ZURICH : Swiss bank UBS
Ermotti did not specify which products, but a banking source told Reuters they include investments and advice offered by its Swiss-based Swiss Financial Advisers unit (SFA), which already caters to U.S. taxpayers in the country above a certain wealth threshold.
According to the source, UBS is reviewing options and is likely to approach the U.S. Securities and Exchange Commission (SEC) to seek regulatory permission for some currently off-limits products.
The source did not name specific products under review.
Expanding UBS’s license could put it on a more-level playing field with U.S. rivals just as the largest Swiss bank is seeking more business with wealthy U.S. citizens living abroad, to help accelerate its wealth management business where transaction volumes have been modest.
“Most billionaires are Americans,” Ermotti said in the newspaper interview. “We don’t want to just cede that business to the U.S. banks.”
In 2009, UBS paid $780 million to settle a dispute over wealthy Americans who had stashed undeclared money in Swiss accounts.
The source said the limits on what products UBS could offer affluent U.S. taxpayers in Switzerland were not a consequence of that dispute. Rather, its current license with the SEC simply does not cover them.
Ermotti told the newspaper that U.S. banks had worked “cleverly” with politicians in that country to take advantage of the tax dispute to advance their commercial interests.
Still, the Swiss banker said UBS, which maintained a strong U.S. presence even after its settlement, is strong enough to overcome any disadvantage.
“We have something special to offer,” he told SonntagsZeitung. “As David against Goliath, we can do well.”