Insurance for Fund Representatives

Representatives of foreign collective investment schemes require authorisation from FINMA. In addition to the conditions set out in Article 14 CISA, representatives must either have deposited a surety of at least CHF 1,000,000 or otherwise purchase a professional indemnity insurance of the same amount (Art. 132 CISO).

Such insurance

• should cover only claims for damages by third parties against the applicant, which are resulting from its activity as a representative within the meaning of article 123 CISA or as distributors within the meaning of article 19 CISA;
• should cover damages caused by employees and contracted persons of the representative;
• should cover claims for damages, which although caused during the policy period, but are only discovered after the policy period (i.e. one year extended reporting period in case of a ‘claims made-‘policy);
• the notice period of the insurance contract must be at least three months.

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