Ordinance on the Supervision of Foundations

1. This regulation governs the governmental supervision of private foundations, insofar as such supervision is not exercised by the Central Swiss BVG and Foundation Supervisory Authority (ZBSA) according to the Concordat of April 19, 2004.

2. It does not apply to ecclesiastical foundations and family foundations.

1. The board of trustees registers the foundation with the Office of the Commercial Register and State Archives for enrollment. It submits the deed of foundation as well as the statutes and regulations in duplicate.

2. The Office of the Commercial Register and State Archives forwards one set of the foundation documents to the supervisory authority it considers competent. The authority confirms the assumption of supervision in writing.

3. If there are doubts about the competent supervisory authority, the office consults with the ZBSA. If the doubts cannot be resolved or if the supervisory authority deemed competent declines to assume supervision, the office submits the matter to the Cantonal Court for a decision.

1. The Supervisory Authority Reviews

a. the organization (Art. 83 Swiss Civil Code),

b. the use of assets (Art. 84 para. 2 and 84a Swiss Civil Code),

c. the investment of the foundation's assets according to the principles of sound capital investment, namely security, return, risk diversification, and liquidity,

d. the conformity of the statutes and regulations issued by the foundation board with the foundation deed,

e. applications from foundations for exemption from the obligation to appoint an auditor (Art. 83a para. 4 Swiss Civil Code).

2. It decides on amendments to documents of minor importance, particularly changes in the number of members of bodies, the representation of the foundation externally, the name, and the seat. Excepted are changes according to § 9.

1. To fulfill its duties, the supervisory authority takes the necessary measures. In particular, it may

a. issue directives,

b. order expert assessments,

c. inspect management and accounting at the foundation's headquarters,

d. annul or amend decisions made by the foundation's bodies,

e. admonish, warn, or dismiss foundation officers,

f. appoint a provisional administration,

g. request the establishment of an administrative guardianship (Art. 393 No. 4 Swiss Civil Code),

h. order enforcement measures pursuant to § 211 ff. of the Administrative Procedure Act of July 3, 1972.

2. The supervisory authority may, on its own initiative or upon notification from third parties, at any time demand information and the submission of relevant documents from the foundation's board.

1. The Board of Trustees shall submit the accounts to the supervisory authority annually within six months after the end of the financial year.

2. The following documents must be submitted

a. the annual financial statements (balance sheet and operating statement),

b. the report of the audit authority, if one has been appointed,

c. the report on the activities of the foundation,

d. the approval protocol of the Board of Trustees,

e. any additional documents and information requested by the supervisory authority.

3. If circumstances require, the supervisory authority may demand a report from a recognized auditing body.

1. The Foundation Board submits the application for amendment of the deed in writing and with justification in four copies to the competent supervisory authority.

2. The following documents must be attached to the application

a. the current foundation documents,

b. the resolution of the Foundation Board concerning the amendment,

c. the future applicable foundation documents.

1. The supervisory authority must be immediately informed about newly enacted or amended statutes and regulations, as well as the election of members of the bodies.

1. The ZBSA is responsible for the amendment of the organization or the purpose of a foundation (Art. 85, 86 para. 1 and 86a of the Civil Code) as well as for determining the unattainability of the purpose (Art. 88 para. 1 of the Civil Code).

1. Applications concerning the amendment or transformation of a foundation must be submitted to the ZBSA for a decision. Their decision has a constitutive effect.

2. The municipal council, acting as the supervisory authority, receives the application and submits it to the ZBSA with a proposal for a decision.

3. The decision is delivered to the board of trustees, the office of the commercial register and state archives, and the municipal council.

1. The supervisory authority charges a fee of CHF 100 to 4000 for supervisory activities, auditing of accounts, decisions, and other actions prompted by the foundation.

2. The amount of the fee is determined based on the workload, the foundation's assets, and the foundation's purpose.

3. In justified cases, the collection of the fee may be waived.

1. The Ordinance on the Supervision of Foundations of November 19, 1973, is repealed.

1. Accounting Report of Foundations Subject to Cantonal Supervision

a. For foundations where the fiscal year coincides with the calendar year, the report for the year 2001 shall be examined by the Office for Occupational Pensions and Foundation Supervision.

b. For foundations where the fiscal year does not coincide with the calendar year and ends or has ended during the course of the year 2001, the report shall be examined by the previously responsible Government Commissioner or by the previously responsible Government Commissioner.

2. The new law applies to accounting audit procedures that are pending as of January 1, 2002.

1. The regulation shall enter into force on January 1, 2002. It is to be published.