UBS Chairman Colm Kelleher has voiced his concerns regarding the Swiss financial industry regulator, FINMA, and its need for increased regulatory authority.
Kelleher made these remarks during the FT’s Global Banking Summit in London, emphasizing the importance of strengthening FINMA’s oversight capabilities in light of the recent downfall of Credit Suisse, which highlighted the regulator’s perceived inadequacy.
Kelleher articulated the need for regulatory enhancement, stating, “People should be looking at giving the regulators more teeth.”
He emphasized that the situation in Switzerland demonstrated that FINMA did not possess the necessary authority at the time.
He further emphasized the importance of assisting FINMA in acquiring these essential regulatory powers.
UBS’s Chief Executive, Sergio Ermotti, had previously expressed support for refining the regulatory framework in Switzerland.
Ermotti advocated for the adoption of a more explicit set of senior management responsibilities, akin to those in the United Kingdom, to strengthen governance and accountability within financial institutions.
Kelleher also provided an update on UBS’s ongoing integration of its former rival.
He noted that UBS had exceeded expectations in this process thus far, but he acknowledged that challenges and complexities lay ahead.
Addressing concerns regarding the broader financial landscape, Kelleher assured that UBS remained unaffected by the crisis surrounding the troubled property group Signa.
Signa is associated with numerous high-profile projects and department stores, and several European banks have been ensnared in its turmoil.
However, Kelleher expressed confidence in UBS’s resilience, stating, “That is one exposure that I’m not even concerned about.”
In summary, Colm Kelleher, the Chairman of UBS, has called for strengthening FINMA’s regulatory authority in response to the lessons learned from Credit Suisse’s recent troubles.
He emphasized the importance of providing regulators with the necessary tools to ensure the stability and integrity of the Swiss financial industry.
Additionally, he reaffirmed UBS’s commitment to its integration efforts and expressed confidence in the bank’s ability to weather potential challenges in the current financial landscape.