UBS considers relocating domicile amid Swiss regulatory debates

UBS is reportedly considering changing its corporate domicile due to potential regulatory tightening in Switzerland. The discussions follow a proposal from the Swiss upper house to require the bank to capitalize its offshore subsidiaries with significantly higher equity levels.

While the current requirement is 60 percent, the Council of States has proposed a 90 percent CET1 requirement for foreign subsidiaries, whereas the Federal Council had previously sought 100 percent. UBS has indicated that such requirements could necessitate approximately $23 billion in additional common equity tier one capital, which could dilute shareholder returns and impact global competitiveness.

The Swiss Parliament is currently debating these new banking regulations. The debate is shaped by the historical context of the 2008 financial crisis and the more recent government-led merger of Credit Suisse into UBS. Following that merger, UBS manages assets totaling approximately $1.7 trillion, representing roughly 149 percent of Switzerland’s GDP.