Legal Notices

This information sheet fulfills the information requirements according to the Swiss Financial Services Act (FinSA) and is intended to give you, the client (hereinafter referred to as the “Client”) an overview of Dara Capital AG (hereinafter referred to as “Dara”) and their financial services.

Company Information

Dara Capital Ltd.
Bleicherweg 18
CH-8002 Zurich
+41 44 787 02 50
www.daracapital.com

Supervisory status, competent authority and supervisory organization

Dara is a member of SAAM (Swiss Association of Asset Managers) and is affiliated with the self-regulatory Swiss supervision organization AOOS (SRO AOOS).

Dara is currently in the process of applying for a license under the new provision of Article 5 Paragraph 1 of the Financial Institutions Act from the Swiss Financial Market Supervisory Authority FINMA, and to be supervised by the Swiss supervision organization AOOS (SO AOOS).

Field of activity

Dara is headquartered in Zurich and has a subsidiary (Dara Capital US, Inc.) based in Miami, which is registered with the United States Securities and Exchange Commission (“SEC”) as an investment advisor. Dara provides exclusive, tailor-made investment and asset management solutions for wealthy individuals, companies, family offices and trusts. Dara offers a fully comprehensive asset management service, as well as an investment advisory only service.

Professional secrecy

Dara is subject to professional secrecy in accordance with the Financial Institutions Act.

Client segmentation

Client segmentation in accordance with the Financial Services Act (FinSA) serves to ensure a level of protection most suited to the Client. According to FinSA Art. 4 a client can be classified as a private, professional or institutional client. Each of these client segments is subject to different protection regulations.

Wealthy private clients and private investment structures set up for them can declare that they want to be considered professional clients (“opting out” of the private client status protection). Professional clients can declare that they want to be considered private clients (“opting-in”). Institutional clients may only state that they alternatively wish to be considered professional clients.

Dara is legally obliged to assign the Client to a client segment, taking the statutory provisions into account. Unless otherwise stated in writing, Dara’s Client is treated as a private Client within the definition of FinSA.

Classification according to the Collective Investment Schemes Act (CISA)

 Under FinSA, if the Client has a asset management or investment advisory agreement, the Client is considered to be a qualified investor according to CISA, unless it does not want to be regarded as such. The qualified investor waiver, however, is not possible in the context of the Dara business relationship.

 

Information on the financial service offered

When selecting financial instruments for the Client, Dara will take into account what is currently available in the market, focusing solely on third-party financial instruments. As part of Dara’s asset management and investment advisory services, the following financial instruments are available to the Client:

  • listed stocks;
  • debt securities;
  • participation in capital investments;
  • hybrid and structured products;
  • derivatives;
  • alternative investments, including hedge funds, private equity funds, private debt funds, unlisted shares, unlisted debt, etc.

Type, characteristics and functionality of the financial service

With a discretionary asset management agreement, Dara manages assets that the Client has deposited with a custodian bank in the name, for the account and at the risk of the Client. Dara carries out transactions at its own discretion and without consulting the Client. Dara ensures that the transaction carried out corresponds to the financial circumstances and investment goals of the Client as well as the investment strategy agreed with the Client and ensures that the portfolio structure is suitable for the Client.

With an investment advisory agreement, Dara advises the Client on transactions with financial instruments, taking into account the portfolio content. For this purpose, Dara ensures that the recommended transaction corresponds to the financial circumstances and investment objectives (suitability test) as well as the needs of the Client, and within the parameters of the investment strategy agreed with the Client. The Client decides himself to what extent he would like to follow Dara’s recommendation.

Rights and duties

In asset management, Dara selects investments in the portfolio with due care within the scope of the current market taken into account. Dara ensures an appropriate distribution of risk as far as the investment strategy allows. Dara regularly monitors the assets it manages and ensures that the investments match the investment strategy agreed in the investment profile and are suitable for the Client. Dara informs the Client regularly about the asset management performance.

