UBS sets up Frankfurt for Wealth management operation

UBS has announced on Thursday that it is launching a Frankfurt headquarters as it consolidates its European wealth management operations. The bank had been considering London, before its vote to leave the European Union, as the UBS Europe headquarters, as well as well Luxembourg.

The new subsidiary, called UBS Europe SE, combines the bank’s German, Italian, Luxembourg, Austrian, Danish, Swedish, Dutch and Spanish wealth management businesses into one legal entity headquartered in the german town. The new set-up is also part of efforts by UBS to streamline its structure as it looks to cut costs by a net 2.1 billion Swiss francs ($2.07 billion) by the end of 2017.

In a statement the bank said it hopes the move will help to simplify its governance structure and make the bank's wealth division more efficient. It described setting up the Frankfurt business as “an important step to simplify its governance structure and increase operational efficiency across its European operations”. 

A management board has been established with market representatives from each country. UBS Europe's supervisory board will be chaired by Roland Koch, who has been chairman of UBS Deutschland since 2011. Meanwhile, Thomas Rodermann, who has headed UBS's German business over the last two years, will be spokesman of the UBS Europe management board.