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SAGE Group SA launches BlackSwan Financial Platform

Lausanne, Switzerland – SAGE Group SA, a financial software solutions company specialising in Wealth Management, has just launched BlackSwan Financial Platform, a revolutionary new addition to its suite of Wealth Management solutions. In today’s uncertain investment environment, companies are pressed to maximize expected return while minimizing expected losses, yet no software takes into account extreme market conditions. By taking possible extreme market events into consideration, BlackSwan does exactly that, helping asset managers and family offices make sophisticated investment decisions that maximize return while minimizing risk.

BlackSwan improves on the classical mean-variance solution that many asset managers find limiting in light of the instability of the European economic and market environment. The mathematical financial algorithm that was developed specifically for BlackSwan is revolutionary because it takes into account extreme realizations, painting a more accurate picture of the market. In doing so, it allows managers to accurately measure risk in volatile markets and hence improve investment performance by actively managing shortfall and windfall allowing for better informed decisions.BlackSwan also assists asset managers in demonstrating knowledge to clients by explaining investment choices using measurable criteria and demonstrating systematized risk-management plans. This function is available through a user-friendly, web-enabled dashboard ideal for client-facing finance professionals and family offices.

Main Benefits:

• Improves on the classical Mean-Variance solution by taking into consideration possible extreme market events
• Provides greater diversification capabilities
• Performs an optimization allowing multiple types of constraints
• Is a new and efficient risk and marketing management tool
• Improves the level of customer’s confidence in their financial institutions through an extended risk analysis

About SAGE
SAGE Group SA, founded in 1986, is headquartered in Switzerland with branches in Dubai and Singapore. It is a privately held software company that develops Prospero, a suite of wealth management solutions that is user-friendly, robust and cost-effective; and BlackSwan Financial Platform, a Portfolio Optimization solution.

Prospero is a suite of solutions precisely fitted to the needs of specific segments of the financial services industry and covers all aspects of financial operations: Wealth Management, Asset Management, Fund Administration, and Independent Asset Management/Family Office.

BlackSwan Financial Platform accurately models financial instruments by taking into consideration extreme behaviors to recommend the best trade-off between risk and return. These applications help global financial organizations focus on their core competencies–and thereby improve their productivity.

 
For more information, please contact SAGE at +41 21 653 64 01 (Switzerland).

SAGE Group SA signs Emirates Investment Bank for Prospero Wealth Management

SAGE Group SA, a financial software solutions company specialising in Wealth Management, has just signed with Emirates Investment Bank in Dubai to provide the investment bank with its full Prospero Wealth Management solution to cover their front-to-back office requirements as well as General Ledger.

Prospero is a highly flexible suite of financial solutions precisely fitted to the needs of specific segments of the financial services industry and covers all aspects of financial operations: Wealth Management, Asset Management, Fund Administration, and Independent Asset Management/Family Office. It caters to each bank and financial institution’s unique needs allowing for its components to be implemented separately or as an integrated whole; it can also interface with existing legacy systems as part of a best-of-breed approach.

Mr. Samer Ghosheh, IT director of Emirates Investment Bank said; “We found that Prospero Wealth Management was one of the few software in the market that provided all of the functionality necessary to run our wealth management business across all asset classes, from front office to back office, including General Ledger;. Most systems we shortlisted demonstrated strength in certain areas only whereas Prospero allowed for the streamlining of our processes, which will translate into cost reduction and minimization of our operational risk.”

“We at SAGE Group SA understand that the name of the game after the financial crisis in the GCC has changed. Competition won’t wait for us. You have to think out of the box every day and step out to offer banks in the GCC a full-fledged wealth management software packed with the latest features, at record implementation times, and with extremely competitive conditions. We are delighted to have been chosen by Emirates Investment Bank and look forward to assist them in growing their activity while solidify both ours and Emirates Investment Bank’s presence in the GCC,” says Fernand Rasetti, Chief Operating Officer at SAGE Group SA.

