L-QIF: New Unregulated Fund Category In Switzerland

On August 19, 2020, the Federal Council submitted a draft legislation to Parliament in view of introducing a new unregulated fund category for qualified investors, the so called Limited Qualified Investor Fund ("L-QIF") by way of an amendment of the Collective Investment Schemes Act ("CISA"). On December 17, 2021, this legislation has been enacted in its final form by the Parliament.

1. Introduction

In June 2019, the Federal Council initiated consultation proceedings to evaluate the interest of the asset management industry to introduce a new category of funds for qualified investors, with significant flexibility in terms of investment policy and restrictions, and with no authorization, approval or direct supervision by the Swiss Financial Market Supervisory Authority ("FINMA"). In spring 2021, the competent commissions of the Parliament started to perform reviews of the draft. Remaining divergences between the National Council and the Council of States have