For a market currently facing challenges around private banking, this is a blessing. The Swiss regulator (FINMA) could have been much more restrictive, as can be seen in many of its european union neighbours, such as Germany, France and Italy. When revising its Collective Investment Schemes Act (KAG), the Swiss legislator adopted a different approach from that of the European Union with AIFMD – the emphasis in Switzerland on distribution, distribution and regulation around this company. The resulting framework is pragmatic, easy to put in place, avoids regulatory reporting or the need to establish a local presence, not too painful, not protectionist and, despite a number of flaws, not illogical. If a Swiss bank presents your fund to its discretionary administrative clients who invest directly or indirectly in your fund, this is unlikely to be akin to a distribution by the fund`s investment manager, provided that the investment manager does not have direct contact with the investors and does not itself transmit to the investors documents or documents related to the fund. The Swiss bank may, subject to compliance with its own obligations under Swiss law, transmit documents and documents related to funds to some of its investors under the discretionary management agreement. However, there are important differences between countries in terms of the size of different types of clients, due to differences in the role of insurance products in retirement provision, the structure of national pension systems and the role of banks in the distribution of investment products for retail investors. The Swiss representative has an obligation to monitor the investment manager`s distribution activities in Switzerland and to ensure that the fund is only promoted and offered to qualified investors and that the investment manager complies with the distribution guidelines. This includes ensuring that relevant fund documents and all marketing materials contain the necessary specific information (see “Disclosure Obligations” below). In addition, it is worth mentioning that U.S.
companies that register with FINRA as dealer brokers or cfTC/NFA are considered to be operating in a clearly defined and supervised regulatory environment, making signing distribution agreements simpler. . . .