About Emirates Investment Bank
Emirates Investment Bank PJSC is a UAE-based banking boutique. Emirates Investment Bank is organized along two primary business lines: Private Banking and Investment Banking. Emirates Investment Bank maintains an uncomplicated and highly liquid balance sheet providing them with the flexibility to respond favourably to the varied requirements of its clients with total confidence in the soundness of its position. Emirates Investment Bank is committed to building strong and lasting relationships by serving the needs of its clients with great care, professionalism and integrity. For more information, visit www.eibank.com.

About SAGE
SAGE Group SA, founded in 1986, is headquartered in Switzerland with branches in Dubai and Singapore. It is a privately held software company that develops financial applications called Prospero and BlackSwan. Prospero is a suite of solutions precisely fitted to the needs of specific segments of the financial services industry and covers all aspects of financial operations: Wealth Management, Asset Management, Fund Administration, and Independent Asset Management/Family Office. BlackSwan is a financial platform that uses a unique algorithm to help firms optimize their asset mix during uncertain investment environments. These applications help global financial organizations focus on their core competencies–and thereby improve their productivity.

Press Release – English

Press Release – Arabic

Cluster Family Office Becomes First Spanish Firm to Launch SAGE Group SA’s Prospero Software

Cluster Family office has launched SAGE Group SA’s financial software, Prospero IAM and Family Office, thereby facilitating the servicing of their clients.

“We chose Prospero after carefully evaluating more than 10 different software providers and after a year-long selection process” says Cluster Family Office CEO, Mr. Santi Soliveres Garcia-Garnero.

Cluster Family Office is a Barcelona-based international wealth management firm. They offer tailor-made solutions to high-net-worth individuals (HNWIs) and families by monitoring their assets, consolidating their portfolios, and providing superior reporting.

As Cluster Family Office’s client base has grown, consolidating portfolios with custodian banks and providing high-quality reports has become a challenge. “A multi-family office is required to maintain high standards of service, needs a flexible system that handles multiple asset classes and prices from different sources, and has to cut down on manual processes,” says Garcia-Garnero. That challenge was solved by SAGE Group SA, a software development company that services the global financial industry. Established in 1986 and headquartered in Lausanne, Switzerland, SAGE Group SA is known for its Prospero suite of solutions, which provides specific software for each sector of the finance industry.

“Many of the software providers we evaluated showed some interesting functionalities, but SAGE Group SA, with Prospero, was a one-stop shop for the functionality required by a multi-family office,” says Garcia-Garnero. “They cover the whole scope of this very demanding and large activity.”

Cluster Family Office plans to provide clients with online access to Prospero in the future.

“I am very happy to welcome a new family office in our growing client base in Europe and the first in Spain,” says SAGE Group SA CEO, Mr. Jean-Luc Freymond.

For more information, please contact SAGE at +41 21 653 64 01 (Switzerland).

Spain’s Cluster Family Office to go live with Prospero solution from SAGE Group SA

IBS Intelligence, the leading consulting and research firm dedicated to the financial technology industry, recently published a case study on Cluster Family Office’s selection of SAGE Group SA’s Prospero solution for wealth management.
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Breakfast Briefing: La Suisse a les moyens de défendre sa place financière

La Chine est en train de développer son secteur bancaire au même rythme que son industrie. La concurrence est vive pour la Suisse, d’autant que le dynamisme asiatique chamboule la donne. Les attaques des États-Unis et de l’Europe qui touchent les banques impliquées dans les malversations ébranlent la place financière suisse et jette son opprobe tous azimuts. La Suisse doit pourtant réagir et ne pas se laisser impressionner par ces réactions parfois épidermiques. La qualité de la place financière de Genève en termes d’infrastructure, de qualité de vie, de protection de la sphère privée, d’établir des réseaux, de créer une entreprise et de trouver des partenaires de proximité sont tout autant d’avantages déterminants pour gérer et développer des affaires. C’est ce qu’est venu expliquer Ago Cluytens, expert en stratégie marketing, spécialisé dans le conseil aux prestataires de haut de gamme lors du séminaire sur la gestion de fortune et le secret bancaire qui s’est tenu mardi à Genève. «Les banques genevoises ont une bonne conscience de l’importance de ce qu’est le secret bancaire » a-t-il rappelé. Un message d’autant plus rassurant dans l’optique de la délation à laquelle on assiste actuellement.

