Hello,

I've just received an account opening contract from UBS and I'd like to check if these statements in that contract are 'standard':


1. General authorization for fiduciary investments

I hereby authorize UBS to use all or part of the funds available at a given time in my UBS account to make investments on a fiduciary basis in the name of UBS, but for my account and at my risk. UBS shall only make use of this authorization, once I have instructed them to do so. Should UBS not receive or not receive in time (i.e. at least five days before maturity of the investment concerned) other instructions from me, UBS may choose debtor, amount, currency and maturity at its discretion and is subject to any measures ordered by the country of the currency concerned and the country where the funds are invested. The authorization to re-invest shall remain in force even after my death or incapacity to act.

What does this mean? That the bank can use my money for a 'regular banking business'?


2. Creation of Pledge

(Applicable Swiss law utilizes only the German term 'Pfand' and makes no distinction between 'charge' or 'pledge'. Each time the word 'charge' or 'pledge' is mentioned in this document, it should be understood within the meaning of the German term 'Pfand'.)

I/We ____________ hereby charge/pledge, in accordance with the law and the conditions of UBS AG(herein after UBS) as set out below by way of security for all rights and claims (arising from loans, credits or other contractual obligations, including any pending obligations, e.g.rights of recourse), which UBS has or may have at any time against _____________
(herein after Debtor(s))
resulting from his/their business relationship with UBS, all securities together with future rights appertaining thereto such as bonus shares,warrants and subscription rights, etc.(including all periodic or other proceeds,in particular interest and coupons due or to become due),claims,titles to claims and participations, moneys, banknotes, precious metals and other valuables, uncertificated rights, particularly securities whose printing has been deferred, claims arising from securities lending, especially those relating to the return of the securities lent and to collateral provided by the borrower or any third party as well as balances held in Swiss francs or in foreign currency or their equivalent in Swiss francs which are now or may at any time in the future be held for my/our account by any head or branch office of UBS or in its name by third parties.

What does this mean???


Thanks for help..

this is the money you're intending to offshore in order to hide from your wife?

you're better off looking at Cayman or Panama. If the EU gets Switzerland to pony-up names at any point then you'd be SOL.

no I don't have a wife... you have probably mislead me with somebody else

I just want to be sure that the above statements from the contract are standart... any idea from somebody who's familiar with swiss bank account opening contracts?

Offtopic: and do you think that swisses would give up their bank secrecy law when their economy is based on banking? I think that when they'll do this there'll be billions flowing out of the country...

Such clauses could (but not must) appear in the contract. You should decide what investments you want done. Depending on that you authorize the Bank to perform those investments.

Suggest you discuss your investment needs with your Relationship Manager and let him/her explain these clauses with you. You can then get a contract that suits your needs.

A good guideline is to only invest in products and services you understand. If the contract is incomprehensible to you, then you should not sign it.