UBS Sets Up Frankfurt Headquarters for European Wealth Management Operation

ZURICH—Frankfurt, a financial center vying with other European cities to become a potential alternative to London for global investment banks following the U.K. vote to leave the European Union, has received a shot in the arm from Swiss banking giant UBS Group AG.

Zurich-based UBS said Thursday that it has established a long-anticipated entity in Frankfurt to centralize European operations. Most of UBS's wealth management businesses in Europe have been combined into the subsidiary, dubbed UBS Europe SE.

UBS had considered London and Luxembourg for the new European entity since beginning planning a few years ago. A UBS spokesman said the decision for Frankfurt isn't related to the U.K.'s vote earlier this year to leave the EU. The Brexit vote has called into question whether global banks will retain large operations in London.

UBS and others maintain significant investment bank operations in London, but may now need to find an alternative location for the so-called passporting of services into EU countries. Frankfurt and other European cities aiming to lure financial services firms may benefit as a result.

UBS's establishment of its Frankfurt subsidiary, which is regulated by Germany's BaFin, enables the bank to free up capital held protectively in various other European countries in response to local regulators' demands.

UBS will continue to be present in European countries like the Netherlands and Spain through branches.

Write to John Letzing at [e-mail]

(END) Dow Jones Newswires

December 01, 2016 11:15 ET (16:15 GMT)

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