The Swiss banking group and wealth manager is, so the report said, trying to compete more powerfully against rivals such as Merrill Lynch and Morgan Stanley.

UBS is making changes to its US wealth management division to attract a broader range of affluent clients, moving beyond its traditional focus on ultra-high net worth clients.

The revamp to the business was outlined in an internal memo earlier this week. The Zurich-listed firm, which has wrapped up its acquisition of Credit Suisse that was initiated last year, is trying to compete more effectively against the likes of Morgan Stanley and Merrill Lynch.

A report by InvestmentNews said that while UBS’s US wealth unit has typically achieved profit margins in the low double digits – below the mid-20 per cent range of its competitors – UBS hopes it can harness scale and boost interest income from banking services.

The changes include dividing the US wealth unit into six divisions and expanding UBS’s banking services.

“We’re not where we want to be,” Rob Karofsky, president of UBS Americas and co-president of global wealth management, was quoted as saying in an interview. “We can’t shrink the business to profitability. We have to invest in growth.” 

Details
“Our field management structure will move from two national divisions to four regions, in addition to UBS International and the Wealth Advice Center. This new alignment will empower our field leaders through faster decision-making, enhanced responsiveness to client needs, and greater connectivity with our full client offering,” the memo said. 

The firm also announced the following field leadership appointments: 

Chris DiMuria, regional director Northeast; Julie Fox, RD Southeast; Lauren Gorsche, RD West; Jon Ramey, RD Central; Rick Gonzalez, head of UBS International; and Len Golub, head of the Wealth Advice Center.

Jennifer Povlitz will become a vice chair for GWM US, primarily covering clients on the West Coast. Povlitz and Mike Ryan, who is continuing as a VC for GWM US, will both report to Jason Chandler, chair of GWM Americas. 

Private wealth management will become a dedicated cross-regional advisor segment, led by John Mathews, who will focus on helping private wealth advisors grow their businesses. 

UBS is also expanding its Global Family & Institutional Wealth (GFIW) Pod framework to include specialised capabilities from the UHNW Solutions Group (USG) and from its newly-created Unified Global Alternatives (UGA), joining the Unified Global Banking (UGB) team and other GFIW capabilities in the framework. 

This new “UHNW Plus” client segment, which effectively integrates the existing GFIW client segment, will be led by Charles Otton. GFIW Americas will continue to operate within the global GFIW framework and maintain existing GFIW reporting lines.

Jennifer Gabrielli will continue as head of USG Americas and head of UGB Americas. In order to align and consolidate the firm’s product and solutions offering more effectively, USG Americas will move into GWM Solutions.

The GWM US chief administrative office will expand to include financial advisor recruiting and retention, teaming and practice management, and talent development, in addition to continued oversight of its field support teams – including team associates, administrative officers, and field operations teams. Michael McVicker will remain as ad interim CAO. 

Ogden Hammond will join the firm in mid-January to lead strategy for GWM Americas, reporting to Christian Koppenhoefer in its chief strategy office. Alicia Curry will lead an expanded GWM US marketing team.