Adoption by the Swiss Federal Council of its Message amending the CISA to create the Limited Qualified Investor Fund (L-QIF)

Following our Newsletter dated 23 January 2020 in which we summarised the main characteristics of the L-QIF and indicated that the relevant consultation process had ended on 17 October 2019, we are now pleased to announce that the Federal Council has, on 19 August 2020, adopted the Message amending the Collective Investment Schemes Act (“CISA”) together with the relevant draft modified dispositions of CISA.

The salient points are the following:

  • As explained in our Newsletter dated 23 January 2020, the goal is to introduce among the Swiss-incorporated collective investment schemes (“CIS”), the L-QIF which shall be solely available to qualified investors as defined by CISA,
  • It is to address a gap in the offering of Swiss-incorporated CIS; indeed no flexible, easy to incorporate CIS currently exists; thus numerous Swiss CIS/fund promoters resort to non-Swiss CIS, such as the Luxembourg FIAR (“Fonds d’investissement alternatif réservé”),
  • Indeed, as a reminder, the L-QIF shall not need to be approved or authorized by the Swiss FINMA,
  • An important update is that any private client who entered into a longstanding asset management or investment advisory mandate with also a supervised insurance company shall be considered a qualified investor, thus expanding the clients defined as qualified investors who may invest into an L-QIF. After this modification, it shall accordingly be interesting for insurance companies to enter into the creation of longstanding relationships with managed or advised clients from a CIS offering angle, which constitutes an important change.

The Swiss Parliament should review the draft modification of CISA as per the above at the earliest during S2 2020. Therefore, entry into force of the said modification could occur at the earliest by the beginning of 2022.

We shall keep you posted naturally about further developments. Please contact us at or 0041 22 737 10 00 for further information and/or questions.