In an attempt to increase the United Bank of Switzerland (UBS)’s wealth management business, its executive board member is planning to offer credit services to the bank’s wealthy customers, according to the sources.
In a memo to staff, UBS’s Wealth Management Co-Head Iqbal Khan stated that he expected “swift wins while working on the long-term tactical solutions. Financing is certainly a region where we can do more. We must ensure that we not only keep our rivals at a distance, but we also grow the distance to them,” the executive added as reported in Sonntagzeitung. Further, Khan highlighted his plans to develop the private debt, private equity, infrastructure, and other indefinite asset classes of UBS. The report states that Khan holds strategies to incorporate UBS’s asset management business activities with its investment bank.
In December 2019, the two Co-Heads of UBS’s wealth management business, namely Khan and Tom Naratil, are supposed to present their business strategies to Sergio Ermotti, the CEO of UBS. The latest memo by Khan is considered one of the foremost key tactics for the firm he joined in October following his resignation in Credit Suisse as the Head of the International Wealth Management Business. A spokesman from UBS stated, “Financing is a high priority for our clients and thus for us also. However, our risk limits and risk appetite do not change as an outcome.”
On a similar note, the Hong Kong Securities and Futures Commission (SFC) ordered UBS Group to pay the fines of 400 million Hong Kong dollars. While the firm is penalized for charging its worldwide wealth management customers incorrectly, regulators raised distress on systematic and critical issues with the bank’s in-house controls. The regulator said that during the 2008–2015 period, the firm was engaged in systematically manipulating the cost on the structured product trades and on bonds.