Anne Simond: Almost Twice As Many Foreign Managers Comply With Swiss Than With AIFM Distribution Rules

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Anne Simond: Almost Twice As Many Foreign Managers Comply With Swiss Than With AIFM Distribution Rules

Until the credit crisis of 2008 an estimated one third of all hedge fund assets were allocated via Switzerland. But also after the crisis, Switzerland remains one of the most important destinations for hedge funds and alternative investment managers. However, as of March 2015, substantial changes to the rules for distributing investment funds (CISA) to Swiss investors came into force.

Anne Simond: Almost Twice As Many Foreign Managers Comply With Swiss Than With AIFM Distribution Rules

The new rules leave no room for manoeuvre: While in the past, foreign funds could be distributed easily via private placement, today all foreign managers wanting to market to any Swiss pension, family office, HNI or independent wealth manager are required to designate a Swiss Representative and a Paying Agent (bank). This representation is now a mandatory compliance function while “reverse solicitation” has become almost impossible to demonstrate in practice and is not an option.

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