A large number of staff at the UK operation of UBS Wealth Management have resigned and are planning to join a new wealth management business set up by a former UBS employee, WealthBriefing has learnt.

Around 18 client-facing staff and around 30 support staff have resigned from UBS in London but are being asked to work their notice.

In addition, the Taunton office of UBS Wealth Management has also suffered defections, although it remains open for the time being.

In a statement issued to WealthBriefing, UBS said:

“We can confirm that 18 client advisors and some support staff from UBS Wealth Management in the UK have resigned. We have taken all necessary steps to ensure our clients continue to receive the level of professional service they would normally expect.

“UBS Wealth Management’s strategy remains unchanged and we continue to progress with our strong ambitions for the UK market by delivering its world-leading service to all our clients. UBS Wealth Management, named the UK’s best private bank, has around £37 billion ($72.6 billion) in invested assets and more than 300 client advisors.

“Year on year, UBS Wealth Management in the UK has seen strong increases in financial performance, net new money, invested assets and client advisors.”

The staff leaving the London office are thought to be joining David Scott who left UBS in May 2007 after having sold his Scott Goodman Harris IFA business to the Swiss Bank in February 2004. The firm was set up in 1998 and had 25 staff in London.

The new business, Vestra Wealth, has been set up in the City of London and has backing from Goldman Sachs. According to sources, the new office has space for 100 staff. Before today's move the business was thought to employ around seven people.

UBS had previously bought the Laing and Cruikshank private client business for £160 million from Credit Lyonnais. That business was resurrected when its previous chief executive, Michael Kerr-Dineen, left UBS in 2006 to set up Cheviot Asset Management in July 2006, taking up to 80 UBS colleagues with him.

Cheviot, which is backed by Martin Hughes’ Old Oak and has as its chairman Sir George Mathewson, former chairman and chief executive of the Royal Bank of Scotland, was earlier this year linked with UK private client stockbroker JM Finn.