CS. Portfolio is of course safe. It’s actually well structured and my first priority is to get some other monies invested, not liquidate or transfer existing positions. Some Im just waiting for the dust to settle on the merger.
UBS. Have explored with them a hybrid model, comprising a discretionary direct CHF bond portfolio and their new “myway” hybrid active/passive offering for the equities that would also be comprised of direct holdings. This eliminates the TER and I’ve got them down to a blended 70bp for all-in fees.
Do It Yourself. I’ve opened accounts at both Swissquote and Cornertrader and am piloting some modest equity and bond portfolios there to understand how much of a time commitment it is and whether I can see myself “taking over the tiller”. It’s pretty hard to ignore the 50bp annual saving this would generate, especially as most of the homework on allocation has been done.
UBS. Straight custody account. Non starter, the pricing here is ludicrous compared to the mentioned Swiss brokers, let alone eg IBKR. Custody is 35bp and trades are close to 100bp
One of the selling point of private banking is that if you earn million or more a year, ordinary bank become a big challenge. They basically always ask you the same questions, may freeze your transactions until you call them and ask for infinite documents. With private banking, you have an advisor who knows you and doesn’t ask questions.
Another thing is jurisdiction. If you use IB and they decide to freeze your account, you will have to deal with UK lawyer in the worst case scenario. This is a risk that actually can materialize. In case of IB bankruptcy, it will be a long challenge to get you stocks back. Although it all seems to be very low chance events, if you are looking for life-long investments, it might happen with quite some probability.
When Lehman Brothers went bankrupt in 2008, it took months and years until all investors were made whole (the ones with legitimate rights to their funds invested).
Should this serve as an example why you should avoid IB?
IMO definitely not, but YMMV.
Could you find negative examples where when dealing with a private banker the customer got not only fleeced but even lost their money and never got it back or took a severe haircut?
I personally don’t know, really, but a Google search for “private banking scandals” returns plenty of results.
Lots of those results are with Swiss banks, BTW …
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