In the face of many challenges to it, a large majority of people in Switzerland still value the protection of privacy in financial matters, while for the first time a small majority thinks the government is not doing enough to protect it, says the latest survey from the Swiss Bankers Association, a body which represents the industry.

The survey, which has been carried out annually since 1995, and therefore allows comparisons of public opinion across time, is based on a representative sample of over a thousand Swiss resident citizens. The latest survey found strong support for protection of privacy in financial matters (89 per cent of respondents) and the maintenance of client confidentiality (73 per cent).

With tax evasion at the top of political agendas in Europe and the US, a small majority of Swiss, for the first time, were unsatisfied with politicians’ commitment to bank-client secrecy.

“A good 70 per cent” think that Switzerland should not give in any further to European pressure on bank-client confidentiality, and oppose an automatic exchange of information with foreign tax authorities, said the SBA.

In Switzerland, tax evasion is considered a civil matter, while it is a crime for bankers to disclose client details without permission or evidence of tax fraud. However there have been incidences lately where confidentiality has been compromised, both due to illegal theft, as in the recent case of HSBC Private Bank (Suisse), and the actions of governments. An example of the latter issue is the tax wrangle which occurred between UBS and the US government, in which UBS was ordered by the Swiss regulator to hand over client data to the US. A Swiss court later declared it was unlawful for the regulator to have done so.

As a result, respondents expressed serious doubts about whether bank-client confidentiality will still take the same form in five years’ time as it does now. 

Meanwhile, it was found that Swiss clients have never been more satisfied with their banks since the question was introduced in 2001, with 87 per cent saying they had a positive or very positive opinion of their main bank. In terms of loyalty, the Cantonal banks remain in the lead, followed by the Raiffeisen banks.