Swiss Collective Investment Schemes: A Guide to Alternatives to Buying a FINMA CISA License

Swiss Collective Investment Schemes: A Guide to Alternatives to Buying a FINMA CISA License

Alternatives to Buying a FINMA CISA L-QIF License. You’re eyeing the prestigious Swiss FINMA Collective Investment Scheme License, better known as the CISA license. It’s like the golden ticket of Swiss fund management. But here’s the kicker – these licenses aren’t up for grabs on the market. They’re as rare as hen’s teeth! Since the introduction of Limited Qualified Investor Funds (L-QIFs) under the Swiss CISA, these licenses have skyrocketed in value. So, what’s a savvy investor to do? Don’t hesitate to reach out at connect@swissfintechpro.com

Option A: The Upgrade Route

One clever workaround is to purchase a readymade FINMA portfolio management license (we have one for sale) and then upgrade it to a CISA license. This two-step approach has some pretty neat perks:

Immediate Action: Grab a portfolio management license, and you can start playing ball as an Asset Manager in Switzerland. We’re talking Discretionary Management of Client Portfolios, Investment Advice, the works.

Start to Manage Funds Immediately under the De Minimis’ Rule Bonanza: While upgrading, you can still operate as a fund manager thanks to the ‘De Minimis’ rule. This little gem lets firms with assets under certain thresholds operate with just a portfolio license. But remember, with great power comes great responsibility – you’ll need to stick to specific regulatory requirements. Thresholds to Watch:

1. Leveraged assets under management: Less than CHF 100 million.
2. Unleveraged funds (no redemption rights for five years) and assets under CHF 500 million.

Option A Budget and timeline Breakdown:

• Getting a pre-existing portfolio license: CHF 495,000. (price may change depending on availability)
• Upgrading cost to a CISA license: Roughly CHF 120,000.
• Expect to wrap this up in about 2-3 months, while you are already operating during the upgrade.

Option B: Starting from Scratch

Alternatively, you could kick things off from square one. This involves either setting up a new company or using a shelf company, then applying for the license from the ground up. Here’s what you’re looking at:

Estimated Budget and timeline:

• Between CHF 195,000 and CHF 215,000, covering everything from company incorporation or purchase to license application and all that jazz in between.
• The timeline? Around 6-8 months. Patience is key!
• While this option is cheaper you will not be able to start immediately to manage assets and funds as with the option above.

The L-QIF Advantage

Now, let’s talk about the new kid on the block – Limited Qualified Investor Funds (L-QIFs). These funds are shaking things up thanks to Article 118a in CISA. Here’s why they’re making waves:

• Flexibility: L-QIFs don’t need FINMA authorization before launch, offering more freedom in setting up and managing funds.
• Speed to Market: Say goodbye to lengthy regulatory approval processes. L-QIFs can hit the market faster, a huge plus in today’s dynamic investment world.
• Cost Efficiency: Fewer regulatory hoops mean less money spent on authorization processes.
• Access to Qualified Investors: L-QIFs are exclusively for qualified investors, and in Switzerland, the bar for being ‘qualified’ isn’t sky-high. This opens doors to a broader, more sophisticated investor pool.
• Tax Benefits: Switzerland’s tax regime smiles upon L-QIFs, making them a tax-efficient choice.
• Qualified Investors – Who Are They?

Under CISA, qualified investors include a range from high-net-worth individuals opting out of retail client status to large companies and financial intermediaries. It’s a diverse crowd, and each type of investor brings unique opportunities and considerations to the table.

Wrapping It Up

There you have it! While getting your hands on a FINMA CISA license might be a tough nut to crack, these alternatives provide practical and strategic pathways to enter the Swiss fund management arena. Whether you choose the upgrade route or start from scratch, each path offers unique advantages and considerations. And with L-QIFs changing the game, the Swiss investment landscape is more exciting than ever.

Keen to explore these avenues further or discuss your strategy about Alternatives to Buying a FINMA CISA L-QIF License? Don’t hesitate to reach out at connect@swissfintechpro.com Let’s make your investment goals a reality in the dynamic world of Swiss Collective Investment Schemes.