UBS weighs relocating headquarters if Swiss capital rules become stricter

UBS is drafting scenarios that may involve moving its headquarters out of Switzerland should new capital rules be adopted. Possible routes include acquiring a U.S. financial institution and relocating, merging with a European rival, or selling to a U.S. bank. Swiss officials are debating tougher “too-big-to-fail” standards after UBS rescued Credit Suisse in 2023, which would require an additional US$20 billion of Common Equity Tier 1 capital, mainly by demanding 100% CET1 backing for overseas units.

Currently, those units need only 60% CET1 backing. UBS contends the 100% requirement is excessive and would hurt its international standing. Investor Artisan Partners has called the proposal punitive and suggested it could force UBS out of the country, estimating a further US$16 billion capital need. UBS CEO Sergio Ermotti has said staying in Switzerland benefits both the economy and shareholders, while chairman Colm Kelleher warned the bank must weigh its future if rules become too strict, preferring a Swiss compromise.