United States and Switzerland Reach Agreement on Sharing Client Investment Information

According to a report by Jinse Finance, the United States and Switzerland have ended a years-long deadlock over the issue of sharing client investment information, allowing the U.S. to gain clearer insight into assets held in the European banking hub. Three informed sources stated that the agreement was reached after the U.S. Securities and Exchange Commission conducted inspections on at least eight Swiss companies conducting business through U.S. entities. The inspections targeted both smaller management firms and larger investment groups like Vontobel. The relationship between the two countries regarding U.S. client information is complex, as U.S. clients have long hidden assets in Swiss accounts to evade U.S. taxes. After reaching an agreement on information sharing in 2013, Swiss companies paid billions of dollars in fines. On Tuesday, the U.S. also lifted the ban on approving new Swiss investment advisors to conduct U.S. wealth management business.