Vontobel co-CEO Christel Rendu de Lint warned Switzerland risks over-regulating its financial sector as it finalizes post-Credit Suisse reforms. The government plans stricter rules for systemically important banks, including potential $26bn capital hikes for UBS after its state-backed takeover of Credit Suisse. Rendu de Lint stressed regulators, politicians, and firms must collaborate to preserve competitiveness, though she avoided direct criticism of proposed measures.

The reforms aim to strengthen oversight of UBS, which now dominates Switzerland’s banking landscape. Officials may require UBS to fully capitalize foreign subsidiaries, raising capital needs. The Finma regulator will gain expanded powers to intervene early and hold executives accountable. Analysts note this could reshape global banking risk tolerance, as Switzerland balances UBS’s economic importance against systemic vulnerabilities.

Rendu de Lint highlighted broader market shifts: clients prioritize currency and jurisdictional diversification amid geopolitical tensions and U.S. tech stock concentration. While the Swiss franc remains a safe haven, she questioned whether the dollar would rally in a crisis, citing recent market stress where it declined. This diversification trend boosts Swiss inflows despite competition from Singapore and Dubai.

Vontobel itself faces headwinds: institutional outflows of SFr1.6bn in 2025 reflect investor retreat from active strategies post-2022 rate hikes. However, private client inflows of SFr5.8bn offset losses, growing total assets to SFr241bn. Rendu de Lint noted renewed active fixed income interest, signaling recovery from a "brutal period."