OUT-LAW News, 11/10/2006
The Swiss government is planning to put wiretaps on internet phone conversations, according to Swiss newspaper reports. The software will be supplied by a Swiss company, said reports.
Wiretapping landlines and mobile telephones is an established part of crime prevention, but VoIP (voice over internet protocol) calls are a new phenomenon and harder to bug.
Because servers and connections often sit in foreign countries, commonly the US, a country's law enforcement agency can not exercise the same power of discovery that they can over a phone provider's records. Calls can also be harder to trace when they are free, since there is no billing record.
Swiss newspaper SonntagsZeitung reports that the Swiss Department of the Environment, Transport, Energy and Communications is examining the use of software to listen to VOIP conversations.
The software being assessed comes from Swiss company Era IT Solutions, said the report. The software is placed on to a user's computer by that person's internet service provider, but only on the orders of a judge, according to current plans.
The software records ongoing conversations and sends the recordings in broken up data packets back to a server controlled by the authorities. Its manufacturer claims that if the computer is switched off before all the packets have been sent, it will begin sending the rest when the computer is switched back on.
The software is also capable of monitoring what is going on in the room in which a computer is located. It can switch on a computer's microphone so that the room itself can be eavesdropped on, according to the report.
The Swiss Surveillance Act does not allow for Trojan horse-type surveillance, said the SunntagsZeitung, but federal criminal regulations do allow software-based wiretaps as long as they are controlled in the same manner as other surveillance equipment, it said.
Wednesday, 27 October 2010
Swiss bank remits more of Chen family’s money
STAFF WRITER, WITH CNA
A Swiss bank yesterday remitted US$1.52 million from accounts held in the names of former president Chen Shui-bian’s (陳水扁) family members, the Supreme Prosecutors Office’s Special Investigation Panel (SIP) said.
The bank wired two sums of US$529,617 and US$1 million into an SIP-designated account from the family’s accounts in Switzerland that hold a total of US$21 million and have been frozen since 2007.
It was the second time in two weeks that funds had been released from the accounts, as the Swiss bank wired US$2 million two weeks ago into the SIP-designated account. This means that so far, close to US$3.53 million has been returned to Taiwan from the family’s Swiss accounts, the SIP said.
In addition to the US$21 million that was frozen in Merrill Lynch Bank (Suisse) SA and the Royal Bank of Scotland accounts, the former first family in June 2007 had also transferred to a Swiss bank NT$570 million (US$17.67 million) of the NT$740 million it had in a Cathay United Bank account, according to the SIP.
The SIP had asked the Swiss bank to freeze the NT$570 million because it was considered a bribe that had been paid to the family by Taiwan’s financial holding companies.
Chen’s son Chen Chih-chung (陳致中) said last month that his family would cooperate with the SIP by returning the US$21 million it holds in Swiss bank accounts, but did not say whether the NT$570 million would be returned.
Prosecutors believe that all of the funds held in Swiss accounts in the family’s name were illegally acquired and should be confiscated.
The former president, who has been in detention on charges of corruption since Dec. 30, 2008, has been sentenced to life imprisonment. The Taiwan High Court is scheduled to deliver a ruling on his second trial on July 11.
A Swiss bank yesterday remitted US$1.52 million from accounts held in the names of former president Chen Shui-bian’s (陳水扁) family members, the Supreme Prosecutors Office’s Special Investigation Panel (SIP) said.
The bank wired two sums of US$529,617 and US$1 million into an SIP-designated account from the family’s accounts in Switzerland that hold a total of US$21 million and have been frozen since 2007.
It was the second time in two weeks that funds had been released from the accounts, as the Swiss bank wired US$2 million two weeks ago into the SIP-designated account. This means that so far, close to US$3.53 million has been returned to Taiwan from the family’s Swiss accounts, the SIP said.
In addition to the US$21 million that was frozen in Merrill Lynch Bank (Suisse) SA and the Royal Bank of Scotland accounts, the former first family in June 2007 had also transferred to a Swiss bank NT$570 million (US$17.67 million) of the NT$740 million it had in a Cathay United Bank account, according to the SIP.
The SIP had asked the Swiss bank to freeze the NT$570 million because it was considered a bribe that had been paid to the family by Taiwan’s financial holding companies.
Chen’s son Chen Chih-chung (陳致中) said last month that his family would cooperate with the SIP by returning the US$21 million it holds in Swiss bank accounts, but did not say whether the NT$570 million would be returned.
