Philippe de LaCroix Associes

La casa Blanca “nuevamente” en la busqueda por la aprobacion del plan rescate.

noreply@blogger.com (Philippe de LaCroix Associes) — Wed, 01 Oct 2008 15:12:00 +0000

La casa blanca intentará nuevamente poner a consideración del congreso el plan rescate que inyectará en 700 billones de dólares en el sector financiero para tartar de estabilizar los mercados.

Unos dos tercios de los representantes republicanos votaron en contra. Con cifras de 228 votos contra 205 los republicanos miembros de la Cámara de Representantes Baja se hicieron notar con un NO rotundo en los nuevos planes del gobierno por salvar el aumento en el desquebrajamiento de la economía.

Tras la negativa de la Cámara de Representantes, ayer en la aprobación del citado plan, las consecuencias económicas de hicieron notar no solo en Estados unidos sino tambien en la económica europea ocasionando pánico en Wall Street, que sufrió el lunes pérdidas históricas de 6,98% en el Dow Jones y de 9,14% en el Nasdaq.

No sera nada fácil para el gobierno de Bush lograr la aprobación e implementacion de este plan rescate que ha sido considerados por algunos congresistas como un “ plan torniquete” para la enfermedad de los mercados financieros.

Con base en ello, se ha pensado que en el proyecto Plan de rescate sea incluido en una nueva iniciativa legislativa que contengan programas que beneficien de manera directa a los ciudadanos estadounidenses evitando que sigan perdiendo sus casas por inclumplimiento de sus pagos y por ende evitando asi expropiaciones. De la misma forma el Nuevo proyecto incluye extensión de deducciones de impuestos para las empresas; y modificaciones al impuesto mínimo que deben pagar los contribuyentes.

Dicha iniciativa sera puesta en consideración primero del Senado quien esta mas abierto y cuyo apoyo se espera sea mucho mas confiable y luego a la Cámara de Representantes en la cual se esperan serias modificaciones de voto.

Desde ayer, la conmoción de la casa Blanca se ha hecho notar con la suplica irremediable de Bush al Congreso. Y ha sido tal los efectos de tal negative que no solo los líderes del Congreso y el presidente George W. Bush, han tomado cartas en el asunto, pues tambien los candidatos presidenciales McCain y Obama, que buscan sucederlo, analizaban diversas ideas en una búsqueda desesperada para modificar los votos de 12 legisladores y aprobar un plan multimillonario de rescate económico.

Los efectos de una possible aprobación del congreso de los estados unidos no se han hechos esperar el Wall Street recuperó la esperanza en el plan y por ello el promedio industrial Dow Jones, que había retrocedido el lunes 778 puntos, recuperó el lunes 485 unidades.
Así mismo, con la aprobación de este plan de salvamento se espera incrementar la confianza en el sistema bancario del país al ampliar el seguro gubernamental de los depósitos bancarios.

Claudia Ortiz-Fonseca Executive Vice President; Europe & Latin America Claudia@philippedelacroix.com

Philippe de LaCroix Associes www.philippedelacroix.com

La Crisis Financiera Tambalea la Economia Global

noreply@blogger.com (Philippe de LaCroix Associes) — Tue, 30 Sep 2008 15:08:00 +0000

Pese a que el sistema financiero se des-estabiliza aun más cada minuto, pareciere que no existe una solución fiable para el recuperamiento de la economia mundial.

El gran responsible de esta crisis que enfrentan los mercados financieros globlales es Estados Unidos quien organizó un plan de rescate que de ser aprobado por el legislativo inyectaria a su economía 700 millones de dolares en el sietema económico.

Traspies de la Casa Blanca en la lucha por la aprobación del plan de rescate

Ayer el congreso de los Estados Unidos rechazó una propuesta que si bien es cierto no era la mas brillante y obviamente no generaria una solución de raiz a esta crisis económica, si seria como un pañito de agua tibia que daria mas tiempo para que expertos financieros de la economia estadounidense, que ya esta pisando los umbrales de la recessión, para que se ingenieran con mas tiempo una solución mas eficaz.

Horas antes de la votación, el senador democrata Chris Dodd, presidente de la Comisión Bancaria alta afirmó que “el proyecto no es una panacea para todos los problemas que agobian los mercados financieros”.Este plan de recuperamiento fue rechazado el lunes por 228 votos contra 205 en la Cámara de Representantes.

Tal negación por parte del poder legislativo al plan de rescate estadounidense conmocionó no solo la Casa Blanca, Wall street, sino tambien a los paises europeos quienes de manera explicita instaron al gobierno americano para que resolva la crisis. Y a su vez, sin lugar a dudas ocasionó un movimiento de pánico en Wall Street, que sufrió el lunes pérdidas históricas de 6,98% en el Dow Jones y de 9,14% en el Nasdaq.

