Sarasin takes hatchet to ‘global economy myth’

Quality standards need to be re-established following mis-placed euphoria during the new economy equities boom, as institutions are neglecting private clients, believes Eric Sarasin, head of international private banking at Switzerland’s Sarasin Group.

Due to market distractions, private banks failed to detect clients’ preference for proximity rather than offshore relationships. “It is time to bury the myth of a global economy not bound by time or place,” said Mr Sarasin. “The client’s identification with his or her bank is very much a local process.” Banks would also be differentiated through implementation of open architecture and information technology.

Mr Sarasin called for re-establishment of binding client privacy rules in the light of an EU clampdown on Swiss secrecy. “There is a danger that the state’s justified desire to prevent investors abusing banking secrecy could strip away the client’s privacy altogether,” he said. “This is unacceptable: the substance of banking secrecy is not up for debate.”