Olivier Stahler

Lenz & Staehelin

Geneva www.lenzstaehelin.com

olivier.stahler@lenzstaehelin.com Tel: +41 58 450 70 00

Biography

Olivier Stahler is a banking partner, recognised for his extensive technical knowledge in particular of Swiss asset management regulations. He frequently advises banks, securities houses and funds on licences granted by the Swiss financial regulator for. Olivier Stahler is involved in the structuring of financial products, and in particular private equity and hedge funds. Further, Olivier acts for financial institutions and corporate borrowers both in domestic and international financing transactions.

What do clients look for in an effective investment management lawyer?

I believe that the key is to be in a position to understand the client’s investment strategies and more generally, its business model to be able to provide advice tailored to its objectives. Fund structures involve multijurisdictional aspects and consequently several available set-ups. It is therefore also essential to have a good understanding of all international aspects involved.

Furthermore, the ability to anticipate the various legal and regulatory issues that arise along the way is particularly important. While the lawyer’s understanding is central, it is crucial to be in a position to coordinate all the relevant aspects of an investment management structure with the different stakeholders accordingly. In particular, where the involvement of financial market supervisory authorities is necessary, the experience and the diplomacy of the lawyer can make a real difference.

What are the main compliance issues that your clients have had to navigate over the past year?

The recent main compliance issues undoubtedly arose from the implementation of the Swiss Financial Services Act (FinSA) and the Swiss Financial Institutions Act (FinIA), which entered into force on 1 January, 2020. While FinSA has been referred to as the Swiss equivalent to the MiFID II, it includes several key distinctions, which imply a requirement to proceed with a gap-analysis for many of our clients. Furthermore, this new piece of legislation governs non-Swiss asset managers targeting Swiss-based investors. Consequently, we have assisted many of our clients in re-thinking their involvement in the Swiss market while ensuring compliance with the new Swiss regulatory framework.

What are the most challenging aspects of assisting clients in cross-border regulatory compliance?

The regulatory predictability is forefront when assessing a multijurisdictional investment management fund structure that obviously involves the asset manager, possible investment advisers, as well as the key individuals, who are usually located in various jurisdictions. Furthermore, tax aspects need to be tackled hand-in-hand with the regulatory aspects.

In your opinion, what is driving the move to alternative investment strategies?

Despite enhanced returns, the move towards alternative investment strategies is usually dictated by portfolio diversification concerns that occur alongside regulatory requirements. While traditional investors, such as pension funds have increased their exposure to alternative investment strategies, the overall portfolio remains conservative as a result of the statutory investment restrictions. On the other hand, family offices and other private investment structures have increased their appetite for alternative investments. The driver behind their exposure to alternative investment classes depends on the underlying asset classes in so far as the market can no longer separate traditional and alternative investments.

What are the opportunities and challenges presented to clients who invest in cryptocurrency and other digital assets?

While Swiss law is known to be technologyneutral in line with the “same risks, same rules” principle, Switzerland has recently amended various laws and regulations with the intention of considering the novelties of digital assets held on distributed ledgers. These legal developments present flexible opportunities for our clients active in Switzerland. In particular, traditional fundraising has recently been challenged by the emergence of a new type of capital raised by start-ups in the form of initial coin offerings or token sales. The main challenge relates to the classification of digital assets as “securities” subject to related regulatory requirements.

How are regulators adapting their approach to digital assets?

The Swiss Financial Market Supervisory Authority (FINMA) has been considering digital assets and blockchain technology for a number of years. Several guidelines have been issued to help asset managers navigate through various types of digital assets. The first Swiss fund in crypto-assets was approved by FINMA in September 2021 and exchange-traded products on cryptoassets have been available in Switzerland since 2019. While assessing the specific risks and features of digital assets, FINMA generally shows a certain degree of flexibility as long as technologies are obviously not used to circumvent existing rules and goals of financial market legislation, in particular in the field of AML.

In your opinion, is sustainable investing becoming the new normal?

Yes, it is indeed becoming the new normal and is thus a "must have" for all investment managers. That being said, it is likely that ESG and non-ESG investment profiles will have to coexist to meet all types of investors’ expectations.

What professional goals are you focusing on achieving in 2023?

I believe that several new regulatory developments will be of particular interest in the next couple of years. In particular, a new Swiss fund structure is expected to be launched in the course of the second half of 2023 (an unregulated fund category for qualified investors). Structuring this new instrument around the needs of the investment management industry needs will be an interesting challenge considering all the features of this new product.

WWL says: Olivier Stahler is “a very responsive and experienced” practitioner who “consistently combines extremely technical knowledge with strong business acumen” to “assess risks and strategic issues effectively” and provide “good practical advice”.