UBS is currently facing challenges with its business dealings with U.S. pension funds. A coalition of tax activists is pushing to block the bank from continuing its operations in this sector.
The situation is complicated by legacy issues from UBS's acquisition of Credit Suisse, which has left the bank dealing with a complex regulatory landscape. Financial institutions in the United States are not allowed to manage pension funds if they have been convicted of criminal offenses or faced sanctions from regulatory bodies.
UBS is seeking to extend an existing exemption that allows it to operate in this space, but there is resistance from tax activists who want the extension denied. Activists have raised concerns about UBS's operational structures and its history of fines and legal issues. They argue that financial institutions often escape the full consequences of their actions.
UBS has submitted an application to the U.S. Department of Labor (DoL) to secure the necessary exemptions, arguing that the issues stem from individual employee misconduct rather than systemic failures. The outcome of the DoL's decision will be crucial for UBS's future dealings with U.S. pension funds and for the broader financial landscape as regulators grapple with past misconduct by major institutions.