UBS is preparing contingency plans that could include moving its headquarters out of Switzerland if lawmakers tighten the bank's capital requirements, Reuters reported. No concrete relocation is planned yet, and UBS emphasises that it wants to remain in Switzerland.
On 23 September the Council of States approved a proposal requiring systemically important banks to hold Common Equity Tier 1 (CET1) capital equal to 90% of their investments in foreign subsidiaries. Under existing rules, Swiss banks had to provide capital backing for about 60% of those subsidiaries. If the decision is implemented, UBS would have to hold approximately $16 billion of additional CET1 capital.
COST OF THE CAPITAL REQUIREMENT
UBS estimates that the 90% requirement comes on top of nearly $15 billion already required after the Credit Suisse acquisition and about $2 billion from other regulatory changes. That would bring its total incremental CET1 requirement to approximately $33 billion, with an estimated annual cost of around $2.5 billion.
The higher requirement could make UBS' business less capital-efficient by tying up more shareholder capital against its foreign businesses. The Federal Council had proposed raising the backing requirement to 100%, arguing that stronger capital at Swiss parent banks would give greater flexibility to restructure or sell foreign businesses in a crisis. In April 2026 it estimated that this would require UBS Group to hold around $20 billion of additional CET1 capital, and its announcements that month implied about $37 billion in total, at an annual capital cost of about $3 billion.
PARLIAMENT REJECTS A SOFTER COMPROMISE
UBS opposed the proposal, saying it would be excessive and could put the bank at a disadvantage against international peers. The Economic Affairs and Taxation Committee of the Council of States had proposed a compromise allowing part of the requirement to be met with AT1 capital, provided at least 50% was backed by CET1. The Council of States rejected that approach and backed the 90% CET1 requirement.
Swiss officials have stressed that anything short of full CET1 backing of UBS' foreign units could risk financial stability, since the bank's balance sheet is bigger than Switzerland's economy. The Swiss Bankers Association has argued that the 2023 crisis at Credit Suisse, which led to its emergency takeover by UBS, was a liquidity problem rather than one of insufficient capital. The possible relocation escalates UBS' long-running disagreement with Swiss authorities over capital rules, which stem from Switzerland's reassessment of its "too big to fail" framework after the rescue.
LONDON APPROACH AND THE US ALTERNATIVE
The British government has tried to persuade UBS to move its headquarters and stock listing to London, the Financial Times reported. Rachel Reeves, then Chancellor of the Exchequer, made proposals to UBS Chairman Colm Kelleher, and their most recent meeting on the subject took place earlier this year. With a market value of around 129 billion Swiss francs, UBS would become the fourth-largest company in the FTSE 100 index, and it already employs around 8,000 people in the UK.
A move to the US is nonetheless considered the more likely alternative. UBS representatives have already held talks with the Trump administration, and the US offers less strict capital regulations and a large market for wealth management.
SHAREHOLDERS AND MERGER OPTIONS
Kelleher recently said publicly that UBS could reconsider its location in Switzerland if regulatory requirements become too high. Major shareholders are also pushing for a review of alternative locations, and US asset manager Artisan Partners recently described Switzerland as no longer an attractive location for the bank.
UBS Group is also reportedly exploring strategic options, including a potential merger with a foreign bank. Morgan Stanley has been cited as a possible partner, while Standard Chartered and Deutsche Bank have been mentioned as alternatives. UBS shares rose sharply after Semafor reported that the bank had resumed internal talks about relocating its headquarters outside Switzerland.
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