1. General Provisions
1.1. Scope
These Terms and Conditions for Investment Management Mandates (“Investment Management T&Cs”) between radicant bank ag, Mühlebachstrasse 162-164, 8008 Zurich, Switzerland (“radicant”) and You as the client (“You”) shall apply to Your investment activities pursuant to these T&Cs, Custody Accounts T&Cs and Product Information for radicant Investment Management Mandates (“Product Information”).
By electronically signing these Investment Management T&Cs, You confirm and instruct radicant to manage all assets held under one or more custody accounts designated to Investment Management Mandates (“Mandate”) pursuant to the Custody Accounts T&Cs, Investment Management T&Cs, and Product Information together considered as the “Agreement”, as well as the investment strategy selected by You as set out in the Confirmation Investment Management Mandates (“Confirmation”), in accordance with the Portfolio Management Guidelines of the Swiss Bankers Association in their current valid version.
These Investment Management Mandates T&Cs apply and are to be considered in conjunction with the Banking Services T&Cs, where the general provisions governing the entirety of Your contractual relationship with radicant can be found.
1.2. Investment Mandate
With a Mandate, You delegate the investment decision to radicant. This means that radicant will have complete discretion to buy and sell financial instruments on Your behalf within Your portfolio without consulting You.
radicant will recommend an investment strategy that fits to Your risk profile. The allocation of Your portfolio will be influenced by the choice of building blocks You have made to populate the pre-determined asset allocation.
radicant is authorized to:
- invest the portfolio assets in all available standard financial instruments (monetary and capital market investments in the form of certificated and uncertificated securities (e.g., shares, bonds, notes), as well as own or third-party investment funds and other collective instruments, including radicant in-house funds. radicant may also invest in non-traditional investments (hedge funds, private equity, structured products, bank internal special assets) and instruments derived therefrom or made up of combinations thereof;
- modify existing investments at any time and repeatedly if necessary, to take decisions with regard to the exercising of ancillary rights, to serve notice on, collect and reinvest deposits, to decide on taking measures in relation to the hedging of price, exchange rate and interest rate risks, to provide the margins and collateral required for investments and transactions, to buy and sell, over the counter or via an exchange, certificated and uncertificated securities, i.e. to perform all legal acts deemed necessary, practicable or appropriate at the sole discretion of radicant to implement the investment strategy agreed with You;
- open additional or close existing accounts on Your behalf if radicant considers this to be appropriate for managing Your investments. Such activities do not result in any charges.
1.3. Qualified investor
By signing these Investment Management T&Cs, You accept to be treated as qualified investor pursuant to Art. 10 para. 3 of the Collective Investment Schemes Act (CISA). According to Art. 10 (3) CISA, retail clients are classified as qualified investors for whom a financial intermediary performs discretionary investment management or investment advice as part of a mandate that is created on a permanent basis.
You are aware that as a qualified investor, You have access to investment instruments or unit classes of investment instruments which are exclusively open to qualified investors within the meaning of the CISA. These investment instruments may be exempt from certain investor protection regulations. You hereby acknowledge that if You do not wish to be considered a qualified investor, You are obliged to inform radicant immediately. In that case, radicant reserves the right to terminate the Agreement as the services under the Agreement are intended for qualified investors.
1.4. Fees
radicant will charge You a fee per annum for each discretionary mandate, calculated on the investment volume of the assets managed by radicant under the Agreement. The applicable fee will be displayed in the radicant app when concluding the Agreement and on www.radicant.com.
radicant reserves the right to make any changes and adjustments to the fees. You will be duly notified of any changes. If You do not object to the changes within 30 days from receiving the information, the changes will be deemed accepted.
1.5. Third-party remuneration
In connection with the provision of financial services (e.g., based on distribution or other agreements with third parties) radicant may receive brokerage fees, commissions, discounts, or other pecuniary benefits (third-party compensation). If there is an ongoing business relationship between You and radicant, radicant will pass on such third-party compensation in full to You.
1.6. Delegation and involvement of third parties
radicant may outsource, in full or in part, certain business areas to qualified third parties and may procure external services in- or outside of Switzerland. Such outsourcing may concern IT, back- and middle office functions such as research, funds services, portfolio management services, investment advisory services (incl. sub-advisory services).
Such outsourcing may result in the transfer of data related to the business relationship with You to third parties.
You acknowledge and hereby agree that radicant shall disclose and share Your information with such third parties for the purpose of providing the services within these Investment Management Mandate T&Cs.
1.7. Commencement and Termination
The Agreement shall enter into force as soon as You have digitally signed these Investment Management T&Cs and the Confirmation has been provided to You. The Agreement is concluded for an indefinite time, either party may terminate the Agreement at any time, taking in account the timeframe required for settlement of assets and accounts.
