Switzerland and Germany have initialled a tax deal which will give Swiss securities funds the same access to the market as Ucits vehicles. Germany’s regulator BaFin has approved the agreement.
Germany and Switzerland have agreed a tax deal that will give Swiss securities funds access to the lucrative European Union market.
Under the deal initialled by Switzerland's Federal Council, provisions have been granted market access to the German market for Swiss securities funds (SSFs).
The Federal Financial Supervisory Authority (BaFin), the German regulator, has agreed to treat SSFs as if they were Ucits funds.
The Swiss Funds Association (SFA) welcomed the deal. "The SFA is pleased that its efforts with regard to market access have resulted in such a major success," said Martin Thommen, SFA president, adding, "we will continue to support our authorities in this regard, both within Europe and beyond, and we hope that this agreement will send out a signal."
SFA CEO Matthäus Den Otter is confident the tax agreement will help boost Swiss fund sales in the German market. "Currently there are 156 SSFs," said Den Otter, "We hope this category will become more attractive as soon as it qualifies for equal treatment with Ucits in Germany."
Although SSFs comply with the EU Ucits directives, Swiss funds of hedge funds (FoHFs) and other vehicles that do not meet Ucits terms are not covered by the agreement. Swiss funds falling under the EU's alternative investment fund managers (AIFM) directive will continue to face barriers to marketing and distribution in member states.
The technical details of a mutual recognition deal have not yet been resolved between BaFin and the Swiss Financial Market Supervisory Authority (Finma).
The new rule will enter into force after ratification by both German and Swiss parliaments in 2013.
Read more: http://www.hedgefundsreview.com/hedge-funds-review/news/1734996/switzerland-signs-vital-tax-deal-germany-securing-access-alternative-funds#ixzz1VBVOyXae
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