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.
Open a cryptocurrency hedge fund in Switzerland
The
rise of the cryptocurrencies activities has led to the creation of numerous
cryptocurrency hedge funds, including in
Switzerland, one of the main destinations for
companies operating in this
new financial sector.
2017 represented an important moment for the
development of cryptocurrencies investments, as, at a global level, investors have set up more than
120 hedge funds which had as main purpose the
investments in virtual currencies. At the same time, 2017 was the year when investors registered the
first cryptocurrency fund in Switzerland, already approved for activities by the country’s financial regulator.
Our team of specialists in company formation in Switzerland may offer in-depth information on the legislation concerning
investment funds in this country.
Investors of Swiss cryptocurrency funds
The
newly created fund –
Cryptocurrency Fund, was registered in
Zug, the main
region for fintech activities in Switzerland (
cryptocurrencies included). Its founders have launched the vehicle in June 2017, being addressed to
qualified investors.
As a general rule,
investments in cryptocurrencies in Switzerland are performed by
high net worth individuals and
companies specialized in
digital assets. Other important players in this field are the
institutional investors, including
banking institutions.
Our team of agents in company registration in Switzerland can provide in-depth details on the regulations related to the
types of investors allowed to
invest in hedge funds.
A
small share of the investors is represented by
retail clients and
Swiss companies that have implemented
transactions in virtual currencies (especially for
Bitcoin, the
most popular virtual currency at a global level).
Due to the large number of investors and a general interest in virtual currencies transactions and investments, the value of the bitcoin has risen to a high degree in the last few months. In the first quarter of 2017, the value of the bitcoin was below CHF 2,000, while at the beginning of December 2017, the value increased to a record value of CHF 18,000.
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.