Es tal la urgencia por pronta y oportuna una solución, que el Banco Washington Mutual Inc. (WaMu) no tuvo otra salida que declararse en quiebra pues desde hace tiempo debido a las fuertes pérdidas de la compañía en el mercado hipotecario.. El WaMu, fundado en 1889, es el mayor banco que quiebra en la historia del país.

Europa toma medidas extremas

Europa por su parte, tambien esta viviendo las terribles consecuencias de esta gran catastrofe. Luxembrugo, Holanda y Bégica no tuvieron mas salida que implementer maniobras de rescate y salvar al gigantesco banco y asegurador Fortis, con la inyeccion de 11.200 millones de Euros. En Gran Bretana el Banco Bradford and Bingley al parecer fue rescatado de una posible nacionalización parcial y con la venta parcial al banco Santander de Espana.

De igual manera el gobierno Aleman garantizó el salvamento del Banco Hypo Real Estate mediante un consorcio de bancos privados que hicieron una inyección de capital por 35.000 millones de euros.

Por su parte, el Banco Central Europeo (BCE) no tuvo mas que renovar sus créditos por 20.800 millones de euros a un día y el Banco de Japón a su vez inyectó tres billones de yenes (28.800 millones de dólares.

La canceller Alemana, Angela Merkel, vocera de la Comision Europea , insto a los legisladores para que aprueben el plan de rescate propuesto por la Casa Blanca y dijo tambien que :.. Estados Unidos debe tomar su responsabilidad en esta situacion, y debe mostrar habilidad politica por interés de su propio país y por el interés del mundo".

Este el panorama de una Economia globalizada que cada vez mas apunta hacia la inevitable recesión y que durante las ultimos meses ha desplegado innumerables medidas que apuntan a evitar la iliquidez mundial, evitando asi la bancarrota de sus instituciones financieras, pero que aun no tiene la suerte de implementar medidas que realmente tiendan a ser beneficas y acertadas para la economia global.

Por ahora no nos queda mas que esperar a que el gobierno de Estados Unidos re-evalue el plan de rescate propuesto y que el Senado finalmente apruebe esta maniobra financiera que de una u otra forma causara la “temporal recuperación” de la economia mundial mientras poco a poco se encuentras soluciones mas idóneas que sean definitivas para el frenamiento de la recesión y por ende la crisis económica.

Claudia Ortiz-Fonseca Executive Vice President; Europe & Latin America Claudia@philippedelacroix.com

Philippe de LaCroix Associes www.philippedelacroix.com

Off-Shore Jurisdictions. Company incorporation Requirements

noreply@blogger.com (Philippe de LaCroix Associes) — Tue, 29 Jul 2008 18:16:00 +0000

Comparison Of Jurisdictions

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Comparison Of Jurisdictions

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Banca Privada en Suiza: Por que seguir Invirtiendo!!

noreply@blogger.com (Philippe de LaCroix Associes) — Mon, 25 Feb 2008 13:12:00 +0000

Competitividad, experiencia en el Know-how, estabilidad política y económica, tradición, y sobretodo sus resultados, han posicionado la plaza financiera de Suiza como una de las más poderosas y eficientes del mundo.

La Banca Suiza como líder en la administración de bienes de capital, gestiona aproximadamente el 35% de los fondos privados e institucionales en le extranjero siendo estos logros los que catalogan esta plaza financiera como líder Mundial.

Surgiendo así la pregunta, que tiene Suiza en la administración de capital que no tienen otros países líderes en la gestión de fortunas como el Reino Unido y Estados Unidos de América?

En primer lugar, es importante considerar que Suiza cuenta aproximadamente con 450 entidades financieras y bancarias de las cuales alrededor de 75 son Bancos privados y 14 Banqueros privados. Estos últimos creadas bajo el concepto de “family office” dedicadas a ofrecer una asistencia integral de gestión de patrimonio a familias que disponen de una gran fortuna y que desean cultivarla e incrementarla generación tras generación.

A diferencia de otros líderes financieros Suiza posee Tradición en la administración de fortuna se remonta a más de 250 años, y es su manejo y su alta competitividad quien la sitúan como la mejor en el mundo.

Su gran estabilidad política y económica y su reconocida solidez hacen de Suiza un país que goza de gran integridad, elevada productividad y reconocida reputación como “safe heaven”. De acuerdo a los informes anuales de Transparency Internacional su sistema político es uno de los más transparentes del mundo.

