Troubled by the US tax evasion probe, Swiss bank UBS is planning to restructure its US wealth management operations to stem outflows, reported Reuters.
Reportedly, the UBS unit had nearly $10bn in client asset outflows in the third quarter and has been hurt by US Internal Revenue Service investigation and financial-adviser departures.
Robert McCann and Robert Mulholland, who were recently appointed as heads of wealth management unit, had even chalked out plans for the reorganization and management reshuffle.
The changes are part of a months-long process Robert McCann, CEO of UBS, has undertaken to return UBS’ US advisory business to profitability. As part of the restructuring, UBS’ market areas now will be known as regions.
UBS has appointed Jason Chandler as head of private wealth management and named Paul Santucci his new COO. Mr Chandler will replace John Straus, who will become head of strategic client relationships.
Tom Naratil will temporarily replace Diane Frimmel as COO of wealth management Americas. Mr McCann said, Frimmel, a 30-year UBS veteran, will now serve as head of the emerging affluent segment and will become part of UBS’ wealth management advisor group leadership team.
Mr McCann and Mr Mulholland, both colleagues of McCann at Merrill Lynch, said UBS is consolidating its US wealth operations into two units from three, led by David McWilliams and Michael Schweitzer.
Dirk Becker, an analyst at Kepler Equities, said: "They are implementing a plan that was effectively announced when McCann presented at the investor conference in November. He said then he needed to turn things around."