«D’une manière générale, la Suisse bénéficie d’une excellente stabilité, d’un faible niveau de corruption et d’une fiscalité qui ne décourage pas les clients fortunés» insiste-t-il. Selon une enquête réalisée aussi bien auprès des banques que de leurs clients, selon ces derniers, c’est la capacité à résister qui est le critère le plus important dans le choix d’une place financière, alors que pour les banques, c’est la performance. Cette différence démontre bien quels sont les critères majeurs qui sont déterminants sur le marché. Pour François Reyl, CEO de l’enseigne du même nom, dans un contexte où les banques sont soumises à une pression importante, ces dernières doivent s’adapter à leur nouvel environnement et profiter de cette situation pour se réinventer dans ce nouveau paradigme où le secret bancaire n’est plus le principal critère de différenciation par rapport aux autres centres financiers. «La stabilité est la critère décisif pour les clients d’aujourd’hui. Il faut que les banques donnent l’assurance de la stabilité, d’un haut niveau de qualité, d’un cadre fiscal clair et d’une parfaite transparence», note-t-il.Si le système bancaire actuel doit se réinventer, il faut que cela se fasse en misant sur l’amélioration des performances, sur la transparence et sur un attitude active et proactive en matière de service à la clientèle, explique de son côté Osmond Plummer, conseiller international spécialisé dans la gestion de fortune. «En matière de performances, il s’agit pour les banques de gestion de se focaliser sur l’excellence.»«Et pour ce qui est de la transparence, cela découle de l’attitude actuelle des clients qui veulent savoir ce que vous allez faire avec leur argent.» Il s’agit surtout de développer le service à la clientèle. Une réalité qui n’est pas toujours comprises par les banques, qui ne sont pas toujours convaincues qu’il y a un réel besoin de formation dans ce domaine.Quant à Heinrich Weber, directeur de l’agence genevoise et du bureau chargé des relations avec le Moyen-Orient de Falcon Private Bank, il témoigne du fait que les clients des pays du Golfe ont toujours une excellent confiance dans les professionnels de Genève. Ils sont surtout attirés par le niveau de vie de la Suisse, de la sécurité qui y règne et le professionnalisme des banques. «95% des clients du Golfe ne sont pas intéressés à aller déposer leur argent dans les banques asiatiques». A Singapour, explique-t-il, si vous ne pouvez pas montrer une facture d’électricité à votre nom, vous ne pouvez pas ouvrir de compte bancaire, même si vous habitez chez un parent qui n’a pas forcément le même nom de famille, ce qui n’est pas rare dans ces pays. Ces obstacles sont rédhibitoires pour ces clients et les banques chinoises ne sont pas habituées à ce genre de situation.S’il est vrai qu’en Suisse, personne ne peut exclure qu’il y ait un risque de se faire bloquer un compte pour ces grandes famille d’oligarques du pétrole, l’accueil est plus professionnel. Il faut pourtant s’adapter à ces nouvelles donnes et mettre en place des équipes mixtes de gestionnaires de la relation client pour instaurer la confiance, souligne encore Heinrich Weber.

