UBS told to tone down lobbying in row with Swiss government
Financial Times
March 3, 2026
AI-Generated Deep Dive Summary
Swiss banking giant UBS has been instructed by lawmakers to scale back its public opposition to government-imposed capital reforms, as tensions between the bank and Swiss authorities escalate. The government has rejected a compromise proposal aimed at easing the dispute over increased capital requirements of up to $26 billion. Lawmakers have reportedly urged UBS to reduce the high-profile involvement of CEO Sergio Ermotti in the lobbying effort, with sources indicating that his public statements are seen as counterproductive.
The Swiss finance minister, Karin Keller-Sutter, has rejected a set of revised proposals on capital reform presented by a cross-party group of politicians. This rejection has forced UBS to reconsider its succession planning, with discussions now underway regarding the possibility of extending Ermotti’s tenure beyond his previously announced 2027 departure date. Ermotti, who returned to lead UBS in 2023 following its merger with Credit Suisse, had initially planned to step down after April 2027. However, given the ongoing uncertainty and the need for stability, the bank’s board is now open to extending his leadership.
The relationship between Ermotti and Swiss authorities has soured further due to these developments. UBS has reportedly been advised by parliamentarians to reconsider its lobbying strategy, particularly as the integration of Credit Suisse into UBS is not expected to be fully completed until late 2026. The bank is currently exploring options to ensure a smooth transition and maintain financial stability. Potential successors for Ermotti include internal candidates such as wealth management co-heads Iqbal Khan and Robert Karofsky, asset management chief Aleksandar Ivanovic, and chief operating officer Bea Martin.
This situation highlights the delicate balance between regulatory compliance and strategic leadership in the banking sector. The dispute over capital reforms underscores the challenges faced by global banks in navigating complex regulatory environments while maintaining investor confidence. As UBS prepares for an uncertain future, the decision to potentially extend Ermotti’s tenure reflects the bank’s commitment to stability and long-term planning.
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Originally published on Financial Times on 3/3/2026