The European Union’s planned stringent marketing restrictions on cross-border wealth management may slow down economy of Switzerland, according to the Association of Swiss Private Banks (ASPB).
A limitation on Swiss banking firms from marketing services directly to EU member countries from the country would reduce tax receipts and jobs, reported Bloomberg citing Nicolas Pictet, vice president of the association.
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"It’s not the interest of which company or bank group that’s the question. It’s well and truly about the interest of the country," Pictet added.
Currently, wealth management accounts for over 5% of Swiss tax receipts and about 3% of its economy.
Meanwhile, the association has urged the Swiss government to discuss the issue with the EU
The existing rules allow Swiss banks free movement of financial services between Switzerland and EU and do not force them to establish subsidiaries and deploy employees abroad.
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By GlobalDataFurthermore, the Swiss banks are ready to take part in a system of automatic exchange of tax information in return, said ASPB.
