Fund Management Company в ШвейцарииEstablishment of such organizational structure as a Fund Management Company is possible for carrying out investment activities (trust management services to non-accredited [in Switzerland] investors).

According to the Collective Investment Schemes Act (hereinafter referred to as CISA), the Fund Management Company is entitled to create a special set of assets and to manage it in the interests of the owners of this set of assets, i.e. perform trust management of these assets.

Similar to Russia, only the Fund Management Company can use in its name the words “investment fund”, “joint-stock investment fund” or “mutual investment fund” in combination with the words “management company”.

The Statute of the Fund Management Company must contain information on:

  1. management bodies (the Board of Directors consisting of at least three persons (legal entity/ individual; it is necessary to reflect the members of the Board of Directors, the scope of their competence, tasks, and the Board of Shareholders;
  2. organizational form - it must correspond to the effective use of funds.

A Fund Management Company may be engaged in the following activities as well:

  1. Investment consulting
  2. Support of operations on accommodation of finance and organization of transactions
  3. Assistance in conducting operations in the foreign exchange market
  4. Management of securities portfolio
  5. Documentation and accounting services
  6. Sales organization and marketing support
  7. Selection and negotiation with banks

The regulator (FINMA, Swiss Financial Market Supervisory Authority) sets the following requirements for incorporating a Fund Management Company:

  1. Company must be incorporated in the form of a joint stock company (AG);
  2. Company must have a paid share capital of 1.000 000 Swiss francs;
  3. Company must have an office in Switzerland;
  4. Company must have a Director residen tin Switzerland, who has the required experience and education (at least 3 years in the financial sphere);
  5. Company must have personnel operating in Switzerland;
  6. Company must have a Board of Directors consisting of at least 3 directors;
  7. It is necessary to maintain audited reporting;
  8. It is necessary to involve a Payment Agent;
  9. It is necessary to prepare internal regulations, AML procedures, Due-Diligence procedures, Risk Management procedures, Compliance procedures, Suitability test and get approval of these documents in FINMA;
  10. Directors or traders of a Fund cannot be related to the bank through which the Fund plans to carry out its operations.

It is necessary to take into account that when establishing a Fund Management Company, you should hire an appropriate Director (a Swiss resident with a recognized economic education in Switzerland and at least three years of experience), an Auditor, a Payment Agent, an AML officer and employees.

© Alexander Shushin, Law & Trust International Lawyer, 2018

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