Switzerland's financial market is seeking ties to Asia as well as scrambling to fill a legal void that will open up once Britain leaves the European Union in less than two years, Swiss state secretary Joerg Gasser tells finews.com. He also reaches out to fintech representatives over a perceived snub.

Switzerland's highest tax diplomat Joerg Gasser welcomes visitors in his spacious office in the Bernerhof, a 19th century former luxury hotel overlooking Bern's Aare river which is now home to the Swiss finance ministry.

The 47-year-old economist and former Red Cross negotiator has just concluded a high-profile trip to Asia with Switzerland's finance minister and countless banking industry representatives. The junket was meant to cement trade ties to China following an unprecedented four-day visit to Switzerland by Chinese leader Xi Jingping in January, as well as forge new official regulatory, and industry alliances across the region. 

As one would expect of a diplomat, Gasser is well-spoken and unassuming. He has little of the star power of his two predecessors, «superdiplo» Michael Ambuehl, who negotiated a state treaty which paved the way for UBS to settle a landmark U.S. probe, and Jacques de Watteville, a veteran diplomat with postings in Damascus, and Beijing who was part of Switzerland's negotiating team to enter the European Economic Area in 1991, a step which Swiss voters rejected one year later. 

Gottlieber Wafers or Peanut Butter Cups

Switzerland's financial market politics have lurched from one crisis to another in recent years: a bruising multi-billion dollar battle with U.S. prosecutors, data raids and demands from European neighbors to make amends for past sins of hiding money from taxes. Under Gasser, Switzerland still faces challenges – European Union relations are chief among them – but his job is more about forging alliances than firefighting.

Showing little sign of fatigue from the whirlwind trip, Gasser offers coffee, Swiss chocolates and Gottlieber ganache-filled wafers as well American peanut butter cups, a souvenir from recent International Monetary Fund meetings in Washington D.C. 

Dealing With U.S. President Donald Trump

Gasser spoke exclusively to finews.com about supporting fintech in Asia, efforts to link up Swiss banking with the City of London outside the European Union, and dealing with U.S. President Donald Trump's three-month-old administration. 

This is the first of a three-part interview with Joerg Gasser. The next installment will be published in coming days.

Joerg Gasser, you were part of a government-led finance trip to Asia last month. Did you come away with anything specific?

I didn’t go with the expectation of discussing specific details, but I ended up being surprised at the responsiveness of officials, in China in particular.

«Surprising Chinese openness to addressing broader questions of strategy»

Not just on banking issues, but how to address larger strategic questions, views, themes and challenges facing China. This openness surprised me, and is partly the result of Xi Jinping’s official visit to Switzerland in January.

Fintech in Switzerland was irritated not to have been represented on the Asia trip.

The idea was to invite financial service providers who are active in the region. We visited Alibaba and Lattice80 (a fintech hub in Singapore). Aside from some mentions here and there, fintech was a relatively small part of the trip.

«Thinking of inviting fintech representatives for Singapore's FinTech Festival»

Specifically for fintech, I am planning on taking part in the Singapore FinTech Festival in November and we are thinking of inviting fintech representatives along.

The fintech industry could accuse you of being stuck in old-world thinking.

We are still operating in an «old world» where Credit Suisse and UBS are a large part of our finance center. But as previously said: one outcome of our trip was to invite Lattice80 to consider Switzerland as its foothold in Europe and the fintech event in November in Singapore to include the industry. Fintech’s moment will come.

Let’s turn to «F4» and your efforts to link up the City of London with Switzerland, Singapore and Hong Kong.

We’re in a regular dialogue with London at the moment over the «mind the gap» strategy, which is intended to ensure that we don’t fall into a legal gap when Britain is outside the European Union. Secondary to that is defining our future relationship with the U.K. and any multilateral agreements, which is where the F4 idea would come in.

So it’s not currently being actively discussed?

It’s not a priority for Britain at the moment. What we can do is discuss specific themes like the automatic exchange of information (AEoI) or our relationship with the EU, or data security at multilateral level, but it’s not going to happen at a big conference of Switzerland, London, Hong Kong and Singapore.

Why not?

Our «mind the gap» talks with the U.K. are part of an overall Swiss government analysis of all our touch points with the U.K. to identify what we need to transfer into bilateral treaties with Britain, ideally seamlessly upon their exit.

«Financial services is a huge part of 'mind the gap' with Britain»

Of course financial services are a huge part of that. Also, remember that Britain isn’t actually allowed to agree any bilateral treaties that supersede EU agreements as long as they are still a member.

Are you optimistic for your part in the «mind the gap» talks?

Yes, I am. Our relationship with Britain has always been very good, and I presume the existing dialogue will continue in the same intensity. It isn’t altogether clear yet whether Britain will pursue a more Anglo-Saxon direction including the U.S., or maintain its European focus.

«Intense talks with Britain: in Europe, we already are what they are about to become»

 

What is clear is that we already are and have experience in what Britain is about to become: a third country. This makes our talks relatively intense and straight-forward.

You mentioned the U.S. What do you make of the first 100 days in regards to finance?

There’s been a lot of newsflow but it’s hard to discern the direction the new administration will take. Some of my counterparts in the administration haven’t been appointed yet, so it’s difficult to get specifics.

«Rolling back FATCA? Trump's finance policies need further consolidation.»

 

Ideas like the 15 percent corporate tax rate, rolling back FATCA or the border adjustment tax need to be further consolidated.

Joerg Gasser began his career in 1996 at the International Committee of the Red Cross, where he worked as a negotiator, including in Pakistan and Iraq. The 47-year-old economist later became a division head for the international aid organization in Geneva. In 2008, he joined the Swiss government as an economist in its justice and police arm. He moved to the finance department six years ago as a secretary general.

Gasser, who studied macroeconomics and international relations in Zurich, was appointed State Secretary for International Finance Matters last July. He is the third person to serve as Switzerland's highest finance diplomat since the agency was set up seven years ago – and by far the youngest.