Prosecutors believe that all of the funds held in Swiss accounts in the family’s name were illegally acquired and should be confiscated.
The former president, who has been in detention on charges of corruption since Dec. 30, 2008, has been sentenced to life imprisonment. The Taiwan High Court is scheduled to deliver a ruling on his second trial on July 11.
The Swiss National Bank’s assets
Asset structure
Function of assets
The Swiss National Bank’s assets essentially consist of foreign currency, gold and financial assets in Swiss francs (securities and claims from repo transactions). They fulfil important monetary policy functions. Their composition is determined mainly by the established monetary order and the requirements of monetary policy. Part of the assets, including claims from repo transactions, serve immediate monetary policy purposes. The SNB uses repo transactions to supply commercial banks with liquidity in the form of base money by purchasing securities from them. By setting the terms for such transactions, the SNB is able to influence the level of interest rates in the money market. The National Bank holds currency reserves – in the form of foreign currency and gold – in order to have sufficient monetary policy leeway at all times. Currency reserves serve to prevent and overcome potential crises.
Breakdown of assets
At CHF 207 billion, total assets remained relatively stable year-on-year (CHF 214 billion). However, the composition has changed. While balances from swap transactions against Swiss francs and claims from repo transactions declined substantially, the level of currency reserves rose. At the end of 2009, currency reserves amounted to CHF 140 billion or CHF 61 billion higher than a year previously. This rise in the reserves was due, in particular, to the foreign exchange purchases in 2009 (some CHF 45 billion) aimed at curbing the appreciation in the Swiss franc; about CHF 7 billion were attributable to the rise in the price of gold and CHF 5 billion to the additional allocation of special drawing rights (SDR) by the International Monetary Fund (IMF). At the end of the year, balances from EUR/CHF swap transactions amounted to almost CHF 3 billion. In addition, at the end of 2009, the SNB held Swiss franc assets in the form of claims from repo transactions amounting to CHF 36 billion and claims from bonds for almost CHF 7 billion. At end-2009, the loan to the stabilisation fund came to CHF 21 billion. It is denominated in different currencies, with interest being paid at the one-month Libor for the currency in question plus 250 basis points.
Debtor categories and instruments
The large majority of investments are fixed-income securities. They comprise claims from repo transactions in Swiss francs, claims from EUR/CHF foreign exchange swaps, Swiss franc-denominated securities, claims from gold lending operations and most of the foreign exchange reserves. The remaining foreign exchange reserves consist of equities. Monetary policy transactions are carried out with domestic and foreign banks. Lending is secured by first-class collateral. The bond portfolios for foreign exchange reserves and Swiss franc bonds comprise government and quasi-government bonds as well as bonds issued by international organisations, local authorities, financial institutions (essentially, covered bonds and comparable instruments) and other companies. In the case of foreign exchange reserves, secured and unsecured money market investments are, to a limited extent, also made at banks. Exchange rate and interest rate risks are managed by means of derivative instruments, such as interest rate swaps, interest rate futures, forward foreign exchange transactions and foreign exchange options. In addition, futures on equity indices are also used to manage the equity investments. A small portion of gold holdings was used in the form of secured gold lending transactions at year-end.
Function of assets
The Swiss National Bank’s assets essentially consist of foreign currency, gold and financial assets in Swiss francs (securities and claims from repo transactions). They fulfil important monetary policy functions. Their composition is determined mainly by the established monetary order and the requirements of monetary policy. Part of the assets, including claims from repo transactions, serve immediate monetary policy purposes. The SNB uses repo transactions to supply commercial banks with liquidity in the form of base money by purchasing securities from them. By setting the terms for such transactions, the SNB is able to influence the level of interest rates in the money market. The National Bank holds currency reserves – in the form of foreign currency and gold – in order to have sufficient monetary policy leeway at all times. Currency reserves serve to prevent and overcome potential crises.
Breakdown of assets
At CHF 207 billion, total assets remained relatively stable year-on-year (CHF 214 billion). However, the composition has changed. While balances from swap transactions against Swiss francs and claims from repo transactions declined substantially, the level of currency reserves rose. At the end of 2009, currency reserves amounted to CHF 140 billion or CHF 61 billion higher than a year previously. This rise in the reserves was due, in particular, to the foreign exchange purchases in 2009 (some CHF 45 billion) aimed at curbing the appreciation in the Swiss franc; about CHF 7 billion were attributable to the rise in the price of gold and CHF 5 billion to the additional allocation of special drawing rights (SDR) by the International Monetary Fund (IMF). At the end of the year, balances from EUR/CHF swap transactions amounted to almost CHF 3 billion. In addition, at the end of 2009, the SNB held Swiss franc assets in the form of claims from repo transactions amounting to CHF 36 billion and claims from bonds for almost CHF 7 billion. At end-2009, the loan to the stabilisation fund came to CHF 21 billion. It is denominated in different currencies, with interest being paid at the one-month Libor for the currency in question plus 250 basis points.
