UBS Sets Up Frankfurt Headquarters for European Wealth Management Operation
December 01 2016 - 11:30AM
Dow Jones News
ZURICH—Frankfurt, a financial center vying with other European
cities to become a potential alternative to London for global
investment banks following the U.K. vote to leave the European
Union, has received a shot in the arm from Swiss banking giant UBS
Group AG.
Zurich-based UBS said Thursday that it has established a
long-anticipated entity in Frankfurt to centralize European
operations. Most of UBS's wealth management businesses in Europe
have been combined into the subsidiary, dubbed UBS Europe SE.
UBS had considered London and Luxembourg for the new European
entity since beginning planning a few years ago. A UBS spokesman
said the decision for Frankfurt isn't related to the U.K.'s vote
earlier this year to leave the EU. The Brexit vote has called into
question whether global banks will retain large operations in
London.
UBS and others maintain significant investment bank operations
in London, but may now need to find an alternative location for the
so-called passporting of services into EU countries. Frankfurt and
other European cities aiming to lure financial services firms may
benefit as a result.
UBS's establishment of its Frankfurt subsidiary, which is
regulated by Germany's BaFin, enables the bank to free up capital
held protectively in various other European countries in response
to local regulators' demands.
UBS will continue to be present in European countries like the
Netherlands and Spain through branches.
Write to John Letzing at john.letzing@wsj.com
(END) Dow Jones Newswires
December 01, 2016 11:15 ET (16:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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