// Financial Law Update
Collective investment scheme vs. operating company / Decision of the Federal Supreme Court of November 5, 2010
In case of doubt a collective investment subject to authorization will be assumed.
In its decision 2C_571/2009 the Federal Supreme Court was asked to resolve whether a Swiss company is to be qualified as a collective investment scheme or as an operating company carrying out entrepreneurial activities. Such distinction is highly relevant because collective investment schemes need to be authorised by the Swiss Financial Market Supervisory Authority FINMA whereas operating companies do not.
The Supreme Court held that the company in question was a collective investment scheme. The decision highlights the difficulties to draw a line between operating companies and collective investment undertakings and does not substantially eliminate the legal uncertainties entailed therewith. Simultaneously it sets the clear signal that in cases of doubt courts will consider a company a collective investment scheme subject to registration and authorization duties, rather than an operating company not subject to such obligations.
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NFTs in Metaverse: Do Trademark Owners need to register their Trademarks for Virtual Goods and Services?
“Nike Sold an NFT Sneaker for USD 134’000”: This York Times headline of May 26, 2022 and similar headlines regarding virtual goods in Metaverses or NFT Trade Platforms have made us realize that NFTs are not only for digital art but also a huge market for brand products.
Recognition of foreign family foundations in Switzerland
Swiss Family Foundations are not commonly used for asset protection or estate planning purposes due to a de facto prohibition of family maintenance foundation. Since families are often spread over different countries and continents and assets are located in various jurisdictions, contributions of assets to a foundation may very well be an optimal solution, also because these assets no longer fall within the scope of the estate. For this purpose, foundations are set up in jurisdictions like Liechtenstein.