Any hopes that Britain's decision to leave the European Union will have a positive effect on the Swiss financial market are to be seen in the context of fundamental questions that need answering first. Questions that Julius Baer CEO Boris Collardi has been eager to highlight in a speech today.
Theresa May's presentation of her plan for a hard Brexit and the decision by the Supreme Court that the Westminster parliament needs to have a say in the matter, moved the decision by the British people to get out of the trading block firmly back on the agenda.
Among Swiss banks doing business abroad, Brexit in any case is an urgent consideration: «The historical Brexit hiatus will entail far-reaching changes not just for Britain, but also for the entire European continent – with immediate consequences for Switzerland and our status as a financial centre.»
Plain Demands
Boris Collardi, the chief executive of Julius Baer private bank and chairman of the Association of Swiss Asset and Wealth Management Banks (VAV) made it plain just how important the business is by making it the topic of his speech at the annual press conference.
VAV held today's press conference in Bern together with the Association of Swiss Private Banks.
Collardi demanded the Swiss government to be active and yet to remain flexible to prevent any damage to the Swiss financial market. The administration needs to prepare for all eventualities – such as a more flexible EU or even the break-up of the bloc – and to closely monitor the developments, all in a bid to exploit any possible window of opportunity.
In a Difficult Situation
The head of Switzerland's biggest private bank – and as such the boss of more than 5,000 employees – explained just how complex Switzerland's situation was: the EU and Great Britain are extremely important trading partners of the country. And yet, many questions with a direct impact on the Swiss economy's well-being currently are far from settled.
The situation of Switzerland is difficult not least because it is directly affected by the way the Brexit is being treated by the EU and the U.K. and yet it can't take much of an influence.
EU Access Remains Top Priority
Still: While the country awaits the outcome of the negotiations between the two, expected to begin later this year, Switzerland ought not to remain idle but try and create the conditions necessary to give the Swiss financial sector access to the EU market.
«We need to push the policy of equivalence with regard to the EU's financial market regulations so as to give our banks easier access to EU markets,» Julius Baer-boss Collardi urged.
The Swiss financial market initially won't be much affected by Brexit, not least because the Swiss banks lack the full EU access. «Those standing to be the potential winners from Brexit in the financial services sector are Frankfurt and, above all, Luxembourg,» Collardi said.
Relocations Seem Certain
It is an open secret that banks including UBS, but also the large U.S. firms, are mulling to move their offices in London to other European banking centers in a bid to retain the full access to the EU market.
UBS for instance has decided to build the headquarters for its Europe bank in Frankfurt and is considering moving parts of the investment banking business to Madrid.
For Swiss banks, private and commercial, getting unfettered access to the EU market will remain a top priority.
