Germany’s Federal Financial Supervisory Authority (BaFin) has approved a tax agreement between Switzerland and Germany that will give Swiss securities funds (SSFs)
Germany’s Federal Financial Supervisory Authority (BaFin) has approved a tax agreement between Switzerland and Germany that will give Swiss securities funds (SSFs) equivalent market access to UCITS funds in the EU market. BaFin has agreed to treat SSFs as if they were UCITS-compliant vehicles: a decision that has been warmly welcomed by the Swiss Funds Association. SFA president, Martin Thommen, said that the SFA were pleased that its efforts with regard to market access “have resulted in such a major success”. “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,” commented Thommen. Switzerland currently has some 156 SSFs and SFA CEO Matthäus Den Otter (pictured) thinks the new bilateral tax agreement will lead to an increase in Swiss fund sales in the German market. “We hope this category will become more attractive as soon as it qualifies for equal treatment with UCITS in Germany,” said Den Otter. Non-UCITS compliant vehicles such as Swiss FoHFs, however, are not covered under the tax agreement.
