Switzerland's «robo frost» continues with another foreign competitor withdrawing after a less than two-year attempt to crack the alpine nation's wealth market foundered.
Fledgling robo adviser Scalable Capital is folding its tents in Switzerland, according to Swiss business outlet «Finanz und Wirtschaft» (in German, behind paywall). The German start-up, which entered the Swiss market early last year, said new rules on investments coming into force in 2020 will make it harder to cater to clients in Switzerland.
The reasoning is noteworthy: the new rules represent Switzerland's adoption of MiFID II guidelines in Europe. Scalable, which counts U.S. fund giant Blackrock among its investors, recently tapped 30 million euros ($33 million) in fresh funding.
Lack of Robo Demand
Scalable accounts held in custody will be dissolved next month and returned to clients, the outlet reported. The start-up, which had sought to work together with Swiss banks to hike assets, hadn't disclosed the amount of funds it managed in Switzerland.
Its withdrawal follows a wave of other robo advisers which have foundered in recent months: an «Investomat» powered by a Swiss cantonal bank as well as Allianz Suisse's Elvia's E-Invest shut down – due to lack of demand.
