The Hedge Fund Law Report

The definitive source of actionable intelligence on hedge fund law and regulation

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By Topic: Switzerland

  • From Vol. 10 No.2 (Jan. 12, 2017)

    How New Swiss Regulations Affect the Ability of Private Fund Managers to Market to Swiss Investors

    Switzerland is in the process of adopting a new regime to regulate the financial services industry and its various participants. Two key pieces of Swiss legislation that are undergoing the legislative process will affect Swiss-based financial service provider operations and how financial service providers located outside Switzerland provide services to Swiss clients. Non-Swiss private fund managers will be most interested in the revised approach proposed to Switzerland’s distribution rules, which impact how a fund may be marketed to Swiss investors. To help provide clarity surrounding the Swiss regulatory environment and the expected impact of this new legislation on the private funds industry, The Hedge Fund Law Report interviewed Dr. Vaïk Müller, an attorney-at-law based in Geneva. Müller’s views are particularly relevant to private fund managers that previously prepared their funds for distribution into Switzerland – with the appointment of a Swiss representative and a Swiss paying agent – as the legislation may reduce their regulatory burden in the future. The new legislation is also relevant for private fund managers that are not currently set up to distribute their funds to Swiss-based investors, as the regulations may, to a certain extent, facilitate their ability to market into Switzerland. For additional insight from Müller, see “New Swiss Regulations Require Appointment of Local Agents and Increased Disclosure in Hedge Fund Documents” (May 14, 2015). For coverage of additional Swiss regulations, see “What U.S. and Other Non-Swiss Portfolio Managers Need to Know About Managing Assets of Swiss Occupational Benefit Plans” (Sep. 22, 2016).

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  • From Vol. 9 No.46 (Nov. 24, 2016)

    What Non-Swiss Portfolio Managers Need to Know About Managing Assets of Swiss Occupational Benefit Plans

    Swiss occupational benefit plans – a pillar of the Swiss social security system – are increasingly outsourcing portfolio management responsibilities to investment professionals, including “foreign” (i.e., non-Swiss) managers, in response to the growing complexity of investment management. In a guest article, Stephanie Comtesse, counsel at Bär & Karrer, provides an overview of Swiss occupational benefit plans; how management of these plans by foreign service providers fits within existing and proposed Swiss legislation; and additional legal considerations caused by the outsourcing of these responsibilities. For coverage of additional Swiss regulations, see “New Swiss Regulations Require Appointment of Local Agents and Increased Disclosure in Hedge Fund Documents” (May 14, 2015); “Swiss Hedge Fund Marketing Regulations, BEA Forms and Form ADV Updates” (Mar. 5, 2015); and “The Changing Face of Alternative Asset Management in Switzerland” (Feb. 2, 2012). For analysis of similar outsourcing by U.S. pension plans, see our three-part series entitled “Understanding U.S. Public Pension Plan Delegation of Investment Decision-Making to Internal and External Investment Managers" Part One (Jan. 23, 2014); Part Two (Feb. 6, 2014); and Part Three (Feb. 21, 2014).

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  • From Vol. 9 No.37 (Sep. 22, 2016)

    What U.S. and Other Non-Swiss Portfolio Managers Need to Know About Managing Assets of Swiss Occupational Benefit Plans

    Swiss occupational benefit plans – a pillar of the Swiss social security system – are increasingly outsourcing portfolio management responsibilities to investment professionals, including “foreign” (i.e., non-Swiss) managers, in response to the growing complexity of investment management. In a guest article, Stephanie Comtesse, counsel at Bär & Karrer, provides an overview of Swiss occupational benefit plans; how management of these plans by foreign service providers fits within existing and proposed Swiss legislation; and additional legal considerations caused by the outsourcing of these responsibilities. For coverage of additional Swiss regulations, see “New Swiss Regulations Require Appointment of Local Agents and Increased Disclosure in Hedge Fund Documents” (May 14, 2015); “Swiss Hedge Fund Marketing Regulations, BEA Forms and Form ADV Updates” (Mar. 5, 2015); and “The Changing Face of Alternative Asset Management in Switzerland” (Feb. 2, 2012). For analysis of similar outsourcing by U.S. pension plans, see our three-part series entitled “Understanding U.S. Public Pension Plan Delegation of Investment Decision-Making to Internal and External Investment Managers”: Part One (Jan. 23, 2014); Part Two (Feb. 6, 2014); and Part Three (Feb. 21, 2014).

