All posts by: mrisoldi

How to offer to Private Investors

Private investors are:

  • Individuals and HNWI
  • Family offices without a professional treasury management (?)
  • All non-professional clients

To distribute to private investors, you need to:

The last two requirements (FINMA authorization and document publication) will be taken care of by the appointed Swiss representative.

Contact Regiswiss to learn more about how to navigate these regulatory requirements.

How to offer to Professional Investors

Professional investors belong to the following categories:

  • Independent wealth managers
  • Regulated insurance institutions
  • Banks
  • Pension funds and companies with a professional treasury management (?)
  • Security dealers
  • Regulated fund management companies
  • Other regulated companies
  • HNWI who opt out of the private clients category
  • Family offices without a professional treasury management (?who opt out of the private clients category

The last two types of professional investors (i.e., HNWI and Family Offices without professional treasury management) are to be considered private clients by default, but they may opt out and be considered Professional Clients.

To distribute to professional investors you need to:

Swiss Representative and Paying Agent

One of the requirements for distributing a fund to private clients and to some of the professional clients is to appoint a Swiss representative and a Swiss paying agent.

A Swiss representative is a company authorized and regulated by FINMA to perform the due diligence on funds distributed to investors in Switzerland. The representative manages the fund authorization process, ensuring that offering activities comply with Swiss law.

A Swiss paying agent is a Swiss bank enabling Swiss investors to issue or redeem fund shares through a Swiss entity if they choose to do so.

Contact Regiswiss to learn more about the process of appointing a Swiss representative and paying agent.

Swiss investor categories

Swiss investors are categorized in two categories: Professional clients and Private clients. Requirements vary according to the category.

Professional clients

  • Independent wealth managers
  • Regulated insurance institutions
  • Banks
  • Pension funds and companies with a professional treasury management
  • Security dealers
  • Regulated fund management companies
  • Other regulated companies
  • HNWI who opt out of the private clients category
  • Family offices without a professional treasury management who opt out of the private clients category

Distribution to Professional clients is subject to simplified regulatory requirements.

Private clients

Distribution to Private clients is subject to a FINMA authorization and regulatory requirements.

Professional treasury management?

Art. 3 FinSO states that a company or a private investment structure has a professional treasury management if it employs internally (or mandates externally) an experienced person with qualifications in the financial domain to manage their financial resources in the long term.