Private bank or independent asset manager: Which is the better choice in Switzerland?

Anyone with larger assets in Switzerland is faced with a key decision sooner or later: Should the money be managed by a large private bank — or is a independent asset manager The better choice? Both models have tradition and advantages, but they differ fundamentally in structure, interests and consulting philosophy. For investors with assets of CHF 500,000 or more, it is crucial to understand which solution offers greater transparency, independence and personal support in the long term.
In this article, you will learn how banks and independent asset managers in Switzerland actually differ, the advantages and disadvantages of both models — and why many demanding investors are increasingly relying on independent experts with a local presence.

An overview of the most important things:

Starting position: Swiss investors with assets of CHF 500,000 or more are often faced with the choice between a private bank and an independent asset manager.
Key difference: Banks offer stability and international reach, while independent asset managers impress with transparency, personal support and objective advice.
philosophy: The difference lies less in the products, but in the attitude towards the individual customer relationship.
Local expertise: Format Vermögen & Anlagen AG offers at the locations zurich, St. Gallen, basle and luzern tailor-made strategies for demanding investors.

The starting position: Two paths to professional asset management

For decades, Switzerland has been regarded as one of the world's leading centers for asset management. In addition to traditional private banks, a heavily regulated market of independent asset managers has established itself in recent years.
For investors with substantial assets — for example after the sale of a company, Inheritance, pension fund payout or successful career — the central question is: Who manages my assets best — a bank or an independent partner?
The answer depends on goals, values, and expectations. While banks rely on their brand strength and global resources, independent asset manager through personal support, neutrality in product selection and long-term continuity.

Bank or independent asset manager: The most important differences

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The decisive differences lie not only in the size or in the name, but in the structure and motivation of the providers. The following overview shows what is important in practice:

• Counseling:
  Banks/ private banks: Often product-oriented; sale of own funds and structures
  Independent asset managers: objective and customer-focused, without conflicts of interest
• Product range:
  Banks/ Private banks: Focus on banks' own products
  Independent asset managers: access to the entire market offering
• Cost structure:
  Banks/ Private banks: Often complex and difficult to understand
  Independent asset managers: Clear, transparent fee models
• Flexibility:
  Banks/ Private Banks: Standardised processes, less individualization
  Independent asset managers: Tailored strategies for every mandate
• Supervision:
  Banks/private banks: frequently changing contacts
  Independent asset managers: direct access to experienced experts
• Independence:
  Banks/ Private Banks: Group Interests and Turnover Requirements
  Independent asset managers: Complete independence from product providers

While banks are impressive due to their size and security, many experienced investors today prefer independent asset managers — especially when they value personal proximity, individuality and transparency.

Risks and opportunities of both models

Investors should not only look at the benefits but also understand the potential risks and limitations of each solution.

• Conflicts of interest:
  Banks/ private banks: Own products and sales goals can influence recommendations
  Independent asset managers: Objective strategy selection without selling pressure
• Flexibility:
  Banks/ Private banks: Standardised processes, little adjustment to individual goals
  Independent asset managers: Tailored adjustments possible, faster responses to market changes
• Transparency:
  Banks/ Private Banks: Complex fee structures and hidden costs
  Independent asset managers: Clear, comprehensible cost models and reporting
• Long-term strategy:
  Banks/ Private banks: Focus may be on short-term product sales
  Independent asset managers: sustainable wealth creation at the heart of the strategy
• Personal care:
  Banks/private banks: changing contacts, little local connection
  Independent asset managers: Direct contact with experienced advisors, local connection in zurich, St. Gallen, basle and luzern

Expert advice: If you want to secure and expand your assets in the long term, you should consider the balance between stability, personal support and transparency. Independent asset managers often offer an advantage here in practice, particularly with complex portfolios of CHF 500,000 or more.

Who is which solution suitable for?
Both models can make sense — the decisive factor is what investors expect from asset management.

• private banks:
  Suitable for: customers with a strong international focus, investors who need banking services such as loans, mortgages or corporate financing, people who value the “name” of a large bank
  Special features: combination of asset management and traditional banking services, established brand name, often standardized investment strategies
• Independent asset managers:
  Suitable for: entrepreneurs and private individuals with assets of CHF 500,000 or more, investors who value independence and transparency, families with long-term care needs, mandates focused on individual, sustainable investment strategies
  Special features: Tailored strategies, full independence from product providers, personal local support, flexibility in investment decisions, focus on sustainable asset creation

The choice depends less on the size or reputation of the provider, but on the individual needs of the investor. Anyone looking for transparency, independence and a personalized wealth strategy will particularly benefit from an independent asset manager — especially in Switzerland, where local presence and personal support in cities such as Zurich, St. Gallen, Basel and Lucerne offer significant added value.

Tax and legal aspects in Switzerland

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The tax and legal structure is a central factor in choosing the right asset manager. Especially in Switzerland, with its cantonal differences and complex regulations, well-founded planning can be decisive for maintaining and building up wealth over the long term.

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Independent asset managers offer targeted support here through:

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Optimizing investment returns: Tax-efficient structuring of capital gains, dividends and interest, taking into account Swiss tax laws.
Cantonal tax planning: Taking into account differences in income and wealth taxes between cantons in order to minimize the tax burden.
Structural design: Use of holding structures, trusts or other legally permitted vehicles for tax optimization, in particular for family assets or after company sales.
Regulatory safety: Ensuring compliance with all regulations, including FINMA supervision and FINIG compliance, which reduces risks of legal violations.

Practical example:
An independent asset manager can significantly reduce the tax burden of a portfolio through a targeted combination of various investment vehicles and cantonal tax planning — an advantage that standardized models of many private banks often do not offer.

Independent asset management near you

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For discerning investors in Switzerland, local proximity is a decisive advantage. Format Vermögen & Anlagen AG offers independent asset management with personal support at the locations zurich, St. Gallen, basle and Lucerne.
Our experts tailor investment strategies individually to your risk appetite, life situation and long-term goals. A non-binding initial consultation enables you to get to know our values, philosophy and approach in person — a decisive step towards managing your assets sustainably and securely.
→ Schedule your free non-binding initial consultation on site. Frequently asked questions about choosing between bank and asset manager

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Frequently asked questions:

Are independent asset managers securely regulated in Switzerland?

Yes Independent asset managers have been subject to supervision by FINMA since FINIG (Financial Institutions Act) came into force in 2020. They must meet strict requirements in terms of capitalization, risk management, compliance, and internal controls. This regulation ensures that your investments are professionally, legally compliant and managed according to the highest standards.

Can an independent asset manager keep my money in a bank?

Yes The assets always remain in an account with a custodian bank of your choice. The asset manager only receives an administrative and disposition power of attorney to manage the portfolio in accordance with your goals. This separation between custody and administration minimizes risks and ensures that you remain the owner of the capital at all times.

Are independent asset managers more expensive than banks?

Not necessarily. Independence from product providers eliminates internal product margins, sales commissions or hidden fees that can be common at banks. Work instead independent asset managers with transparent fee models, which are generally clearly calculable and often more cost-effective — particularly for investors with assets of CHF 500,000 or more.

How do I find the right independent asset manager in Switzerland?

Experience, transparency, individual support and a clear fee model are essential. Check references awards and regulatory approvals. A A non-binding initial consultation makes it possible, the philosophy that values, to personally review the investment strategy and the fit for your own risk appetite — a decisive step towards building trust in the long term.

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