New Regulations Under the Swiss Financial Institution Act, Applicable in 2018

Updated on Thursday 05th October 2017

New Regulations Under the Swiss Financial Institution Act, Applicable in 2018 Image
The Financial Institution Act in Switzerland was recently modified and the rule of law will enter into force starting with 1st of January 2018. The Act will provide new regulations for the investors interested in how to start a fund in Switzerland, as it will establish new measures for different types of entities performing investment activities in this country. The investment regulations provided under the new Act also regulate the activity of Swiss managers of separately-managed accounts, who, prior to the new legislation, were not included into a prudential supervision. 

Main beneficiaries of the Swiss Financial Institution Act 

The Swiss Financial Institution Act (FinIA) will impose new provisions for the following types of investment entities:
portfolio managers;
asset managers of investment funds;
fund management companies;
securities companies
Investors interested in how to start an investment fund in Switzerland should know that the existing regulations applicable for the above mentioned will be included into a single rule of law, providing new provisions for the above mentioned types of management structures.. 
The legal framework for investments in Switzerland will also be modified for other financial regulations. This will apply to the Swiss Financial Services Act (FinSA), which will also become applicable starting with 2018. The Act establishes new policies aiming at investment managers, who will be required to follow specific rules of suitability when providing investment advice and other related matters to their clients


Independent asset managers in Switzerland  

Both of the new financial acts will be imposed at the beginning of 2018. Under the policies provided by the FinIA, independent asset managers of various types of investment vehicles, including hedge fund startup in Switzerland, will need an authorization issued by the Swiss Financial Market and Supervisory Authority (FINMA)
At the same time, the regulations on independent asset managers of individual clients will be required to provide their management services through at least two qualified persons. An exemption in this sense can be granted – in the sense that the management services can be offer by a single asset manager, but only in specific conditions, one of them referring at establishing business operations on a continuous basis. 
The FinIA and FInSA will establish other rules of law, setting up new categories on the clients of asset managers and our team of partners can provide in-depth information on this matter, as well as on other financial regulations available for investors. Please contact our team of affiliates in Switzerland for more details on the Swiss Financial Institutions Act