One of the stakeholders in the Institutional Agreement in Switzerland is the Banking Sector. The Swiss Bankers Association greatly approves of this agreement. Switzerland tops the charts in asset management across the globe. According to the chairman of the Swiss Bankers Association (SBA), the legal certainty of the European Union and Switzerland is reinforced. He concludes that ease both of expansion and maintenance of market access by banks in Switzerland greatly relies on this agreement.
Formation of practicable and necessary solutions for active market access in investment services, banking and securities is possible thanks to this agreement. However, this goal has not been fully actualized. This is because the banking sector needs to present specifications on how improvement of the market access for the banking sector can be made possible.
The banking sector set out the following priorities in regard to improvement of market access:
a. To conclude on the processes for financial equivalence. Such processes are banking and other investment services.
b. To get a wider range of options to come up with practicable and sensible solutions. The investment advisory services, banking and investment management will benefit from the options and provide a wider range of solutions.
c. To use objectivity, predictability and transparency to improve the present regime on current equivalence on a long term basis.
The Swiss domestic market really need this agreement because its market is almost reaching a point of saturation. However, the demand for asset management within the European union will not decrease.
Customers from the EU have invested an estimate of CHF 1 trillion worth of assets for management in Switzerland. The Swiss government receives annual tax revenue estimate of CHF 1.5 billion from this business sector. Moreover, this sector has created employment for more than 20,000 individuals. For the sustainability of business in this sector, the Institutional Agreement is very vital.
Legal disclaimer. This article does not constitute legal advice and does not establish an attorney-client relationship. The article should be used for informational purposes only.