Switzerland stands out as one of the main markets for the
registration of offshore hedge funds. At the same time, the market is very well represented for the
distribution of foreign hedge funds, as the country provides a stable regulatory framework, comprised of numerous rules of law addressing to the
registration/ distribution and to the
investment activities permitted through a
hedge fund.
Investors who want to
open a company in Switzerland performing
investment operations must know that the main
statutory regulation for hedge funds is the
Collective Investment Scheme Act (CISA);
our team of consultants in company formation in Switzerland can provide in-depth assistance on the main obligations and rights deriving from this rule of law.
FINMA regulations for Swiss hedge funds
In
2015, the
Swiss Financial Market Supervisory Authority (FINMA), issued a
new set of regulations concerning the activities of
hedge funds operated in this country. Under the
latest version of the CISA,
hedge funds entered under the
supervision of FINMA, which imposed new regulations for the
representatives of an investment vehicle registered as a
hedge fund.
In the case of a foreign hedge fund operating on the Swiss market, it is now reccommended to appoint a Swiss legal representative and a paying agent, but certain exemptions from this regulation apply in the following cases:
•
distribution limited to
supervised financial intermediaries, such as
banks and insurance companies;
• investors who have entered a written asset management agreement with a supervised financial intermediary.
These regulations were imposed after
Switzerland, through
FINMA, entered into a
cooperation agreement with the
European Union (EU) for
investment activities carried out through
alternative investment funds.
Our team of specialists in company registration in Switzerland may offer in-depth assistance on the provisions of the agreement.
Legislation for Swiss hedge funds
Investment vehicles registered as
hedge funds are regulated by a wide set of regulations, as presented below:
• Collective Investment Schemes Ordinance;
• Collective Investment Schemes Ordinance issued by FINMA;
• FINMA Ordinance on Bankruptcy of Collective Investment Schemes.
Other regulations can apply in the case of
Swiss hedge funds and investors are invited to
contact our consultants for in-depth assistance regarding this subject.