UBS Vetting of Credit Suisse Clients Being Reviewed by Regulator

This content was published on July 30, 2024 - 14:00

2 minutes

(Bloomberg) — Switzerland’s financial regulator is taking a close look at how UBS Group AG is bringing over Credit Suisse clients, as the country seeks to mitigate risks at its largest bank.

UBS is providing updates to Finma on the type of wealth management clients it is on-boarding from Credit Suisse in the process of integration, people familiar with the matter said. The people asked not to be named discussing private details.

Finma sees the integration of Credit Suisse as a top supervisory issue and is closely monitoring it, including via on-site inspections, the regulator said in a statement Tuesday. Reuters reported the news earlier.

Switzerland is tightening its oversight of the financial sector in the wake of the collapse of Credit Suisse last year and its acquisition of UBS in an emergency rescue. New Finma chief Stefan Walter has said he’s focused on intervening early to ward off risks to financial stability.

The Swiss watchdog is looking at financial and non-financial risks and has expanded the team directly overseeing UBS to 22 staff, according to the statement. A total of 60 people are involved in supervision of the global bank.

“UBS upholds the stringent client due diligence procedures it already had in place prior to the acquisition,” UBS said in a statement.

The vetting of wealth clients is particularly relevant for Switzerland given its history related to tax evasion and other financial crimes. UBS is one of the world’s largest wealth managers.