Some USFMs still assume that fundraising in Switzerland requires the appointment of a Swiss representative and paying agent. A representative is a regulated entity that acts as the fund's legal contact point in Switzerland, while a paying agent is a Swiss bank through which investors may make subscriptions and receive redemptions. These appointments are often perceived as adding cost and complexity to a fundraising exercise. 

The good news is that for many USFMs such appointments are not required. If marketing is limited to Swiss institutional and professional investors, USFMs can generally market their funds in Switzerland without appointing a representative or paying agent. Access to Swiss capital is therefore often considerably simpler than many USFMs expect. Not only can the appointment of a Swiss representative and paying agent frequently be avoided, the remaining Swiss compliance requirements are also typically limited when compared to those in many other jurisdictions.

The categories of institutional and professional investors are broad and extend well beyond traditional institutional capital. They include banks, securities firms, insurance companies, fund managers, certain large companies, as well as pension funds and companies with professional treasury operations. Importantly, access is not limited to institutional capital. Family offices with professional treasury operations also qualify as professional investors. In addition, the appointment of a Swiss representative and paying agent is generally not required where interests in the fund are marketed to retail clients under a discretionary portfolio management mandate or investment advisory agreement with a regulated financial intermediary.

In practice, most private fund offerings by USFMs are already structured around an institutional and sophisticated investor base. High minimum commitment thresholds generally limit participation to investors that qualify as institutional or professional investors under Swiss law. As a result, the requirement to appoint a Swiss representative and paying agent frequently does not arise.

USFMs intending to access private wealth investors, HNWIs and small family offices are required to appoint a Swiss representative and paying agent before commencing fundraising.

USFMs should seek Swiss counsel advice early to assess whether their investors prompt the need to appoint a Swiss representative and paying agent. Funds that target Swiss institutions and professional investors typically do not require such providers, reducing costs and time to market.

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