Nicole Curti (ASWM and Capital Y): “Independent managers are the future of wealth management in Switzerland”

Leaders League: What is the current situation in Swiss wealth management?

Nicole Curti: There has been a significant regulatory change in Switzerland. Independent managers are now under the supervision of Finma and must adhere to a set of rules quite similar to those imposed on banks regarding compliance, risk management, etc. This legislative change is pushing the market of independent managers towards professionalization.

Some of the smaller wealth-management outfits, not sufficiently structured to meet Finma’s requirements, have pivoted to focus exclusively on the family office part of their business or have joined the ranks of larger firms.

Have you noticed an uptick in mergers between independent wealth management firms?

The recent regulatory changes have altered the landscape of wealth management in Switzerland. There was much talk of consolidation, yet it hasn’t really materialized, even though there have been a few transactions. However, that said, several new companies have been created, often set up by younger people than would traditionally have been the case I Switzerland. Historically, the sector has developed through private bankers who already had some experience and then set up their own businesses.

What is Capital Y’s business model?

At Capital Y, we engage in discretionary multi-asset wealth management. Besides stocks and bonds, we advise our clients on private equity, private debt, and real estate. The previously inaccessible unlisted market for independent managers has become democratized thanks to new solutions and platforms that allow easier access.

We operate a purist model, without proprietary products or retrocessions. Our remuneration comes exclusively from the client. It’s important for us to maintain this principle. Furthermore, without going as far as offering concierge services, we engage deeply in our clients’ lives, intervening, if necessary, to find them the right people, just like a family office would. In this way, we act as a "single family office" for many families, each of whom feels we work exclusively for them.

On another note, we are truly focused on NextGen, both in terms of investment themes and wealth management training.

How do you see the Swiss wealth-management landscape evolving?

I have a very clear view on this. Independent managers are the future of wealth management in Switzerland. As we move forward, private clients will increasingly understand the need to deconstruct the service chain.

As independent managers, we are paradoxically totally dependent on banks, who we must work with. However, in these banks, conflicts of interest are inevitable. They manage assets deposits and transactions, while selling their own products to clients, often at high fees. What’s more, the best products cannot all be found in any one bank. Independence in the choice of banks and products is fundamental in this sector.

Being completely independent allows for a global vision free of conflicts of interest. In my opinion, we will see an increase in the number of managers going independent in the coming years. There is a real sense among bankers that this movement is here to stay and is something they need to be part of, to maintain professional opportunities.