Debtor categories and instruments
The large majority of investments are fixed-income securities. They comprise claims from repo transactions in Swiss francs, claims from EUR/CHF foreign exchange swaps, Swiss franc-denominated securities, claims from gold lending operations and most of the foreign exchange reserves. The remaining foreign exchange reserves consist of equities. Monetary policy transactions are carried out with domestic and foreign banks. Lending is secured by first-class collateral. The bond portfolios for foreign exchange reserves and Swiss franc bonds comprise government and quasi-government bonds as well as bonds issued by international organisations, local authorities, financial institutions (essentially, covered bonds and comparable instruments) and other companies. In the case of foreign exchange reserves, secured and unsecured money market investments are, to a limited extent, also made at banks. Exchange rate and interest rate risks are managed by means of derivative instruments, such as interest rate swaps, interest rate futures, forward foreign exchange transactions and foreign exchange options. In addition, futures on equity indices are also used to manage the equity investments. A small portion of gold holdings was used in the form of secured gold lending transactions at year-end.
Pictet & Cie traces its origins to the foundation of De Candolle, Mallet & Cie in Geneva in 1805.
Pictet & Cie traces its origins to the foundation of De Candolle, Mallet & Cie in Geneva in 1805. Today, Pictet & Cie stands as one of the premier asset management banks in Europe.
Over more than two hundred years, Pictet & Cie has witnessed revolution at its gate, lived through the Depression and weathered many stock market crashes, but it has also experienced periods of headlong growth and speculative bubbles. We have had the good fortune to survive each period successfully. From this odyssey over two centuries, we have learned crucial lessons and, like our predecessors, we remain committed to steering a steady course geared to the long term.
Pictet & Cie's legal structure as a limited partnership, a business whose owners have unlimited and collective liability, encourages us to focus constantly on ensuring the Bank's long-term survival.
For generations, we have had just one vocation: to advise our clients on managing their assets. We have consistently been determined to excel in all lines of business without compromising our integrity.
We are resolved to ensure that our relations with our clients and our staff are founded on a genuine and long-lasting partnership. Our financial strength and ability to expand without having to resort to acquisitions further cement our independence when confronted by short-term demands, temporary fashions and undue pressures.
Our values are firmly rooted in our daily operations. Our size has allowed us to show the professionalism, technical expertise and range of skills of the biggest banking groups, while retaining the nimbleness, flexibility and pioneering spirit of the smallest.
Day in, day out, over two hundred years, we have been committed to ensuring an outstanding service. Our client's satisfaction and loyalty remain the most reliable barometers of our success.
http://www.pictet.com/en/home/about/partners_statement.html
Over more than two hundred years, Pictet & Cie has witnessed revolution at its gate, lived through the Depression and weathered many stock market crashes, but it has also experienced periods of headlong growth and speculative bubbles. We have had the good fortune to survive each period successfully. From this odyssey over two centuries, we have learned crucial lessons and, like our predecessors, we remain committed to steering a steady course geared to the long term.
Pictet & Cie's legal structure as a limited partnership, a business whose owners have unlimited and collective liability, encourages us to focus constantly on ensuring the Bank's long-term survival.
For generations, we have had just one vocation: to advise our clients on managing their assets. We have consistently been determined to excel in all lines of business without compromising our integrity.
We are resolved to ensure that our relations with our clients and our staff are founded on a genuine and long-lasting partnership. Our financial strength and ability to expand without having to resort to acquisitions further cement our independence when confronted by short-term demands, temporary fashions and undue pressures.
Our values are firmly rooted in our daily operations. Our size has allowed us to show the professionalism, technical expertise and range of skills of the biggest banking groups, while retaining the nimbleness, flexibility and pioneering spirit of the smallest.