La competitividad de los helvéticos se ha mantenido año tras año ante la globalización del mercado de capitales, distinguiéndose por la diversificación en sus inversiones bajo las bases de la experiencia en la gestión de fortunas –know how- y su especial atención al cliente sobre las bases del servicio personalizado y confidencialidad bancaria.

Igualmente dispone de un sistema de impuestos diferente que favorece la expansión del régimen financiero. Para los suizos el respeto a la vida privada es mucho mas importante que el tema de los impuestos. Los bancos no tienen derecho a informar a las autoridades fiscales suizas, y todavía menos a las autoridades fiscales extranjeras.

Su constante lucha contra el lavado de dinero constituye una prioridad para Suiza. La Ley Suiza contra el Lavado de Dinero entro en vigor en abril de 1998 es considerada como una de las mas estrictas del mundo pues pretende reforzar la cooperación entre el sector privado y el gobierno a través de un intercambio de información obligatorio, pero estrictamente confidencial, en los casos en que se sospeche de corrupción o delitos.

Por ultimo hay que tener en consideración que el atractivo de Suiza para la inversión directa se encuentra también circunscrito al alto grado de preparación de su fuerza de trabajo. Cada vez mas la preparación de las personas que trabajan en el sector bancario es más pronta y eficiente, pues del buen entrenamiento e instrucción de sus profesionales financieros depende continuar con la buena reputación de esta plaza financiera.

Es así como Suiza, se incorpora como el número uno en Banca privada a nivel mundial superando de esta forma en materia de finanzas e inversión poderosas potencias mundiales como Estados Unidos y Reino Unido y creando cada día mayor oportunidades para ciudadanos y empresarios del mundo y manteniendo su inigualable reputación de líder.

Escrito por: Claudia Ortiz-Fonseca
Executive Vice President; Europe & Latin America
Philippe de LaCroix Associes

Claudia@philippedelacroix.com
www.philippedelacroix.com

EXCLUSIVE PRIVATE BANKING: WORLDWIDE ECONOMIC CRISIS – A SWISS PERSPECTIVE.

noreply@blogger.com (Philippe de LaCroix Associes) — Mon, 11 Feb 2008 14:28:00 +0000

The crisis arrived before anybody expected.

According to the United Nations global economical growth for 2007 was in the order of 3.2%. This was the first symptom of worldwide economic deceleration, because, as everybody should remember, the economic growth index for 2006 was 3.8%. This deceleration was caused mainly by the crisis in the United States of America which obviously created big concerns in the global markets and generated significant losses internationally.

Which have been the causes of this critical financial crisis?

The prognosis for 2008 is crucial for the world economy. Financial turbulence has had a devastating impact on all the world’s major economies. President Bush and the U.S. Federal Reserve announced an emergency cut in the U.S. interest rate to 3.0%, the biggest fall in rate for over 20 years. This is significant because it shows the weakness of the world’s economic environment, the fragility of previously strongly performing economies with a “knock-on” effect on emergent economies, inherently weak by nature.

On this point it is important to stress that the emergent economies for Latin-America were the only ones to have positive growth despite the worldwide financial trauma. According to the index given by MSCI, (Morgan Stanley Capital International) growth of Latin American shares was in the order of 7.2% at the end of January 2008. For instance the Latin American stocks registered after the infamous “dark Monday” performed like this; Mexican stock Market closed up 6%; the san Paulo stock market closed up 4.6%; the Argentinean stock market closed up 3.6% and, according to the IPSA index, the Chilean stock market closed up 4.38%.

After five years of global growth, economic expansion has moved into a more conservative – or is it dormant – period, because of international economic uncertainty.

What does the future hold?

No one can guarantee what will happen in the U.S.A. over the next year. The steps taken by President Bush and the U.S. Federal Reserve have been so severe that they can only be interpreted as an attempted ant-dote to recession. It will be prudent to withhold judgment until we can analyze the economy at the end of the first quarter of 2008.

On the other side of the world Europe is of course not immune to the crisis. European central Bankers’ main concern within the Euro zone is to balance the threat from staving off deflation against the threat of a resurgence of inflationary pressures if their measures are too successful.

These concerns have been the reason for countries such as The United Kingdom, France, Italy and Germany holding talks in London recently in which they agreed to fight these pressures together and to resist a return to policies of national economic protectionism. Greater Central bank cooperation and policy convergence as well as an increase in the powers of the International Monetary Fund through a so called “fast alert” system have been agreed.

These meetings and their decisions have however been greeted with marked criticism by some other members of the E.U., notably Spain as well as the European Commission, because of a failure on the part of the participating countries to make the discussions more broadly inclusive despite the discussions being of global interest. In making public their criticism of the plans, they pointed out that the measures agreed couldn’t be classed a s definitive plan when – as they put it – the critical element to the crisis was United States policy and performance.

