What is a SICAV?
Definition
The SICAV (Société d’investissement à capital variable) is a legal structure commonly used in the field of investment funds in Switzerland. It allows investors to acquire shares directly in a company that manages assets based on a defined investment strategy.
Unlike other types of fund, the capital of a SICAV varies according to investor subscriptions and withdrawals, giving it great flexibility.
Control
This model is particularly valued for its transparency, its ability to attract capital, and the diversification it offers. SICAVs are subject to the Federal Act on Collective Investment Schemes (CISA) and are strictly supervised by the Swiss Financial Market Supervisory Authority (FINMA).
Requirements for setting up a SICAV in Switzerland
The creation of a SICAV in Switzerland is governed by strict rules designed to ensure transparency, investment security and investor protection.
FINMA authorization
A SICAV must obtain an authorization as an establishment issued by FINMA. This authorization certifies that the SICAV complies with the legal requirements of the Federal Act on Collective Investment Schemes (CISA). In addition, the SICAV's statutes and investment regulations must be approved by FINMA.
If the SICAV includes compartments (umbrella funds), approval is required for each of them.
Financial & structural requirements
The SICAV must have assets of at least 5 million Swiss francs in the year following its launch, and an adequate ratio between the contributions of entrepreneurial shareholders and the total assets of the SICAV must be guaranteed.
The actions of entrepreneurs and investors must :
- Be fully paid up in cash
- Be without nominal value
- Be freely transferable
Organization and administration
The SICAV must draw up detailed regulations defining its investment policy, investment limits and risks, and risk allocation. A licensed bank must be appointed to hold the assets.
There are two types of management for a SICAV. On the one hand, the self-managed SICAV, which manages its own portfolio with the possibility of delegating certain tasks. On the other hand, the externally managed SICAV, which delegates the administration and portfolio management to entities with the required authorization.
Additional restrictions
The SICAV must have the sole purpose of collective asset management. Additionally, it cannot provide external services except those authorized under the Financial Institutions Act (LEFin).
The SICAV must maintain equity up to the amount set by FINMA at any time.
Company name
The name of the SICAV must explicitly include its legal form or its abbreviation ("SICAV").
Taxation of the SICAV
SICAVs are not considered independent tax entities, except for directly held real estate properties. The wealth and income generated by the SICAV are taxed directly at the level of the investors, based on their tax residence and the applicable tax laws.
Taxation of income and wealth
Transactions carried out as part of the asset management of a SICAV are subject to certain tax obligations, such as the stamp duty, applicable under the rules of the Stamp Duty Act (LT).
Transaction taxes
Transactions carried out within the framework of SICAV asset management are subject to certain tax obligations, such as the stamp duty, applied in accordance with the rules of the Stamp Duty Act (LT).
In addition, the withholding tax applies to distributed or reinvested income, in accordance with the guidelines of the Federal Tax Administration (FTA).
Fund providers
Companies and service providers managing the SICAV are also subject to specific tax obligations, including VAT applicable to certain activities such as fund management or rebates granted to distributors.
