julius baer warns eu tax deals slow money inflows

Added 16th May 2013

Julius Baer has warned that the EU’s planned agreements on the sharing of tax information between countries on the continent will hit its new money inflows in 2013.

julius baer warns eu tax deals slow money inflows

In Julius Baer’s first quarter statement, it stated that “total group net new money in 2013 will be impacted by the implementation of Switzerland’s final withholding tax agreements with the UK and Austria as well as the ongoing self-declarations by clients in other European countries”.

Net new money for the full year 2013 could be close to the lower end of the group's 4-6% medium-term target, Julius Baer added. 

In the first quarter, total assets under management grew 16%, from CHF189bn at the end of 2012 to CHF220bn ($227bn).

This included CHF24bn from Merrill Lynch’s international wealth management (IWM) business outside the US, which Julius Baer is in the process of acquiring.

These assets came from the IWM businesses in Uruguay, Chile, Luxembourg and Monaco, which were transferred to Julius Baer on 1 April 2013. The client custody relationships in these locations are currently still on the platform of Bank of America Merrill Lynch (BAML).

“Starting in July 2013, the client custody relationships of these legal entities will also be transferred (in stages) to Julius Baer and booked on the Julius Baer platforms. At those points in time Julius Baer will pay BAML the agreed acquisition value (1.2% of transferred assets under management), and the BAML platform allocation charges will cease.”

To read about Luxembourg pushing for 'clarification' before signing the EU's tax transparency agreement, click here.

To read more about Julius Baer completing the first stage of its acquisition of Merrill Lynch's international wealth management business, click here.




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Mark Battersby

Editor, International Adviser

International Adviser

Mark Battersby is editor of International Adviser. He is also programme director for International Adviser events in strategic expat locations around the world, and its flagship FundLinks conference in London. Mark joined Last Word Media in February 2012, having previously worked at Citywire, Interactive Investor International, and FT Business.


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