How can US fund managers tap into the Swiss private wealth market? – New York office Snippet

Can USFMs pre-market in Switzerland?

Unlike EU states, Switzerland does not have a formal pre-marketing regime. USFMs may generally test investor appetite without prior registration, provided discussions remain limited to track record, strategy and indicative terms. Substantially finalised documentation will typically trigger Swiss marketing rules. Well-structured pre-marketing can help identify investor interest while minimising regulatory risk.

What is required before marketing?

Before formally marketing to Swiss private wealth investors, USFMs must address four key requirements. Steps 3 and 4 generally do not apply when marketing only to family offices with professional treasury operations.

1. Implement Swiss Marketing Procedures

USFMs should adopt procedures covering investor classification, documentation, record keeping and conflicts of interest. Many regulated USFMs will already have similar procedures in place, and any Swiss-specific requirements can often be integrated into existing fundraising processes.

2. Register Client Advisers

Individuals marketing a fund to Swiss private wealth investors will qualify as client advisers and must be entered in a client adviser register before starting marketing activities. The process is straightforward but requires documentation, training, insurance and should be initiated early. Regulated USFMs marketing exclusively to family offices with professional treasury operations may be exempt.

3. Affiliate with a Swiss Ombudsman

USFMs are generally required to affiliate with a Swiss ombudsman. This is an online registration process serving as a dispute resolution mechanism rather than a supervisory function.

4. Appoint a Swiss Representative and Paying Agent

USFMs marketing to Swiss private wealth investors are generally required to appoint a Swiss representative and Swiss paying agent. These functions are largely administrative, and the paying agent is rarely used. Given differences in cost and service, Swiss counsel can help identify suitable providers.

What are the costs and time to market?

Pre-marketing can generally begin immediately. Formal marketing can typically commence within 14 days to three weeks. For regulated USFMs marketing solely to family offices with professional treasury operations can often begin within less than a week. Indicative costs are approx. USD 7,000 to 9,000/year where all requirements apply.