For all these reasons we are left with no choice but to wait and see what happens; we have to wait for the first quarter figures from the U.S.A. If the results are positive we will see a degree of deceleration in the U.S economy and a degree of recovery in the second quarter. Otherwise there will be the risk of an uncontrolled slow down with again unpleasant effects on the markets.

Written by: Claudia Ortiz-Fonseca. Executive Vice President of Philippe de LaCroix Associes

www.philippedelacroix.com

claudia@philippedelacroix.com

QUE NOS ESPERA DE LA CRISIS ECONOMICA GLOBAL?

noreply@blogger.com (Philippe de LaCroix Associes) — Tue, 05 Feb 2008 22:44:00 +0000

Es evidente que no podríamos aventurarnos a asegurar la inminente recesión de los Estados Unidos, sin embargo las medidas tomadas por el Presidente George W. Bush y por la Reserva Federal (FED) han sido tan severas que solo podrán ser entendidas como un antídoto a la recesión. Sin embargo es prudente esperar la evolución de su economía al cierre del primer trimestre del 2.008.

Europa por su parte no es ajena a esta crisis y basa su preocupación en una posible desaceleración y alza en la inflación en la zona del Euro, lo cual generaría entorpecimientos para los Bancos Centrales en la acción de encontrar un punto de equilibrio entre estos dos factores.

El temor por que esta crisis se agudice, ha motivado una serie de reuniones entre algunas potencias financieras de Europa como son el Reino Unido, Francia, Alemania e Italia, quienes han apostado por la transparencia en los mercados, especialmente en la banca y en las agencias de colocación de riesgo como la mejor arma para combatir este flagelo.

Igualmente, sentaron un precedente importante al apoyar al Fondo Monetario Internacional (FMI) para convertir el mismo en un gendarme de las finanzas globales mediante la puesta en marca de un sistema de alerta rápida.

Sin embargo, una vez realizada esta “mini-cumbre europea”, llevada a cabo en Londres – Reino Unido, se han despertado grandes recelos en otros países de Europa tales como España y Bruselas quienes por su falta de invitación y participación en un asunto de interés mundial dejaron claro que al tratarse de mercados globales este proyecto no podrá catalogarse como una plan de carácter definitivo, pues debido a que el epicentro de esta crisis financiera ha sido EEUU; es allí donde en primer lugar se deberán tomar las medidas de auto corrección.

Así las cosas y para concluir, respecto de este sobresalto bursátil no queda más que esperar. Esperar los resultados económicos de EEUU al cierre del primer trimestre del 2008. Si sus resultados son positivos esperaremos una desaceleración durante el primer semestre el ano y una gran recuperación financiera durante el segundo. De ser negativos los resultados el horizonte económico no será tan agradable y estaremos a la espera perdidas financieras, recesión, baja en el crecimiento del PIB.

Escrito por: Claudia Ortiz-Fonseca

Vicepresidenta Ejecutiva para Europa y Latinoamerica
claudia@philippedelacroix.com

www.philippedelacroix.com

THE YEAR AHEAD FOR THE U.K. AND STERLING

noreply@blogger.com (Philippe de LaCroix Associes) — Sun, 03 Feb 2008 20:28:00 +0000

Attention has been focused on the U.K. for the last number of weeks. Problems with the Banking system brought to light by the credit crunch, worrisome political pressure on the Bank of England to cut interest rates despite lurking inflationary shadows and an underlying weakness in the economy leaving little room for manoeuvre all mean international attention, indeed anticipation, still examines the U.K. for changes, and what has been seen? The pound has been registering lows against the Euro, and indeed has lost over 7% against its November high against the Dollar.

Britain’s reputation as a safe financial centre has undoubtedly been dented by the Northern Rock debacle and the perceived ineptitude of the Government of Gordon Brown in handling it. This is important because of Britain’s almost unique dependence on financial services. Britain’s banking sector has been badly hit by the sub-prime crisis, ( who can say that it’s effect is over? ) and this will undoubtedly have an impact on that other great measuring rod of the UK economy, the property market - especially in the capital.

The Chancellor came close to calling on the Bank of England, supposedly independent of political influence, to reduce interest rates in January -but it wisely refused to do so, despite the additional pressure of the Government initially refusing to confirm the re-appointment of Mervyn King, the Governor of the Bank, for a second term. In fact he has now been appointed for a second term, but a glimpse of political pressure was on display for all to see for a while until the Bank visibly chose to resist. None of this has helped Britain’s image on the international markets as a place to safely do business.

