The Ordinance stipulates in particular that, henceforth, securities savings is only permissible in the form of collective investments (ETF, funds or investment foundations). Investing directly in equities or bonds is thus prohibited by law. Extended investment possibilities, however, are expressly authorised. This means that the Foundation, or a third-party professional (distribution partner) acting on its instructions, has the obligation to inform and provide guidance to all holders of pension assets signing an “investment contract†with the Foundation. That includes, for example, pointing out the risks of specific investments and, in the case of individuals with limited capacity for risk or a short time horizon, recommending an investment account option. The obligation to inform and provide guidance is all the more imperative when use is made of extended investment possibilities.
Since the new ordinance was published, various steps have been taken by affected vested benefit foundations to point out its shortcomings and have it revised or revoked. Criticised first and foremost is the decision to impose collective investments in the area of vested benefits. However, the Federal Council has already assured the Social Committee of the National Council that, before the end of 2009, a report will be prepared re-examining the issue.