What will be required of fund distribution?
In Switzerland, preparation work for the new Federal Financial Services Act (FinSA) has started. Organizations and political parties are grouping and reinforcing their lobbying work in Parliament in order to integrate their complex requests into the new legal text projects. The Act will be strongly MiFID II oriented, aiming to create a Swiss legislation that is compatible with the rest of Europe. In combination with the Financial Institutions Act (FinIA) – that will be new as well –, it will regulate specifically the investment consultancy/asset management procedures at the POS. What will be required from collective investment distribution is yet totally unknown. All we know today is that the Collective Investment Schemes Act, revised not very long ago, will be substantially downsized. The term “distribution” will disappear from legislation. It is also unclear whether providers (distribution) of collective investment schemes to qualified investors will still be obliged to appoint a representation and a paying agent; we do not think so. We hope our legislator will take into account 20 years of technical developments in the finance business and make some amendments that are long overdue, for example eliminating the obligation to appoint a paying agent, which is really no longer necessary.
During the next months, we will regularly keep you informed on the developments in this area.
Author: Daniel Häfele, CEO
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