Occupational pension plans: Investment foundations gain more flexibility
The investment options of investment foundations will be expanded and the role of the investors' meeting as the supreme body of the foundations will be strengthened. At its meeting on June 21, 2019, the Federal Council took note of the consultation results and decided to bring the amendments into force on August 1, 2019.
Investment foundations are auxiliary institutions of occupational pension plans. They are collective investment vehicles for pension funds, pillar 3a foundations and vested benefits institutions. They are subject to the provisions of the Ordinance on Investment Foundations (ASV).
The amendment to the ordinance strengthens the investors' meeting as the supreme body of the investment foundation. In particular, it is now solely responsible for electing the board of trustees. In addition, the Federal Council expands the investment options and flexibility of investment foundations. For example, the amended ordinance allows investment foundations to invest more heavily in equities than before in certain vehicles, which is necessary due to the low interest rate situation. This makes up for the competitive disadvantage vis-à-vis investment funds.
The amendment to the Ordinance on Investment Foundations will enter into force on August 1, 2019.
Source: http://www.admin.ch
