SWITZERLAND Trends and Developments Contributed by: Joseph Merhai and Thomas Pasquier, Aegis
The Swiss regulatory landscape is also adapting to the rise of digital assets and blockchain tech - nology. FINMA has issued guidelines to clarify the regulatory treatment of blockchain-based financial instruments, including tokenised funds. The rise of digital assets presents both oppor - tunities and challenges for the investment fund industry, as managers explore the potential for tokenising traditional assets to improve liquidity and reduce costs. Switzerland’s progressive stance on blockchain regulation, including the adoption of the Distrib - uted Ledger Technology (DLT) Act, positions it as a leader in the development of a regulatory framework that supports innovation while ensur - ing investor protection. This regulatory clarity is expected to attract more fintech companies and fund managers interested in exploring digital asset opportunities. Marketing of investment funds in Switzerland The marketing of investment funds in Switzer - land is subject to a well-defined still quite new regulatory framework aimed at protecting inves - tors and ensuring the integrity of the financial market. FinSA plays a central role in regulating how investment funds are marketed within Switzer - land. It introduced new rules for client segmen - tation, differentiating between private clients, professional clients and institutional clients. This segmentation is crucial for determining the level of information and protection afforded to investors and the specific requirements that fund marketers must meet. Under FinSA, fund distributors must provide cli - ents with a basic information document known as the Key Information Document (KID) for retail clients, which contains essential information
about the investment product, including its risks and costs. The aim is to enhance transparency and help investors make informed decisions. In addition, marketing materials must be clear, accurate and not misleading, and they must comply with the disclosure requirements set forth by FINMA to ensure the consistency and reliability of the information provided to potential investors. Marketing requirements are less stringent for qualified investors, such as high net worth individuals and institutional clients compared to retail clients. The introduction of the L-QIF has also impacted the marketing landscape, as L-QIFs can be marketed exclusively to qualified investors without prior FINMA approval, offering a streamlined and efficient approach to reaching sophisticated investors. Cross-border marketing of investment funds into Switzerland is another area governed by strict regulations. Foreign funds that wish to be marketed in Switzerland must appoint a Swiss representative and a paying agent, and they must comply with the provisions of CISA. FIN - MA approval is required for funds that are to be distributed to non-qualified investors, ensuring that foreign funds meet the same standards of investor protection as domestic funds. The rise of digital platforms has also influenced the marketing of investment funds, with an increasing number of fund managers leveraging digital tools to reach a broader audience. How - ever, the use of digital marketing is subject to the same regulatory standards as traditional market - ing, and fund managers must ensure that online promotions comply with Swiss regulations, including data protection laws and requirements for providing accurate and non-misleading infor - mation.
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