Day in, day out, over two hundred years, we have been committed to ensuring an outstanding service. Our client's satisfaction and loyalty remain the most reliable barometers of our success.
http://www.pictet.com/en/home/about/partners_statement.html
UK in talks over taxing Britons' Swiss bank accounts
26 October 2010
UK in talks over taxing Britons' Swiss bank accounts
UK Chancellor George Osborne met with his Swiss counterpart Hans-Rudolf Merz
The UK and Switzerland have signed a declaration to begin negotiations on tax issues in a step towards making Britons with Swiss bank accounts pay tax on the interest they earn.
Switzerland has strict secrecy laws and has long attracted the very wealthy as a place to save their money.
Treasury sources said negotiations were in the early stages and no details of tax rates had been agreed.
An agreement between Liechtenstein and the UK is expected to raise about £1bn.
Any agreement between the UK and Switzerland may raise more than that as there are more accounts in Switzerland.
Withholding tax
The declaration followed talks between UK Chancellor of the Exchequer George Osborne and the Swiss Finance Minister Hans-Rudolf Merz in London.
Formal negotiations - which are expected to start at the beginning of next year - will cover the possibility of implementing a withholding tax, which would see Swiss authorities levying a tax on interest earned in their accounts on behalf of HM Revenue & Customs.
The UK would push for this to be a retrospective tax.
The UK will also push the Swiss authorities to provide more information on accounts held by UK taxpayers.
However, the Swiss government said in a statement that any agreement on information sharing would only apply from the date of the agreement, and could not be enforced retroactively.
At present, the Swiss will only provide details of interest earned by UK nationals on Swiss bank accounts if the UK tax authorities first send the Swiss complete details of the relevant accounts.
"This is a sensible and pragmatic approach by the chancellor to ensure we get money in that would otherwise not be collected," said a Treasury spokesman.
But the Treasury stressed that these were opening negotiations and that no details of tax rates, or amounts to be raised, have been set out yet.
In parallel talks, Germany has also agreed in principle to Switzerland introducing a withholding tax on the assets of German taxpayers with Swiss accounts.
Last year the G20 ordered a worldwide clampdown on offshore tax havens.
UK in talks over taxing Britons' Swiss bank accounts
UK Chancellor George Osborne met with his Swiss counterpart Hans-Rudolf Merz
The UK and Switzerland have signed a declaration to begin negotiations on tax issues in a step towards making Britons with Swiss bank accounts pay tax on the interest they earn.
Switzerland has strict secrecy laws and has long attracted the very wealthy as a place to save their money.
Treasury sources said negotiations were in the early stages and no details of tax rates had been agreed.
An agreement between Liechtenstein and the UK is expected to raise about £1bn.
Any agreement between the UK and Switzerland may raise more than that as there are more accounts in Switzerland.
Withholding tax
The declaration followed talks between UK Chancellor of the Exchequer George Osborne and the Swiss Finance Minister Hans-Rudolf Merz in London.
Formal negotiations - which are expected to start at the beginning of next year - will cover the possibility of implementing a withholding tax, which would see Swiss authorities levying a tax on interest earned in their accounts on behalf of HM Revenue & Customs.
The UK would push for this to be a retrospective tax.
The UK will also push the Swiss authorities to provide more information on accounts held by UK taxpayers.
However, the Swiss government said in a statement that any agreement on information sharing would only apply from the date of the agreement, and could not be enforced retroactively.
At present, the Swiss will only provide details of interest earned by UK nationals on Swiss bank accounts if the UK tax authorities first send the Swiss complete details of the relevant accounts.
"This is a sensible and pragmatic approach by the chancellor to ensure we get money in that would otherwise not be collected," said a Treasury spokesman.
But the Treasury stressed that these were opening negotiations and that no details of tax rates, or amounts to be raised, have been set out yet.
In parallel talks, Germany has also agreed in principle to Switzerland introducing a withholding tax on the assets of German taxpayers with Swiss accounts.
Last year the G20 ordered a worldwide clampdown on offshore tax havens.
7 myths about Swiss bank accounts
Swiss bank accounts are only for millionaires.
Money invested in Switzerland yields no interest.
It's impossible to open an account in Switzerland by correspondence.
Swiss bank accounts are very expensive to maintain.
It is difficult to close a Swiss bank account.
Swiss bank accounts attract only criminals and dictators.
Numbered accounts are anonymous.
1. Swiss bank accounts are only for millionaires
This is not true. The majority of our clients are not major manufacturers or movie stars, but everyday people (business people, computer engineers, civil servants, etc.). Swiss banks are no longer only for stars.
