FinSA Disclosures

SWISS FINANCIAL SERVICES ACT DISCLOSURES

Financial Services Act (Finanzdienstleistungsgesetz)
Important Information for Clients of Viking Global Investors LP

Dear Clients,

On January 1, 2020, the Swiss Financial Services Act (Finanzdienstleistungsgesetz; “FinSA“) came into force. FinSA aims, on the one hand, to improve client protection and, on the other hand, to create a comparable regulatory framework for the provision of financial services within the meaning of FinSA (“Financial Services“) in Switzerland and for clients in Switzerland.

The purpose of this information brochure, the latest version of which can be obtained from [email protected], is to provide you with important information on Viking Global Investors LP (hereinafter referred to as “we”, the “Firm” or “Viking“) and the Financial Services provided by Viking.

For further information, or if you have any questions, please do not hesitate to contact [email protected].

1. General information on Viking and its Supervisory Status

The Firm is registered as an investment adviser with the U.S. Securities and Exchange Commission (“SEC”) under the U.S. Investment Advisers Act of 1940, as amended. Registration with the SEC or with any state securities authority does not imply a certain level of skill or training.  The information in these materials has not been approved or verified by the SEC or by any state securities authority.

2. Financial Services Provided by Viking

Currently, the Financial Services provided by the Firm for clients in Switzerland include the distribution of foreign collective investment schemes.

3. Client Categorization

We are required to assign our clients to a client category according to Art. 4 FinSA.  The client category is decisive for the level of investor protection applicable to the client relationship between us and the relevant client.  FinSA provides for the following three client categories

• Institutional clients (institutionelle Kunden) are generally financial intermediaries subject to prudential supervision under the Banking Act (BankA), the Financial Institutions Act (FinIA) and CISA, as well as insurance companies under the Insurance Supervision Act (ISA), foreign clients subject to such prudential supervision, central banks, and national and supranational public-law entities with professional treasury operations. Institutional clients enjoy the lowest level of protection provided by FinSA, as they are considered to have extensive experience, knowledge and expertise in the field of investments.
• Professional clients (professionelle Kunden) are clients which are deemed to have sufficient experience, knowledge and expertise to use Financial Services or to make their own investment decisions and properly assess the associated risks. Professional clients enjoy a higher level of protection than institutional clients, but to a lower level of protection than retail clients.
• Retail clients (Privatkunden) are clients who are not institutional or professional clients. The retail client category enjoys to the highest level of protection provided by FinSA.

Clients have the option of changing their client category, provided that the relevant legal requirements (see Art. 5 FinSA) are met.  Specifically, clients may declare that they:

• wish to be assigned to a lower client category – and accordingly enjoy a more comprehensive level of investor protection – (opting-in); or
• wish to be assigned to a higher client category – and accordingly enjoy a lower level of client protection – (opting-out).

Please note that we provide Financial Services in Switzerland exclusively for institutional clients and professional clients within the meaning of Art. 4 para. 3 and 4 FinSA, i.e., we do not provide Financial Services for other clients (even if they have opted out to professional client status in accordance with Art. 5 para. 1 FinSA or to institutional client status in accordance with Art. 5 para. 1 FinSA, respectively).

4. Information on Financial Instruments

Financial service providers must inform clients in particular on whether the market offering taken into account in the selection of financial instruments includes only their own financial instruments or also third-party financial instruments.

We only distribute collective investment schemes sponsored/managed/advised by us and/or our affiliates.

5. Risk Information

Transactions with financial instruments are associated with opportunities and risks. It is therefore important that clients are familiar with and understand these risks before using Financial Services.

The brochure “Risks Involved in Trading Financial Instruments” issued by the Swiss Bankers’ Association contains general information on typical financial services and on the characteristics and risks of financial instruments.  The risk brochure can be found here:

https://www.swissbanking.ch/en/downloads

6. Organizational Measures

• Conflicts of InterestAs a financial services provider, we are obliged to take appropriate organizational measures to prevent conflicts of interest that could arise in the context of the provision of Financial Services as far as possible, or to exclude any disadvantage for our clients where a conflict of interest cannot be completely prevented.Conflicts of interest within the meaning of FinSA are deemed to exist in particular if the financial service provider:
  • in breach of the principle of good faith and to the detriment of clients, can achieve a financial advantage for themselves or avoid a financial loss;
  • has an interest in the outcome of a financial service provided for clients which is inconsistent with the clients’ interest;
  • in the provision of Financial Services, has a financial or other incentive to place the interests of specific clients above those of other clients; or
  • in breach of the principle of good faith, accepts from a third party with regard to a Financial Service provided for the client an incentive in the form of financial or non-financial advantages or services.

  The respective organizational measures taken by us are described in relevant offering, governing and related documents of the funds we manage and further detailed in our Code of Ethics, which states, among other requirements, that employees must complete certain conflict of interest affirmations upon hiring and recertify them annually; employees must disclose any entity in which, or from which, they receive compensation, take an active role in management decisions, serve as an officer, director or general partner, or provide any advice about investments.

  If a disadvantage to clients cannot be effectively mitigated or can only be effectively mitigated out with disproportionate effort, we shall disclose this to the relevant clients.  Such disclosure shall be published through our website or in another appropriate manner.

• Economic TiesInsofar as any of our economic ties may lead to a conflict of interest in connection with the provision of a Financial Service, we shall disclose this to our clients in an appropriate manner.
• Compensation from Third PartiesWe may accept compensation from third parties in connection with the provision of Financial Services (such as brokerage fees, commissions, discounts or other financial benefits, as applicable), in which case we will pass such compensation on to our clients in full (to the extent required by law) as described under the offering and governing documents of the funds we manage unless we have expressly informed the relevant clients of such compensation in advance and the latter have waived such compensation. The information for the clients contains the type and scope of the compensation.  Where the amount cannot be determined in advance, we shall inform our clients of the calculation parameters and the ranges.  If so requested by the client, we shall disclose the amounts effectively received.

7. Ombudsman’s Office

We provide Financial Services in Switzerland exclusively for institutional clients and professional clients within the meaning of Art. 4 para. 3 and 4 FinSA, as a consequence of which we are exempt from the duty to affiliate to an ombudman’s office within the meaning of Art. 74 et seq. FinSA (Art. 77 FinSA).