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  • From Vol. 9 No.6 (Feb. 11, 2016)

    Luxembourg Funds Offer Options for Hedge Fund Managers to Access European and Global Investors

    As hedge fund managers look to access investors or investments in Europe, Latin America or Asia, Luxembourg has emerged as a significant domicile for fund formation. With a favorable tax and regulatory regime, along with structures such as UCITS funds, Luxembourg is an increasingly attractive jurisdiction, particularly for non-E.U. hedge fund managers looking to distribute to European investors in the wake of AIFMD. The Association of the Luxembourg Fund Industry (ALFI) recently held a seminar that discussed the country’s growth in the alternative investment funds industry, regulatory updates, global investment opportunities and alternative fund structures available in Luxembourg. This article captures the seminar’s key takeaways on these topics. For more from ALFI, see “NICSA/ALFI Program Considers Impact of AIFMD on U.S. Fund Managers” (Sep. 25, 2014).

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  • From Vol. 8 No.19 (May 14, 2015)

    New Swiss Regulations Require Appointment of Local Agents and Increased Disclosure in Hedge Fund Documents

    Switzerland has traditionally been an important jurisdiction for the distribution of alternative funds, especially hedge funds.  With the revision of the Federal Act on Collective Investment Schemes of 23 June 2006 (CISA), and its implementing ordinance of 22 November 2006 – the Collective Investment Schemes Ordinance (CISO) – as well as the self-regulatory standards (the Guidelines) issued by the Swiss Funds and Asset Management Association (SFAMA), the formerly liberal rules regarding distribution of hedge funds in Switzerland have been tightened, in particular regarding the level of transparency applicable to hedge fund distribution.  The CISA and the CISO entered into force on March 1, 2013, and the transitional period relating to their implementation recently ended on March 1, 2015.  For more on Switzerland, see “Swiss Hedge Fund Marketing Regulations, BEA Forms and Form ADV Updates: An Interview with Proskauer Partner Robert Leonard,” The Hedge Fund Law Report, Vol. 8, No. 9 (Mar. 5, 2015).  In a guest article, Dr. Vaïk Müller and Olivier Stahler of Lenz & Staehelin first distinguish the requirements deriving from the CISA and the CISO, on the one hand, from those deriving from self-regulation, on the other hand.  The authors next review the impact of the new requirements on hedge fund documentation, taking into account the obligations applicable to the intermediaries concerned with the distribution before finally addressing the issue of the timing of the implementation of the SFAMA Guidelines.

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  • From Vol. 8 No.9 (Mar. 5, 2015)

    Swiss Hedge Fund Marketing Regulations, BEA Forms and Form ADV Updates:  An Interview with Proskauer Partner Robert Leonard

    The Hedge Fund Law Report recently interviewed Robert Leonard, a partner in Proskauer’s Hedge Funds Group, on implications of the recently effective Swiss Collective Investment Scheme for marketing hedge funds in Switzerland; two new forms required by the Bureau of Economic Analysis to be filed by certain hedge funds; and considerations arising out of Form ADV annual amendments.  This interview was conducted in connection with the Hedge Funds Care 17th Annual NY Open Your Heart to the Children Benefit, to be held in New York City tonight, March 5, 2015.  For more on Hedge Funds Care, click here; for registration information on tonight’s Open Your Heart to the Children Benefit, click here.  See also “The Changing Face of Alternative Asset Management in Switzerland,” The Hedge Fund Law Report, Vol. 5, No. 5 (Feb. 2, 2012).

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  • From Vol. 5 No.5 (Feb. 2, 2012)

    The Changing Face of Alternative Asset Management in Switzerland

    Switzerland is the third largest global centre of alternative asset management, after North America and the United Kingdom.  Around three times the size of Connecticut, the small, central European country boasts approximately 15% of global assets under management.  In a guest article, Matthew Feargrieve, leader of the Funds and Investment Services practice in the London and Zurich offices of Appleby, examines the composition of the Swiss alternative asset management market, focusing on single managers and managers of funds of hedge funds (FoHFs); reviews the current and prospective regulatory environment in Switzerland for each type of manager; and assesses the country’s future generally as a centre of alternative asset management against the backdrop of economic austerity and regulatory zeal in Europe.

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