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Last year, the Association of Swiss Private Banks (ASPB) joined the industry initiative initiated by the ABG/VAV in 2021. Its members continue to implement the defined measures in the wealth management sector and present their progress. This year, two new priorities have been added in order to reflect the Federal Council’s strategy, published in December 2022.

The Association of Swiss Private Banks, together with the Association of Swiss Asset and Wealth Management Banks, the Swiss Bankers Association and the Asset Management Association Switzerland, is joining the Swiss Finance Council, an association founded in 2013 by UBS and Credit Suisse and active in Brussels. This will strengthen the collaboration in representing the interests of internationally active Swiss banks and asset managers with EU stakeholders.

On the sixth Private Banking Day, held by the ASPB and the VAV , the focus was on the future of the wealth management industry in Switzerland. Renowned players from the worlds of private banking, politics and the authorities discussed how the country can maintain its leading position, which framework conditions are required and which quality criteria the Swiss private banking industry should stand for.

The contribution of private banks to the fight against the causes and harmful effects of climate change was the focus of the fifth Private Banking Day held by the ASPB and the VAV today in front of a large physical and virtual audience. Top experts discussed the conditions that must be satisfied in order to position the Swiss financial centre as a world-leading hub for sustainable finance.

On the occasion of the publication of the 2019 Annual Report of the Association of Swiss Private Banks (ASPB), its President Yves Mirabaud recalls the good news of the past year in the daily newspaper “Agefi”. Looking beyond the current economic crisis, the ASPB sees three major challenges for Switzerland in the coming year: stabilising its relationship with the European Union, deploying a credible strategy for sustainable finance and reducing obstacles related to the withholding tax and the stamp duties. Find out more ASPB latest news by clicking this link.

At their joint annual press conference, ASPB and VAV presented their assessment of Switzerland’s position as a wealth management location compared to its most important competitors: Switzerland scores well with regard to the competitiveness of the environment it offers, yet there is need for action when it comes to its tax policy and data protection regulation. In order to maintain its leading position, Switzerland needs to improve first and foremost its EU market access and the associated need for a stable bilateral relationship with the EU. An institutional framework agreement with the EU is a prerequisite for improving access to the market.

The third Private Banking Day, held in Lugano and organised jointly by the Association of Swiss Private Banks (ASPB) and the Association of Swiss Asset and Wealth Management Banks (VAV), focused on issues concerning access to the European market and, more broadly, Switzerland’s relationship with the EU. The event brought together leading figures from the worlds of private banking, politics, economics and administration and showcased the canton of Ticino.

Though a step in the right direction, the draft law currently circulated for consultation by the Federal Department of Finance, which aims to relax rules regarding the refund of the Swiss withholding tax, does not go far enough. The Federal Council should reformulate its draft to better reflect the role of the withholding tax as a guarantee – one that is no longer needed once income taxes have been paid. In doing so, the government would more closely follow the intent of the parliamentary initiatives underlying this law, which requested that the right to claim a refund be retained "provided earnings are taxed."

Since 1 January 2017, banks have been collecting tax information for 38 countries. The government proposes to add another 41 next year, in keeping with Switzerland’s commitments. However, the authorisation to be issued by Parliament does not exempt the government from verifying the existence of a level playing field and data confidentiality before information is exchanged in September 2019.

At their joint press conference, the Association of Swiss Private Banks (ASPB) and the Association of Swiss Asset and Wealth Management Banks (VAV) focused on two issues which will play a significant role in shaping their sector over the next few years. On the one hand, it was clearly demonstrated that Swiss private banking exhibits all of the characteristics of a classic export industry. It is thus reliant on being able to export its services without hurdles, in particular to EU countries. On the other hand, the scope of banking secrecy is now also an issue for Swiss clients. It is up to Switzerland’s citizens to decide on the country’s general approach in this regard when they vote on an upcoming popular initiative. Whether the initiative is passed or not, the private banks wish the tax system to remain coherent.

The OECD and the G20 have decided to encourage the automatic exchange of information (AEI) to combat tax evasion worldwide. On 19 November 2014, Switzerland became the 52nd nation to sign the Multilateral Competent Authority Agreement (MCAA), which defines the principles of AEI. Consultation regarding the ratification of the agreement and the draft federal law for implementation ends on 21 April 2015. The central question for Swiss private banks is: to whom will Switzerland grant AEI?

Towards the end of 2014, the Federal Council initiated a consultation on its proposal for reforming the withholding tax, which would all but abolish this tax for non-residents while considerably broadening its scope for Swiss residents. The Association of Swiss Private Banks (ASPB) supports the first objective, but considers the second overly complicated and potentially unnecessary.

On 19 February 2014, the Federal Council decided to apply the OECD standard on the exchange of information on request to all states with an existing double taxation agreement (DTA) that does not include said standard. The consultation on the draft law to implement this decision will extend until 5 February 2015. The ASBP views this project as unnecessary and contrary to the interests of Switzerland.

On 27 June 2014, the Swiss Federal Council submitted for consultation two new draft acts on financial services (FSA) and financial institutions (FinIA). Under the guise of a conceptual restructuring, these drafts include many provisions prejudicial to the Swiss financial industry. Their texts need further pruning before they are submitted to Parliament in 2015. However, Parliament can first focus on passing the Financial Markets Infrastructure Act (FMIA), which is urgent.

In December 2013, the Swiss Federal Council launched a process of consultation on the draft Financial Market Infrastructure Act (FMIA). The Association of Swiss Private Banks (ASPB) recognises the necessity to adapt Swiss legislation to international standards and emphasises that this adaptation should aim to maintain the competitiveness of the Swiss financial centre.