Julius Baer is nearing the end of its extensive clean-up following the $700 million fallout from loans to Austrian tycoon Rene Benko. The Swiss wealth manager is preparing to lift a ban on onboarding certain higher-risk clients, including politically exposed persons, signaling a return to growth after more than two years of stringent risk control measures and restructuring.

This shift coincides with progress in the investigation by Swiss regulator Finma, which has loomed over CEO Stefan Bollinger’s tenure. While the regulator’s formal conclusion is expected in the second half of the year, potentially enabling share buybacks, the bank is already adjusting its client acquisition strategy. The bank's shares rose 2.9% on the news.

The Benko scandal exposed significant risk-control failures, leading to write-offs, executive departures, and a complete overhaul of the bank's private debt business and risk framework. Julius Baer, managing over $500 billion in assets, had previously tightened its client book, even parting ways with lower-balance clients, a move impacting profitability and client inflows.

While the exact outcome of the Finma investigation, including potential penalties, remains uncertain, the bank is working constructively with the regulator. The move to relax client onboarding restrictions marks a significant step toward normalizing operations and rebuilding its business momentum after a challenging period.