Analyse plus fine des besoins
C’est pour répondre aux besoins plus spécifiques d’une clientèle en quête de transparence que la société SAGE Group SA a développé une plateforme dénommée Black Swan dont le principal intérêt est d’associer le client à la définition des paramètres macro-économiques qu’il recherche. Ceux dépendent ainsi de son choix et de la prise de risque qu’il entend adopter. Le premier produit répondant à cette nouvelle approche a pour nom Prospero Optimize Solution. Il n’a pas l’ambition de remplacer les conseillers de la banque, mais uniquement de démontrer clairement aux clients les conséquences que peuvent avoir leur choix. L’analyse des risques est démontré en direct et le conseiller peut leur démontrer comment leur portefeuille évoluerait avec d’autres paramètres. «Avec ce produit, nous ne voulons pas remplacer la fonction du banquier car elle reste primordiale pour assurer la confiance du client dans sa banque» souligne Jean-luc Freymond, PDG de l’éditeur de logiciel. (PHB)

© Pierre-Henri Badel
Agefi – 13.09.2012
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English Version

China is in the process of developing its banking sector as fast as its industry. Competition to Switzerland has been fierce, particularly because the dynamics of the Asian market have added confusion to the game. Attacks in the United States and Europe which affect banks involved in professional negligence further undermine the Swiss financial center and result in criticism being thrown in all directions. Nonetheless, Switzerland must respond, and not be intimidated by these knee-jerk reactions. The quality of the financial center in Geneva in terms of infrastructure, living standards, and protection of the private sector so as to allow for the establishment of networks, the formation of companies and the finding of partners are just as important in managing and developing businesses. This is exactly what was explained by Ago Cluytens—an expert in marketing strategy who specializes in advising high-end service providers—during the seminar on wealth management and banking secrecy held in Geneva on Tuesday. “Geneva’s banks are well-aware of the importance of banking secrecy,” he reminds us. This is a message all the more reassuring in light of the criticism we are currently facing.

“Generally speaking, Switzerland benefits from excellent stability, a low level of corruption, and a level of taxation that doesn’t discourage wealthy clients,” he insists. According to a survey conducted on both banks and their customers, clients consider the resilience of a financial center to be the most important factor in choosing where to put their money, whereas for banks, the most important factor is performance.

This difference does a good job of showing what the major criteria are that are deciding factors in the market. For Francois Reyl, eponymous CEO of the Francois Reyl brand, in a context where banks are subject to significant pressure, they must adapt to their new environment and take advantage of the situation to reinvent their image in this new paradigm where banking secrecy is no longer the main factor that people use to decide between financial centers. “Stability is the deciding factor for today’s clients. Banks must provide the assurance of stability, a high level of quality, a simple-to-understand tax system, and perfect transparency,” he notes.

If the current banking system is in need of reinventing, it must be done by focusing on the improvement of performance and transparency, and based on an active and proactive attitude in relation to customer service, explains Osmond Plummer, an international adviser specializing in wealth management. “In matters of performance, it’s up to the wealth management banks to focus on excellence.”

“And to do this, they need to have transparency, because the current attitude of clients is to want to know what you’re going to do with their money.” This is best achieved by developing customer service—a reality that is not always understood by banks, which are not always convinced that there is a real necessity for training in this area.

As for Heinrich Weber, Director of the Falcon Private Bank’s Geneva office, as well as its office responsible for Middle East relations, he states that customers in the Gulf countries always have an excellent level of confidence in Geneva’s professionals. They are particularly attracted to the living standards in Switzerland, Switzerland’s stability, and its banks’ professionalism. “Ninety-five percent of customers located in the Gulf do not want to deposit their money in Asian banks.” He explained that in Singapore, if you cannot produce an electricity bill in your name, you cannot open a bank account, even if you live with a parent who does not have the same family name, which is not uncommon in Gulf countries. These obstacles are unacceptable for these clients, and Chinese banks are not accustomed to such situations.

It is true that in Switzerland there is a risk that accounts will be blocked for the large families of oil oligarchs, but the reception of clients is very professional. But we must adapt to these new realities and develop mixed teams of relationship managers to help build client confidence, stresses Heinrich Weber.

