Why Switzerland

Political and institutional stability

Switzerland offers a political and institutional environment of exceptional stability, unmatched anywhere in the world. Direct democracy, federalism, the concordance system (permanent coalition government) and historical neutrality create a framework in which institutions function predictably and reliably for centuries. For a trust designed to span generations, this stability is a fundamental asset.

Switzerland has not experienced armed conflict on its territory for over 500 years. Its Federal Constitution guarantees the rule of law, the separation of powers, the protection of private property and the independence of the judiciary. These principles, deeply rooted in Swiss political culture, offer settlors and trust beneficiaries the certainty that their rights will be respected over the long term.

Legal certainty

The Swiss legal system is internationally recognised for its quality, predictability and efficiency. Swiss courts are independent, competent and apply the law consistently. The recognition of foreign trusts through the Hague Convention, which entered into force in 2007, provides a clear and well-established legal framework for trust administration from Switzerland.

Swiss law effectively protects private property. Article 26 of the Federal Constitution guarantees property rights, and any restriction must be provided for by law, justified by a public interest and proportionate. Nationalisations, confiscations or arbitrary property restrictions are excluded under the Swiss legal system.

World-class financial infrastructure

Switzerland is home to one of the most developed wealth management industries in the world. With over CHF 7,400 billion in cross-border assets under management (approximately 25% of the global market), Switzerland is the world's leading centre for cross-border private wealth management. This infrastructure offers trusts administered from Switzerland considerable advantages:

• Access to leading banks: Trusts administered by a Swiss trustee have access to Switzerland's leading private and universal banks (UBS, Pictet, Lombard Odier, Julius Baer, Vontobel, etc.), offering a comprehensive range of wealth management, custody and lending services.
• Multi-currency management expertise: Swiss banks excel in multi-currency portfolio management, an essential asset for international trusts whose assets and beneficiaries are spread across multiple currency zones.
• Custody services: Switzerland has some of the safest and most efficient securities custody infrastructures in the world, with high-performance settlement systems.
• Lombard lending: Swiss banks offer lending facilities secured against the trust portfolio, providing access to liquidity without disposing of assets.

FINMA regulatory framework

The introduction of FINMA licensing for trustees in 2020 has considerably strengthened the credibility and security of trusts administered from Switzerland. This regulatory framework is a distinctive asset compared to other jurisdictions that do not impose specific regulations on trustees.

FINMA supervision ensures that Swiss trustees meet high standards in terms of:

• Governance and internal organisation
• Own funds and financial strength
• Anti-money laundering and counter-terrorist financing
• Risk management and internal controls
• Professional qualifications and guarantee of irreproachable conduct

Geographic position and connectivity

Located at the heart of Europe, Switzerland offers an ideal geographic position for the administration of international trusts. Geneva, Zurich and Lugano are cosmopolitan, multilingual financial centres with excellent connectivity:

• Accessibility: Geneva and Zurich airports offer direct connections to the world's major capitals. Switzerland is less than 2 hours' flight from most major European cities and in close proximity to the Middle East.
• Multilingualism: Switzerland has four official languages (German, French, Italian, Romansh) and English is widely spoken in the financial sector. This linguistic capability facilitates communication with settlors and beneficiaries from around the world.
• Central time zone: The CET/CEST time zone allows effective working with Asia in the morning and the Americas in the afternoon.

Confidentiality within a legal framework

Switzerland offers a robust confidentiality framework, anchored in law and respectful of international tax transparency standards. Banking secrecy, although modified by automatic exchange of information agreements, continues to protect banking information against unjustified disclosures. The trustee is bound by professional secrecy and the Federal Act on Data Protection (FADP).

This confidentiality operates within a clear legal framework: information is shared with competent authorities within the CRS/FATCA framework and international judicial assistance, but is protected against unauthorised access, abusive disclosures and unfounded requests. This balance between confidentiality and transparency is an asset for families wishing to protect their privacy while meeting their legal obligations.

Ecosystem of specialist advisers

Switzerland has a dense ecosystem of professionals specialising in trusts and international wealth management: trust law specialists, international tax advisers, compliance officers, auditors, wealth managers and family officers. This concentration of expertise enables the Swiss trustee to engage the best specialists for each aspect of trust administration.