• 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.

When offering your fund to private investors who have opted-out to become professional investors (e.g. high-net-worth individuals and private investment structures created for them, small family offices where family is involved in the decision making) you are required to appoint a Swiss representative.

The representative is an appointment that is done by the Fund. The appointment of a Paying Agent, which must be a Swiss bank, is also required. This is generally organized by the Swiss representative.

The Swiss representative acts as the local point of contact for both the investors and Swiss financial regulator (FINMA), ensuring compliance with Swiss laws. The representative will also ensure proper disclosures are included in all fund documentation aimed at investors, and will make certain verifications, such as the name of the fund, ensuring it is not misleading.

A paying agent must be appointed alongside the representative. Their function is to handle financial transactions, if requested by a Swiss-based investor. It is an option to use the paying agent service, not a requirement, available to any Swiss investor wishing to subscribe or redeem their investment in a fund via an intermediary Swiss bank. In practice, the paying agent is not used for such transactions, no occurrences of using the paying agent are known.

The Swiss fund distribution rules apply as soon as you are communicating with prospective investors about your fund, and the key terms of the fund are in place such as investment policy, fees, subscription and redemptions terms, administrator, auditor, etc. Prior to this, you may be in contact with prospective investors to understand the level of appetite, which may also give you time to start the investor classification according to the Swiss rules.

Yes. If you are a foreign fund using a placement agent to raise funds in Switzerland, you will generally still need to appoint a Swiss representative for the fund, if opt-out professional investors are targeted. Under the Financial Services Act (FinSA), the requirement for a Swiss representative applies to foreign funds marketing to Swiss investors, whether the marketing is conducted directly or via a placement agent.

No. Fundraising targeted only at qualified investors, specifically high-net-worth retail investors and smaller family offices, (opt-out professional investors) requires only the appointment of a Swiss representative and a Swiss paying agent.

Distribution to all other qualified investors can be done without registration with FINMA and does not necessarily require the appointment of a Swiss representative or paying agent.

Yes. Distribution to institutional and per-se professional investors does not require the appointment of a Swiss representative or paying agent. However, the Code of Conduct measures need to be adhered to for the fundraising entities (investment manager and/or placement agent) – please refer to question 1.

Yes, all offshore funds can be distributed in Switzerland, but only to Qualified investors. Only UCITS structures may be offered to retail investors, and then need to be registered with FINMA through a representative. Mont-Fort Funds does not provide these services as the focus is only on funds targeting qualified investors for fundraising.

Offshore funds are always in demand among Swiss investors, particularly among qualified investors like institutional investors, private banks, high-net-worth individuals and family offices. The demand for offshore funds in Switzerland stems from several factors:

Diversification: Offshore funds provide Swiss investors with access to international markets and unique investment opportunities, enhancing portfolio diversification beyond local options. Historically, alternative investments have always been used and been in demand.

Specialized Investment Strategies: These funds often grant access to specialized or alternative investment strategies, including private equity, hedge funds, real estate, and emerging markets, which may be harder to access through Swiss-regulated funds.

Tax Efficiency: For some qualified investors, offshore funds can present tax-efficient structures, making them an appealing choice for portfolio management and long-term financial planning.

Currency Flexibility: Offshore funds commonly offer multi-currency options, appealing to investors aiming to manage currency exposure or diversify away from the Swiss franc.

Regulatory Flexibility: Qualified investors who understand the risks and regulations associated with offshore funds may prefer the flexibility these funds provide compared to more strictly regulated domestic options.

The onboarding process consists of several steps, including due diligence (conducted by Montfort), reviewing legal agreements, appointing a Paying Agent (with Montfort overseeing the appointment process on your behalf), and incorporating the Swiss disclaimer into your fund documents.

Our onboarding process is designed to be swift and efficient for our clients. We estimate that the total time required from our clients and their advisors will be under 10 hours. With your collaboration, we can complete the onboarding process within one week.

London-based private equity manager with in-house marketer as well as placement agent (all FCA regulated), targeting family offices of varying sizes (including family-managed) as well as opting-out HNWI

• Documented investor classification and knowledge of code of conduct
• Appoint a Swiss representative and paying agent for the fund
• Register manager and placement agent entities with an ombudsman
• Register investor-facing individual(s) with client advisor register

New York based long short equity manager (SEC regulated) marketing two funds via a UK-based placement agent (FCA regulated) to Swiss private banks

• Placement agent can proceed without appointing Ombudsman and client advisor registry.
• Appointment of Swiss representative and paying agent for the funds will only be necessary should one or several of banks require it based on the investors the bank(s) will be offering the funds to.

Singapore-based manager (MAS regulated) distributing a Cayman global macro fund into Switzerland, with uncertainty as to which investors will be targeted as they are working with cap-intro as well as relying on referrals from industry colleagues.

• Documented investor classification and knowledge of code of conduct
• Appoint a Swiss representative and paying agent for the fund
• Register investment manager (entity) with an ombudsman
• Register individual(s) who will be having initial contact with investors on client advisor register.