You can open a Swiss bank account with a deposit of only 5,000 Swiss francs. We even offer accounts with no minimum balance.
2. Money invested in Switzerland yields no interest
Nothing could be more untrue. You can invest your money worldwide from your account in Switzerland through investment funds, bonds, the stock market, the purchase of metal values, raw materials, derivatives and many other types of investments. Swiss bankers are among the best finance managers in the world, so it comes as no surprise that they manage over 35% of offshore holdings.
3. It's impossible to open an account in Switzerland by correspondence
This is not true. Most of the accounts that we offer can be opened by correspondence as long as you comply with our opening procedures and provide us with the necessary documents. What is more, your banking relations can be conducted by correspondence, using the telephone, Internet banking, bank transfer and credit cards. That said, we encourage our customers to meet with their banker at least once in order to get acquainted and see where their money is held.
4. Swiss bank accounts are very expensive to maintain
This is not true. Most of the accounts we open don't charge a cent in annual fees. Even if you would like additional services such as retained correspondence or numbered banking relations, the annual fees are very reasonable.
5. It is difficult to close a Swiss bank account
On the contrary. You can close your account in Switzerland whenever you wish and without any restriction. You will pay no financial penalty. If need be, you will just have to realize your investments. Contrary to many onshore banking practices, your money is not held hostage by Swiss banks.
6. Swiss bank accounts attract only criminals and dictators
Not true! The vast majority of Swiss bank account holders are honest people who want to keep their savings in a country renowned for its stability. Swiss banks are extremely cautious regarding politicians who wish to open an account and they systematically refuse to accept any money that is of dubious origin or poorly founded.
7. Numbered accounts are anonymous
There are no anonymous accounts in Switzerland. A numbered account is an account that is identified solely by a number, rather than a name, in order to preserve the strictest confidentiality possible during teller transactions or bank transfers. Only the bank manager and a few select people know the identity of numbered account holders.
Money invested in Switzerland yields no interest.
It's impossible to open an account in Switzerland by correspondence.
Swiss bank accounts are very expensive to maintain.
It is difficult to close a Swiss bank account.
Swiss bank accounts attract only criminals and dictators.
Numbered accounts are anonymous.
1. Swiss bank accounts are only for millionaires
This is not true. The majority of our clients are not major manufacturers or movie stars, but everyday people (business people, computer engineers, civil servants, etc.). Swiss banks are no longer only for stars.
You can open a Swiss bank account with a deposit of only 5,000 Swiss francs. We even offer accounts with no minimum balance.
2. Money invested in Switzerland yields no interest
Nothing could be more untrue. You can invest your money worldwide from your account in Switzerland through investment funds, bonds, the stock market, the purchase of metal values, raw materials, derivatives and many other types of investments. Swiss bankers are among the best finance managers in the world, so it comes as no surprise that they manage over 35% of offshore holdings.
3. It's impossible to open an account in Switzerland by correspondence
This is not true. Most of the accounts that we offer can be opened by correspondence as long as you comply with our opening procedures and provide us with the necessary documents. What is more, your banking relations can be conducted by correspondence, using the telephone, Internet banking, bank transfer and credit cards. That said, we encourage our customers to meet with their banker at least once in order to get acquainted and see where their money is held.
4. Swiss bank accounts are very expensive to maintain
This is not true. Most of the accounts we open don't charge a cent in annual fees. Even if you would like additional services such as retained correspondence or numbered banking relations, the annual fees are very reasonable.
5. It is difficult to close a Swiss bank account
On the contrary. You can close your account in Switzerland whenever you wish and without any restriction. You will pay no financial penalty. If need be, you will just have to realize your investments. Contrary to many onshore banking practices, your money is not held hostage by Swiss banks.
6. Swiss bank accounts attract only criminals and dictators
Not true! The vast majority of Swiss bank account holders are honest people who want to keep their savings in a country renowned for its stability. Swiss banks are extremely cautious regarding politicians who wish to open an account and they systematically refuse to accept any money that is of dubious origin or poorly founded.
7. Numbered accounts are anonymous
There are no anonymous accounts in Switzerland. A numbered account is an account that is identified solely by a number, rather than a name, in order to preserve the strictest confidentiality possible during teller transactions or bank transfers. Only the bank manager and a few select people know the identity of numbered account holders.
