Can Singapore Private Banking replace Switzerland banks?

Singapore private banking has grown enormously in the last decade. Assets under management in private Singapore banks have grown at around 300Bn, 6 times than they were 10 years ago. Estimated Singapore manages around 5% of the wealth of the private world, while private banking Switzerland manages approximately one quarter.

Singapore has benefited from strict bank secrecy rules, apart from an increase in the number of millionaires in Asia, especially the type you want to invest with private banks and financial instruments, instead of the property.

However in response to the demand of the g-20 group of developed countries, Singapore has promised to rethink its ultra private secrecy laws. As Switzerland, Singapore has to walk the tightrope between maintain its sovereignty and international acceptance of its laws and banks.

One of the reasons why it has grown Singapore is because it was a great financial center in its own right. Unlike smaller tax havens and dependencies from other countries who have been accused of "inventing" laws to benefit from capital flight, Singapore is an old commercial centre and a centre of international financial settlements.

There are several arguments in favour of maintaining their Singapore privacy laws. Many customers of banks private Singapore are very powerful people between neighbours such as China, Indonesia Thailand. It is in their interest to ensure that bank secrecy of Singapore was not relaxed. Singapore is an international financial centre, can not be blackmailed in the same way as other jurisdictions.

However, Singapore has made concessions and do not necessarily see their future in eligible Western tax evaders. Singapore has signed TIEAS with a number of countries and promised to adopt article 26 of the Convention model of public prosecutor of the OECD on the exchange of information on tax matters.

Of Swiss banking secrecy was put under the point of view, was widely reported that bankers calls for a massive flight of capital to Singapore, where the bank secrecy rules remained strong. But in reality, on the basis of any structure on bank secrecy as the creation of a House on a fault line has been forced to change. The smartest investors instead used techniques that are not dependent on bank secrecy in any country.

Experienced private banks clients use different structures that operate independent of bank secrecy as invest via trust companies or trusts.

In addition, reasons for banking in a center of offshore as Switzerland don't depend on fully tax. In fact the biggest reason is security. Hundreds of banks have grown the United States, not of Switzerland. Investors also escape from devaluation of the currency, civil forfeiture and frivolous claims.

Singapore, wealth management is certainly growing in sophistication, but is still in a phase of learning. During the 2000 mid when Singapore private banking industry was growing rapidly, it was alleged that there was no sufficient bankers to meet demand. Private Singapore instead banks were using local hairdressing and sellers of cars with good people skills and becoming private bankers.

Singapore private banking is modeled closely on private banking Switzerland, even to his family trust law. In terms of weathering geopolitical events such as war against bank secrecy, Singapore must also follow the Swiss example.

The author writes a promotional capacity on behalf of the capital (conservative), offshore and private banking specialists. Learn more about their confidential private banking, Singapore private banking and swiss private banking options.