The firm is closing its wealth management business in Australia; many of its client advisors and senior managers have indicated they intend to join a firm created via a management buyout of the entity, reports said.

UBS plans to pull out from its wealth management business in Australia as senior employees at the Zurich-listed business develop their own firm after a management buyout, according to media reports.

The world’s largest wealth manager said it had made the decision after a review of its business lines, according to the Wall Street Journal.

WealthBriefingAsia is in contact with UBS seeking additional details.

Media had reported in mid-April that the Swiss banking group was considering such a move.

Mike Chisholm has stepped down as head of the Australian business unit and, together with a group of former senior advisors from UBS, has established independently owned Crestone Wealth Management, according to the WSJ.

Alain Robert, global vice chairman of wealth management at UBS, said the decision to quit wealth management operations in Australia was based on a number of factors. The industry was experiencing substantial changes due to increased regulatory and client requirements that had made it increasingly difficult to operate on a sustainable basis in Australia, he was quoted as saying. UBS said Australia is still strategically important and the bank will continue investing in its investment banking and asset management businesses in the country

Chisholm was quoted saying that almost all of the client advisors and the senior management of the local UBS business had indicated they will join Crestone, which is expected to be operational in October, the WSJ reported.