SWITZERLAND: THE STRENGTH OF TRADITION FOR A GLOBAL CLIENTELE
In the world of international finance, Switzerland is often a synonym for private banking. Its economic and political stability, independence and culture of client relationships are the ingredients that make the Swiss confederation a safe haven for the management of substantial private capital. With assets under management worth approximately 5,600 billion francs and a world market share of 13%, Switzerland is undoubtedly one of the most important world locations for asset management.
From a regulatory point of view, a family office’s activities can be compared to those of an independent asset manager. This ensures that an operating context appropriate for the confidentiality of family office activities is available, and means that products such as traditional and alternative investment funds can be created and placed.
Operators must carry out their activities in accordance with the Federal Anti-Money-Laundering Law and have an individual within the company’s management who holds the authorisation to exercise the profession of trustee. Supervision is carried out by the Self-Regulation Bodies (Swiss Association of Asset Managers and Canton of Ticino Trustee Self-Regulation Body) monitored by FINMA.
The tax regime applicable to a family office varies depending on the legal structure of its business. The extensive flexibility of the “Ticino System” allows the new taxpayer to get in contact with the Tax Authority and assess their tax position, reaching an ad hoc solution by agreement between the parties.