Feeder Sizing

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I would base it on the size of fuses inside the switch.

You could have 40 amps fuses / wire feeding a 600 amp panel. Perfectly legal, just seems odd.
 
The question if kind of backwards. You size the OCPD to protect your feeder. So you would choose a panel that exceeds your load and accounts for future growth; then the size of the feeder is based on your load calculation x 1.25 and account for voltage drop, derate, etc. ; finally you choose your OCPD to protect your feeder.
What's the actual situation you're dealing with?
 
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