A “Qualified Investor” is defined pursuant to CISA to include:
(a) Regulated financial intermediaries such as banks, securities dealers, fund management companies and managers of funds, as well as central banks;
(b) Regulated insurance institutions;
(c) Public entities and retirement benefit institutions (pension funds) with professional treasury management;
(d) Companies with professional treasury management;
(e) High net worth individuals, defined as an individual who has either:
- confirmed in writing that he has at least CHF 5 million of wealth; or
- confirmed that he has at least CHF 500,000 in financial assets and demonstrates that his knowledge is sufficient to understand the risks of the investments due to its education and work experience or similar experience in the financial sector;
and declared in writing that he wishes to be deemed a qualified investor (“opt-in”).
This confirmation/declaration can be signed either by the individual him/herself, or by his/her wealth holding vehicle. In the latter case, the signatory must be a person responsible for the management of the assets on behalf of the individual.
(f) Investors who have concluded a written discretionary asset management agreement, provided that (i) they do not exercise their right to “opt-out” of the qualified investors status and (ii) the written discretionary asset agreement is entered into with a regulated financial intermediary, or with an independent asset manager (subject to certain conditions).
Investors falling within (a) and (b) are defined as “Regulated Qualified Investors” and investors falling within (c) – (f) are defined as “Unregulated Qualified Investors”.
Any investor that is not a Regulated Qualified Investor or an Unregulated Qualified Investor is a “Non Qualified Investor”.
Please note that, independent asset managers do not fall within the definition of Qualified Investors and FINMA confirmed in the Circular that independent asset managers are not considered per se as Qualified Investors. However, distribution activities targeting independent asset managers may be viewed as distribution to Qualified Investors if the relevant independent asset manager undertakes in writing to exclusively use the fund related information for clients who are Qualified Investors and if the relevant independent asset manager meets the following requirements:
- the independent asset manager must be subject, as financial intermediary, to the Federal Act on Anti-Money Laundering of 10 October 1997;
- the independent asset manager must be subject to the rules of conduct of a professional organisation, such rules being recognised as meeting the minimum standards by FINMA; and
- the written discretionary investment management agreement entered into with the investor must comply with the guidelines of a professional organisation, such guidelines being recognised as meeting the minimum standards by FINMA.