Swiss Watchdog Wants to Lure Hedge Funds |
Date: Monday, September 10, 2007
Author: Thomas Atkins, Reuters.com
ZÜRICH, Switzerland (Reuters)—Switzerland is home to some of the world's biggest hedge fund buyers but is missing out on business opportunities by not attracting the actual hedge fund managers to Switzerland, the Federal Banking Commission (EBK) said on Monday [Sept. 10]. Switzerland already hosts one of the world's biggest investment sectors and is a talent magnet for bankers but would need to adjust its tax regime before it could become a draw for hedge fund managers themselves, the EBK said in a report. "What is lacking still is an attractive tax environment for hedge fund managers to locate here," said EBK director Daniel Zuberbuehler in reference to the report. "If we wanted a level playing field, we would have to tax the managers at the same level as competing financial centers, not undercut them," he said. The EBK welcomed changes to make Switzerland more tax-friendly to hedge fund managers, saying it would be good for the Swiss fund sector overall, but noted that it is a political decision. Switzerland is home to perhaps 40 or 50 hedge fund managers in a world of about 9,500 hedge funds—too few, according to the EBK, given Switzerland's role as a hedge fund buyer. Many fund managers live and work in London or the New York area to profit from the favorable tax conditions and the deep pool of talent. Of the estimated $600 billion invested in funds of hedge funds, $200 billion comes from Switzerland, making it the world's second-biggest hedge fund investor after the United States, the report said. An English summary of the EBK report can be viewed: http://www.ebk.admin.ch/d/publik/medienmit/20070910/20070910_02.pdf By Thomas Atkins
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