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- Swiss federal banking commission wants fewer licensing restrictions on foreign fund manages
- Also calls for new hedge fund tax regime
- Switzerland continues push for hedge fund market
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The Swiss Federal Banking Commission (SFBC), the country’s financial services regulator, has called for more to be done to attract hedge fund managers and hedge funds to locate in Switzerland. In a new report, the SFBC notes the “limited opportunity” for managers of foreign hedge funds to be licensed by the SFBC, under current rules. It therefore recommends a revision of the Swiss Collective Investment Act (CISA) with the aim of “improving regulatory incentives for hedge fund managers to settle in Switzerland.”
The SFBC also suggests that steps should be taken to make Switzerland more attractive as a domicile for hedge funds and that the tax regime should be “aligned” with those of other leading jurisdictions. It notes that while still a “minor” location for hedge funds, Switzerland has a burgeoning fund-of-funds industry with more than 5 percent of assets invested in the country now placed in hedge fund products.
In the same report, the SFBC argues against greater regulation for hedge funds as it says there is no evidence they are more prone to market abuse than other market participants.
The Swiss funds industry has been aggressively targeting the hedge fund market in recent months, following implementation of CISA on 1st January this year. The new Act offers promoters a variety of structures aimed at both retail and professional investors. Phillipe Jabre, a former trader at U.K.-based hedge fund GLG, recently moved to Switzerland to launch a new fund after receiving a record £750,000 fine from the FSA.
To read a summary of the SFBC Hedge Fund report, follow this link. (Please note that only the executive summary is available in English; the remainder of the report is German language only).
For more information, about CISA, including explanations of the various fund structures, details of approval procedures, investment restrictions and taxation, check out the Swiss Funds Association publication: A Guide to CISA (24 pages).
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