SWITZERLAND Trends and Developments Contributed by: Joseph Merhai and Thomas Pasquier, Aegis
The state of the Swiss investment fund industry The Swiss investment fund industry is in a dynamic state of evolution, shaped by ongo - ing regulatory developments and slowly shifting tax policies that influence both domestic and international actors. With Switzerland’s reputa - tion as a global financial hub, these develop - ments are crucial for investors, asset managers and other stakeholders who aim to navigate the complexities of compliance while leveraging opportunities. The key regulatory shifts and tax implications that are shaping the landscape are presented below. From a regulatory standpoint, the Swiss invest - ment fund industry has witnessed substantial transformations over the past few years, primar - ily driven by global trends towards transparency, investor protection and alignment with interna - tional standards. The Financial Services Act (FinSA) and the Financial Institutions Act (FinIA), both enacted in 2020, continue to impact fund distribution and governance in significant ways. These legislative measures were introduced to ensure that Swit - zerland remains aligned with European Union regulations, such as MiFID II, which emphasise investor protection and market integrity. The Swiss Financial Market Supervisory Author - ity (FINMA) has also played a crucial role in adapting the regulatory framework, focusing on the digitalisation of financial services and the growth of sustainable finance – a key trend that is influencing how funds are structured, market - ed and managed. FinSA and FinIA further enhance the regula - tory landscape by introducing uniform rules for financial service providers, including investment
Investment Funds in Switzerland: An Introduction
Asset management firms such as BlackRock, KKR and Family offices are increasingly focus - ing on private markets to diversify and enhance returns. Private equity firms are also targeting high net worth individuals by creating funds with lower minimum investments and more retail- friendly structures. Firms like EQT and Coller Capital have developed such offerings, while fintech platforms like iCapital and Moonfare facilitate high net worth individuals’ access to private markets. There is a growing focus on investments that generate positive environmental, social and governance (ESG) impacts alongside financial returns. The Global Impact Investing Network values this market at over USD1.57 trillion glob - ally, reflecting rapid growth and acceptance among investors. However, challenges persist, including misconceptions about ESG perfor - mance assessment and the need for standard - ised impact measurement frameworks. The demand for artificial intelligence (AI) capa - bilities is driving a wave of mergers and acquisi - tions worldwide but Switzerland has not seen such restructuring yet, notably because of the relatively small size of companies active in that sector in Switzerland. It should also be noted that vehicles active in the art market are increasing in appeal for retail investors and seem to be having increasing suc - cess with high net worth individuals wishing to diversify outside the securities and real estate market.
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