Incoming Swiss Bankers Association chair Giorgio Pradelli, CEO of EFG International, warned that Switzerland risks losing its global financial centre status through excessive regulation. Speaking to the Financial Times, Pradelli said the country cannot assume its pre-eminence will endure as competitors like the US and UK simplify rules, with Hong Kong recently overtaking Switzerland as the largest offshore wealth hub. His comments come as Bern finalises its biggest banking overhaul since the financial crisis, driven by Credit Suisse's 2023 collapse and state-sponsored takeover by UBS.

The reforms include senior banker accountability, tighter bonus rules, enhanced Finma powers, and stronger crisis planning. A parliamentary committee meets Monday on proposals that could force UBS to hold roughly $20bn more common equity. Pradelli acknowledged progress on stability but said competitiveness needs improvement. EFG has benefited from the upheaval, with shares up nearly 100% since the takeover, attracting SFr5.7bn in net new assets in H1 and hiring 140 relationship managers in 2023.

Pradelli noted geopolitical tensions are driving wealthy clients to diversify across financial centres.