UBS’s newly enlarged wealth business in Southeast Asia will house familiar faces at the top from Credit Suisse. But there are signs that Credit Suisse private bankers could face a less familiar environment.
Yesterday, UBS announced leadership changes in its global wealth management (GWM) business as part of the ongoing integration with Credit Suisse.
Within Asia, the North-South regional split was well delineated with Amy Lo retaining her GWM co-head role overseeing the former sub-region, alongside her appointment as GWM Asia chair, and ex-Deutsche Bank executive Jin Yee Young named as GWM co-head, overseeing Southeast Asia.
South APAC Leader
UBS has traditionally been the stronger player in North Asia while Credit Suisse, in contrast, has been stronger in Southeast Asia with deep coverage in markets like Singapore and Indonesia. Following the acquisition, UBS is the «undisputed number one» in certain sub-regions, including South Asia Pacific, according to chairman Colm Kelleher.
The addition of Young, who previously spent 19 years with Credit Suisse, will not only provide business continuity at the leadership level but also much needed efforts in retaining bankers.
UBS CEO Sergio Ermotti said that around 10 percent of Credit Suisse staff had already left in the past few months before the takeover which was completed on Monday, according to a report by Swiss broadcaster «SRF».
New Chapter
But despite the familiar faces, former Credit Suisse private bankers may face a less familiar working environment, particularly with regard to UBS’s risk culture.
Oversight is expected to tighten with UBS introducing nearly two dozen restrictions for new bankers, including prohibitions on taking on clients from high risk countries, a ban on trading in complex products and the requirement to seek permission from UBS executives to extend loans backed by assets like yachts, ships and real estate worth more than $60 million.
Strategic Clients
And there are signs that tighter oversight could extend to the ultra-high net worth (UHNW) business with current head of wealth management APAC Benjamin Cavalli, also a familiar figure in the region and Credit Suisse’s former South Asia head of private banking, appointed to lead a global wealth team focused on strategic clients.
In the Singapore-based role, which includes responsibilities covering the bank’s UHNW solutions offering, global partnerships, chief marketing office, communities and strategic client segments, Cavalli will report directly to UBS GWM president Iqbal Khan.
«We are worried about 'cultural contamination'. We are going to have an incredibly high bar for who we bring in to UBS,» Kelleher added.