UBS Construction Site Three Years After Credit Suisse Rescue (cross-border guide)

Di Valerie Linc · Published on

Three years after the Credit Suisse rescue, UBS completes the migration of 1.2 million clients and announces 3,000 layoffs in Switzerland. Growing anticipation for new capital regulations.

Contesto

TL;DR - UBS completed Credit Suisse acquisition on March 19, 2023. - 1.2 million clients and extensive systems migrated. - 3,000 jobs to be cut in Switzerland, 1,500 already eliminated. - UBS focuses on cost reduction and regulatory compliance. ## Key facts - Acquisition Date: March 19, 2023 - Clients Migrated: Approximately 1.2 million - Jobs Cut: Around 3,000 in Switzerland, 1,500 already eliminated - Investment: Approximately 250 million Swiss francs for restructuring - Regulation Law: Law of June 19, 2023, updated cross-border work regulations - FINMA Requirements: Intensified capital and risk management requirements from January 1, 2024 - UBS Profit 2022: 7.3 billion Swiss francs - Systemic Banks Capital: Minimum requirement of 12.5% UBS Construction Site Three Years After Credit Suisse Rescue On March 19, 2023, UBS officially announced the completion of its acquisition of Credit Suisse, an operation that profoundly shook the Swiss and international banking sectors. This merger, one of the most complex in Swiss financial history, required unprecedented integration efforts, involving the migration of approximately 1.2 million clients and the overhaul of information systems, contracts, and services. The main challenge was to ensure operational continuity and security, avoiding disruptions for clients and business partners. > “The integration of Credit Suisse into UBS represents an unparalleled process in the Swiss banking landscape,” stated UBS CEO Ralph Hamers. Managing this operation involved over 10,000 professionals, including international teams and specialized consultants, operating also in Ticino municipalities like Lugano, Bellinzona, and Mendrisio, where many private banking and wealth management activities are concentrated. Three years on, the completi...

Dettagli operativi

UBS Construction Site Three Years After Credit Suisse Rescue Alongside the progress of technical and managerial integration between UBS and Credit Suisse, the Swiss political landscape is preparing to define key regulatory details for the banking sector. The focus is on future rules concerning the capital requirements of systemic banks, with direct implications for financial stability and the regional economy of Ticino, where many frontier activities such as advisory services and wealth management depend heavily on decisions made by major banking groups. A second front has opened with the report from the parliamentary inquiry committee and the intervention of FINMA, the financial regulator. The authority aims to impose stricter fines, with sanctions potentially reaching up to 10 million francs for violations of capital regulations. However, the Swiss government, led by Finance Minister Karin Keller-Sutter, appears to prefer a softer approach to avoid damaging Switzerland’s international banking attractiveness. By summer, and possibly as early as April, the Federal Council will present proposed regulatory amendments, with particular attention to which assets can be considered as core capital, including software and tax credits, which some estimates suggest could account for up to 15% of the total capital requirement. The debate also focuses on minimum capital requirements, currently set at 12.5% for systemic banks, and on defining parameters that can ensure stability without penalizing large banks like UBS, which posted a net profit of 7.3 billion francs in 2022 and accounts for about 30% of the total Swiss banking capital. Overly strict rules could limit UBS’s and other major banks’ investment and growth capacity, such as Julius Baer and Zürcher Kantonalbank, while o...

Punti chiave

UBS Construction Site Three Years After Credit Suisse Rescue For cross-border workers and companies in Ticino, recent developments in the banking sector present a complex challenge but also an opportunity for renewal. The recent completion of UBS’s migration process and the internal restructuring undertaken by the Swiss bank, in response to the financial turbulence of 2023, have led to a reshaping of banking services and investment strategies. These changes directly affect cross-border workers, who must carefully monitor their employment conditions, salaries, and the stability of the local banking system, a pillar of the Ticino economy. For example, in Lugano, which hosts numerous UBS branches, an estimated 15,000 cross-border workers are employed in banking and finance. With restructuring, some positions have been reorganized or reduced, potentially impacting incomes. Additionally, the possibility of rising intermediary costs or changes in loan conditions, linked to regulatory revisions, must be carefully evaluated. It’s advisable to use tools like salary calculators and tax simulators available on official portals to practically analyze how future regulations, such as the new residence permit law approved in 2022 with costs around 1,000 CHF, could influence income and employment status. > The banking situation in Ticino is evolving rapidly, but collaboration among local institutions, universities like SUPSI and USI, and regulatory bodies helps maintain a stable and predictable framework. To effectively navigate uncertainties, an operational checklist includes: - reviewing employment contracts and regulatory updates; - monitoring official communications from UBS and FINMA; - comparing investment and mortgage scenarios, considering interest rate increases of abou...

Punti chiave

[{"q":"How many jobs are expected to be lost in Switzerland after the integration of Credit Suisse in UBS?","a":"It is expected to lose approximately 3,000 jobs, of which 1,500 already cut, mainly in back-office and IT."},{"q":"What are the tax benefits for frontier workers in Ticino according to the law of 19 June 2023?","a":"According to the law, border workers in Ticino may benefit from tax relief and access to social services, provided they comply with specific criteria of residence and imponiability, although specific details have not been expressly mentioned in the article."},{"q":"How does UBS-Credit Suisse merger affect the employment contracts of Ticino frontier workers with Italian companies?","a":"Contracts of frontier workers working for Italian companies but are hired by Swiss banks as UBS must now comply with the law of 19 June 2023. This legislation provides that frontier workers retain the rights provided for by the Italian contract, but with some exceptions related to the bank's registered office."},{"q":"What are the consequences for frontier workers if UBS reduces jobs in Ticino?","a":"The Ticino frontier workers hired by UBS, if involved in cuts, could access voluntary retirement or social transfers, as provided for in the restructuring plan. The benefits depend on the residence and duration of the contract, but the rights are protected by Swiss law."},{"q":"What does it change for frontierers working in private banking after the merger UBS-Credit Suisse?","a":"Frontiers employed in private banking in Lugano, Bellinzona or Mendrisio may see a reorganization of services or teams, but UBS is trying to maintain key skills. Training and updating of contracts are a priority to ensure operational continuity."}]

Frequently Asked Questions
How many jobs are expected to be lost in Switzerland after the integration of Credit Suisse in UBS?
It is expected to lose approximately 3,000 jobs, of which 1,500 already cut, mainly in back-office and IT.
What are the tax benefits for frontier workers in Ticino according to the law of 19 June 2023?
According to the law, border workers in Ticino may benefit from tax relief and access to social services, provided they comply with specific criteria of residence and imponiability, although specific details have not been expressly mentioned in the article.
How does UBS-Credit Suisse merger affect the employment contracts of Ticino frontier workers with Italian companies?
Contracts of frontier workers working for Italian companies but are hired by Swiss banks as UBS must now comply with the law of 19 June 2023. This legislation provides that frontier workers retain the rights provided for by the Italian contract, but with some exceptions related to the bank's registered office.
What are the consequences for frontier workers if UBS reduces jobs in Ticino?
The Ticino frontier workers hired by UBS, if involved in cuts, could access voluntary retirement or social transfers, as provided for in the restructuring plan. The benefits depend on the residence and duration of the contract, but the rights are protected by Swiss law.
What does it change for frontierers working in private banking after the merger UBS-Credit Suisse?
Frontiers employed in private banking in Lugano, Bellinzona or Mendrisio may see a reorganization of services or teams, but UBS is trying to maintain key skills. Training and updating of contracts are a priority to ensure operational continuity.

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