Bordier, the epitome of a Genevan private banker, its changing is legal set-up. The move is a break with tradition as much as it represents the private bank arming itself for the future.
«We have opted clearly for the model of the unlimited liability partnership, the classic private bank – because it makes sense for us, even if we maybe generate a little less growth,» Grégoire Bordier, managing partner of the eponymous private bank, told finews.com in March.
Just three months later, Bordier and his partners are ditching a strict partnership to a limited-share model, the bank said in a statement. The move represents «the benefits of being Swiss private bankers, in the traditional meaning of the term, combined with the advantages of a public limited company, or 'société anonyme',» Bordier said.
Four Truly Private Banks
Bordier is opting for a legal form that doesn't go as far as incorporating, the bank told finews.com: the partners of a limited company still vouch for the bank with their own money. Bordier's partners are Grégoire Bordier, his brother Evrard Bordier, Michel Juvet, and most recently Christian Skaanild just two months ago, as finews.com reported.
The interests of the bank with its clients remain congruent, Bordier noted. It remains part of a devoted group of genuinely «privé» banquiers in Switzerland, which enjoys a special legal status unique to the alpine nation: Baumann & Cie as well as E. Gutzwiller of Basel, Rahn+Bodmer in Zurich, and Reichmuth & Co. in Lucerne.
The Last Genevans
Bordier is the only remaining Genevan house in the Association des Banquiers Privés Suisses: larger partner-led rivals Pictet, Lombard Odier, and Mirabaud ditched the «privé» model several years after the financial crisis of 2008/09 which coincided with a massive tax crackdown by U.S. prosecutors hunting hidden offshore accounts.
Bordier emphasized that its legal step isn't comparable to changes at the other Geneva firms in 2013 and 2014: «Our partners remain banquier privés,» Bordier said. Most recently, Genevan wealth manager Gonet also abandoned the model four years ago in favor of incorporating.
Silent Bank Reserves
The distinction at Bordier its partners remain culpable for liabilities despite splitting up the share capital, but that it otherwise adheres to rules and guidelines for incorporated firms. Specifically, Bordier will be required to alter its accounting as well as strengthen its governance with two independent oversight bodies.
«While remaining the last private bankers in Geneva, this new structure will provide us with much more flexibility when it comes to managing our group and will duly enhance prospects for our future growth,» Grégoire Bordier said. The bank, which manages roughly 13 billion Swiss francs, would consider acquisitions, it said. The advantage of its legal set-up: it can build silent reserves which listed banks can't.