Tuesday, 26 October 2010
MIG banking licence caps dream for Neuchâtel expats
MIG - winning form on the track and in financial circles ©MIG
by Malcolm Curtis
December 14, 2009 | 09:18
The Mansour family scores a coup by becoming the first foreign exchange brokerage firm to secure a banking licence in Switzerland. The milestone marks the latest accomplishment for the father and two sons from Jordan who started up their company just six years ago in Neuchâtel, where they "didn't know anybody", the company's young CEO tells Swisster.
At the tender age of 28, Jordanian expat Hisham Mansour has become CEO of Switzerland’s first foreign exchange trading firm to receive a banking licence.
Neuchatel-based MIG Bank, previously MIG Investments, received the licence this week from FINMA, the Swiss Financial Market Supervisory Authority.
The achievement caps a rapid rise for the young executive who founded the firm in 2003 with his father George Mansour, owner of the company, and his brother Wissam, who also helps run the online forex operation.
“It’s been the result of hard work,” Hisham Mansour told Swisster.
MIG initially applied for a banking licence in December 2008, he said, several months before a law was introduced to regulate Swiss forex trading firms in April of this year.
“It took us more than two and half years to get through this process,” Mansour said.
The family started currency trading in Amman, Jordan before moving to Switzerland six years ago in a bid to attract a larger international clientele.
Mansour said the family was attracted to Neuchatel by the cantonal economic development office, which helped them get established.
As an Internet based company it was not important for MIG to be in Zurich or Geneva, although its offices are midway between the two cities, he said.
Coming from Jordan “at the age of 23 it was quite a change, of course, we didn’t know anybody,” he said. The economic development office “helped us integrate and find an office.”
In Jordan, Mansour’s father was trained in pharmacy and became involved in currency trading on a personal basis through the pharmaceutical trade.
He dabbled in trading of gold and silver, as well as currency, and taught his sons as teenagers about the business.
The family branched out into Internet trading, then a novelty in their homeland, before moving to Switzerland.
When they arrived in the mountain country they found themselves in a crowded market.
Mansour estimated more than 140 firms in Switzerland were offering forex trading services through the Internet before FINMA cracked down with tougher requirements, following complaints from customers.
The authority said its aim with the regulations is to protect clients.
Now, Mansour said there are only two other forex brokers, besides MIG, that have applied for a banking licence - Geneva-based companies ACM and Dukascopy.
The other companies have either folded, changed operations or moved out of the country, he said.
ACM, which claims to be the largest foreign exchange brokerage in Switzerland, was under investigation earlier this year by Geneva police for suspected financial fraud but no charges were laid.
The company has denied wrongdoing, claiming that it was the victim of “a former client bent on malicious intent” who supplied police with forged documents.
The incident occurred just before FINMA brought in the regulations.
Previously, forex companies using the Internet had blossomed in an environment without rules.
The changed forex business legislation was prompted by complaints from customers.
In one celebrated case, 1,000 clients reportedly lost their investments through Crown Forex, a company begun in the Jura in 2007 that went bankrupt in May.
Mansour said MIG has survived by gaining more business through word-of-mouth recommendations.
“For us our reputation is everything,” he said. Forex trading is a “tight community and in this business, your word is your bond.”
Mansour also touted other attributes of MIG’s business including narrow spreads, lower trading costs and no commissions.
He said the company’s service includes a “first-class research department,” a multilingual team working 24 hours a day providing services in 30 languages, plus IT security guarantees.
MIG Bank currently employs around 100 people, all working in Neuchatel.
FINMA’s new requirements call for forex companies to have minimum capital of 10 million francs.
Mansour said MIG raised that amount of capital in 2007 before boosting it this year to 25 million francs.
Other requirements include legal and compliance staff and officers to monitor different market risks, plus the Information Technology capacity to provide statistics to FINMA as required, he said.
FINMA spokesman Alain Bichsel declined to say how many foreign exchange brokers have applied for a banking licence, although he said there were not many candidates.
“MIG is the first forex dealer to get a banking licence but it is not a bank,” said Bichsel told Swisster.
“Under the statutory regulation their business is limited to foreign exchange trading.”
However, Mansour told a Zurich press conference last week that the licence allows MIG to diversify into brokerage services in precious metals and "other value-added services."
He said the licence also offers clients the security of knowing they are dealing with an institution governed by Swiss banking laws and he expects the company will attract more customers.
The Mansour family scored another coup when MIG became a sponsor in April 2009 of the Brawn Grand Prix team that went on to claim the 2009 Formula One championship with its winning driver Jenson Button.
