SWITZERLAND Law and Practice Contributed by: Jürg Frick, Luca Dal Molin, Philippe Gobet and Carla Bertossa, Homburger
prevent and combat greenwashing by enhancing the quality of collectively managed sustainable assets through binding standards, while improving trans - parency through comprehensive documentation and reporting obligations. Finally, in June 2025, AMAS published a new circular regarding “side pockets”. Side pockets are separate vessels that contain assets that were previously part of a fund’s investment assets but have become illiquid (eg, due to sanctions). They offer the advantage of preventing a fundamentally liquid portfolio from being blocked by illiquid investments, with the liquid portion continuing to be managed and offered, while inves - tors continue to have access to this portion of their investment. At the same time, side pockets offer pro - tection against dilution by ensuring that only existing investors can participate in any recovery of the illiquid investments. 2. Funds 2.1 Types of Alternative Funds and Structures According to the website of FINMA, as of August 2025 there were 1,958 Swiss open-ended fund structures approved in Switzerland, including 48 so-called other funds for alternative investments, and only 26 closed- ended structures. The closed-ended structures are exclusively limited partnerships for collective investments (LPCIs). An LPCI is a company whose sole object is collective investment. At least one member, which is the general partner, bears unlimited liability, while the other mem - bers – ie, the limited partners – are only liable up to the total limited partner’s contribution. Such LPCIs must be approved by FINMA as financial institutions. The partnership agreement must also be approved by FINMA.
the establishment, activities and oversight of collec - tive investment funds, including AIFs, and the rules applicable to their administrators and managers. The provisions of the CISA are further substantiated by its implementing ordinances, the CISO and the FINMA Collective Investment Schemes Ordinance (CISO- FINMA). In addition, other financial market laws set out the legal framework for financial institutions and financial services related to AIFs: • The Federal Act on Financial Institutions (FinIA) governs the regulatory requirements for acting as a financial institution, in particular as a manager of collective assets or as a fund management company, including as a manager or management company of an AIF. Further guidance on the FinIA is provided by its implementing ordinances, the Financial Institutions Ordinance (FinIO) and the FINMA Financial Institutions Ordinance (FinIO- FINMA). • The Federal Act on Financial Services (FinSA) regu - lates the provision of financial services, such as the sale of units in AIFs, by financial service providers in Switzerland or for clients in Switzerland. The Financial Services Ordinance (FinSO) further imple - ments the rules contained in the FinSA. Furthermore, the self-regulation of AMAS is recog - nised by FINMA as a minimum standard and may be enforced as such. The AMAS Guidelines (last revised on 1 January 2022) include provisions that are also relevant to AIFs, such as a code of conduct and tech - nical guidelines for real estate funds and other collec - tive investment schemes. Investment companies established as Swiss compa - nies limited by shares and either (i) listed on a Swiss stock exchange or (ii) reserved for qualified investors with registered shares are excluded from the scope of the CISA. Rather, these companies are regulated by Swiss corporate law, and, in the case of listed com - panies, by the stock exchange’s listing rules and any other applicable regulations.
2.2 Regulatory Regime for Funds Overview of the Regulatory Framework
In Switzerland, the regulatory framework for alterna - tive investment funds (AIFs) is primarily governed by the CISA. This law sets out the principles governing
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