Business Plan

Swiss American Advisors AG

1) Introduction:

Swiss American Advisors AG is an asset management company, for mainly US Persons.

United States IRS Definition of US Person

Every United States Citizen. You are liable for US income taxes whether you are a citizen who was born in the United States or outside of the United States with at least 1 parent who is a US Citizen. If you are a naturalized citizen, you are also considered a US Person.

Every United States Tax Resident. There are 2 different methods of becoming a tax resident. One of these methods is to meet the Substantial Presence Test by having either been in the United States for at least 31 days out of 1 year or 183 days out of the 3 year period prior to the current tax year. The other method is to meet the Green Card Test; this method applies to any person who has obtained a US Green Card.

United States Citizens Born Outside of the United States

If you were born outside of the United States and have dual citizenship with the US and the foreign country in which you were born, you have a different set of options – especially if you’ve never lived in the United States. It’s important to realize, however, that – until you exercise those options – you are still considered a US Person for tax reporting purposes, and you must meet all of your US tax obligations. If you wish to voluntarily terminate your US Citizenship to avoid being responsible for US taxes, you have the right to do so.

Inactive Green Card Holders

If you have never surrendered your US Green Card and your Green Card is considered to be expired by the USCIS (US Citizenship and Immigration Service) you are still obligated to file a US expat tax return every year. You will be required to file an annual US expat tax return until you either surrender your Green Card or there has been a judicial ruling that your Green Card has been abandoned or revoked. If you have ever held a Green Card in the United States and you are not sure whether or not you have any current tax liability, it will be in your best interest to find out and take care of any outstanding tax obligations.

Your Tax Obligations as a US Person

Depending on a variety of circumstances including filing status, source of income, and whether or not you can be claimed as a dependent; any US Person who earns more than the minimum threshold of around $6K-$10K dollars in a calendar year is required to file a US income tax return. If you are living and working abroad, you are still required to file an annual US expat tax return – even if you wind up not owing any taxes.

In addition to being required to file an annual US expat tax return, you are also required to report any foreign banking or investment activity if you have an account balance of more than $10K. It’s important to realize that the $10K threshold applies to all of your accounts combined. For example, if you have a foreign checking account with a balance of $5K, a savings account with $4K, and an investment account worth $2K; you will be required to report all of this activity on Form TD F 90-22.1 and mail this form to the United States Department of Treasury. If you have a vested interest in any foreign corporations, partnerships, or trusts; you will be required to report this information, as well. If you have earned income from investments or interest on your foreign accounts, you must report this income on your US expat tax return.

Swiss American Advisors AG, originally founded as Sallfort Advisors AG, in 19.11.2009, in Zurich Switzerland, changed the name to Swiss American Advisors AG in 2012. The original shareholders, Bunita Holding AG, Basel, sold the shares to Mr. Michael Barth (31.01.2012), Allschwil Basel. Mr. Barth sold the company on November 30, 2017 Avalon Holding AG, our current owner. Chairman of the Board is Mr. Jean.Marc Baumann, Maennedorf Switzerland.

Manager and only employee (CEO) of Swiss American Advisors, has been the same since founding, Otto Hueppi, Marthalen Switzerland. Born and educated in USA (ex-patriated his USA passport in , Mr. Hueppi, a Swiss citizen, moved to Switzerland in 1981. He has worked with 4 Swiss Banks prior to coming to Swiss American Advisors (founding 2009).
Swiss American Advisors AG is registered in Switzerland, has been a member of VSV (Swiss Association of Asset Managers), money laundering agency, as well as being registered with the SEC (Securities and Exchange Commission) as an advisor in USA.

Swiss American Advisors took over clients from another daughter of Avalon Group in 2019, BGL Family Office AG, also a Swiss Company and SEC registered Advisor. We are also beginning to work together with a firm in Monaco, handling their US Persons, Nemesis SA.

This Business Plan has been created to apply through our AO for a FINMA registration, required January 1 2023.

2) Business activity:

a) Description of type of activity:
Services provided:
– Asset Management (discretionary, advisory and execution only)

b) Services not provided:
– Family office
– Real estate
– Payroll
– Safety deposit boxes, only
– Own funds/investment instruments
– Taxes

c) Depository banks: Bank Vontobel AG, Zurich
Bank EFG, Zurich
DZ Privatbank (Switzerland) AG

d) Scope of activity:
-Clients:
Domicile: Mainly USA, some Switzerland and GB and domiciled companies (US persons) in Cook Islands and Switzerland.
– Types of clients: (FINSA) Private clients

e) Number of clients: 41

f) Assets under Management (30.06.2022): CHF 51’769’525.91

3) Organisation of the Company:

One fulltime employee, two Board of Director

No annual audit (Opting out)

Outsourcing:

  • Bookkeeping: Avalon Treuhand AG
  • Risk Management
  • Compliance

Short CV or Board Members and CEO Attached

4) Ownership structure/Group

Shareholder list attached (100%) Avalon Group
No Subordination Agreement (Rangrücktrittsvereinbarung) exists at the present time
Avalon Group Chart attached

5) Internal Control System: (ICS)

a) Compliance
b) Risk Management
c) No internal Audits (Opting out)

6) Strategic Goals:

a) Short description of the Strategy of the Group/Company for the coming years:
At present, the goal is to keep the company running is a profitable situation with US Person’s as our goal for clients.
b) Within 2 years a new CEO will be needed to take over for the retiring CEO.
c) Working together or acquisition of other asset managers getting out of the business, with their US Clients.

7) Budget for the 3 next years (realistic, optimistic and pessimistic scenarios)

a) Realistic: Our client-base remains the same. Current P&L is in good condition and our balance sheet is bringing nice gains to our profitability.

b) Optimistic scenario: New clients from our own personnel or from additional clients from retiring asset managers and from our existing external Monaco group, Nemesis could bring additional profits. An increase in the number of clients we have could bring the addition of a new employee, part time or full time, depending on the number of clients.

c) Pessimistic scenario: Clients leave, AUM declines, costs increase out of the ordinary and or new requirements from FINMA/AOOS extend further, causing additional bureaucratic need for additional personnel to complete. New regulations from the SEC, either limiting the possibility to act as an advisors for US persons, outside of USA. All of the above would have a negative effect on our P&L and AUM.

© Copyright - Swiss American Advisors AG | Bellerivestrasse 67 | 8008 Zurich | Switzerland | Phone +41 (0) 43 888 64 25 | Fax +41 (0) 43 888 64 21 | Imprint | Privacy Policy