The MIG name was affixed to the Brawn’s team’s high-speed motor cars. The team has subsequently been acquired by Mercedes Benz.
Mansour said MIG will continue to advertise with the new owner for at least another two years under the terms of the original three-year sponsorship deal.
private banks tipped to struggle
Oct 21, 2010 - 10:08
Smaller
Will some Swis sbanks have to close their doors? (Keystone)
by Matthew Allen, swissinfo.ch
The latest survey of Swiss private banks has repeated earlier warnings that smaller players may face extinction as costs rise and the flow of new assets dries up.
The Swiss wealth management industry is being squeezed by the global crusade against tax evasion, the growing cost of regulatory compliance and shrinking profits as investors exercise more caution.
Swiss banks suffered the same as competitors around the world during the financial crisis, with the pool of assets under management shrinking by nearly a fifth in 2008 before picking up by 8.4 per cent last year as conditions improved slightly.
But Switzerland also suffered from its distinction of managing the vast majority of offshore wealth in the world. A coordinated global assault against tax evasion and a series of tax amnesties saw the withdrawal of vast sums of assets from Europe and the United States.
Net new money flowing into Swiss banks increased less than one per cent in 2009 from the previous year. The vast majority of new wealth arrived from the emerging markets of Asia and South America and a growing proportion from expensive onshore operations.
The PricewaterhouseCoopers (PwC) survey of 111 private banks paints a relatively bleak picture for smaller boutiques (assets of up to SFr2 billion or $2.07 billion), and even mid-sized institutions (SFr2-10 billion), that have less room to adopt cost cutting measures or to set up onshore operations abroad.
PwC has estimated the extra cost of complying with new banking and tax regulations as being between 10 and 30 per cent higher than before. The expense of hiring staff and setting up infrastructure abroad for onshore enterprises is also prohibitively expensive for all but the biggest banks.
But Switzerland also suffered from its distinction of managing the vast majority of offshore wealth in the world. A coordinated global assault against tax evasion and a series of tax amnesties saw the withdrawal of vast sums of assets from Europe and the United States.
Net new money flowing into Swiss banks increased less than one per cent in 2009 from the previous year. The vast majority of new wealth arrived from the emerging markets of Asia and South America and a growing proportion from expensive onshore operations.
The PricewaterhouseCoopers (PwC) survey of 111 private banks paints a relatively bleak picture for smaller boutiques (assets of up to SFr2 billion or $2.07 billion), and even mid-sized institutions (SFr2-10 billion), that have less room to adopt cost cutting measures or to set up onshore operations abroad.
PwC has estimated the extra cost of complying with new banking and tax regulations as being between 10 and 30 per cent higher than before. The expense of hiring staff and setting up infrastructure abroad for onshore enterprises is also prohibitively expensive for all but the biggest banks.
Deals being sought?
However, Switzerland remains an attractive venue for private banking thanks to its long tradition of managing wealth. PwC expects to see investors from eastern Europe, the Middle East, Asia and Latin America snap up struggling Swiss players in the near future.
“We expect to see increasing consolidation among small and medium- sized banks in the coming years,” the report states. “Small private banks in particular that have focused in the past on cross-border asset management, face challenges in the changing environment.”
This is an expectation that has been aired before. A survey by KPMG and the Swiss Banking Institute at the University of St Gallen a year ago drew the same conclusions.
But the forecast cherry picking of smaller private banks has yet to materialise, with the majority of takeovers involving Swiss banks grabbing wealth management units divested by foreign counterparts.
Some observers believe this is because potential buyers are biding their time to get better deals as problems mount and asking prices dip. Many Swiss private banks, however, dismiss such consolidation claims, arguing that smaller players are more nimble and better able to innovate and adapt.
“We expect to see increasing consolidation among small and medium- sized banks in the coming years,” the report states. “Small private banks in particular that have focused in the past on cross-border asset management, face challenges in the changing environment.”
This is an expectation that has been aired before. A survey by KPMG and the Swiss Banking Institute at the University of St Gallen a year ago drew the same conclusions.
But the forecast cherry picking of smaller private banks has yet to materialise, with the majority of takeovers involving Swiss banks grabbing wealth management units divested by foreign counterparts.
Some observers believe this is because potential buyers are biding their time to get better deals as problems mount and asking prices dip. Many Swiss private banks, however, dismiss such consolidation claims, arguing that smaller players are more nimble and better able to innovate and adapt.
