UBS France Plans To Restructure Its Asset Management Arm

Stephen Little

7 October 2014

is considering a potential restructure of its asset management arm in France as the Swiss bank continues to focus on its private banking and wealth management segments.

"As communicated at the UBS Investor Update in May, UBS Global Asset Management has ambitious plans to deliver profitable, sustainable growth. Within this framework, the firm is currently contemplating a potential reorganisation plan of its asset management activities in France, CCR Asset Management, and a consultation process has been launched with the Works Council,” UBS said in a statement.

UBS said it was too early to comment further on the outcome of discussions with staff representatives, which are still at a preliminary stage.

After being severely hit by the financial crisis six years ago, which led to a shake-up of its operations that saw the firm increasing its focus on wealth management unit while simultaneously reducing its investment banking activities, the Zurich-based bank has now swung sharply back into profit.

UBS reported 15.4 per cent growth in its wealth management business for 2013, firmly securing its position as world leader in the sector, with a jump in assets under management to $1.96 trillion.

The restructuring is not connected to UBS’s ongoing legal troubles in France.

The French unit of UBS has been under investigation by French authorities since June last year for allegedly soliciting French clients to open accounts designed to evade taxes in Switzerland. Under French law, only French-registered financial entities are allowed to recruit clients in France. UBS has criticised the process as being “highly politicised” that has not followed “elementary facets of the rule of law”.

According to media reports, UBS has paid a €1.1 billion ($1.4 billion) guarantee to cover any potential fines should it be found guilty of helping French clients avoid paying tax.