The British Government has so mismanaged one of the strongest currencies of Europe that now, due to overspending, it has reached it’s overdraft limit and the only means now left to support the pound on the international stage is a high interest rate. The official interest rate of the Bank of England is 5.5% while the Euro rate is only 4%, the US federal funds rate is 3.5% and the Japanese rates only 0.5%, so if one thing is obvious, UK interest rates are headed down and with them the fortune of the pound.

Investors take note!

Sebastian Krown
Vice President of Private Banking
www.philippedelacroix.com
krown@philippedelacroix.com

SWISS BANKS AND THE EUROPEAN UNION WITHOLDING TAX

noreply@blogger.com (Philippe de LaCroix Associes) — Sat, 15 Dec 2007 12:35:00 +0000

It was a famous moment when in 1999 the Swiss Finance Minister Kaspar Villiger told the a conference of European finance officials in Frankfurt that “ Swiss bank-client confidentiality is not up for discussion!” At the time it represented the culmination of the latest efforts by European officials to “grab” information on European Nationals who had accounts in Switzerland. Of course this was just the latest round of such efforts by European Governments to claw back what they saw as lost revenue from citizens who had been “unsporting” enough to invest their money beyond the reach of their national governments. For many years the European officials had been trying to stem the tide of escaping money, channelled into off-shore Banking centres, of which Switzerland is by far the biggest. The defiant rebuke by Kaspar Villiger drew a line in the sand beyond which the Swiss made clear they would not go.

Eventually agreement was reached and a new tax regime was implemented in July 2005. It was claimed at the time by European officials as groundbreaking in their efforts to track down and tax lost revenues but, as they have an invested interest in making their citizens believe they cannot escape the tax grab, they would say that wouldn’t they?

How it works is that under the agreement Switzerland and other non-EU financial centers involved in the discussions implemented a flat-rate withholding tax on interest earned by EU-resident depositors.

The tax currently stands at 15% and will rise to 20% in 2008 and 35% in 2011. It is withheld by the Swiss authorities and passed on to Europe in a lump sum without identifying the individual account holders.

Critics argue that the directive was too selective as it is only levied on individuals and applies only to certain savings like bank account interest and bond interest. Notably dividend income from investment in stock market assets is exempt, which means that EU citizens who so wish have plenty of latitude in making arrangements to stay invested offshore without exposure to the tax.

At Philippe de LaCroix for instance we do not have a single client who is subject to the withholding tax, regardless of nationality.

What has been the effect of the withholding tax? Well investors have stayed in Switzerland and indeed the amount of investment through Switzerland has continued to grow to a point where it is now reputed to be well in excess of $4 trillion. Switzerland continues to attract the financially “savvy” for many reasons. International banking clients are attracted by the experience of Swiss bankers as well as Switzerland’s banking stability, security and professional banking know-how acquired over generations. So far as the withholding tax is concerned clients have simply adapted their portfolios to avoid tax liability.

Ultimately in a world where fewer people enjoy true freedom – despite politicians speeches defending it- perhaps it is the respect for privacy that is most valued by International clients. Most investors remain confident that, despite pressure, Swiss bank secrecy will stay intact. Kaspar Villiger’s words were not hollow!

By: SEBASTIAN KROWN. Senior Vice President
Philippe de LaCroix Associes
kronw@philippedelacroix.com
http://www.philippedelacroix.com/

QUE ESTA PASANDO CON EL SECRETO BANCARIO?

noreply@blogger.com (Philippe de LaCroix Associes) — Fri, 14 Dec 2007 23:19:00 +0000

Cada día son más las personas de diferentes países del mundo que se preguntan que esta pasando con el secreto bancario. Nuestro derecho a la privacidad personal se coarta cada día más y más. Ciudadanos de los Estados Unidos de América que tenían sus cuentas bancarias y su capital en Panamá están quedando poco a poco al descubierto, pues los acuerdos bilaterales entre los dos países de apertura de cuentas se están asiendo cada vez más normales. Ciudadanos europeos, están quedando cada vez más en las manos de sus propios gobiernos pues por políticas de transparencia internacional hacen cada día más difícil mantener en secreto nuestras cuentas bancarias.

El mundo se esta viendo amenazado continuamente por la perdida de nuestros derechos personales, el derecho a la intimidad, a la privacidad, se están desvaneciendo como arte de magia, poco a poco estamos llegando a un callejón sin salida. Por que será tan difícil entender por parte de nuestros gobernantes que no se trata de querer ocultar nuestros patrimonios, no se trata de blanqueo de capitales; se trata de tener un poco de privacidad y mantener bajo la óptica personal el manejo de nuestra riqueza.

