The Swiss Competition Commission, or Comco, has indicated concerns about the market dominance of the «new» UBS. Finma is keeping a corresponding report under wraps.
The UBS takeover of Credit Suisse is drawing ever more criticism from various authorities. After the Financial Stability Board of the G-20 criticized a long-standing practice of Swiss authorities in banking supervision, the Swiss Competition Commission (Comco) is clearly demanding a deeper investigation into the market power of UBS.
At the end of 2023, Comco is said to have submitted a corresponding report on the effects of the takeover to the Swiss Financial Market Supervisory Authority (Finma), as reported by news agency «Reuters» on Thursday. The report states that UBS has a dominant position in areas such as bond trading.
Demands of UBS
According to earlier statements from Deputy Comco Director Frank Stuessi, the report was submitted to Finma at the end of October 2023. Finma spokesperson Vinzenz Mathys says the Financial Market Supervisory Authority has re-examined everything. As before, the report remains inaccessible.
Evidently there have been delays owing to UBS demands. «UBS has asked for business secrets and client information to be redacted in the report,» a UBS spokesperson explained earlier this month. However, he denied it was trying to block its release.
Finma Examines Merger
The Comco report is not binding, and the responsibility for the takeover of Credit Suisse by UBS ultimately lies with Finma. Comco’s explanations are merely intended to be recommendations.
As of yet, nothing of the effective content of the report has leaked. Finma confirmed to news agency «AWP» that «a review of the impact of the merger on competition is underway». The authority did not wish to say more on the subject; UBS did not comment on the report either.
