Wealth management clients in Hong Kong and Singapore may have been overcharged UBS said, adding that it working with authorities to address inappropriate spreads it may have charged wealthy clients whose money was booked in debt securities transactions.
UBS claimed that it had identified and reported instances in which its global wealth management clients in Hong Kong and Singapore "may have been charged inappropriate spreads" for bond transactions between 2008 and 2015.
"UBS intends to reimburse affected customers on a basis agreed with the relevant authorities. UBS expects the relevant authorities will subject UBS to reprimands and fines as a result of their investigations," it said, noting that it had identified and reported the instances related to transactions between 2008 and 2015.
UBS intends to reimburse affected customers on a basis agreed with the relevant authorities"
Despite the regulatory worries, Asia continues to be a primary growth driver for the bank, as evidenced by the latest figures. UBS's global wealth management business posted net new asset of $10.9bn in Asia, boosting the region's total invested assets to $420bn.
Switzerland's biggest bank is axing high-paying investment banking staff after a disappointing performance at the division prompted a 16 per cent slide in third-quarter net profit and put the group's 2019 profit goals further out of reach, Reuters reported.
UBS said it expects to take restructuring expenses of around $100m in the fourth quarter related to structural changes it is making to the business, run by co-heads Piero Novelli and Robert Karofsky.