I'm living in Switzerland for the foreseable future highly unlikely at the moment that I wil be returning the US anytime soon (+10 years perhaps if I do return)
Since 2018, PRIIPS regulations disallow European investors to invest in U.S. Funds. These regulations only allow investment in funds with a Key Investor Document (KID). And U.S. funds and ETFs do not provide this KID
The Financial Services Acct (FinSA) and the Financial Institutions Act (FinIA) are the Swiss equivalents of the MiFID laws from the European Union. These laws will enter into effect in January 2020, but will only affect foreign brokers in 2022. And effectively, they should prevent Swiss investors to invest in U.S. funds.
Platforms like Degiro have already stopped US based ETFs and IB will do the same in 2021/2.
1) I have a US address I can use to open an account with Vanguard/Schwab (which do you reccomend btw). But what are the implications of using this workaround while living in CH for the foreseeable future.
2) If I can start investing from abroad, what is the best way regarding funding the account as I'll be paid in swiss francs but buying USD etfs?
Thank you so much in advance.
Submitted July 07, 2021 at 07:48AM by Gelawdeyos https://ift.tt/3hHrZT9
