The future of asset management in Switzerland
At the time of writing this article, a second Swiss bank had just decided to give up its business in the wake of the U.S. tax investigation. We are not talking about banks with entities and operations in the U.S.; both banks are Swiss-domiciled without any offices or representatives in the U.S.
Neither bank is in breach of any Swiss laws and no infringement of the laws of any other country has been established in a court of law.
The financial crisis sent shockwaves around the globe, with the collapse of Lehman Brothers, the bailouts and in some cases the nationalisation of major financial institutions such as UBS, RBS and AIG. It has considerably changed the way investors look at the risk of default of major ’blue-chip’ corporations.
As the world, and particularly Europe, tumbled into a recession, unemployment and welfare spending have further increased the strain on national budgets. As the U.S. is moving slowly towards recovery, in addition to the above, it has had to deal with a political stalemate.
The historically low interest rates, as a result of the sustained period of expansive monetary policy, combined with the demographic trend of longevity are both an immense challenge as well as a major opportunity for those who can read the signs of the times.
As a wealth and asset management centre located in the middle of Europe, Switzerland is very much affected by all these developments. But what does the future hold for Switzerland? What challenges and opportunities will the country face as it seeks to maintain its leading position, and how should the Swiss asset management industry prepare for the future?
We have interviewed five experienced representatives of the Swiss asset management industry who offer different perspectives from their various professional backgrounds.
Performance issue 13 – January 2014
Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.