All provisions of the Agreement shall remain in force notwithstanding any changes in Your investment strategy. By closing Your portfolio, the Agreement between You and radicant ends together with the management of Your investments. radicant will liquidate all assets within Your portfolio and transfer the proceeds of liquidation, subject to deduction of expenses, to Your radicant bank account. The process may take a certain period of time.
Termination does not result in the non-performance of transactions already in progress. You assume responsibility for such transactions. You are aware and accept that selling certain instruments premature might result in a lower proceed of sales.
Termination of the Agreement simultaneously results in the invalidity of the Confirmation.
The Agreement remains in force in the event of Your disappearance, incapacity, bankruptcy, or death. radicant is entitled to terminate the Agreement with the consequences set out in this clause as soon as it becomes aware of such events.
1.8. Other provisions
If one or several provisions of this Agreement would be invalid, incomplete, or void, this shall not affect the validity of its remaining provisions. In place of the invalid/void provision, such a provision that comes closest to the purpose intended by the invalid/void provision shall take effect. This shall also apply to fill any gaps in the Agreement.
The following documents form an integral part of this Agreement:
- Terms and Conditions Banking Services
- radicant Basic Agreement
- Terms and Conditions for Custody Accounts
- Product information radicant Investment Management Mandates
- Confirmation Investment Management Mandate
- Risks involved in Trading Financial Instruments
This Agreement shall supersede and replace all prior agreements and understandings, oral or written, between You and radicant concerning Mandates.
2. Risks
radicant may change asset weightings at any time in line with market conditions.
You have been informed and You accept that:
- no assurance can be given on positive performance of Your investments, irrespective of past performance. The value of Your investments may rise or fall (e.g., price, interest rate and exchange rate fluctuations) and may be affected by unpredictable future developments in financial markets.
- no assurance can be given that the capital invested will be preserved and Your personal investment objectives will be achieved.
You confirm that You have received, acknowledged, and understood the Swiss Bankers Association brochure “Risks involved in Trading Financial Instruments”.
2.1. Risk profile
radicant performs Investment Management Mandate Services based on Your individual risk profile, consisting of Your risk capacity and risk tolerance. According to Art. 12 FinSA, radicant is obliged to inquire about Your financial situation and investment objectives as well as Your knowledge and experience relating to the financial service requested. Both risk capacity and risk tolerance are assessed based on the personal and financial information You submit during the investment onboarding process via the radicant app.
You confirm that all financial and personal information You have provided to radicant is correct, complete, and truthful and You are aware and accept that radicant is not obliged to make any further verification in this regard. You explicitly accept that radicant will be unable or only able to a limited extent to provide all or part of its services under these Investment Management T&Cs if Your risk profile has been created based on incorrect information.
2.2. Update information and change of risk profile
You are obliged to immediately update Your information via the radicant app in case of changes in Your personal or financial circumstances (e.g., residence, name, tax residency), including but not limited to any changes in terms of investment objectives, risk capacity and risk tolerance, as Your risk profile may be impacted by the updated information.
radicant may request You to reassess Your risk profile from time to time in order to match Your financial assets with Your current risk capacity and risk tolerance.
radicant will adjust Your risk profile and recommend a new suitable investment strategy, accordingly, where applicable.
You are entitled to keep the previous strategy or accept the new recommended investment strategy. When selecting the new strategy recommended by radicant, You shall receive an updated Confirmation. Your portfolio will be rebalanced accordingly.
3. Investments and portfolios
3.1. Investment strategy, investment policy and reference currency
radicant recommends a suitable investment strategy based on Your risk profile. You are entitled to select a different investment strategy You prefer, even if the selected strategy is not in line with the risk profile calculated by radicant. You are entitled to select an investment strategy that deviates from radicant’s recommendation at any time. radicant monitors Your portfolio under the Mandate to ensure adherence to the agreed investment strategy.
The composition of the managed portfolio may deviate from Your selected investment strategy for a certain period when rebalancing activities commence, model portfolios are amended, or assets are withdrawn or funded.
If You choose an investment strategy that deviates from Your risk profile, You accept the associated investment risks, especially when the investment strategy selected involves a higher risk than the recommended investment strategy. You confirm that You have been informed, understand, and accept the increased risks involved.
radicant allows You to switch Your existing strategy in the radicant app at any time. Every change of the investment strategy will lead to a new Confirmation. Additional charges might apply.
By selecting one of the investment strategies illustrated in the Product Information, You agree to the implementation of this investment strategy in accordance with the radicant investment policy currently in force. The reference currencies for Mandates are specified in the Product Information. The selected reference currency will be documented in the Confirmation.