 
Closer analysis of requirements
In order to meet the requirements of a more discerning clientele searching for transparency, SAGE Group SA has developed a platform under the name “Black Swan,” the main purpose of which is to involve the client in defining the parameters for macroeconomic research, depending on their preferences and the level of risk that they are willing to tolerate.

The first product using this new approach is Prospero Optimize Solution. It is not designed to replace the bank’s advice, but instead only to demonstrate clearly to clients the potential consequences of their choices. Risk analysis is demonstrated live and the advisor can demonstrate how their portfolio can change using other parameters.

“We do not replace the banker’s role with this product, because it is crucial to preserve the client’s confidence in their bank,” emphasizes Jean-luc Freymond, CEO of the software publisher.

Breakfast Briefing for Swiss Wealth Managers: USPs beyond secrecy

Date:
Wednesday, 12th September

Theme:
Swiss wealth management: USPs* beyond secrecy

Program:
8:15 am to 9:00 am: Registration and breakfast
9:00 am to 10:00 am: Panel discussion
10:00 am to 11:00 am: Solution showcase

Venue:
Hotel President Wilson, 47 Quai Wilson, 1201 Geneva

Cost:
Complimentary

Swiss wealth and asset management actors have a lot to offer beyond banking secrecy – and it’s now high time that the performance and service quality offered by the Swiss financial sector is put front and center in a bid to attract and retain clients and assets.

This event will see a panel of senior industry figures giving their views and engaging with a lively panel debate with delegates – making a morning which is both informative and stimulating.

It will be followed by the prime time presentation of a unique tool for portfolio optimization and risk analysis: Black Swan. This solution allows to minimize the expected shortfall and to maximize the expected windfall in event of crisis.

Main topics and Panelists

Ago Cluytens is an experienced marketing strategist, specialized in working with high-end professional services clients.

Cluytens will kick-start the discussion on how the global wealth management “centers of power” have shifted in recent years Specifically, he will look at what Switzerland’s USPs are for ultra high net worth (UHNW) clients and how the jurisdiction can craft a sustainable value proposition which will fend off competition from rival centers.

François Reyl is the CEO of REYL & CIE, an independent banking group created by his father Dominique Reyl in 1973.

Reyl will explore how Swiss wealth management firms need to readjust their business models, such as building up additional expertise in legal and fiscal cross-border matters and providing even more personalized service.

Osmond Plummer is an international wealth management consultant and trainer as well Swiss correspondent for WealthBriefing.

Plummer will be looking at how, in a post-secrecy world, transparency over fees and performance will be a key differentiator and how the Swiss wealth management industry will have to make this a key area of focus going forward.

Heinrich Weber is the Head of the Geneva branch and Middle East desk head at Falcon Private Bank.

Weber will be exploring how Switzerland can remain the jurisdiction of choice for Middle Eastern clients, despite fierce competition from jurisdictions like Singapore.

Jean-Luc Freymond is the CEO of SAGE Group SA and one of the main architects of Prospero.

Freymond will address how new technologies can help wealth managers improve their relationships with their clients by enhancing their appreciation of issues like risk/return payoff and fostering a collaborative approach to decision-making.

*Unique Selling Proposition

For more information on this news, please contact SAGE at +41 21 653 64 01 (Switzerland).

Market.ch – 200 milliards en un clic

La gestion de fortune du XXième siècle sera en réseau, ou ne sera pas. Rapides, souples, capables de s’étendre d’un clic au monde entier, les plates-formes d’experts indépendants représentent un modèle d’organisation qui permet d’envisager l’avenir avec confiance, y compris pour les PME.

