Changes to legal structures of some Swiss private banks – ending the old unlimited liability system for family partners – has led to a change in the business associations representing venerable institutions such as Pictet & Cie.

Changes to the legal structure of some Swiss private banks – ending the old unlimited liability system for family partners – has led to a change in the business associations representing institutions such as Pictet & Cie.

From next January, Geneva's Private Bankers will be replaced by the Association of Swiss Private Banks, with Christoph Gloor of La Roche 1787 Private Bankers, serving as chairman of the new association.

“Following announcements by La Roche 1787 Private Bankers, Lombard Odier & Cie, Mirabaud & Cie and Pictet & Cie of plans to change their legal structure to that of a limited company, the committee of the Swiss Private Bankers Association and the “Groupement des Banquiers Privés Genevois” (Geneva’s Private Bankers) began examining possible changes to both organisations. This process was motivated by a desire to continue fostering close cooperation between member banks,” a statement from the associations said.

The changes reflect the evolution in the legal structure of Swiss banks that have, in some cases, been unchanged for more than 200 years; the moves are also being undertaken at a time when the Swiss banking industry has faced unprecedented pressures on its business models and bank secrecy laws.

From 1 January 2014, only seven members will remain within the Swiss Private Bankers Association. This body will be scaled down and its objectives limited to defending the specific interests of private bankers, the statement said. The position of chairman and vice-chairman will be held respectively by Grégoire Bordier (Bordier & Cie) and Christian Bidermann (Rahn & Bodmer Co.).

Geneva’s Private Bankers, renamed as Association of Swiss Private Banks, intends to “become a national-level organisation representing privately-owned Swiss banks”. Its founding members are Bordier & Cie, E Gutzwiller & Cie, Gonet & Cie, La Roche 1787 Private Bankers, Lombard Odier & Cie, Mirabaud & Cie, Mourgue d’Algue & Cie, Pictet & Cie, Rahn & Bodmer Co and Reichmuth Co.

“The Association of Swiss Private Banks will continue to play an active role in promoting the business interests of its members, all of whom specialise in wealth and asset management.

At its constituent general assembly on 14 November, the Association of Swiss Private Banks elected Christoph Gloor as chairman and Nicolas Pictet (Pictet & Cie) as vice-chairman.

Other members of the Committee are Anne-Marie de Weck (Lombard Odier & Cie), Christian Bidermann (Rahn & Bodmer & Co), Grégoire Bordier (Bordier & Cie) and Yves Mirabaud (Mirabaud & Cie).

Michel Y Dérobert will serve as the secretariat's director, alongside Jan Langlo, deputy director, and Chantal Bourquin, head of public and media relations.

Jan Langlo is a qualified lawyer and member of the Geneva bar, as well as a certified tax expert. He began his career as a tax lawyer with the law firm of Lenz & Staehelin, followed by Oberson & Associés, before joining Pictet 2007 as a legal and tax advisor.  He will focus on national-level legal issues affecting banks and the Swiss financial centre more broadly, and participate in various commissions and working groups of the Swiss Bankers Association.

“The Swiss and Geneva private bankers wish to acknowledge the remarkable contribution of Edouard Cuendet in defending the interests of private bankers, as First Secretary of Geneva's Private Bankers from 1999 and General Secretary from 2010,” the statement said, adding that as an elected member of the Geneva State Parliament, he will will take on a new role as director of Geneva Financial Centre from 1 January.

The Association of Swiss Private Banks will hold a press conference in Bern on 16 January to discuss the changes facing its members.