Asset management

With regard to collective investment schemes subject to approval and authorisation, under the Financial Institutions Act and Collective Investment Schemes Act, both financial institutions and the collective investment schemes issued and managed by them are subject to dual supervision. A collective investment scheme established under corporate law therefore has a double role: as a product (in the form of a company) and as an institution (in the form of a licence holder). 

Institutions

Anyone who manages or is responsible for the safekeeping of assets held in collective investment schemes or who represents foreign collective investment schemes in Switzerland or manages assets of occupational pension schemes on a commercial basis must be authorised by FINMA to do so (Art. 5 para. 1 FinIA / Art. 13 para. 1 CISA). The following are required to obtain authorisation:

• fund management companies under Article 32 FinIA,
• asset managers of collective assets under Article 24 FinIA,
• portfolio managers and trustees under Article 17 FinIA, 
• investment companies with variable capital (SICAVs) under Article 36 CISA,
• investment companies with fixed capital (SICAFs) under Article 110 CISA,
• limited partnerships for collective investment schemes (LP) under Article 98 CISA,
• custodian banks under Article 72 CISA,
• representatives of foreign collective investment schemes under Article 123 CISA.

Authorisation requirements

Anyone applying to FINMA for authorisation to operate as an institution must meet the authorisation requirements set out in the Financial Institutions Act, the Financial Institutions Ordinance and the FINMA Financial Institutions Ordinance on the one hand, and the Collective Investment Schemes Act, the Collective Investment Schemes Ordinance and the FINMA Collective Investment Schemes Ordinance on the other. In addition to the basic requirement of managing, representing, operating, acting as a custodian for at least one collective investment scheme or managing the assets of at least one occupational pension scheme on a commercial basis, the individual must also meet a number of personal, financial and organisational requirements.

In particular, individuals must prove that they have a registered office in Switzerland, have one of the legal forms specified in the law, are appropriately organised and have sufficient financial guarantees at their disposal. Moreover, those responsible for administering and managing the company must be able to comply with the proper business conduct requirements, enjoy a good reputation and hold appropriate professional qualifications.

Products

Collective investments are assets which are raised by investors for collective investment purposes and managed on their behalf.  Various organisational forms – including collective investment schemes under corporate law (e.g. SICAVs, LPs and SICAFs) and contractual investment funds – are possible. Structured products, pension assets and in-house funds, for example, are not subject to the Collective Investment Schemes Act and are not supervised by FINMA. The L-QIF is subject to the Collective Investment Schemes Act but exempt from the FINMA approval and authorisation requirement and not supervised by FINMA. 

Requirements for approval

FINMA must approve the documentation relating to these schemes before they are established or offered in Switzerland (Arts. 15 and 120 CISA). This applies to fund contracts for Swiss investment funds, the articles of association and investment regulations for Swiss SICAVs and SICAFs, partnership agreements for Swiss limited partnerships for collective investment schemes (LPs) and the corresponding documents for foreign collective capital investment schemes that are offered to non-qualified investors.

Changes in circumstances, cessation of the activity

The authorisation and approval requirements must be complied with at all times. Fund management companies and managers of collective assets must notify FINMA of any change to the basis on which authorisation or approval was originally granted. If the changes are of material significance, a licence must be obtained from FINMA before operations can be resumed (Art. 8 FinIA in conjunction with Art. 10 FinIO).

 

Any change in the underlying circumstances of the institutions and products subject to approval under the Collective Investment Schemes Act must be authorised by FINMA before operations can be resumed (Art. 16 CISA). 

Institutions and collective investment schemes seeking such permission must specify the types of change involved, describe the changes and the reasons for them and submit the relevant documents.

Submitting applications

Application templates are available on the FINMA survey and application platform (EHP). In addition, FINMA provides a range of further documents there for submitting applications for the various institution types.

Applicants must self-register via the FINMA homepage to gain access to the EHP. Once the self-registration has been verified by FINMA, the EHP can be accessed via the FINMA portal using two-factor authentication.

FINMA will process the application once it has been submitted correctly and in full. However, the applicant can provide additional information at a later date, and FINMA may require further information and documentation.