Swiss Federal Council Opens A Consultation On The Introduction Of A New Fund Category

Author:Mr Olivier Cavadini
Profession:Charles Russell Speechlys

The draft law aims to strengthen the competitiveness of the Swiss investment fund market, which currently does not have any type of unregulated collective investment scheme. The draft law provides thus for the introduction of a type of fund, a Limited Qualified Investor Fund (L-QIF), which is neither authorised, approved or supervised by the Swiss Financial Market Supervisory Authority (FINMA). The characteristics of the L-QIF are mainly based on the Luxemburg legislation governing Reserved Alternative Investment Funds (RAIF). Therefore, the proposed regulations for the L-QIF largely overlap with regulations for RAIF's. Both products can take different legal forms (investment funds or incorporated fund), and neither is subject to approval or supervision by the supervisory authority. Both products are reserved for a limited circle of qualified investors. The administration (portfolio and risk management) of a RAIF must be ensured by an AIF manager who holds an authorization in accordance with the directive GFIA and subject to prudential supervision. This regime is similar to the one that is intended for L-QIF. In both cases, the provisions of the money laundering and the supervision provided for therein also apply.


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