UBS pulls out of wealth management
UBS will cease providing wealth management services in the Australian market after a month long global review of operations found it too difficult to sustain the local operations due to increased regulatory and client requirements.
UBS Global Vice Chairman for Wealth Management Alain Robert said the decision to withdraw from the local market was based on a number of factors including the raft of changes that have moved through the wealth management sector.
"The wealth management industry is experiencing substantial changes due to increased regulatory and client requirements which have led to increasingly complex operational processes. UBS' global wealth management business model of providing holistic client advice has become increasingly difficult to fully operate on a sustainable basis in the local market, which is dominated by a brokerage based system."
Data from the Australian Securities and Investments Commission (ASIC) indicates that UBS Wealth Management had five people registered to provide financial advice with a number of reports stating the wealth management business would transition to a staff-owned entity, Crestone Wealth Management, headed by UBS Wealth Management head Mike Chisholm.
UBS will continue to offer investment banking and asset management services to local clients according to UBS Australia Country Head Matthew Grounds.
AUTHOR
Jason Spits
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