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Federal Council puts legal basis for new L QIF fund category into force
Markus Pritzker
1 Feb 2024
6 min
During its meeting on 31 January 2024, the Federal Council decided to put the revised Collective Investment Schemes Act (CISA) and the amended Collective Investment Schemes Ordinance (CISO) into force with effect from 1 March 2024. This creates the legal basis for Limited Qualified Investor Funds (L-QIFs). L QIFs help to increase the attractiveness and innovation capacity of the Swiss fund location.
In a landmark decision in December 2021, the Federal Assembly of Switzerland passed a significant amendment to the Collective Investment Schemes Act (CISA), heralding the introduction of a new category of investment vehicle known as Limited Qualified Investor Funds (L-QIFs). This innovative step was taken to streamline the investment process by exempting L-QIFs from the stringent licensing and approval processes usually mandated by the Swiss Financial Market Supervisory Authority (FINMA). Designed exclusively for qualified investors, L-QIFs represent a strategic initiative to attract savvy investors, ensuring these funds are managed by entities under the vigilant supervision of FINMA.
The amendment of the CISA was a critical move, laying down the regulatory groundwork for the effective implementation of L-QIFs. Beyond introducing L-QIFs, this revision was an opportune moment to update various aspects of the Collective Investment Schemes Ordinance (CISO) along with other related ordinances, notably the Financial Institutions Ordinance (FinIO). These comprehensive amendments aimed to align Switzerland's financial regulatory framework with international standards, adapt to evolving market trends, and enhance legal clarity. By doing so, Switzerland reaffirmed its commitment to maintaining its status as a dynamic and competitive financial hub, capable of adapting to the changing landscapes of global finance while ensuring robust regulatory oversight and promoting legal certainty.
In a landmark decision in December 2021, the Federal Assembly of Switzerland passed a significant amendment to the Collective Investment Schemes Act (CISA), heralding the introduction of a new category of investment vehicle known as Limited Qualified Investor Funds (L-QIFs). This innovative step was taken to streamline the investment process by exempting L-QIFs from the stringent licensing and approval processes usually mandated by the Swiss Financial Market Supervisory Authority (FINMA). Designed exclusively for qualified investors, L-QIFs represent a strategic initiative to attract savvy investors, ensuring these funds are managed by entities under the vigilant supervision of FINMA.
The amendment of the CISA was a critical move, laying down the regulatory groundwork for the effective implementation of L-QIFs. Beyond introducing L-QIFs, this revision was an opportune moment to update various aspects of the Collective Investment Schemes Ordinance (CISO) along with other related ordinances, notably the Financial Institutions Ordinance (FinIO). These comprehensive amendments aimed to align Switzerland's financial regulatory framework with international standards, adapt to evolving market trends, and enhance legal clarity. By doing so, Switzerland reaffirmed its commitment to maintaining its status as a dynamic and competitive financial hub, capable of adapting to the changing landscapes of global finance while ensuring robust regulatory oversight and promoting legal certainty.