UBS, which is trying to repair the damage caused to its reputation stemming from a high-profile legal tussle with the US authorities, is reported to have issued an eight-page code of business conduct and ethics which unequivocally prohibits employees from assisting clients to dodge their taxes.

The document, a copy of which was seen by Dow Jones, covers a broad range of issues - including financial crime, confidentiality and diversity - but its handling of the issue of tax evasion will be of particular interest to those familiar with the Swiss bank’s affairs over the past year.

The new code is uncompromising in its approach to tax matters, stating explicitly, "we do not provide assistance to clients or colleagues in acts aimed at deceiving tax authorities," according to the news service. The code also sets out possible sanctions, including demotion or dismissal, for infringements.

Understandably, in the light of the Zurich-listed bank’s woes and the international press coverage they have attracted, protecting UBS’s reputation would seem to be the over-riding principle of the new code of business conduct and ethics. "In the new UBS, we will uncompromisingly treat our reputation as our most valuable asset and we will protect it fiercely," said Kaspar Villiger and Oswald Gruebel, the bank’s chairman and chief executive, in the code’s preface.

UBS has been engaged in a damaging row with the US authorities over claims it assisted US citizens to avoid paying taxes. Early in 2009 the bank paid $780 million to settle criminal charges, but the ramifications of a further civil case continue to rumble on. UBS has reportedly been asked hand over data on some 4,450 clients, but the transfer process was thrown into doubt last week when a Swiss court ruled that it was unlawful for FINMA, the Swiss regulator, to order that the bank reveal account details last February.

Meanwhile, Bradley Birkenfeld, the UBS advisor-turned whistleblower, last week began a 40-month sentence in Florida for his part in helping US citizens cheat taxes.

UBS is still the world’s largest international wealth management firm, but has seen significant outflows of client cash: in the three months to the end of June 2009 net new money outflows were SFr16.7 billion  ($16.4 billion) for Wealth Management & Swiss Bank, SFr9.9 billion for Wealth Management Americas, and SFr10.0 billion for Global Asset Management. According to media reports, Mr Gruebel sent an email to staff this week in which he said that it was “imperative” the exodus of assets from UBS’s wealth management arm be stemmed.