UBS Group AG is facing pressure from a coalition of campaigners who are urging the U.S. Department of Labor to revoke the bank's exemption from regulations that allow it to operate in the American pension market.
The campaigners argue that UBS's history of regulatory infractions, which includes approximately $20 billion in penalties for nearly 100 offenses, should disqualify it from managing the $30 trillion U.S. pension market.
UBS's legal challenges, including a conviction in France for facilitating tax evasion and a settlement in an antitrust lawsuit, have raised concerns among regulators and activists.
The bank's legal representatives have defended the bank, attributing the issues to individual employees rather than systemic problems.
The outcome of UBS's exemption application could set a precedent for how similar cases are handled in the future.
This situation highlights the growing concern regarding the accountability of large financial institutions and the effectiveness of current banking regulations.