The Swiss are attracting less foreign capital from wealthy clients as Credit Suisse risks weigh on them, a Reuters poll said
ZURICH (Reuters) – Switzerland is becoming increasingly unattractive to high-net-worth clients, as assets held by banks and financial advisers in the country decline, according to a study published on Wednesday.
Foreign assets under management fell to $2.174 trillion in 2023 from $2.624 trillion in 2020 when the last survey was conducted, said a study by consultants Deloitte.
The collapse of Credit Suisse last year shook the confidence of wealthy clients from Europe and the Middle East, Deloitte said, and some doubted the stability of the Swiss banking institution.
Asset flows in both regions have slowed since the crisis last year and have not fully recovered, Deloitte said.
Meanwhile, Switzerland’s other advantages such as low taxes, legal certainty and neutrality have become less important, the consultant said.
Although Switzerland retained its crown as the world’s largest offshore wealth center, its share of $10 billion in offshore wealth fell to 21.4% from 23.7% in 2020.
Competitors are also participating, Britain – the second largest manager in the world of offshore wealth – now oversees $ 2.166 trillion of foreign assets, and the United States – in third place – manages $ 2.109 trillion, the study shows.
Hong Kong and Singapore, the other two top global destinations, are not far behind, although Singapore was under pressure after seeing a decline in assets under management from 2020.
“The United States is in a strong position to start,” said Patrik Spiller, who heads Deloitte’s wealth management practice in Switzerland.
The United States had high quality asset managers, a strong capital market and regulatory and tax advantages, the report said.
For example, the United States also does not participate in the automatic exchange of information on financial accounts, which aims to prevent cross-border tax evasion, which gives it an advantage compared to other institutions, the report said.
