With respect to the size and nature of the funds involved, the new requirements (when distributed to unregulated investors) should apply to both a mutual fund and a non-UCITS fund, such as an alternative or private equity fund. Asset managers use the COMMISSION quarter to accurately and effortlessly follow the distribution and commission management process. The COMMISSION quarter offers a variety of benefits, including: The United States offers a totally different regulatory landscape, which is largely based on two specific exceptions to the general provisions of the Securities Exchange Act of 1934 and the Securities Act of 1933. In addition, it should be noted that U.S. companies that register with FINRA as broker-dealers or cfTC/NFA are active in a clearly defined and monitored regulatory landscape, making it easier to sign distribution agreements. A third-party distributor is an institution that sells or distributes investment funds to investors for fund management companies. These companies generally have no direct connection to the fund itself. Partnerships between investment fund companies and third-party distributors often have to be concluded with different fees and provisions. As a distributor, the company works with the investment company to develop a marketing plan for the distribution of the investment fund.
Third-party suppliers typically work with staff distribution representatives with global distribution networks. They can be responsible for the sale of individual funds and work with brokers to ensure the distribution of funds via electronic brokerage platforms. Annual Compliance Monitoring and Confirmation ObligationThe Swiss representative is required to monitor the investment manager`s distribution activities in Switzerland and to ensure that the fund is only promoted and offered to qualified investors and that the investment manager complies with sales policies. This includes ensuring that the relevant fund documents and marketing documents contain the specific information needed (see ”advertising obligations” below). In order for a fund to compete with the many options available to investors today, it must have an efficient distribution network that provides distributors with one-off, accurate and competitive commissions. The most common way to do this is to implement and use effective distribution pricing and commission and management tracking software, which automates the process and provides more transparency to the asset manager, who can in turn make this information available to traders and investors. 10. When will the new law apply? The allocation of credits is subject to a transitional period until 1 March 2015. There are certain eligibility criteria that must be met in order to be able to rely on the transition period, and there have also been some differences in the interpretation of the transitional period by Swiss legal advisers.
Investment managers who expect to distribute funds to unregulated investors on or after March 1, 2015 must meet CISA/CISO requirements by that date. Solutions have been found between paying bodies and Swiss representatives to address this lack of clarity and to conclude appropriate agreements on paying bodies. A new regime for the distribution of non-Swiss funds to Swiss investors will come into full force on 1 March 2015, when the current transitional period will expire. The new regime divides Swiss investors into three categories: (1) unregulated qualified investors (retirement plans, companies, family offices, family trusts and wealthy individuals); (2) regulated eligible investors (a smaller list of regulated financial entities in Switzerland, such as banks, securities dealers, fund managers and insurance companies); and (3) unqualified investors (effective retail trade). This article focuses on investors in categories (1) and (2).