Risks

In asset management and investment advisory services, the following risks may arise, amongst others, which are in the Client’s risk sphere and are thus borne by the Client:

  • Risk of the chosen investment strategy: the investment strategy chosen and agreed by the Client can result in different risks (see below). The Client bears these risks in full. A description of the risks and a corresponding risk explanation take place before the investment strategy is agreed.
  • Substance maintenance risk respectively the risk that the financial instruments in the portfolio lose value: this risk, which can vary depending on the financial instrument, is borne in full by the Client. For information on the risks associated with the individual financial instruments, please refer to the brochure entitled “Risks in Trading Financial Instruments” from the Swiss Bankers Association available on the Internet at swissbanking.org.
  • Information risk on the part of Dara in particular the risk that Dara does not have enough information to be able to make a well-founded investment decision or to be able to make a suitable recommendation: In asset management, Dara takes into account the financial circumstances and investment goals of the Client (suitability test) as well as the needs of the Client Investment advice. If the Client provides Dara with inadequate or inaccurate information about his financial circumstances and / or investment goals or needs, there is a risk that Dara will not be able to make investment decisions that are suitable for the Client or not be able to advise them appropriately.
  • Risk as a qualified investor in collective investment schemes: collective investment schemes for qualified investors can be exempt from regulatory requirements. Such financial instruments are therefore not or only partially subject to Swiss regulations. This can result in risks, in particular due to liquidity, investment strategy or transparency. Detailed information on the risk profile of a specific collective investment scheme can be found in the constituent documents of the financial instrument and, if applicable, in the key information sheet and prospectus.
  • Risk regarding timing when placing an order: notably the risk that, following a consultation, the Client will place a buy or sell order within the comprehensive investment advice too late, which may lead to price losses: The recommendations made by Dara are based on the market data available at the time of the advice and are only valid for a short period of time due to the market fluctuation.

Information about conflicts of interest

Dara seeks to act to the best of its knowledge and belief, in the interests of the Client and not to put its interests ahead of those of the Client. If a disadvantageous situation for the Client cannot be ruled out or should an unforeseen conflict of interest arise, it will be immediately discussed with the Client.

Information on costs

 Information about the costs and fees of Dara’s financial services are provided separately in the respective annex to the financial services agreement.

Should an intermediary have referred a Client to Dara, they may receive a portion of the management or advisory fee.

Dormant assets

Should contact to the Client be lost and the assets subsequently become dormant, such assets may be permanently forgotten by the Client and its heirs. The following is recommended to avoid losing contact or becoming dormant:

  • Changes in address or name: Please notify us immediately in the event of a change of residence, address or name.
  • Special Instructions: Please provide information about longer absences and any redirection of correspondence to a third-party address as well as availability in urgent cases during this time.
  • Granting powers of attorney: It may be advisable to designate an authorized person whom Dara can approach in the event of a loss of contact.
  • Guidance from persons of trust and will or testamentary provision: Another way of avoiding a loss of contact or absence of news is that a person you trust is informed about the relationship with Dara. However, Dara may only provide information to such a person of trust if this person has been authorized in writing to do so. Furthermore, the affected assets can be mentioned, for example, in a will or testament.

Further information can also be found in the brochure “Dormant Assets” from the Swiss Bankers Association. The brochure is available on the Internet at www.swissbanking.org.

Issuance of documents

The Client is entitled at any time to receive a copy of its dossier and all other documents relating to it that Dara has created in the course of the business relationship. The documents will be sent to the Client generally free of charge within 30 days of receipt of the request. 

Ombudsman

Client satisfaction is Dara’s highest priority. Should Dara nevertheless reject a legal claim by the Client, the Client can initiate a mediation procedure through the ombudsman. In this case, the Client should contact:

OFS Ombud Finance Switzerland
10 rue du Conseil Général
CH-1205 Geneva

+41 22 808 04 51
contact@ombudfinance.ch
www.ombudfinance.ch