Même s’il tient parfois un discours aux résonnances «geekiennes», Olivier Collombin n’a rien d’un doux rêveur. OEuvrant depuis un quart de siècle au développement du service destiné aux gérants de fortune indépendants au sein de Lombard Odier, il a lancé début 2009, la plateforme E-MERGING. D’abord essentiellement dédiée aux gérants indépendants qui souhaitaient acheter/vendre ou fusionner leur société avec une entité active dans le même domaine, la plate-forme, forte de son succès,a évolué pour devenir un réseau social destiné à faciliter les collaborations entre tous les professionnels de la gestion de patrimoine, une organisation qui leur permet de relever les nombreux défis auxquels ils sont confrontés. Ceux-ci sont bien connus: baisse des masses sous gestion due à la régularisation fiscale des actifs privés d’une part, et hausse des frais liés à la réglementation, d’autre part. Résultat, dans un environnement concurrentiel qui tend à comprimer les marges, le seul salut est dans l’acquisition de nouveaux clients, notamment dans des zones en croissance comme l’Asie. Pour des entités de petite taille, cela revient à tenter de résoudre le problème de la quadrature du cercle!

Réseau et indépendance
C’est effectivement le cas pour ceux qui campent dans le «20e siècle» et ses structures fortement hiérarchisées. Pour Olivier Collombin, «le salut est bien plus dans le changement de modèle que dans l’évolution de l’expertise: nos organisations sont basées sur un modèle 20ème siècle, très verticalisé. Leurs pilotes étant issus de la culture du 20e, ils défendent ce modèle. Leur leitmotiv est: je possède une expertise, je la défends et je la protège car c’est là que réside mon avantage concurrentiel pour me distinguer sur le marché. Or, l’avenir appartient plutôt à des modèles de type «open source», c’est-à-dire basés sur le partage d’expertise, l’ouverture et l’échange. Dans ce nouvel environnement, l’avantage concurrentiel se déplace et se situe désormais, non plus dans la défense d’un pré carré, mais dans la capacité à échanger avec les bonnes personnes et les bons talents au bon moment. Or, en Suisse, dans le domaine de la finance, l’ouverture à ce type de concept est relativement limitée car elle implique un changement radical des modes de fonctionnement des différents acteurs économiques». Olivier Collombin parle d’expérience: «2011 et 2012 ont été parmi les meilleures années jamais enregistrées en termes de croissance des affaires de notre département dédié aux gérants indépendants. La plate-forme a attiré des gérants suisses et étrangers, ainsi que de nombreux autres acteurs de la chaîne de valeur de l’activité de gestion et notamment, des spécialistes en matière de fiscalité, d’informatique, des avocats d’affaires et des risk managers (1). Aujourd’hui, les membres enregistrés sur la plate-forme sont au nombre d’un demi millier. Ils sont présent dans 30 pays, emploient plus de 4000 personnes et représentent un total de 200 milliards d’actifs sous gestion. En un seul clic, la plate-forme permet d’accéder directement aux décideurs en charge de ces actifs, ce qui montre bien que l’addition des compétences peut représenter une force de marché considérable». Et, souligne Olivier Collombin, «le contact se fait avec des entreprises qui ne sont pas économiquement dépendantes du système et ne doivent rien à la plate-forme. C’est en quelque sorte un nouveau type d’association professionnelle, sans inertie ni hiérarchie».

À un clic de l’Asie
Concrètement, la plate-forme permet d’aller chercher le client final au travers d’intermédiaires choisis. «Par exemple, explique Olivier Collombin, nous travaillons aujourd’hui avec des gérants indépendants en Australie,  à Hong Kong ou Singapour. Pour les PME enregistrée sur cette plate-forme, cela signifie qu’elles ont un accès quasi instantané à ces réseaux… Ainsi, pour autant qu’elles effectuent le bon choix de partenaires, l’opération est d’emblée intéressante. Elle n’exige pas, comme par le passé, la mise en place d’infrastructures lourdes et long un horizon d’investissement avant de pouvoir, éventuellement,  rentrer dans ses frais». E-MERGING entend également se positionner sur le marché chinois, un marché en forte expansion puisque, pour faire face à la demande, des dizaines de milliers de conseillers financiers doivent être certifiés chaque année.  Mais comme le précise Olivier Collombin, «la Chine continentale n’est accessible que via Hong Kong, d’ailleurs le plus grand gérant indépendant de clientèle continentale vient d’ouvrir une représentation à Hong Kong. Or il gère quelques 20 milliards de dollars, c’est une dimension de clientèle potentielle très supérieure à ce que l’on a connu jusqu’ici». Et là-bas les atouts du «made in Switzerland» ne sont pas négligeables: «pour la Chine, la Suisse demeure la référence en matière de gestion de fortune. Il y a donc possibilité d’apporter notre expertise aux acteurs chinois en échange d’accès à leur marché», explique le spécialiste qui a déjà présenté la plate-forme à Shanghai.