You confirm that You have taken note of the description of the investment strategies prior to selecting Your investment strategy.
radicant reserves the right to change the Product Information at any time. You will be informed about any changes in appropriate manner.
3.2. Investment Instructions
You can digitally access Your Mandate in the radicant app. You cannot give any other investment instructions than selecting an investment strategy. radicant carries out the investment in appropriate financial instruments on a discretionary basis (e.g., radicant selects the investment instruments and the respective weightings). This ensures that the investment strategy selected by You is adhered to in accordance with the Product Information. You acknowledge and accept that radicant, at its own discretion, checks whether the selected investment strategy will be implemented.
You remain invested in accordance with the selected investment strategy until You instruct radicant to disregard the respective investment strategy or one of the following events occurs: (i) radicant decides to no longer carry out the investment strategy, (ii) radicant revises its risk assessment of the investment strategy based on current market conditions, as a result of which the investment strategy no longer matches Your risk profile, (iii) the portfolio allocation no longer conforms to the selected investment strategy due to market movements, (iv) You change Your chosen investment strategy and the original investment strategy is no longer suitable for the new investment strategy, or (v) radicant decides on other grounds that the investments made based on the original investment strategy are no longer consistent with Your selected investment strategy.
3.3. Minimum investment
For entering into a Mandate with radicant a minimum investment will be required. The applicable minimum investment amount will be displayed in the radicant app when concluding the Agreement.
radicant reserves the right to change the minimum investment amount at any time, any changes will be displayed in the radicant app. You will not be required to top-up Your existing portfolios if the minimum investment amount is changed, or the value of Your portfolio drops below the required minimum investment amount.
3.4. Funding and Withdrawal
You can fund Your new or existing portfolio by electronic transfer from Your bank account at any time as well as withdraw money from Your portfolio. In case of withdrawal, radicant will sell assets within Your portfolio, according to the agreed investment strategy, to collect and transfer the requested amount to Your radicant bank account. Your portfolio will be rebalanced accordingly.
The withdrawal of money from Your portfolio must not exceed the amount required for the minimum investment. In case You wish to withdraw money exceeding the minimum investment amount, You are entitled to close Your portfolio at Your convenience in accordance with Clause 1.7. Commencement and Termination.
3.5. Opening and managing more than one portfolio
Under the Investment Management Mandate Services provided by radicant, You have the opportunity to open one or more portfolios. Each portfolio requires a related investment and custody account to be opened.
The provisions of the Agreement shall apply to all portfolios. A Confirmation will be issued for any portfolio You open.
All actions to fund, close and withdraw money are allowed for any portfolio held within Your radicant banking relationship as each portfolio performs independently.
3.6. Notification and reports
radicant provides You with a report containing information on the status of Your portfolio in the reporting currency as of the report date for tax purposes annually or more frequently. The performance of Your portfolio and current asset allocation can be reviewed in the radicant app at any time.
4. Conflicts of interest
radicant undertakes a number of activities and provides a number of services encompassing a potential risk that a conflict of interest arises. It is important to radicant to comply with all relevant laws, regulations, and policies to maintain and strengthen for integrity, fair dealing and measured risk taking. Therefore, radicant has implemented a broad range of organizational measures to identify, avoid and mitigate conflicts of interest.
If the mentioned measures cannot prevent disadvantages for You, or only with a disproportionate amount of effort, radicant will disclose the conflict of interests in an adequate manner. radicant will inform You of the circumstances behind the conflict of interest, the resulting risk for You and the precautions taken by radicant to reduce the risks.
5. Liability
In accordance with the diligence required for an Investment Management Mandate, radicant is liable only if it has not complied with the provisions of the Agreement, the Confirmation, and the investment strategy You selected.
radicant is liable for intentional and grossly negligent conduct, for direct damages occurred to You as a direct result of radicant’s actions, but not for indirect or consequential damages. radicant assumes no responsibility for the achievement of a certain performance or development of Your investments. No assurance can be given on positive performance, irrespective of past performance of Your investments. The value of Your investments may rise or fall (e.g., price, interest rate and exchange rate fluctuations) and may be affected by unpredictable future developments in financial markets.
radicant is not responsible for the economic success of an agreed investment strategy and/or investment policy, nor for tax or legal effects of investing in financial investments.
You undertake to provide the necessary assistance if radicant makes a claim against a third party or if a third party makes a claim against radicant in connection with the services provided to You by radicant.
radicant does not provide tax or legal advice. In particular, radicant has no obligation to review the tax and legal implications of the implementation of the investment strategy.
August 2023