SWITZERLAND Law and Practice Contributed by: Nicolas Béguin, Joseph Merhai, Thomas Pasquier and Benjamin Vignieu, Aegis
Aegis Rue du Général-Dufour 20 1204 Geneva Switzerland Tel: 022 703 5100 Email: info@aegis.ch Web: www.aegis.ch
1. Market Overview 1.1 State of the Market
2. Alternative Investment Funds 2.1 Fund Formation 2.1.1 Fund Structures Introduction The establishment and operation of Swiss CIS are governed by the Federal Act on Collective Investment Schemes of 23 June 2006 (CISA) and its implementing ordinances: the Ordinance on Collective Investment Schemes of 22 Novem - ber 2006 (CISO) and the Ordinance of the Swiss Financial Market Supervisory Authority on Col - lective Investment Schemes of 27 August 2014 (CISO-FINMA). The marketing of Swiss CIS in Switzerland is regulated by the Federal Act on Financial Services of 15 June 2018 (FinSA) and its implementing ordinance: the Ordinance on Financial Services Ordinance (FinSO). Manag - ers of collective assets and fund management companies are regulated by the Federal Act on Financial Institutions of 15 June 2018 (FinIA). Generally speaking, Swiss CIS can be either open-ended or closed-ended (Article 7, para 2 CISA). The difference between these two forms lies in the liquidity offered to investors. Open- ended CIS give investors a direct or indirect right to redeem their units at net asset value (Article 8, para 2 and Article 78, para 2 CISA), at the expense of the collective assets. Conversely, closed-ended CIS do not give investors any
Investment funds (collective investment schemes, or CIS) established under Swiss law are strongly focused on local investors, mainly because they do not benefit from a European regulatory “passport” for distribution in the Euro - pean Union. The number of Swiss CIS is there - fore relatively limited compared to other jurisdic - tions, such as Luxembourg. Asset management, on the other hand, is very strong in Switzerland, particularly in Zurich and Geneva, and benefits from a highly competitive economic, financial and regulatory environment. According to the latest publication of the Asset Management Association Switzerland (AMAS) dated 28 October 2024, the Swiss fund mar - ket showed strong growth in 2024, reaching a volume of CHF1.565 trillion in the third quarter. Investment returns have been the main driver of such increase. Following the recent interest rate cuts, there has been a trend reversal towards riskier asset classes as new money inflows have shifted. Finally, as noted by AMAS, the acquisi - tion of Credit Suisse by UBS has contributed to changes in the Swiss market structure, with a further strengthening of UBS’ position.
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