Download or read book Hedge Fund Regulation in Europe and Its Impact on Switzerland written by Karin Bosshard and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis aims to examine the legal and economic impact of the European Union's Alternative Investment Fund Manager Directive (AIFMD) on the Swiss hedge fund landscape in order to understand how the Swiss policy maker can ideally react to the changed regulatory framework in the European Union. The legal impact of the AIFMD on Swiss hedge fund managers and advisors is derived from the interpreting relevant legislative texts and is supplemented by the opinions of experts. An economic analysis contains an evaluation of the options available to hedge fund managers or advisors for reacting to the changes in the Swiss legal framework, supported by estimations of industry experts, hedge fund managers and advisors. An empirical analysis tested the hypotheses derived from the evaluation's findings in order to enhance the validity of this thesis' results. The data was gained from a survey conducted amongst hedge fund managers and advisors in Switzerland. The legal analysis found that the AIFMD requires Switzerland to adapt its laws to an equivalent level until 2013 provided that Switzerland wants to maintain market access to the European Union's alternative investment market. A first proposal of the Federal Department of Finance incorporated the requirements of the AIFMD into the Swiss Collective Investment Schemes Act (draft CISA) implying a significant change to the regulatory framework for hedge funds in Switzerland. The draft foresees that the management of offshore hedge funds - irrespective of their size - and the distribution of offshore hedge funds to qualified investors will become subjects to FINMA authorisation. Additionally, the draft de facto prohibits the active distribution of offshore hedge funds in Switzerland. The economic analysis found that the changing legal framework is likely to trigger a trend towards onshore structures of hedge fund vehicles and their managers. Thereby Swiss hedge fund managers prefer EU domicile.