Unlocking Opportunities: Limited Qualified Investor Fund (L-QIF)
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Yesterday, the Federal Council decided that the revised Collective Investment Schemes Act (CISA) and the amended Collective Investment Schemes Ordinance (CISO) take effect on 1 March 2024, creating the legal basis for Limited Qualified Investor Funds (L-QIFs). The L-QIF is a collective investment scheme exclusively open to qualified investors and bypasses the traditional requirement of Swiss Financial Market Supervisory Authority (FINMA) authorisation or approval.
Key Features of the L-QIF:
?? No FINMA authorization or approval
One of the most significant advantages of L-QIFs is their exemption from the complex and lengthy FINMA authorisation/approval process. Thus, Switzerland will offer an alternative to similar foreign products, e.g. the Reserved Alternative Investment Fund (RAIF) in Luxembourg.?
?? Exclusive for qualified investors
L-QIFs are exclusively open to qualified investors, i.e. market participants who are professionally qualified, receive professional advice or do not require special protection due to their financial situation. This ensuresinvestor protection.
??? Regulatory oversight
L-QIFs are required to be managed by select institutions which are supervised by FINMA. This ensures adherence to regulatory standards and best practices. The institutions responsible for the administration of L-QIFs are obliged to report specific data to the Federal Department of Finance (FDF), enabling the FDF to keep a publicly accessible register of all L-QIFs.?
?? Boosting Switzerland's Fund Center Status
The introduction of L-QIFs under revised regulations not only enhances innovation, but also increases the attractiveness of the Swiss financial market, opening new doors for investors seeking a dynamic and efficient investment environment.
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Contact LexImpact for more information on these regulatory changes and to explore the opportunities presented by the L-QIF framework.
Absolutely fascinating development! As Leonardo da Vinci once said, "Simplicity is the ultimate sophistication." Simplifying investments through L-QIFs could indeed democratize opportunities for many. ?? Also, if you're interested in impactful investments, Treegens is sponsoring a Guinness World Record attempt for tree planting. It's a unique opportunity to be part of something globally significant. Check it out here: https://bit.ly/TreeGuinnessWorldRecord ????
"??""Innovation distinguishes between a leader and a follower."" - Steve Jobs. The introduction of L-QIFs is a significant milestone for the finance industry in Switzerland! ???? It's marvelous to see innovation leading the way in providing streamlined, flexible investment opportunities. Reading your article now!???? #FinanceInnovation"