Comparative Guides

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4. Results: Answers
Alternative Investment Funds
2.
Form and structure
2.1
What types of alternative investment funds are typically found in your jurisdiction?
Switzerland

Answer ... Most foreign collective investment schemes approved for offering and advertising to retail clients in Switzerland are undertakings for collective investment in transferable securities (UCITS) which are domiciled in Luxembourg or Ireland. Non-UCITS funds aimed at institutional clients or professional clients are mainly domiciled in the Cayman Islands or Delaware in the form of limited partnerships for collective investments (LPs), trusts, exempted companies or public limited companies domiciled in Ireland, as well as Luxembourg special limited partnerships (société en commandite spéciale (SCSp)).

For more information about this answer please contact: Matthias Lüdi from First Independent Fund Services LTD.
2.2
How are these alternative investment funds typically structured?
Switzerland

Answer ... See question 2.1.

For more information about this answer please contact: Matthias Lüdi from First Independent Fund Services LTD.
2.3
What are the advantages and disadvantages of these different types of structures?
Switzerland

Answer ... In general, non-UCITS funds for institutional clients or professional clients need not be registered with the Swiss Financial Market Supervisory Authority (FINMA) (ie, no FINMA registration and supervision costs); whereas UCITS for retail clients must be registered with FINMA (ie, FINMA registration and supervision costs).

For more information about this answer please contact: Matthias Lüdi from First Independent Fund Services LTD.
2.4
What are the most widely used alternative investment funds structures used in your jurisdiction?
Switzerland

Answer ... See question 2.1.

For more information about this answer please contact: Matthias Lüdi from First Independent Fund Services LTD.
2.5
Is there a preferred alternative fund structure for particular investment strategies (ie, hedge fund/private credit/private equity)?
Switzerland

Answer ... Closed-ended funds are typically structured in the form of an LP or SCSp; whereas open-ended funds are structured in different forms, such as exempted companies, public limited companies or special purpose companies.

For more information about this answer please contact: Matthias Lüdi from First Independent Fund Services LTD.
2.6
Are alternative investment funds required to have a local administrator appointed?
Switzerland

Answer ... No such requirements exist for foreign alternative investment funds(AIFs) in Switzerland; but the appointment of a Swiss representative is required by operation of law to offer and advertise foreign AIFs in Switzerland to certain groups of investors (eg, retail investors and high-net-worth individuals).

For more information about this answer please contact: Matthias Lüdi from First Independent Fund Services LTD.
2.7
Are alternative investment funds required to appoint a local custodian to hold assets? If yes, what legal protections are in place to protect the alternative investment fund’s assets?
Switzerland

Answer ... No, but the appointment of a Swiss paying agent is required by operation of law to offer and advertise foreign AIFs in Switzerland to certain groups of investors (eg, high-net-worth individuals). A Swiss paying agent must be a Swiss bank authorised by FINMA and grants Swiss investors the opportunity to subscribe or redeem shares/units through the Swiss paying agent.

For more information about this answer please contact: Matthias Lüdi from First Independent Fund Services LTD.
2.8
Is it possible for an alternative investment fund to redomicile to your jurisdiction? If yes, what considerations are required and what are the steps involved?
Switzerland

Answer ... There is neither a general regulatory system nor any general FINMA guidance on the redomiciliation of foreign AIFs to Switzerland. FINMA may, in individual cases, accept forms of repatriation of foreign AIFs to Switzerland.

For more information about this answer please contact: Matthias Lüdi from First Independent Fund Services LTD.
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Alternative Investment Funds