Author Archives: Simon Schären

Cornerstones of the Proposed Draft Legislation Revising the Collective Investment Schemes Act

The main purpose of the proposed revision of the Collective Investment Schemes Act (CISA) is to adjust the Swiss regulatory framework to current international standards, especially the UCITS- and AIFM-Directive, in order to enable Swiss based assets managers to access the European market. The draft legislation provides for a general authorization and supervision requirement for all Swiss based asset managers; it defines the scope of tasks of an asset manager, services which may be performed additionally and the possibility of delegation. SICAFs are required to appoint a regulated custodian bank; these banks will have to implement appropriate organizational structures. The concept of public advertisement will be replaced by the concept of distribution, which includes any offering of and advertising for a collective investment scheme; any kind of distribution will be subject to the authorization of the FINMA. Foreign collective investment schemeswill always be obliged to appoint a Swiss representative, who will have to ensure the compliance of the fund’s foreign management with the provisions of the CISA; the catalogue of persons that are regarded as qualified investors is being modified.