L-QIF − Limited Qualified Investor Fund

L-QIF − Limited Qualified Investor Fund

The new Swiss L-QIF fund is set to be launched in March 2024. Unlock the potential of the Swiss Limited Qualified Investor Fund (L-QIF) with Pictet’s expertise and specialised fund-related services. Benefit from Pictet’s well-balanced fund solution that combines flexibility with essential regulatory safeguards.


Legal background − Limited Qualified Investor Fund

The Swiss regulator has developed the L-QIF framework specifically for qualified investors. It signifies a significant milestone as it is the first time that no authorisation in the form of licensing or approval is required by the Swiss Financial Market Supervisory Authority (FINMA). L-QIFs thus introduce a new investment vehicle to the Swiss fund market toolbox. They are distinguished by their ability to expedite time to market, provide unparalleled flexibility and generate cost savings. This new fund category of collective investments offers an alternative to equivalent funds governed by foreign jurisdictions, such as the RAIF, and simultaneously enhance the attractiveness and competitiveness of the Swiss investment fund market.

Exploring the benefits of L−QIFs

Explore how L-QIFs are reshaping the Swiss landscape for institutional investors and high-net-worth individuals and position yourself at the forefront of this opportunity.

Faster time to market

L-QIFs provide an advantage over traditional Swiss collective investment schemes by offering a streamlined approval process. Unlike the conventional schemes that require FINMA’s approval, L-QIFs enable asset managers to swiftly introduce investment products that were previously absent from their offerings, thereby accelerating their market entry. In essence, the L-QIF structure serves as the Swiss equivalent to the
Reserved Alternative Investment Funds (RAIF) in Luxembourg. Faster time to market allows asset managers to attract qualified investors that seek prompt access to investment opportunities, while ensuring the necessary investor protection measures are in place. As a result, fund managers can effectively tap into the growing demand for readily accessible investment options.

Opportunity to exercise greater flexibility

L-QIFs provide a large range of options for pooling assets and offer enhanced flexibility when it comes to investment opportunities. L-QIFs provide opportunities for asset managers at two distinct levels. 

Firstly, at asset type and strategy level, L-QIFs enable a tailored investment approach and an expanded range of investment options. This flexibility enables Swiss asset managers to adapt their investment approach to the ever-changing market conditions and seize opportunities that were previously unavailable, without the need for extensive FINMA administrative procedures. With L-QIFs, investments can be allocated across a wide array of assets, encompassing both traditional and alternative assets such as hedge funds, private equity and real estate, without questioning the requalification of the fund vehicle with each change in the asset allocation mix. Secondly, L-QIFs enhance the management of the fund lifecycle by providing greater flexibility in implementing and overseeing fund events, thereby enabling a more agile approach. Within the L-QIF framework, asset managers can introduce new asset classes, adjust investment limits or modify asset exposure without the need for prior approval from FINMA. This streamlined process allows for swift decision-making and implementation, enabling asset managers to respond promptly to market trends and investor demands.

Cost efficient

L-QIFs offer an opportunity to maintain control over launching and running costs. By offering a cost-efficient launch option, L-QIFs significantly decrease expenses associated with FINMA approval and subsequent amendments. Moreover, the different benefits of L-QIFs enhance Switzerland’s appeal as a competitive destination for fund domiciliation.

Fund taxation

L-QIFs fall under the applicable tax regime for funds approved by FINMA. Despite being a new Swiss fund structure, L-QIFs are subject to the prevailing tax regulations that govern funds approved by FINMA, ensuring their compliance with the established tax framework.

Pictet's value proposition for L−QIFS

At Pictet, we pride ourselves on our unique position as one of the most trusted financial services brands. With our commitment to providing exceptional service quality, we offer a range of unparalleled services that set us apart from other banks.

  • Pictet Fortress

    Your financial security is our priority. Minimise your risks by relying on one of the highest rated financial groups in the world. Complementary to our financial strength, our clients’ interests are protected by the most secure cyber-risk management measures.

  • Client Servicing

    Your satisfaction is our mission. At Pictet, our primary focus is to provide exceptional client service that exceeds your expectations. Our dedicated team of specialists will also support you with all project management aspects related to the launch of your L-QIF fund structure. Pictet believes in building strong, long-lasting relationships with its clients, fostering trust and reliability at every step of your investment fund’s journey.

  • One-stop-shop offering

    Simplifying your financial experience. Pictet offers a comprehensive one-stop-shop offering, with services provided by our in-house fund management company, central administration, custodian or round-the-clock access to global markets, saving you time and effort. By consolidating your funds’ assets with Pictet, you benefit from a streamlined process and a holistic approach to managing your assets.

  • Proactive in L-QIFs developments

    Unlock Swiss fund excellence with our expertise. Benefit from the expertise of Pictet, an actor that has been actively participating in improving the attractiveness of Swiss funds.

It should be noted that the L-QIF can be a suitable vehicle for alternative investment strategies or investments with illiquid or difficult-to-value assets, particularly in terms of time to market and flexibility in structuring the product as an open or closed-end fund.
— Ilan Mizrahi − CEO FundPartner Solutions Switzerland

Legal background − Limited Qualified Investor Fund

The Federal Act on Collective Investment Schemes (CISA) and its accompanying ordinance (CISO) are undergoing revisions to incorporate the L-QIF.

