Renaud de Planta advocates for Switzerland to take more independent action regarding international sanction regimes. In an extensive interview with the «NZZ» (article behind paywall), he reflects on his 26 years as a partner at Pictet and paints a positive picture of the Swiss financial center.

«The world needs neutral countries,» says de Planta, criticizing Switzerland for strictly adopting EU and US sanctions, especially concerning Russia.

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«Switzerland can contribute to solutions, as we have shown throughout history. It must remain neutral but also consider realpolitik,» he said. «It would be desirable for Switzerland to build its own sanction expertise so that we do not blindly adopt everything from abroad. We have a lot of know-how in Switzerland, especially in wealth management. We would be able to develop appropriate sanctions and propose them internationally.»

This would require a certain level of resources in terms of quantity and quality for the team responsible at the State Secretariat for Economic Affairs. «With a strong sanction team, we could speak on equal terms with foreign sanction authorities and better represent our position. Then we would not just be recipients and reactors,» said the Pictet manager. «It is not acceptable to have unclear rules for weeks, as was the case in 2022. This poses a significant legal risk for banks.»

Despite Skepticism, Switzerland Maintains its Position

According to de Planta, the Swiss financial center has undergone significant changes over the past 20 years, surviving the financial crisis until 2009 and the end of Swiss banking secrecy. «The Swiss financial center has adapted - contrary to many predictions. The Credit Suisse crisis weakened it in the short term, but in the long term, we will endure and become even stronger as a financial center. We have low national debt, stable institutions, and are a neutral country.»

He also expects Switzerland to be seen even more as a place of stability in the future. «Switzerland must demonstrate at every opportunity that it is neutral and a rule of law. There are many reasons to favor Switzerland.»

The Race to Devalue Currencies is on the Radar

The changing world situation particularly strengthens Switzerland's relative position. «Other financial centers in the world will face turbulence due to geopolitical tensions or unsustainable national debt. This will lead to a devaluation race of those currencies and probably to a restructuring of government debt.»

De Planta also comments on the proposals of the expert group on banking stability, of which he was a member. He emphasizes the need to strengthen FINMA and crisis coordination at the federal level, as well as improve capital quality and emergency liquidity. «Not much has happened regarding emergency liquidity; the Swiss National Bank has a project. The debate is now underway regarding capital quality.»