Ciertamente el concepto de vida privada es muy difícil de definir con precisión pues tiene connotaciones diversas dependiendo de la sociedad de que se trate, sus circunstancias particulares y la época o el periodo correspondiente. Pero la necesidad de intimidad es inherente a la persona humana ya que para que el hombre se desarrolle y genere su propia personalidad e identidad es necesario que goce de un espacio que comprenda diversos aspectos de su vida individual que esté libre de la intrusión de elementos y personas ajenos a el.

De esta manera surge el llamado derecho a la privacidad, a la vida privada o simplemente derecho a la intimidad, como un derecho humano fundamental por virtud del cual se tiene la facultad de excluir o negar a las demás personas del conocimiento de ciertos aspectos de la vida de cada persona que solo a ésta le incumben.

Sin embargo, aun existen países como Suiza, una de las más importantes plazas financieras del mundo, donde aun se respeta con rigurosidad el secreto bancario. Este concepto fue introducido en la Constitución de 1934, estableciéndose en su artículo 47 que ningún empleado, agente bancario, o funcionario que trabaje con asuntos de bancarios o cualquier otro profesional regulado por la Comisión Federal de Bancos Suizos podrá divulgar información que le haya sido confiada.

Como este son pocos las plazas financieras que se dedican a proteger la privacidad de sus clientes y que por su reputación a su vez ofrecen los servicios bancarios mas reconocidos del mundo, posicionándose como líderes en el mundo.

Aquellos países helvéticos, duramente criticados por otras potencias mundiales, han sido por algunos años ejemplo de transparencia y efectividad, razón por la cual muchos de los sistemas por ellos introducidos están siendo exitosamente implementados por muchos países de Europa y por el Continente Americano, para mencionar un ejemplo tenemos el sistema acreditado como “conozca-a-su-cliente”. Este sistema ofrece a las instituciones bancarias, incluso a las dedicadas exclusivamente a la Banca Privada, el pleno conocimiento de la situación personal y financiera de su posible cliente antes de la apertura de cualquier cuenta bancaria o acuerdo de gestión de capital; a través de el se pretende minimizar el riesgo de blanqueo de dinero y cualquier otra clase de delitos.

Como es bien sabido por los estudiosos de las finanzas y mercado bursátil, y ahora por inversores y propios cuenta habientes, la crisis bancaria esta aumentando considerablemente cada día más, es hora de tomar decisiones para proteger nuestro patrimonio!

Escrito por: Claudia Ortiz-Fonseca. Executive Vice President Europe & Latinamerica.

claudia@philippedelacroix.com

http://www.philippedelacroix.com/

Some reasons why people invest through Private Banking in Switzerland

noreply@blogger.com (Philippe de LaCroix Associes) — Tue, 27 Nov 2007 14:59:00 +0000

There are as many reasons for investing in Switzerland as there are investors and of course there are both negative and positive reasons.

The negative usually involve motivations caused by the financial environment or tax burden of an investor’s home state or the lack of personal privacy there. Many of the European States as well as the United States are perceived by their citizenry as having unduly onerous tax burdens, or having broken faith with their democratic sanction. Of course these are valid reasons. Many of the infringements of personal freedom that citizens all over the world are subjected to, especially in the European Union and the U.S.A., are justified by dramatic “needs” that are seemingly inarguable, be it the war on terror, the war on drugs, or the war on whatever is deemed necessary this year. The truth is however that it is the ordinary law-abiding citizenry that bears the burdens of the restrictions of these laws far more than the extremists that the laws are allegedly aimed against and some citizens decide that enough is enough. We can debate all we like about the whys and the wherefores of the social contract between Government and citizens, but the truth is that many citizens feel alienated from their Government and one of the first thing disgruntled citizens do is asset and wealth protection to prevent seizure by the Government they no longer trust and Swiss Private banks are often where they choose to do that. The fact it is regarded as a Tax-haven for non-residents is just one factor, and before anyone says how immoral it is for Switzerland to play that role, let me remind the reader that the U.S.A. and the U.K. and many European countries are actually tax-havens for non-residents in the same way as Switzerland is; but that is quietly and conveniently forgotten in the outcry raised against tax-avoidance and off-shore investment.

The positive reasons usually revolve around the expertise of Swiss banks in managing and nurturing wealth. In reality, the Swiss invented Private banking as we recognise it today. Switzerland has been the wealth haven of choice for the wealthy for generations and there is no sign of that changing. True there are other jurisdictions who in the last twenty years or so have tried to develop their off-shore Banking expertise and industry, but in reality, no matter how many banks open area offices in these places, they cannot compare to the Swiss expertise and tradition, dating back hundreds of years as they do. Tradition may seem an old fashioned thing. After all so often in business it is the new, the start-up that makes the waves, that forges ahead, that sets new standards and raises the bar with new achievements. All this may be true but when it comes to Private Banking the importance of tradition cannot be under-estimated. It is the Swiss tradition of confidentiality and discretion, traditions of professionalism, investment expertise – these are what has made Switzerland the Banker to the world and maintain it in that position.

