As many as 7,000 Swiss private banking jobs could be culled if European regulation aimed at improving market infrastructure goes ahead as planned.
The Financial Times reports that The Swiss Bankers Association has warned that heavy job losses are inevitable if the proposals, which would force Swiss banks to set up branches or subsidiaries in the EU to access onshore clients, are approved.
The proposals form part of the revised Markets in Financial Instruments Directive, which aims to improve investor protection and competition across Europe.
Stefan Hoffmann, head of European affairs at the SBA, said that large private banks will be able to adapt to the requirements, but small and medium-sized players lack the financial means to establish an onshore presence.
Hit the link below to access the complete Financial Times article:
Swiss private banks face 7,000 job cull (subscriber content)
Safe and boring controls are back after City scandals (subscriber content)
Barclays to retreat from 100 wealth markets (subscriber content)
image: © C.P.Storm