UBS weighs leaving Switzerland over capital rules

UBS could move its headquarters abroad if stricter Swiss capital requirements make the bank uncompetitive, according to an analysis by SRF. The advantages of being Swiss matter to the bank, but are not decisive enough to rule out a departure.

The Swiss parliament is still debating the proposed “Lex UBS”, which aims to make the bank more resilient by requiring it to hold substantially more capital against risk. UBS estimates the rules would cost it 2.5 billion dollars a year.

The Wall Street Journal has reported that UBS is examining options including buying a US financial institution and moving its headquarters, merging with a European competitor or being sold to a US bank. UBS declined to comment on the report, saying it did not comment on speculation or opinions about such matters.

Chief executive Sergio Ermotti and chairman Colm Kelleher have repeatedly said they want UBS to remain in Switzerland. But Kelleher said last month that the bank would have to consider its future in the country if it became uncompetitive.

A Swiss base gives UBS a trust advantage in global wealth management, where wealthy clients value the country’s stability and security. But that advantage is difficult to quantify and is not enough to dismiss the possibility of a move. Investment banking does not require a Swiss headquarters, and UBS could remain active in the Swiss credit market even if it were no longer a Swiss bank.

The National Council’s responsible committee is due to begin discussing the proposed rules later this month. Some centre-right politicians say the version approved by the Council of States is too strict for UBS. The debate is still evolving, and SRF’s analysis says a move abroad is more than a negotiating tactic, even though neither Swiss business nor politics wants that outcome.