In Switzerland, regulation is increasingly shaped in response to the systemic weight of UBS. As the country’s dominant bank, UBS sets the reference point for capital, liquidity, and compliance standards — but these are applied uniformly across the sector.
That might make sense at the top. But at the other end, it creates friction.
- Traditional private banks — often family-owned and locally rooted — are held to the same standards as global giants.
- Independent wealth managers, who typically pose little or no systemic risk, face similar requirements — with far fewer resources.
The result?
Escalating costs, reduced flexibility, and growing pressure on smaller, specialised players. Over time, this undermines diversity — one of Switzerland’s key strengths as a financial centre.
Other jurisdictions have moved differently.
The UK’s “Thresholds and Exemptions” framework tailors rules to a firm’s size and systemic relevance. Oversight remains strong — but more targeted.
Switzerland could do the same.
This is not a call for deregulation — it’s a call for better regulation:
- ✔ proportionate
- ✔ risk-based
- ✔ innovation-friendly
A vibrant ecosystem needs more than just global champions. It needs room for legacy, entrepreneurship, and independence to thrive.
🔷 Let’s ask the question:
Can Switzerland evolve its model without compromising trust — and in doing so, strengthen its future?
Source: LinkedIn
