From Switzerland: Federal Council Wishes to Boost Switzerland’s Appeal as a Fund Location
The Federal Council met on September 5, 2018 to discuss improving the attractiveness of Switzerland as an investment fund location. In order to facilitate the market launch of new provisions, instructions have been issued to the Federal Department of Finance (FDF) to put forward a proposal, which details corresponding legislative revision by mid-2019.
The Federal Council hopes that Switzerland's competitiveness relative to competing foreign financial centers is improved. It is believed that Switzerland, as a globally important financial center, could make even greater use of its potential in the area of collective investments.
New innovative products could be placed on the market with greater ease in a quick and cost-effective manner as they would fall under a category of funds that are not subject to approval by the Swiss Financial Market Supervisory Authority (FINMA) in the Collective Investment Schemes Act. Qualified investors, such as pension funds and insurers, would have reserved access to this new category of funds (Limited Qualified Investment Funds or L-QIF). The proposal, which will be subject to a consultation procedure, addresses a financial sector concern that is also supported by a recently submitted parliamentary procedural request (Noser motion 18.3505).