UBS' new co-head of wealth management Iqbal Khan’s plans for the ultra-high net worth business have cost the firm its biggest banker in Asia, as finews.asia can reveal. The move sparks fears of further instability.
Even before staff in Asia can come to terms with Iqbal Khan’s plans to reorganize the bank’s ultra-high-net-worth services, they have been left leaderless. The new structure does away with the need for a senior regional head, a role currently played by Ravi Raju, UBS’ head of ultra-high net worth and one of its best-known bankers in Asia. Raju was hired during Juerg Zeltner's final days at UBS to build its business catering to Asian tycoons. However, after four years on, the bank has changed its mind about how this may best be achieved.
Raju is likely cooperating with the bank on a favorable exit so that he can be classified a «good leaver» and avail of any vested stock he may have. He was previously APAC head of asset and wealth management at Deutsche Bank and his appointment as head of its billionaire client group was seen by many as a stepping stone towards a bigger role. However constant organizational changes at the bank meant the larger role – if it was ever promised – never materialized.
Bit of a Shock
«The reorganization has come as a bit of a shock,» says one employee of the bank in Asia who did not envisage the changes to the existing structure or Raju’s consequential departure when he spent time with Khan in early November this year.
«He must have his own reasons for playing his cards close to his chest but it has left some of us feeling more removed from the decision-making process,» he says of his new boss’ style. «The changes are wide-reaching because they will impact clients and bankers.»
Consolidation of Power
Neither UBS or Raju have commented on the reason for his departure, although industry sources indicate it is unlikely to be the only collateral damage from the reorganisation, the purpose of which seems to be a consolidation power as well as a reduction in costs.
