D Harris & Co International (DHCI), the specialist law firm to investment banks and hedge funds, is to open an office in Zurich in a move which comes as more and more hedge fund managers are setting up branches or relocating to Switzerland, partially due to the planned 50 per cent top-rate income tax in the UK.

However, the firm added that it will maintain its office in London.

The firm advises hedge funds clients with an estimated $300 billion of assets under management on their trading activities, including advising on complex credit, equity, fixed income, foreign exchange, interest rate, inflation, relative value and volatility swap trades.

“Our principal office will remain in London, which continues to be one of the main locations of our clients. The team in Zurich will supplement the work carried on from London and provide on-the-ground advice to select hedge fund managers in Switzerland,” said Daniel Harris, managing partner at DHCI.

“Whilst there has been some limited movement by hedge fund managers to Switzerland, as things stand London clearly remains the hub of the European market,” Mr Harris added.

Some commentators have predicted that the introduction of a 50 per cent top-rate income tax in the UK in April will lead to a mass exodus of high earners out of the City. The new tax rate will apply to those with annual incomes over £150,000 ($235,000).