FINMA opens consultation on CIS Bankruptcy Ordinance

FINMA, the Swiss Financial Market Supervisory Authority, has opened a consultation on the rules of the Collective Investment Schemes Bankruptcy Ordinance.

This comes after the regulator took over responsibility for declaring bankruptcies regarding certain types of institutions according to the Collective Investment Schemes Act (CISA).

The Act makes FINMA responsible for initiating and conducting bankruptcy proceedings over fund management companies, investment companies with variable capital (Sicavs), limited partnerships for collective investments, and investment companies with fixed capital (Sicafs).

However, the framework for bankruptcy proceedintgs is considered “rudimendary”, which is why the regulator deems it necessary to consult on the Ordinance rules, in part to make its own actions more predictable in relevant situations.

FINMA said that compared with the Swiss Banking Act, which allows it to issue implementing provisions for bankruptcy law and restructuring law, CISA – and, consequently this draft ordinance – is restricted to bankruptcy.

A copy of the draft Ordinance rules is available here (in German): [asset_library_tag 5586,KAKV – FINMA]

The consultation period ends on 22 August 2012.

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