Switzerland Examines Future Of Finance Centre

by Ulrika Lomas, Tax-News.com, Brussels

06 February 2008

The authorities and the Swiss financial sector have established a framework for the dialogue on the future direction of Switzerland's financial centre, which includes seeking improvements to the tax regime for hedge fund and private equity managers.

The 'Financial Centre Dialogue Steering Committee', set up for this purpose, last week held its first meeting, the focus of which was the adoption of a joint work schedule and the prioritisation of topics raised by the private sector and the Confederation. Working groups were set up to deal with various topics, and these will examine existing and new proposals for measures to improve the conditions of the financial centre, and implement them where appropriate. A working group will also examine the fiscal and regulatory framework regarding hedge funds and private equity.

Agreement was reached on enhancing dialogue on a cross-sector strategy for Switzerland's financial centre, at a meeting between Federal Councillor Hans-Rudolf Merz and the heads of associations in the financial sector in November 2007. The Financial Centre Dialogue Steering Committee was established for this purpose.

Topics and measures put forward by the private sector and the Confederation were discussed and priorities set. On that basis, the Financial Centre Dialogue Steering Committee subsequently approved a work schedule which provides for the establishment of mixed working groups. One working group will focus on the topics of hedge funds and private equity. It will draw up proposals in the area of taxation aimed at strengthening Switzerland's international competitiveness in attracting fund managers.

At the same time, the working group will seek to identify regulatory hurdles for these alternative forms of investment and analyse issues relating to supervision.

The first meeting of the Financial Centre Dialogue Steering Committee provided an opportunity to expand on the dialogue encouraged by Merz between the authorities and representatives of the financial sector. The Steering Committee is responsible for examining in greater detail the initiatives put forward last year by the financial sector, along with other topics, and for proposing where necessary, measures which would contribute to improving the international competitiveness of the Swiss financial centre. The Steering Committee implements mandates from the Strategy Committee, and prepares the groundwork for the latter to be able to take decisions. The Strategy Committee is chaired by Merz.

The Financial Centre Dialogue Steering Committee is chaired by the Director of the Federal Finance Administration, Peter Siegenthaler. The authorities are also represented by the Swiss National Bank, the Swiss Federal Banking Commission, the Federal Office of Private Insurance and the Federal Tax Administration. The financial sector is represented by the Swiss Bankers Association, the Swiss Insurance Association, the Swiss Funds Association and the Swiss Financial Market Services. The Financial Centre Dialogue Steering Committee will meet three or four times a year.

Last September, the Swiss Bankers Association, the Swiss Insurance Association, the Swiss Funds Association and Swiss Financial Market Services (formerly known as the SWX Group, the SIS Group and the Telekurs Group) published the "Swiss Financial Centre Master Plan" drawn up as part of a joint project. The goal of the master plan is to strengthen and develop the international competitiveness of the Swiss financial sector. Federal Councillor Merz has welcomed this initiative.

Recommended