The L-QIF is a collective investment scheme that meets the criteria set out in Article 7 of the CISA. However, unlike other Swiss funds, it does not require licensing/approval or supervision by FINMA. This innovative feature offers a significant advantage in terms of time to market, cost savings and flexibility compared to collective investment schemes subject to FINMA supervision. L-QIFs generally fall under the scope of the rules of the CISA and CISO, unless specific provisions do not apply to this vehicle such as those related to investment restrictions (Article 118d of the CISA). L-QIFs also fall under the scope of the self-regulatory standards established by the Asset Management Association Switzerland (AMAS) and recognised as minimum standards by FINMA (Article 126b of the CISO), including the Code of Conduct, the Performance Reporting Directive and the Total Expense Ratio (TER) Reporting Directive. 

In terms of applicable regulations, L-QIFs fall under the scope of the Swiss tax regime applicable to collective investment schemes under Swiss tax laws. Additionally, the provisions of the Anti-Money Laundering Act (AMLA) and, in the case of funds with real estate investments, the provisions concerning the acquisition of real estate by foreign persons (“Lex Koller”) apply, as with all other Swiss funds. 

This collective investment is a new fund category and can be structured as a contractual fund, an investment company with variable capital (SICAV) or a limited partnership for collective investment (LP under Swiss law). It is exclusively reserved for qualified investors and must be administered by an institution subject to FINMA supervision, which will be responsible for ensuring compliance with legal obligations related to this fund category.

Qualified investors as defined by the applicable regulations (Article 10(3) of the CISA) include:

  • Professional and institutional clients in accordance with the Financial Services Act (FinSA), Article 4 (3) to (5) and Article 5 (4).

  • High-net-worth individuals who have opted to be treated as professional clients as well as private investment structures established for the needs of these clients (Article 5 (1) of the FinSA).

  • Investors that have entered into a written asset management agreement (discretionary or advisory mandate) with a bank or financial intermediary under FINMA supervision, provided they have not indicated that they should not be considered qualified investors.

L-QIFs organised as contractual funds and SICAVs must be administered by a Swiss fund management company, which may delegate investment decisions exclusively to a collective asset manager under the Financial Institutions Act (FinIA) or to a collective asset manager located abroad and subject to equivalent supervision. An L-QIF structured as a limited partnership for collective investment must always designate a collective asset manager for all management activities. A depositary bank must be appointed for each L-QIF vehicle, and the depositary bank’s obligations under Articles 72 et seq. of the CISA remain unchanged under this new regime. 

The investment requirements, including investment limits and risk diversification rules prescribed by the CISA for approved funds do not apply to the L-QIF which has a much more liberal regime. However, the rules followed must be stated in the fund’s documentation for transparency purposes. Specific investment techniques, such as the use of derivatives, securities lending, repo transactions or leverage must be described in detail in the fund’s regulations. Additional restrictions apply to L-QIFs investing in real estate, including diversification rules (e.g. minimum number of properties to be defined), limitations on leveraging the real estate portfolio (max. 50%) and transactions with “close persons.” 

It should be noted that the L-QIF can be a suitable vehicle for alternative investment strategies or investments with illiquid or difficult-to-value assets, particularly in terms of time to market and flexibility in structuring the product as an open or closed-end fund. 

The institutions responsible for managing L-QIFs are required to communicate specific data, including the establishment of an L-QIF, to the Federal Department of Finance which will maintain a publicly accessible register of all L-QIFs. Regarding auditing, due to the absence of FINMA supervision, the fund management company administering such a vehicle must ensure compliance with legal obligations and the conformity of the L-QIF with the rules prescribed by the CISA at all times (Article 126h of the CISO). The applicable audit rules for an L-QIF explicitly provide for two types of audits: an examination of the annual accounts based on the usual requirements applicable to Swiss collective investment schemes and an additional audit regarding compliance with the characteristics of the L-QIF (Article 118a of the CISA) and reporting and data collection obligations (Article 118f of the CISA).


The Pictet Group includes the entities mentioned in the report published under the following link: www.pictet.com/reports Services mentioned in this document may be provided by various entities of the Pictet Group pursuant to the applicable contractual documentation (including waivers). Any description of services contained therein is not binding. This document is a marketing material provided for information purposes only and intended for professional financial intermediaries or clients. Some services and products may require further internal approvals from Pictet Group entities on a case-by-case basis, which may depend on various clients- and Pictet Group-specific factors. This document and the data contained therein (the "Data") may be read and/or used only by the persons to whom they are addressed. Any form of reproduction, copying, disclosure, modification and/or publication of the Data is subject to the prior written consent of the relevant Pictet Group entity. The addressees of this document agree to comply with the applicable laws and regulations in the jurisdictions where they use the Data.This document is not intended for adressees or their clients who are citizens of, domiciled or resident in, or entities registered in a country or a jurisdiction where its distribution, publication, provision or use would be contrary to applicable law or would subject any Pictet Group entity to licensing or other requirements within such country or jurisdiction. This document is not to be considered as an offer, a promotion or a solicitation to buy, sell or subscribe any securities, other financial instruments, banking or investment services offered or issued by any Pictet Group entity or any third parties. This document is neither an investment advice nor an investment recommendation. Pictet Group entities have no obligation to update, modify or amend this document or otherwise notify adressees in the event that any matter stated herein becomes inaccurate. Pictet Group entities are not liable for the use, transmission or exploitation of the content of this document. The Pictet Group does not guarantee that the data contained in this document is complete, accurate, or free of errors or omissions. No liability whatsoever may be incurred by any entity of the Pictet Group. 

I am an Institutional investor
Please confirm your profile
Or select a different profile
Confirm your selection
By clicking on “Continue”, you acknowledge that you will be redirected to the local website you selected for services available in your region. Please consult the legal notice for detailed local legal requirements applicable to your country. Or you may pursue your current visit by clicking on the “Cancel” button.

Welcome to Pictet

Looks like you are here: {{CountryName}}. Would you like to change your location?