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1. What rules are in place for a foreign investment manager coming to Switzerland for fundraising purposes, targeting only professional and qualified investors?

Montfort Funds November 27, 2024 1 min read

  • Regulatory requirements will depend on what type of investors are targeted.
  • Classify target investors according to the Swiss definition and determine regulatory requirements for the fund as well as the entity (or entities) doing the fundraising. This should be done before fund documentation is sent out.
  • Obtain knowledge of Swiss code of conduct and organization rules according to Financial Services Act (FinSA). This comprises adequate internal organization, knowledge and experience of employees, conflict of interest management and commission payment disclosures.
  • Investor classification and documentation thereof, including obtaining written confirmations by professional investors where necessary.
  • HNWI and family offices – clear written confirmation of their opt-out to be considered professional investors.
  • If determined that opt-out professional investors are targeted, appoint a Swiss representative and paying agent for the Fund
  • Depending on regulatory status of fundraising entity, as well as on what category of investors is targeted, registration with Ombudsman and Client Advisor Register.
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