Jurisdictional diversification
Strong performances by US markets and the dollar has meant there has been little incentive for potential US clients to look offshore at present, Zurbruegg said.
“However, this is going to change significantly next time the dollar is diving and US markets are getting under pressure,” he said.
A more common reason, Zurbruegg said, for US-domiciles to move assets offshore at present is for jurisdictional diversification.
“Jurisdictional diversification is probably one of the most important reasons why people decide to work with non-US banks and investments advisers.
“The changing political climate has certainly been a strong driver for that,” he said.
Future prospects
Both Hohermuth and Zurbruegg agree that regulatory changes brought in by Fatca are still having an impact on the Swiss financial services industry.
“The change is still on-going and the process of adopting to the new environment is by far not over,” Hohermuth said.
While Zurbruegg said he thinks Switzerland is still in a transition period from the “old school model of private banking to the new standard”.
“Switzerland is still an excellent place for banking and asset protection, its political stability is second to none. However, in order to be successful it is essential to combine the key points that we have in our favour with the new opportunities that technology offers,” he said.
