
3. Securities lending and repurchase transactions are governed by a standardised framework agreement.
4. The fund contract or the investment regulations and the prospectus must contain the following information on securities lending and repurchase transactions:
   1. information on whether the collective investment scheme may enter into securities lending;
   2. information on whether the collective investment scheme may enter into repurchase transactions;
   3. the absolute or relative maximum limits for securities lending and repurchase transactions; and
   4. the risks associated with such transactions.²
5. The annual report and the semi-annual report of the collective investment scheme must contain the following information on the securities lending and repurchase transactions carried out by the fund management company or the SICAV for the account of the collective investment scheme:
   1. the value of securities lent and of repurchase transactions at the end of the financial year or at the end of the first half of the financial year;
   2. the amount of claims and liabilities arising from repurchase transactions;
   3. the annual or semi-annual average of the proportion of securities lent;
   4. the maximum proportion of securities lent as a maximum daily value;
   5. the distribution of gross income arising from securities lending and repurchase transactions between the fund management company and the investors (revenue split );
   6. the income from the reinvestment of the cash collateral received (cash collateral );
   7. the form of assets of the collateral provided by the collective investment scheme: segregated accounts or omnibus accounts.³