Swiss lawmakers seek to return UBS regulation to Federal Council

A majority of FDP members in the Swiss Council of States reportedly favor returning the UBS regulation proposal to the Federal Council rather than proceeding with a parliamentary vote. According to reports from SRF, several center-right lawmakers, including members of the Center Party, are advocating for a non-entry on the matter.

FDP Councilor Andrea Caroni argued that capital requirement regulations have historically been handled through Federal Council ordinances and that the parliament may not be the appropriate venue for this specific legislative process. Pirmin Bischof of the Center Party has submitted a similar motion. Caroni noted that returning the matter to the Federal Council would signal parliamentary trust in the executive branch.

The original proposal from the Federal Council requires UBS to fully back its foreign subsidiaries with equity. A previous compromise suggested by the Economic Affairs Committee proposed a split of 50 percent common equity tier 1 (CET1) and 50 percent additional tier 1 (AT1) capital for these subsidiaries, though this remains a subject of intense debate.