The Swiss government is preparing to tighten regulations on hedge funds, a move that may make it into one of the most “exacting” jurisdictions in the world for money managers, the Financial Times said.
The regulations were proposed by the Federal Council and must be voted on by the country’s parliament, the newspaper reported. The proposed laws, which haven’t yet been translated into English, are intended to bring the country into line with the European Union’s own policies, and exceed them in some key areas, the FT said.
Under the new proposal, any overseas investment fund that takes money from a Swiss institution will have to comply with requirements laid out by Finma, the Swiss financial supervisory authority, and also must have a permanent representative based in Switzerland, according to the report. Finma’s requirements may include demands for tax and asset transparency as well as minimum standards of governance, according to the FT.
Wealthy individuals would also be stripped of their automatic status as “qualified investors” permitted to deposit money with hedge funds directly, the FT said.