UBS has withdrawn from wealth management in Australia following a management buyout.
UBS Wealth Management will be renamed Crestone Wealth Management following a management buyout led by chief executive Mike Chisholm.
Crestone will continue to use UBS’s global macro-economic and local equities research and its capital markets deal flow.
“Our objective is to create Australia’s first independent global wealth manager – combining an in-depth knowledge of local equities with access to the best range of global products including international direct equities, international OTC fixed income, multicurrency accounts, foreign exchange and international margin lending.
“We will also be looking at opportunities to continually grow our product offering to suit our clients’ investment objectives,” Mr Chisholm said.
UBS Global vice chairman for wealth management Alain Robert said: “The decision to cease providing wealth management services in Australia was a difficult one and was made after considering a number of factors.”
“The wealth management industry is experiencing substantial changes due to increased regulatory and client requirements which have led to increasingly complex operational processes.
“UBS’ global wealth management business model of providing holistic client advice has become increasingly difficult to fully operate on a sustainable basis in the local market, which is dominated by a brokerage-based system,” Mr Robert said.
Mr Chisholm, in an announcement as head of Crestone Wealth Management, described the new business as an “independently owned global wealth management business”.
UBS head of country Matthew Grounds said Australia remains of strategic importance for UBS.
“We will continue to invest in our market leading Investment Bank and Asset Management businesses,” Mr Grounds said.