Definition and classification
Investment foundations are foundations within the meaning of Art. 53g para. 1 of the Federal Act on Occupational Old-Age, Survivors’ and Disability Pension Provision (OPA; SR 831.40) and Art. 80 et seq. of the Swiss Civil Code (CC; SR 210). They are established specifically to serve the purpose of occupational pension provision, qualify as legal entities and are entered in the commercial register.
Legal basis
The relevant legal provisions governing investment foundations are set out in Art. 53g–53k OPA. Pursuant to Art. 53k OPA, the Federal Council issues implementing provisions relating in particular to:
- eligible investors
- establishment and utilisation of endowment capital
- foundation, organisation and dissolution
- investment, bookkeeping, accounting and auditing
- investor rights
For this purpose, the Federal Council issued the Ordinance on Investment Foundations (IFoundO; SR 831.403.2).
Supervision
Investment foundations are subject to OPSC supervision (Art. 64a para. 2 OPA).
Eligible investors
Those eligible to invest in an investment foundation may include (Art. 1 IFoundO):
- pension funds and other tax-exempt institutions domiciled in Switzerland whose purpose is to provide occupational pension provisions; and
- persons who manage collective investment schemes of the institutions referred to letter a, are supervised by the Swiss Financial Market Supervisory Authority (FINMA) and exclusively invest funds for these institutions with the investment foundation.
Foreign investors must not invest in investment foundations either directly or indirectly.
Assets and investment groups
The total assets of an investment foundation comprise its endowment capital and the assets available for investment (Art. 53i para. 1 OPA).
The investment groups are managed as separate accounting entities and are economically independent of each other (Art. 53i para 2 OPA). The following principles therefore apply:
- Each investment group is liable exclusively for its own obligations (Art. 53j para 2 OPA).
- Investors are not liable for any other obligations (Art. 53j para 3 OPA).
- In the event of bankruptcy, the assets of an investment group are segregated for the benefit of that group’s investors (Art. 53i para 4 OPA).
The investment foundation acts legally in its own name, but for the account of the respective investor group.
Auditors
Only firms authorised as a state supervised audit company by the Federal Audit Oversight Authority may act as auditors (Art. 9 IFoundO).
Sector association
Some investment foundations are organised within the sector association Konferenz der Geschäftsführer von Anlagestiftungen (KGAST).
