The PUK report has revealed new findings that could support the case for investors affected by the write-down of Additional Tier 1 (AT1) capital instruments.
The report suggests that UBS played a more active role in initiating the write-downs than previously acknowledged. This contradicts earlier assumptions that the Financial Market Authority (Finma) acted independently in this matter.
The report also highlights discussions between Finma and the Department of Finance regarding the authority to instruct banks to write off AT1 instruments. This raises questions about the motivations behind the write-downs and whether Finma acted under pressure from other governmental bodies.
The implications of the report are significant for the investors seeking redress, as it could shift the narrative in their favor. Law firms involved in the case view the findings as advantageous. The legal proceedings will likely focus on the extent of UBS's involvement and the regulatory framework that allowed for the write-downs.
The financial community will closely watch the legal battles to understand the implications for the treatment of AT1 instruments in future crises.