Scandinavian Invest AG was founded as a public limited company in Switzerland. The company was established in 1980. Then, the current founder, Tore Herbert Hoff, aquired the company in 2016, and branded it Scandinavian Invest AG. The company thereafter applied for a license to perform asset management services. The application was granted and license given Q4 2016.
Tore Herbert Hoff has served a number of clients from Switzerland. The experience gained has moved him further on to perfection.
Until recent time, the regulatory regime in Switzerland has been organized via “Self Regulatory Organizations” (SROs). The SROs have been appointed by Finma to conduct the regulatory oversight over companies that are, so called, self regulated.
A license as a SRO company gives the right to perform asset management services. Thus, there are certain regulatory obligations to keep. The most important is that client funds shall be kept segregated. In practical ways, there are never any contact between the client money and the company. Instead the investor gives a Limited Power of Attorney to handle their investments. The client assets are placed in a related bank. The bank is in turn providing the asset manager with the needed platform for market execution.
Scandinavian Invest AG was registered as a Swiss asset management company with base in Geneva. The objective of the company was to act as a single standing asset management company with a license in Switzerland.
The company was liquidated in 2019 due to the lack of domisiliation. Thus, the records in the link shows that the liquidation was a closure of the company and have no economical motives.
Subsidiary entities in terms of distributing products and services never saw the light of day. It also never saw the “darkness of the night”. Instead there was a sincere objective to provide asset management services to the public.
There exist a separate field of business in Switzerland. Namely, selling and distribution of Swiss vintage trust companies. Most of the present providers will announce it as a “rare investment oportunity”. Is it really? So, what have we learned from the years in Geneva? Are you looking for the means to have a financial license in Switzerland? The providers of those trust companies will, without any doubt, promote you with the huge benefits. From your side, you are likely to spend hundres of thousands of Swiss Francs. Does this represent the normal scheme and standard in company setups in Switzerland? How beneficial will this be for you at all?
“I can only speak for my own experience. However, when I discovered a different level of providers, with a better service and just a portion of the price, my view is clear. To have a financial license in Switzerland you must go through the application process anyway. Switzerland is Europes last frontier when it comes to trust in the business world. It has the longest standing reputation for its financial service environment. Not to forget banking secrecy. Until recently, bearer shares has been common for AG (Public limited) companies. In practical ways, it seems almost impossible to know who the beneficial owners really are. Is this good when you are purchasing a vintage company from a providers whose most important purpose is to overprice their offer?”
The Swiss regulatory regime has stayed the same during the lifetime of Scandinavian Invest AG. However, the Swiss government has recently decided to implement several changes. Any ownership in an AG-company must now be registered. Even more important is that any applications for an asset management license must also be approved by Finma. In our oppinion it is a change for the better. It avoids any unclearity for those who is operating as a “one man show”. The precense of the company will therefore be more strong.
It is certainly a shame that Scandinavian Invest AG was liquidated. The aquaintance and unclear relationships can destroy everything for you. Any level of constrol from the beneficial ownership also comes very clear. From a distance, any potential conflict or disagreement can destroy your company. However, we choose to learn from this. We consider it as a big lesson learned. An expensive lesson yes, but learning by mistakes is also the most effective way. Good practice only shows how it should be done in the future. More important is to be aware whith whom not to relate to.
“I am grateful for those who have showed me the right direction. I am also grateful for making my own mistakes.” The best result is to know where the future path is going. Changes in form of a new and better fundament is already taking place. Liongate Capital AG is the distinction from the past. It is also the bright look into the future. This is where future products and trading strategies will find its way to the financial services market.