Some say that it is a person’s moral responsibility to be an active guardian of their wealth. I do know about that - maybe it is or maybe it isn’t – but for as wealth and assets need protection or a guiding hand to nurture it and make it grow, Switzerland will give the expertise and professionalism that is required, I’m proud to say.

The author, Sebastian Krown, is Vice President of Private Banking at Philippe de LaCroix Associes of Zurich.

www.philippedelacroix.com

e-mail; krown@philippedelacroix.com

THE STRENGTHS OF PRIVATE BANKING IN SWITZERLAND

noreply@blogger.com (Philippe de LaCroix Associes) — Tue, 27 Nov 2007 14:48:00 +0000

There are many reasons why people choose to arrange Private banking in Switzerland. It is said that Switzerland is the Bank of the world and certainly its banking credentials are unique. It offers a stable and secure private banking environment and, uniquely, has done so for centuries. The political stability of the Swiss Federation has been the backdrop for the development of unique Banking and asset management expertise with an underlying philiosophy of Banking secrecy, or as it is now more usually referred to “financial confidentiality.” This is a truly unique quality in a world where almost everywhere else has surrendered in the face of the war against drugs, or the war against terror or some other political objective the net effect of all of which seems to amount to a war against an individuals right to privacy. To be clear, there is absolutely nothing illegal about having Banking facilities in Switzerland.

In a world where government has pressured almost every other off-shore haven into information sharing agreements, Switzerland alone has remained steadfast and declared that its legendary banking confidentiality is not up for compromise and the international agreements it has entered into have preserved its unique status in the world as a trustworthy place to do confidential business.

Of course it is worth noting that although secrecy is a cornerstone of Swiss banking this does not mean Switzerland is a hiding place for the proceeds of financial crime. The Swiss government is a party to international strategies to combat money laundering and terrorist financing and Swiss banks do not tolerate crime. Confidentiality is lost when there is notice of fraud or other crime, however as is often pointed out confidentiality is not normally at risk where unpaid taxes are the issue as, under Swiss law, this is merely viewed as a misdemeanour. Another feature of banking in Switzerland is there is no tax on foreign money and its resultant income. Non-residents’ bank accounts in Switzerland can be completely tax-free at source if they are structured correctly. In a world where we seem to be taxed from birth up to and including death this is again an attraction. Of course domiciliary jurisdictions and their tax liabilities may vary, but at source no tax arises if structured correctly.

Swiss bankers are the world leading experts in the field of wealth preservation and management. There are over 450 Banks in Switzerland, ranging from some of the largest commercial banks in the world to small boutique Banks, all regulated by the Swiss Banking Commission and governed by the Swiss Banking Law of 1934 which amongst other things legally enshrines a customers right to privacy previously discussed, but within this group of 450 Banks not all are the same.

There are for instance many Banks based in other jurisdictions who, to service the demands of their customers for off-shore investments, have established a presence in Switzerland. Readers in the UK may be aware of the recent UK case where the five major High Street Banks were ordered by the UK court to hand over to the UK Revenue (tax) authorities details of their customers who had accounts off-shore. Swiss Banks are not subject to this judgment but it is a good illustration of how banking in the wrong jurisdiction can mean that at the stroke of a pen privacy can be removed. In my view it would be a poor advisor who would recommend a client to a Bank where there was a possibility of such a loss of privacy.

Even Swiss Law recognizes that not all Bankers are the same and legally protects the misuse of the term “Private Banker,” this being legally limited to those Banks where one or more of the Bank owners have full personal and business unlimited liability for the performance of their Bank. In an age where fewer and fewer people in any field can be held accountable for their performance this is indeed a refreshing throwback to, dare I say, a more responsible age. These Private Bankers have put all their personal wealth and assets as well as business assets on the line in addition to the other protections customers enjoy under the law.

The term “Private Banker” is therefore different from that of “Private Bank” which does not necessarily mean the same thing and can apply to banks that are limited liability companies. The term “Private Banking" simply refers to banking activity serving private individuals who want to have their assets managed professionally. Readers wanting a “classic” Swiss bank should be aware that the inclusion of the words “Private bank” or “Banking “ in the title of a bank does not mean that its Bankers are the true legally defined Private Bankers.

