CFA Society Switzerland submits consultation response on proposed amendment to the Federal Act on the Acquisition of Real Estate by Persons Abroad

 

CFA Society Switzerland has submitted its consultation response to the proposed amendment of the Federal Act on the Acquisition of Real Estate by Persons Abroad, commonly known as “Lex Koller.” The response, submitted in German, sets out the Society’s opposition to extending Lex Koller authorization requirements to listed Swiss real estate securities, including listed real estate funds and real estate companies.

 

Representing Switzerland’s investment profession

 

CFA Society Switzerland is the leading association for more than 3,700 investment professionals in Switzerland. As part of the global CFA Institute network, the Society actively promotes the highest ethical standards, market integrity, and professionalism. Through its policy engagement, CFA Society Switzerland contributes independent and objective market expertise to support efficient, fair, and well-informed regulation of Switzerland’s capital markets—for the benefit of investors, the broader economy, and society.

 

Key concerns

 

CFA Society Switzerland believes that the proposed extension of Lex Koller to listed real estate securities would not address the root causes of housing scarcity. Indirect investments in listed real estate vehicles do not create housing, accelerate construction, or reduce building costs. At the same time, the proposal could create significant unintended consequences for Swiss capital markets. In particular, the Society warns that the measure could make trading technically unfeasible, as existing securities trading infrastructure does not allow real-time verification of each investor’s Lex Koller status. This could likely force widespread delistings of listed Swiss real estate funds and real estate companies, reduce market liquidity, and restrict access for retail investors.

 

Potential impact on pension funds and private investors

 

Listed Swiss real estate securities play an important role for both institutional and private investors. Swiss pension funds are significant investors in this asset class, while retail investors rely on listed real estate securities as one of the few liquid and diversified ways to gain exposure to Swiss real estate. CFA Society Switzerland estimates that a delisting scenario could put more than CHF 25 billion in market value at risk. This would materially affect Swiss pension funds and private savers, while weakening Switzerland’s competitiveness as a financial center and creating substantial legal uncertainty.

 

Our position

 

CFA Society Switzerland supports regulation that is effective, proportionate, and evidence-based. In the Society’s view, the proposed extension of Lex Koller to listed Swiss real estate securities would create significant risks for investors, market liquidity, legal certainty, and Switzerland’s capital markets, without meaningfully addressing housing supply. The full consultation response is available below in German.