The business of Swiss offshore banking for Americans is in turmoil. UBS' Juergen Wegner tells finews.com why many private bankers are knocking on the Swiss giant's door.
«The industry carousel is turning very quickly,» Juergen Wegner told finews.com in an interview. As head of UBS' Swiss financial advisers, or UBS-SFA, Wegner is responsible in Zurich for rich Americans wanting to invest their money in Switzerland. And although his unit, with 5 billion Swiss francs ($5.03 billion) in managed assets, is the market leader here, the carousel also poses problems for him.
The business is the tax-compliant counterpoint to that which ten years ago ensnared the Swiss bank in the U.S.: aiding Americans in dodging or cheating on their tax forms. Like many banks including Pictet and Vontobel, UBS subsequently ramped up separate units overseen by the U.S. securities regulator in order to keep a foot in the lucrative offshore market for wealthy Americans.
This month four of Wegner's former colleagues – two clients advisers and two assistants – resigned to join the Vontobel Group, who itself needed to plug gaps left by departures. As finews.com reported exclusively, Deepak Soni, head of Vontobel’s U.S. offshore client unit, left last January, and several of his former staffers switched to Bellecapital International. Soni turned up at the Geneva-based private bank UBP.
U.S. Interest on the Up
Wegner now reckons «a lot of candidates» will be knocking on his door at UBS. «We are expanding our client advisory staff and looking for good people.» Nevertheless Wegner, who led its offshore operations in Asia, said UBS can afford to be choosy when picking staff. «We have also recruited from the ranks of managing directors since seniority is important to our clients.»
Wegner notes that on the one hand interest among Americans for different markets and currencies has increased in recent months. He declines to call it a «Trump effect» but adds that the trend reflects the «global political situation».
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