GUTOVSKA & Partners and Oleksiy Gromov particularly are willing to expain.
Today Switzerland Confederation is very attractive jurisdiction for foreign investors, as it has developed economic and flexible national tax system. Switzerland banking system is considered to be the first in the world; this allows investors not to worry about their assets.
Yes, investments mechanisms play one of the key roles in the investment system of Switzerland. Function of investments funds are regulated by the law of Collective Investment Sachems (further – CISA) and Foreign Investment Promotion and Protection Agreement (there is an International investment agreement between Ukraine and Switzerland Confederation).
So, why Switzerland? First, all the issues of control of investments activity in Switzerland are carried out by The Swiss Private Equity & Corporate Finance Association (further – SECA) and Financial Market Supervisory Authority (further – FINMA) - transparent organizations.
Each canton has one branch of CEKO, on regionally level act three offices (Greater Zurich, DEWS, Basel Area). Basic unit which carries leadership activities of SECA is called Location Switzerland. All units always produce printed publications about main economic development and business in Switzerland.
Commercial investment funds in Switzerland are two types:
Contractual fund.
Investment Company with Variable Capital.
Contractual fund has similarities with Unit investment fund (Ukrainian counterpart). When opening the collective investment fund, you need to appoint a company with permit. This company will manage the fund assets on behalf of investors. Then the fund should conclude a contract with Switzerland bank, which will save assets of the fund. Management company is acting on its behalf, but at expenses of investors. We need to mention also that investors are liable within their deposits. Investment Company with Variable Capital has similarities with Corporate investment fund (Ukrainian counterpart). It is created like legal entity, foundation members can take part in the administration, activity of the fund can be limited by memorandum of association.
It is interesting that in accordance to the Switzerland legislation, fund should keep its assets on a special bank account. If fund wants to change the bank, it needs to take permission from FINMA; this procedure ensures saving of the assets of investors. Also investors have the right to get veracious information about activity of the found. Rules of CISA set certain date of publications of financial activity of the funds and rules of appointment of the company-auditor.
Therefore, Switzerland is the attractive version for investors, as it has developed legislation, adverse political and economic situation in the country and particularly its relations with Ukraine allow to undertake major investment deals with minimum risk.