In this blog post, we will briefly review the main features of the management of Swiss funds registered in the country. We will also touch on the topic of managing foreign funds that can obtain permission to conduct investment activities in Switzerland.
For more detailed information on this topic, you will be helped by individual consultation on the regulation of funds in Switzerland from the experts of IQ Decision UK.
By opening an investment fund abroad, you get a number of advantages:
First of all, you are in control of your money yourself. In addition, and usually this is the main incentive when creating an investment fund, you can attract funds from your partners or even third-party investors, which is impossible to do legally using ordinary corporations.
It makes sense to use foreign jurisdiction because the main stock markets are located abroad, for greater operational efficiency and investment opportunities, as well as for reasons of avoiding the difficulties and restrictions of foreign exchange controls. In most not only offshore, but also onshore or "white" jurisdictions, investment companies and funds also have a number of tax advantages or even tax exemptions.
Who oversees the activities of funds and managers
Setting up an investment fund is somewhat like setting up a bank or other financial institution. It is regulated by the government, which means it certifies that the foundation is run by qualified professionals who will never tolerate fraud. In this case, the depositor feels as comfortable as possible: he will not lose his invested money.
If you decide to open a fund in Switzerland, please note that you will need to obtain an investment license in Switzerland for a stock product as well as for an institution. You will also need to take care of attracting a competent auditor.
Types of funds in Switzerland
Those wishing to register an investment fund in Switzerland should know the following:
In the so-called open-ended funds, investors are more protected by legislation: the investment company is obliged to return the money at its first request. In closed-end funds, investments are returned only after a certain period of time.
Those wishing to establish a fund in Switzerland should be aware that sending any information about the funds to potential investors can be considered a regulated activity.
Our specialists will tell you more about this during the consultation on the registration of investment funds in Switzerland.
Regulation of retail and traditional funds in Switzerland
Those planning to start investment activities in Switzerland should pay attention to the following facts:
- If you are planning to open a business in Switzerland, then you should know that all domiciled funds require a license to invest in Switzerland;
- Both local and overseas traditional and retail funds must maintain separate accounts and file an audited annual return. Also, they are required to regularly submit an unaudited semi-annual report.
Separate accounts
Those interested in registering a fund in Switzerland should know the following:
- If you are planning to order an investment license in Switzerland, please note that the management or marketing of separately managed accounts may be provided to local investors on an international basis;
- Swiss foundations providing services for separately managed accounts are not subject to regular supervision but must join a recognized organization for AML Compliance purposes.
IQ Decision UK Services
By contacting the specialists of our company, you can get qualified assistance in opening a fund in Switzerland.
We also recommend that you order a personal consultation on the regulation of investment funds in Switzerland using the contacts listed below.
