The Swiss Financial Market Supervisory Authority FINMA has opened the consultation on the Collective Investment Schemes Bankruptcy Ordinance. This Ordinance is deemed necessary because the Collective Investment Schemes Act (CISA) provides only a rudimentary framework for bankruptcy proceedings, in addition to the fact that since 1 September 2011 FINMA has been responsible for declaring bankruptcy over certain institutions subject to the CISA. The consultation will end on 22 August 2012.
Since 1 September 2011, FINMA has been responsible for initiating and conducting bankruptcy proceedings over fund management companies, investment companies with variable capital (SICAVs), limited partnerships for collective investments, and investment companies with fixed capital (SICAFs). The Collective Investment Schemes Act (CISA) provides only a rudimentary framework for bankruptcy proceedings which explains why this Ordinance fleshes out the Act accordingly, providing for legal security and predictability.
The present draft of the Ordinance of the Swiss Financial Market Supervisory Authority on the Bankruptcy of Collective Investment Schemes (FINMA Collective Investment Schemes Bankruptcy Ordinance, CISBO-FINMA) should provide for speedy and practical bankruptcy proceedings attuned to the case in question. As a result, bankruptcy proceedings will partly vary depending on the type of institution; in other words, besides the generally valid implementing provisions, institute-specific rules are also foreseen for some types of institutions. While in the case of SICAVs interaction between the various subfunds especially requires regulation, particular reference is also made to segregating investment fund assets in the event of a fund management company declaring bankruptcy.
Compared with the Banking Act, which allows FINMA to issue implementing provisions for bankruptcy law and restructuring law, the Collective Investment Schemes Act and consequently this draft ordinance are restricted to bankruptcy. Both the content and entry into force of the present draft of the CISBO-FINMA are intended to be aligned with the CISA which is currently being revised.
Tobias Lux, Media Spokesperson, phone +41 (0)31 327 91 71, email@example.com