SWITZERLAND: AMAS welcomes the decision in the National Council to introduce the innovative fund category L-QIF

Tuesday December 14 2021

On Thursday, the National Council approved the amendment of the Collective Investment Schemes Act to include the Limited Qualified Investor Fund (L-QIF). The Asset Management Association Switzerland (AMAS) welcomes the decision of the National Council, which means that in principle there are no longer any obstacles to the introduction of the L-QIF in Switzerland. The final vote on the L-QIF will take place next Friday, 17 December. Taking into account the necessary adjustments at the ordinance level, the first L-QIF could be set up as early as 2023.

The bill will now go to the Council of States again. AMAS appeals to the members of the Council of States to stick to their version and not to go along with the National Council’s version: It is not appropriate to also provide independent asset managers as possible managers of the new L-QIF (Art. 118g para. 2 letters A and b). This would unnecessarily weaken the supervision of the new L-QIF and thus the L-QIF itself. Unlike FINMA, the new supervisory organisations (AOs) that now supervise independent asset managers do not have the necessary experience to supervise Swiss funds.

AMAS has campaigned for the introduction of the L-QIF in Switzerland, as it will strengthen the competitiveness of the Swiss fund and asset management location and thus of the entire Swiss financial centre. The L-QIF represents a genuine Swiss alternative to foreign fund competition for qualified investors. This innovative fund solution eliminates the existing competitive disadvantages compared to foreign funds.

With the L-QIF, the Swiss fund and asset management industry can exploit its existing potential far better and strengthen Switzerland as a fund domicile, as the volume of collective investment schemes launched in Switzerland can now be increased without any competitive disadvantage. As a result, a larger share of the value added and the tax substrate will remain in Switzerland.

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