Switzerland is witnessing a contraction in its prestigious monetary sector, with robust regulation and institutional mergers forcing the closure or merger of personal banks and smaller wealth managers.
In keeping with public data of regulators, the variety of monetary establishments with a license reached 1,570 as of final month, down from greater than 2,000 earlier than the brand new guidelines take full impact in 2022.
The variety of non-public banks has additionally declined from greater than 100 a decade in the past to 82 at present, and the accounting and consulting agency KPMG expects this quantity to fall to lower than 70 by 2030.
Regardless of the decline within the variety of banks, belongings beneath administration within the Swiss monetary sector elevated, however at a slower tempo in comparison with rising rivals similar to Singapore and Hong Kong, in response to the Monetary Occasions.
Consultants quoted by the newspaper consider that the brand new guidelines, particularly the Finia Monetary Establishments Regulation of 2022, have elevated the fee and complexity of compliance, which places stress on smaller establishments.
This regulation required portfolio managers and monetary advisors to acquire licenses, and expanded oversight for the primary time over small corporations within the wealth administration sector.
Regulatory pressures in Switzerland worsened after UBS Group’s emergency acquisition of Credit score Suisse in 2023, ensuing within the formation of a giant banking entity with belongings exceeding $3 trillion.
