Wealth Management in Switzerland
Wealth Management in SwitzerlandUpdated on Monday 21st September 2015
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Switzerland as a wealth management center
Switzerland is a well-known wealth management center, especially because of its banking system. Switzerland is also known as one of the world’s most successful financial centers. The combination between the expertise of Swiss tax planning specialists and the operating conditions provided by private banks made the country a well-established financial center. The wealth management solutions provided by banks to both foreign and domestic clients contributed to Switzerland’s economic growth.
The banking industry in the wealth management sector in Switzerland
Switzerland benefits from various business models in the financial sector. The Swiss banking system comprises foreign and private banks operating at local level, but also large domestic banks that offer financial services to customer all over the world. Domestic banks are the ones keeping the Switzerland’s economy afloat as they lend money to the real economy. Currently there are about 400 banks operating in Switzerland, of which close to 200 are foreign. Swiss banks opened about 300 branch offices abroad.
The success of the Swiss banking industry in the wealth management sector lies within the highly educated individuals working as asset managers for diverse financial services providers. Swiss financial providers also employ about 150,000 staff in their subsidiaries and branch offices abroad. The success of Swiss banks in the wealth management sector is represented by the continuous launches of new products. Clients are inclined to work with small banks due to the discretion and independent advice wealth advisors provide them. Small banks in Switzerland are also more flexible and present lower operational risks.
Swiss independent asset managers
Wealth management is based on a wide range of services provided to both foreign and Swiss companies, but also to high net-worth individuals.
Another key-role is played by independent asset managers working in the financial services sector that does not require a banking license. According to the Banking Act, independent assets managers may not accept deposits and may only offer professional financial advice.
Independent asset managers in Switzerland have gained a reputation thanks to the competent advice related to managing money and assets they offered their clients. Today, independent asset managers represent around 11% in the wealth management sector in Switzerland.
You can contact our law firm in Switzerland for customized wealth management solutions.