Off course, like any other country in the world, Switzerland offers normal banking services through its own “High Street” banks, but when you are talking about asset management and wealth planning the expertise and knowledge peculiar to Switzerland and its specialist Banks is essential. When deciding to make a selection from the 450 Swiss banks, it is important to know where to go and how to make your choice. Most people cannot take the time necessary to “trawl” the marketplace and get to know the Banks and their different profiles and specialities, and for that reason the classic firms of “Apporteurs d’affaires” who dealt with the Banks, making introductions and broking the business to those who could best service it, grew up and continues to this day. In Philippe de LaCroix Associes we are the last such remaining classic firm and who though based in Zurich we have executives travelling throughout the world to service clients needs. Such firms were traditionally ultra secretive but even in Philippe de LaCroix Associes we now have a web presence! How times have changed!

Although Swiss banking privacy is legendary, secrecy is not the most important reason for Switzerland’s success as a center of international finance. Of greater significance are the financial and economic expertise and infrastructure combined with the stability of the Swiss franc. Switzerland exists as the leading banking center for private wealth in the world today controlling somewhere over 5 trillion dollars of off-shore invested funds – and growing! For centuries the Swiss have served as investment bankers to the world; to kings, nobility and latterly to celebrities, executives, entrepreneurs and other successful people. I am confident that will not change because the demand by successful people for world class Banking is as strong as ever and the number of places where it can be experienced is regrettably diminishing all the time.

Of course having Private Banking in Switzerland is not financially limiting. Swiss bankers operate an “a la carte” approach for their international investors, refreshing in an age where banks seem increasingly to resemble “fast food” outlets. Options may range across industries and countries, established or emerging markets, bonds, commodities or whatever you wish or you and your banker decide. The world is indeed open to you through your Swiss Banker. We have clients who deposit funds and leave them as cash deposits for confidential withdrawal purposes; others who specify the investments of their choice; others who give mandates to their bankers outlining an agreed approach after which they leave all decisions to the Bankers -subject only to the mandate. Indeed we have clients on “all points in between” including our “distance account service” where we are mandated to deal with the Bank and the client relays instructions through us to maintain a distance between the client and the bank as a further guarantee of maintaining financial privacy.

In a fast and seemingly ever changing world Swiss Banking remains as a reassuringly unchanging benchmark; a unique and constant point of reference against which all others have to be judged. In Philippe de LaCroix we have a saying that is a part of our philosophy and it is as true today as when our founder first expressed it back in 1909; “Everyone needs more than one Banker, but at least one must be Swiss!”

Claudia Ortiz-Fonseca
Executive Vice President; Europe & Latin America
Philippe de LaCroix Associes

Claudia@philippedelacroix.com
www.philippedelacroix.com

Irish Citizens may sue Banks for breach of confidentiality over giving off-shore accounts info to the Revenue

noreply@blogger.com (Philippe de LaCroix Associes) — Tue, 27 Nov 2007 14:32:00 +0000

According to reports a recent High Court decision in Ireland has paved the way for a legal back-lash by account holders of off-shore accounts with main street Irish Banks over their revelation of account information to the Irish Revenue service. The Irish High Court has ruled that the Revenue had no right to force the Banks to reveal account information of Irish citizens. The Revenue, perhaps unsurprisingly, is appealing the decision. If the decision stands it paves the way for account holders, many of whom were forced into settlements with the Revenue because of the revelations, to sue their banks for breach of confidence.

The case involved the National Irish Bank and the Revenue’s requirement that it give information relating to it’s Isle of Man branch. The judgement said that to do so would be “disrespectful” of a foreign jurisdiction. The Revenue had argued that it had jurisdiction over subsidiaries of Irish domiciled banks, and so was entitled to the documents relating to Irish account holders it had asked for. The court however held that such a branch could not have existed except for Manx Law and the account holders must have presumed the accounts would be governed by Manx and not Irish Law, or else why would they have opened accounts there?

This is perhaps a surprising development in today’s ever onward march of bureaucratic victory against personal freedom, but before we get too excited it is a decision only of the High Court and may well be overturned on appeal. The real lesson is NEVER to open an off-shore account with a Bank that has anything to do with your home jurisdiction. Only the Banks concerned will tell you they are guaranteed to be confidential. A similar case in the U.K. against British based banks was won by the Revenue. These cases of course do not affect Swiss based banks as they are not subject to the jurisdiction of the High Courts of Ireland, the U.K. or anywhere other than Switzerland, where preservation of confidentiality is protected by law.

Sebastian Krown -Vice President Philippe de LaCroix Associes

Mail to; krown@philippedelacroix.com

www.philippedelacroix.com