Le client ambassadeur
Pour ce qui est de l’avenir, l’optimisme d’Olivier Collombin tranche nettement avec la morosité ambiante: «Quand nous (la Suisse) serons repositionnés à l’international, je suis persuadé que nous retrouverons une croissance soutenue. La stabilité, la sécurité et la solidité sont des valeurs très recherchées. Et la Suisse reste, envers et contre tout, l’un des endroits les plus sûrs au monde! Pour ce qui est de notre expertise, il suffit de voyager, y compris en Europe, pour se rendre compte que les acteurs locaux sont toujours peu familiers avec l’international. Par exemple, en matière fiscale, nous sommes d’ores et déjà en mesure de fournir à nos clients des relevés bancaires intégrant les nouvelles réglementations, relevés qui sont transmissibles quasi directement à leur taxateur. Nous avons ainsi développé une avance par rapport à certaines banques locales». Comment faire connaître ce «know how» et conquérir une clientèle qui n’a pas, traditionnellement, eu recours aux services de la gestion privée suisse? Il est inutile de passer par les canaux traditionnels comme les annonces, les dîners VIP à Pékin ou le tournoi de golf. «Le client de demain viendra parce que vous avez été recommandé par une communauté de clients. Le parcours est laborieux: il faudra apprendre à utiliser les outils qui vont donner la parole aux clients qui seront eux-mêmes nos ambassadeurs».

(1) Fin juin, SAGE Group SA, société suisse spécialisée dans les solutions technologiques financières, annonçait son intégration en tant que partenaire au réseau e-merging. Pour Jean-Luc Freymond, CEO de la société, ce partenariat permettra de «collaborer étroitement avec l’ensemble de la communauté des gérants indépendants et des family offices et de proposer des solutions qui non seulement collent au plus près de leurs besoins mais qui, d’ores et déjà, les anticipent

 
© Véronique Bühlmann
Market.ch – Juillet/Août 2012

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Swiss banks focus on Dubai to park funds

Swiss banks, coming under growing pressure from regulatory authorities in pursuit of secrets relating to the ownership of funds they handle, are turning to Dubai as an alternative safe haven to park these funds on behalf of their clients.

Sources close to Swiss banking circles confide that the funds are either being parked with local banks or entrusted with subsidiaries being created at financial free zones like DIFC, allowing clients to choose local custodian banks to keep their funds with. This route turns out to be a relatively simple way to keep clients happy as they get increasingly wary of the changes being forced on to Swiss banking secrecy laws.

There have been reports that substantial amounts of funds are flowing to Dubai from countries affected by the Arab Spring as accumulators of wealth under discredited regimes feared retribution at the hands of the new power centres. No official figures of such fund flows are available, but a recent pick-up in property prices in the higher segments of villa and premier housing in Dubai and other emirates has largely been attributed to such funds.

Financial circles are abuzz with suggestions that the forced changes in the Swiss banking secrecy laws as well as the heightened vigil by governments to track down wealth stashed by their citizens in secrecy-shrouded channels may also be contributing to the repositioning of wealth. In this context, Dubai is reckoned to be among the leading beneficiary jurisdictions.

