UBS is examining major strategic options if Switzerland imposes tougher capital rules on foreign subsidiaries, including moving its headquarters, acquiring a smaller U.S.
Switzerland’s upper house voted in September to require UBS to support its foreign units with 90% common equity Tier 1 capital, up from the current 60%. The measure is intended to strengthen protection against another banking crisis after the 2023 collapse of Credit Suisse, but UBS has argued that the change could raise costs and weaken its competitiveness.
The proposal must still pass through the lower house, with a final parliamentary decision not expected before the end of 2026 at the earliest. If enacted, the broader package would require about $20 billion in additional CET1 capital under current conditions, while the group’s pro forma CET1 ratio could reach 15. The rules are scheduled to take effect in 2027, with a transition period planned for some requirements.
People familiar with UBS’s thinking identified Morgan Stanley as a theoretical merger match. UBS Chairman Colm Kelleher previously served as Morgan Stanley’s president and retired in 2019. UBS has also drawn up a list of smaller U.S. Banks it could potentially buy and is open to being acquired, but there is no confirmed offer or active negotiation. Swiss Finance Minister Karin Keller-Sutter has said UBS is unlikely to leave the country, while a move to the United States would involve substantial costs and risks.