An increasing number of Swiss wealth managers are signing up with the SEC to re-engage with US taxpayer clients following the country’s efforts to end US investigations of Swiss banks over tax evasion, according to a report published by Aite Group.
The report titled, Offshore US Private Wealth: Switzerland’s Compliant Re-Engagement, has revealed a growing concern by Swiss wealth managers to reconnect with US clients, after a number of years in which regulatory and economical developments made this challenging.
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The study, which surveyed a number of Swiss RIA firms and other private client professionals, noted that Swiss has grown into the leading compliant international offshore centre for US private wealth despite its issues of tax evasion with US authorities.
According to the report, Swiss market has accumulated over US$14.1 billion in assets, although it still represents just 0.07% of all North American high net worth household assets.
Quoting Aite report, Investment Europe reported that AUM might grow to US$50 billion in the medium term, and targets for US$100 billion in the long term.
Stephen Wall, senior analyst in wealth management at Aite, said: "While Switzerland’s ongoing entanglement with US authorities over past tax-evasion issues has caused pain to many in the Swiss market, a core group of Swiss-based wealth managers realized and acted upon the resulting opportunity.
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By GlobalData"In line with the new model of engagement, they obtained SEC-registration as investment advisors and collectively have a weight to potentially turn this hugely negative period into a long-term positive for Switzerland’s wealth management sector," he added.
Aite said:"It must take advantage of that opportunity, as well as the internationalisation of the US investor, before others join."
The report is based on a quantitative analysis of March 2013 Form ADV submissions to the SEC.
