Switzerland Annex 7 - Note 3

EXPLANATORY NOTES

3.1 Switzerland understands that, pursuant to Article II:2(a)(ii), this Agreement does not cover investments of insured persons' funds by organizations governed by public law, such as insurance institutions and pension funds governed by public law.

3.2 Regardless of their activities, centralized and decentralized administrative authorities and units are subject only to the rules under Annexes 1 or 2. Regardless of their activities, public authorities and undertakings under Annex 3 are not subject to the rules under Annexes 1 and 2.