Managers of foreign assets add Rs 43k crore value to Swiss fin sector

NEW DELHI: Swiss financial industry saw as many as 29,000 employees engaged in wealth management of foreign clients generate a value of over Rs 43,000 crore (CHF 8 billion) last year for the sector, famed for its banking secrecy practices.

Switzerland, known for its banking services as well as scenic beauty, managed foreign assets worth a staggering CHF 2.85 trillion (about Rs 115.7 lakh crore) in 2010.

"At year-end 2010, assets under management (AUM) in Switzerland total around CHF 5,500 billion... About 29,000 employees work in the segment of wealth management for foreign clients. They generate a value added of around CHF 8 billion (about Rs 43,000 crore)," according to the influential Swiss Bankers Association ( SBA).

The rupee values are based on current exchange rates. About 52 per cent of Switzerland's total assets under management were that of overseas entities.

Swiss banking industry, mainstay of the Alpine economy, has come under intense pressure amid crackdown on tax havens led by the influential G-20 grouping that includes India.

Many nations, including India and the US, are aggressively pursuing ways to bring back black money stashed away by their respective citizens in Switzerland and other low tax jurisdictions.

SBA in its report titled 'The Economic Significance of the Swiss Financial Centre' said the country's financial sector makes up for 10.7 per cent of "value added in Switzerland (CHF 58.6 billion).