The current economic, regulatory and compliance environment is making it complex and risky for wealth managers and private banks to serve clients from multiple geographies and different client segments. For Swiss banks, it is getting more and more complex to serve clients in a compliant manner not only in the EU, but across the globe. Negotiated or upcoming tax agreements between Switzerland, the USA (FATCA) and several EU countries (UK, Austria, etc.) are likely to significantly reduce the asset base and make certain regions and client profiles less profitable / loss making.
Key themes for wealth managers include:
- considering to cease serving clients in certain jurisdictions because the compliance costs and efforts tied to a multi-jurisdiction strategy are too high;
- reluctance from some banks to enter into share deals because of buying a client group, which they do not have much experience in serving and compliance risk/cost that come with these transactions; and
- looking to achieve critical mass/scale to amortize the cost induced by increased regulation.
As a result, we believe that banks and wealth managers will have to review their geographical focus and adjust their service offerings towards core client markets, and subsequently dispose some of their current client portfolios in certain non-core geographies.
In response, Deloitte has launched a Private Banking Asset Disposal Programme in Switzerland, which will facilitate this portfolio restructuring.
How can we help you?
- We have created a mechanism to facilitate forthcoming asset deals.
- Sellers wanting to dispose of non-core client asset portfolio(s) and their related assets should contact Deloitte to discuss the sale and structuring in a confidential manner.
- Deloitte will also discuss acquisition criteria in a confidential manner with Buyers wanting to acquire client assets in core geographical jurisdictions.
- Deloitte will capture the buyer and the seller's preferences in an internal and confidential database and maintain the database up to date by meeting market participants on a regular basis.
- Should there be demand for a particular portfolio a seller wishes to dispose of, Deloitte will engage with that seller to structure a potential deal.
- Deloitte will not enter into a contractual agreement with buyers, hence ensuring there is no conflict of interest. Information provided by buyers, will of course be kept confidential.
- Following agreement from seller (our client) to proceed further an M&A process will start.
In addition, Deloitte offers the following complementary services:
Our aim is your success in adapting your client portfolio assets to the changing markets and the regulatory environments.