UBS is closing its U.S. private bank at the beginning of next year as part of an effort to consolidate its wealth management services in the U.S.
According to a company memo from Jason Chandler, head of wealth management USA, and Sylvia Coutinho, head of wealth management Latin America, sent to UBS employees in June and first reported by Citywire, the firm’s U.S. private bank will close on Jan. 1, 2021.
Thereafter, wealth management services will be provided by UBS Financial Services (FSI) and its FDIC-insured affiliate UBS Bank USA (BUSA).
Advisors in the U.S. private bank unit who transition into FSI will have access to its products and subject matter experts, according to the UBS memo.
Neither the memo nor UBS spokespeople would say how many advisors currently work in the U.S.-based private bank or how many would transition into FSI.
“By offering comprehensive wealth management services in the U.S. through UBS Financial Services and UBS Bank USA, we can provide all of our clients with a superior experience on a single platform, while also simplifying how we operate,” UBS said in a statement.
The memo from Chandler and Coutinho noted that the new structure for wealth management services through FSI and BUSA will help simplify operations, direct resources and investments more efficiently and reduce legal and regulatory complexities. Also coming in 2021 is a new Wealth Management Americas Platform.
UBS had introduced a program providing U.S. private bankers a path to becoming financial advisors two years ago.
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