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The investment fund market on the SIX Swiss Exchange comprises tradeable shares in collective investment schemes,
i.e. stand-alone and umbrella funds, exchange traded funds (ETFs), exchange traded structured funds
(ETSFs) and investment companies with variable capital (Société d'investissement à capital variable,
SICAV). The Federal Act on Collective Investment Schemes of 23 June 2006
(Collective Investment Schemes Act, CISA ,
in German), which among other things regulates the distribution of investment funds, defines
collective investment schemes in Art. 7 para. 1 as follows:
"Collective investment schemes are assets raised from investors for the purpose of collective
investment, and which are managed for the account of such investors. The investment requirements of
the investors are met on an equal basis."
Applicable law
In Switzerland, collective investment schemes can be established in a contractual form (e.g. as an
investment fund) or in a corporate form such as an investment company with variable capital (SICAV)
or fixed capital (SICAF,
Investment companies, Arts. 65 ff Listing Rules). CISA and its relevant ordinances govern the
rights and obligations of all parties involved in the business of collective investment schemes.
Shares of collective investment schemes
Shares of collective investment schemes represent claims against the fund management company for a
participation in the assets and profits of the fund or a financial participation in the investment company.
Because the investor would not be sufficiently protected in the case of a given fund manager's
bankruptcy, Art. 35 para.1 CISA prescribes that assets and rights belonging to the fund shall,
in the case of the fund management's bankruptcy, not be included in the bankruptcy assets but
instead be segregated exclusively in favour of the investors.
As a result of these particular legal features of open-end collective investment schemes, the
listing regulations dictate that they are equity securities and not debt securities.
Arts. 105 ff Listing Rules govern the
listing of collective investment schemes and have the purpose of ensuring transparency in terms of the
listing per se as well as the maintenance of listing.
Supervisory authority
The Swiss Financial Market Supervisory Authority
(FINMA) is responsible for monitoring compliance with the rules laid down in CISA. Violations of the
law, as well as the fund contract, will be persecuted by the FINMA. For distribution of the units,
i.e. the public promotion in Switzerland of a collective investment scheme established under foreign law, an
authorisation is required. Such authorisation is granted by the FINMA
(Arts.13 ff. CISA).
Thanks to this authorisation process, investing in a collective investment scheme distributed from
Switzerland represents a diversified investment and ensures extensive protection for the purchaser.
In response to these legally defined investment opportunities, SIX Swiss Exchange has created a special
regulatory standard for the listing of collective investment schemes.
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