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The annual and semiannual financial statements of issuers whose equity securities have a
primary listing on SIX Swiss Exchange lie within
the scope of the enforcement activities of SIX Exchange Regulation in terms of their compliance with the
requirements governing financial reporting. As a part of this, issuers are obligated in keeping with
their duties
(Art. 6) to make available to SIX Exchange Regulation all information and documentation necessary for an
assessment of the actual circumstances and verification of compliance with the applicable rules.
SIX Exchange Regulation's selection
of the annual and semiannual financial reports to be reviewed is made in a risk-oriented manner and is supplemented
by random sampling. The intent is to ensure that the financial reporting of a given issuer is subjected to a
review by SIX Exchange Regulation every five years (for main standard) resp. ten years (for other standards).
The actual review of
the selected financial statements is also conducted in a risk-oriented manner and is limited to specific areas
and areas of focus. If this review gives SIX Exchange Regulation no cause
to suspect any potential violations of the applicable financial reporting requirements, the issuer will be
notified of that fact by means of a "Direct Comment Letter".
However, if the financial statements give rise to suspicion that the financial reporting
requirements may have been violated, SIX Exchange Regulation - within the framework of a
preliminary investigation - will request that the issuer state its position on the matter.
Should the issuer's response not confirm the suspicion of a violation that justifies a sanction,
SIX Exchange Regulation will issue a "Comment Letter" containing recommendations and the
improvements expected in the financial statements published for the next reporting period.
If within the framework of the preliminary investigation suspicions arise on the part of
SIX Exchange Regulation that the issuer may have violated the accounting standards applied in its
financial statements to an extent that justifies a sanction, an investigation will be initiated. Such an
investigation
can be concluded by means of a "Comment Letter", an agreement or a sanction proceeding.
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