Click here for more on legal structures.
Open-ended funds are classified based on the type of investments. The following are available:
Click on the above links for more detail. Each follows a different set of rules regarding the investment policy and permitted investment techniques.
Generally speaking, securities funds need to fulfil the same requirements as European UCITS funds.
There are about 1500 Swiss funds approved by FINMA as of end of April 2016. The vast majority is of the type “other funds for traditional investments” for qualified investors. These funds allow a more flexible investment policy, investment techniques or risk diversification and have proven to be the ideal structure for “niche” products for Swiss pension funds or other qualified investors.
The primary legal basis for the investment fund business in Switzerland is the Federal Act on Collective Investment Schemes of 23 June 2006 (the Collective Investment Schemes Act (CISA)), which came into force on 1 January 2007 and underwent a major revision in 2013. The key provisions are found at Articles 55 paragraph 3, 56 paragraph 3, 71 paragraph 2, 91 and 128 paragraph 2.
CISA focuses on providing the basic principles and regulations pertaining to investment fund business.
There are two implementing ordinances providing more detailed regulations:
The Ordinance of the Swiss Federal Council on Collective Investment Schemes (CISO). This is also known as the KKV.
The Ordinance of the Swiss Financial Market Supervisory Authority (CISO-FINMA). This is also known as the KKV – FINMA.
On 1 January 2015 the revised regulations of CISO-FINMA regarding the use of derivatives under the commitment-II approach came into force and in effect implement the derivative provisions of the UCITS Directive requirements into Swiss Law.
FINMA has also issued various circulars setting out in more detail the duties of the licensees under the CISA.
Click on the links below for German and English versions of the Laws and Regulation:
| ENGLISH | GERMAN |
|---|---|
| The Collective Investment Schemes Act (CISA) of 23 June 20061 (CISA) https://www.admin.ch/opc/en/classified-compilation/20052154/index.html | KAG https://www.admin.ch/opc/de/classified-compilation/20052154/index.html |
| The Collective Investment Schemes Ordinance (CISO) https://www.admin.ch/opc/en/classified-compilation/20062920/index.html | KKV https://www.admin.ch/opc/de/classified-compilation/20062920/index.html |
| The Collective Investment Schemes Ordinance of the Swiss Financial Market Supervisory Authority (CISO-FINMA) of 27 August 2014 (Status as of 1 January 2015) https://www.admin.ch/opc/en/classified-compilation/20140344/index.html | KKV-FINMA https://www.admin.ch/opc/de/classified-compilation/20140344/index.html |
The Swiss Financial Market Supervisory Authority (FINMA) authorises or approves and supervises funds, fund management companies and persons involved in marketing funds.
In terms of self-regulation, the Swiss Funds and Asset Management Association (SFAMA) has issued a code of conduct for the Swiss fund business as well as various model documents and guidelines, some of which have been recognised by FINMA as a minimum standard that must be respected by all supervised entities.