“With business stagnating in Switzerland and Europe, Swiss banks are significantly increasing their presence in the Middle East, anchoring on Dubai and for this its geographical advantage of being in between Switzerland and the financial hubs of Asia is not the only reason; there are tactical advantages as well,” says Jean-Luc Freymond, CEO of SAGE Group SA, a technology firm that works closely with Swiss banks. The Switzerland-headquartered company provides solutions that specifically service the needs of wealth and asset management, fund administration, trading, portfolio management etc.

“Dubai offers a relatively safe alternative for recalcitrant Western clients of Swiss banks, who do not feel safe with the gradual erosion of banking secrecy in Switzerland. The opening of a Dubai subsidiary offering management services allows the client to choose a local custodian bank and this helps the Swiss bank to keep these clients,” Jean-Luc points out.

The local banks on their turn are gearing up for a bigger slice of the cake by strengthening their private banking departments through investments in new technologies as well as new hirings so that they can quickly respond to the increasing expectations of clients, who are looking for more sophisticated products and risk management tools.

According to Jean-Luc, the Swiss bank clients are more comfortable with Dubai in comparison to competing jurisdictions like Singapore, which is readying to sign a new treaty with the Swiss government regarding regulatory disclosures between the two sides. There might be some more time left for Dubai’s turn to come.

While there does seem to be a short-term opportunity, as Jean-Luc sees it, on a larger political perspective, this route may not be much of an option as the UAE is a strong signatory to the Recommendations issued by the Financial Action Task Force (FATF), the global standard- setter for combating money laundering and terrorist finance and the Dubai Financial Services Authority (DFSA) is committed to comply with all its provisions.

It has been stated on behalf of the DFSA that the Authority cooperates closely with regulatory bodies in Switzerland, particularly with the Swiss Financial Market Supervisory Authority, in regulating Swiss-domiciled firms.

“If any firm is considering authorisation in the DIFC as a method of hiding their activities from authorities or prosecutors elsewhere in the world, they should reconsider their decision,” a spokesperson said in response to a question on the possibility of DIFC being used for suspicious activities.

“The DFSA is not, of course, under any obligation to enforce another country’s legislation but it is obliged to comply with any request received by the UAE Ministry of Finance pursuant to an international agreement entered into with a country such as the USA where it relates to a request for information for taxation purposes,” the spokesperson clarified.

*This article was written by K Raveendran of Banking & Business Review on its July 2012 issue for the UAE.

SAGE Group SA, partner of the e-merging Network

Geneva, 26 June 2012, SAGE Group SA has partnered with the E-MERGING network, launched by the private bank Lombard Odier. This partnership enables the linking of the specialized software and services used by wealth management professionals with the broader community of independent asset managers and family offices.

SAGE Group SA, which has a wide range of solutions for the financial industry, hopes to bring the community of independent asset managers and family offices insights and answers to their problems with portfolio optimization, portfolio consolidation, wealth management, and interfacing directly with their custodian banks.

“We are very honored to have been entrusted by our partner, E-MERGING. In the context of the crisis affecting the Swiss banking sector, technological innovation plays a major role in creating sources of growth By using the E-MERGING platform, we will work closely with the entire community of independent asset managers and family offices and suggest solutions that not only adhere closely to their needs, but anticipate them,” said Mr. Jean-Luc Freymond, CEO of SAGE Group SA.

About E-MERGING
E-MERGING is designed for companies active in the field of wealth management and, more importantly, independent asset managers, investment advisers, multi-family offices, and other financial intermediaries. The E-MERGING network offers independent asset managers a social network that facilitates collaboration between wealth management professionals.

www.e-merging.com

About SAGE
SAGE Group SA is a company specializing in financial technology solutions, headquartered in Switzerland with subsidiaries in Dubai and Singapore. The company develops Prospero, which is a range of products intended for the financial sector and which responds with precision to the different segments of the financial services industry. The solutions that Prospero offers cover all financial operations: wealth management, fund management, fund administration, independent asset managers/family offices, and portfolio optimization. These applications allow financial companies to concentrate on their core business, and improve their productivity by doing so.

www.sage.ch