Rothschild, which aims for "high single-digit" percentage annual growth in assets under management (AUM), says that many academics and analysts have written off the "old" market but Thomas Pixner, head of private clients at Rothschild Wealth Management and Trust, said "The onshore markets are the fastest-growing markets in our bank."
"Everybody told us four years ago ‘forget about old markets; you can’t grow anymore,’ but we’ve created a lot of growth," he adds.
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One reason for the bank to change its focus on the onshore European market is due to the crackdown on tax evasion margins at Swiss private banks.
The Swiss banking business has been as clients from countries including the UK, Spain and France with cross-border accounts have been increasingly asking to transfer money to onshore accounts.
Rothschild expects to win new clients in Germany, as German entrepreneurs sell businesses over the next 10 years, said Riccardo Petrachi, who was hired this year from UBS AG to head the bank’s Ultra High Net Worth Individual (UHNWI) unit.
Another core market for the bank will be the UK, where at least EUR1 million euros is required to open an account.
As recently reported by WealthInsight, both Germany and the UK have also entered into a tax disclosure agreement with Switzerland and this will benefit Germany and the UK, as taxes will be levied even if the identity of the individual remains a secret.
