Other funds for alternative investments include open-ended collective investment schemes whose investments, structure, investment techniques (short-selling, borrowing of funds, etc.) and investment restrictions exhibit a risk profile that is typical for alternative investments.
Leverage is permitted only up to a certain percentage of the fund's net assets. The Federal Council determines the percentage rate. FINMA regulates the details.
Reference must be made in the fund name and in the prospectus and key information document in accordance with Title 3 of the FinSA1, as well as in advertising material, to the special risks involved in alternative investments.2
FINMA may allow the transaction-related settlement services of another fund for alternative investments investing directly to be provided by a regulated institution specializing in such transactions (prime broker). It may specify which monitoring functions must be undertaken by the fund management company and the SICAV.