Dukascopy are now a Swiss Bank
June 17, 2010
Dukascopy have finally followed in the footsteps of MIG, and after a long wait they have at last received their banking licence from FINMA, the Swiss regulator. Consequently they now proudly call themselves "Dukascopy Bank SA". According to their press release:
The Banking Authorization is a confirmation of a successful transition and an upgrade of Dukascopy’s organization. The changes that have been orchestrated within the Company’s infrastructure were conducted by a committed team that has designed a new Corporate Governance and an Internal Control System in line with Swiss Banking requirements.
It seems as if Dukascopy have had some projects on hold, waiting for the green light from FINMA. According to their CEO Alain Broyon:
It is a tremendous accomplishment for our team which has passed FINMA’s rigorous screening while
managing to develop the business to confidently sail past the financial crisis. The banking license represents an important step for our long term development. Dukascopy now opens its doors for partnerships, to provide its advanced technology via a new White Label Solution.Dukascopy Bank SA will keep its Electronic Communication Network business model while increasing its business relationships with other banks, institutions, High Net worth Individuals and retail clients.
If you are a retail client then the barriers to entry to trading via a fully fledged Swiss bank are not as high as you might expect. You can now open a retail forex trading account with a Swiss bank with a deposit as little as $1000. In another move in the retail direction Dukascopy have also been beta testing MetaTrader 4 for quite some time now. As if that wasn't enough they support what most MT4 brokers refer to as micro-lots too.
Now that their FINMA license has been obtained, I can't help wondering if there will be any more exciting news from Switzerland for retail forex traders in the not too distant future.
Switzerland's Hinduja Bank (Middle East) registers with DIFC
| BS Reporter / Mumbai March 22, 2010, 14:53 IST |
Hinduja Bank (Middle East) Ltd, a subsidiary of the Switzerland-based Hinduja Bank Ltd, has obtained authorisation from the Dubai Financial Services Authority (DFSA) to upgrade its license to Category 1. The new license enables it to provide a full range of banking services from the Dubai International Financial Centre (DIFC).
According to a company release, the license upgrade is part of the bank’s efforts to expand its range of investment solutions and financial products and facilitate cross-regional banking services for its clients in Europe, Middle East and South Asia.
Speaking on the occasion, S P Hinduja, chairman, Hinduja Group said that the "upgrade of the Hinduja Bank's license will enable it to make a greater contribution to the future growth of the region".
Hinduja Bank (Middle East) Ltd’s parent company Hinduja Bank(Switzerland) Ltd offers a full range of services covering wealth management, trade finance, investment solutions and corporate advisory to select clients. A Swiss private bank with an extensive network, the company has developed unique expertise in managing the personal and corporate banking needs of family businesses and entrepreneurs. The Geneva-headquartered bank, which is part of the Hinduja Group, is one of the world’s largest diversified business groups operating in Switzerland since 1963. Recently, the bankacquired Banca Commerciale Lugano (BCL), an independent Swiss bank.
Bank formation in Switzerland
Informations - Swiss Banking
Already during the 15th century, a banking center developed in Switzerland. After World War II Swiss banks were even spoken of as a “safe haven”. This status and the high quality level of infrastructure and political stability resulted in the placement of approximately one-third of the world’s assets under Swiss management. Because world-wide assets continue to grow, so will the need for investment opportunities. Today, approximately 300 banks with different business purposes are domiciled in Switzerland today.
Especially for foreign high-net-worth individuals, the formation of new banks in Switzerland is an exceptionally attractive option. Swiss capital markets and regulatory law enjoy high reputation but nonetheless differs from European legislative and regulatory standards such as those enforced by Bafim, FSA and others. The key difference is that the license to operate a bank is a police authorization in Switzerland. Thus, applicants are entitled to a banking license if they meet regulatory requirements.
It is important to note that only the core bank activity (asset management) requires a license, while money transfer, commodities trading, and trade finance are not deemed core banking activities and do not require a banking license. A credible and substantiated business plan as well as personal trustworthiness with regard to proper conduct of business operations are key for obtaining a new banking license. (Swiss Banking Law, Article 3).
According to regulatory standards, a minimum of CHF 15 million minimum paid-in capital is required. Our law firm offers the founders full support and a turnkey solution for the overall structure. Besides filing of the license application and drafting regulations for the board and executive committee, this also includes business plan, IT- and compliance planning and direction of the overall development of the bank. Our experiences with bank formation ensure professional advice and processing.
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