The National Council has decided not to transfer the management of the Swiss old-age and survivors’ insurance (AHV) fund’s assets from the US-based State Street Bank to a Swiss bank. The decision was made despite concerns that US sanctions could block the Swiss people’s wealth, particularly in the context of the Swiss being classified as a currency manipulator.
In December 2020, the US Department of the Treasury had classified Switzerland as a currency manipulator, meeting all three criteria and experts feared that in the worst-case scenario, tariffs could be imposed on Swiss exports or difficulties could arise in a free trade agreement with the US.
However, the majority of National Council members did not see a significant risk of US sanctions blocking the assets. On Thursday, the National Council rejected a proposal from the Economic Committee to transfer the management of the funds back to a Swiss bank, with 98 votes against 89 and eight abstentions.
The AHV fund’s assets of around 40 billion francs are managed by State Street Bank due to lower administrative costs compared to UBS. Although there were proposals to transfer the mandate back to a Swiss bank, this was rejected by a majority of the National Council members. The proposal to bring the funds back was met with resistance, particularly from the Left, which emphasized that the change did not shift any assets to another country.
The headquarters of State Street Bank is located in Boston, Massachusetts, USA.