Thursday, April 8, 2010

Swiss Finma Review of Insurance "Wrapper" Products Used for Tax Evasion

There is some noise around the internet that the Swiss Financial Market Supervisory Authority is looking into insurance products referred to as wrappers in which there is a heavy investment component. The products may function like bank deposits or investment accounts that are the focus of the current U.S. initiative against UBS and, at least indirectly, other Swiss and foreign financial institutions. Because these products are wrapped nominally at least in the insurance product the products may disguise what is in reality financial accounts that, if not wrapped, would be subject to the same risks of displeasure from foreign tax authorities as the classic Swiss bank accounts.

The most complete article I have seen is Bloomberg's. As I see other information on this subject that materially adds to it or otherwise materially clarifies the story, I will amend this brief post as appropriate and link to them.

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