UBS is currently facing challenges in its business relationships with US pension funds. A group of tax activists is campaigning against the bank, raising concerns about its past conduct and its implications for future dealings.
The bank is seeking an extension of a previous exemption that allows it to manage funds from US pension plans, but there is resistance to this request. The situation is further complicated by legacy issues stemming from UBS's acquisition of Credit Suisse.
In the United States, financial institutions are not allowed to manage pension fund assets if they have been convicted of criminal offenses or sanctioned by regulatory bodies. UBS has faced allegations of criminal behavior, with a representative of the activist group highlighting the bank's history of penalties for various offenses. The activist group has compiled a list of UBS's alleged offenses, which can be found in documents from the Department of Justice's Employee Benefits Security Administration.
UBS has submitted an application for an exemption, arguing that the issues are the result of individual misconduct rather than systemic problems within the organization. However, UBS's acquisition of Credit Suisse has added complexity to the situation, as the bank now inherits ongoing legal cases involving its predecessor. UBS is exploring legal avenues to overturn these judgments.
The outcome of UBS's exemption application is uncertain, and the resistance from tax activists and Credit Suisse's legal history pose challenges for the bank's business relationships with US pension funds. This situation has broader implications for the financial landscape and regulatory environment in the United States.