UBS Withdraws From Australian Wealth-Management Business -- Update

   By Robb M. Stewart 
 

MELBOURNE, Australia--UBS AG said it plans to withdraw from its Australian wealth-management business, leaving senior employees to strike out on their own following a management buyout.

The Swiss bank said Tuesday it made the decision to cease providing wealth-management services in the country following a review of its operation.

Mike Chisholm has stepped down as head of the Australian business unit and, together with a group of former senior advisers from UBS, has established independently owned Crestone Wealth Management.

Alain Robert, global vice-chairman of wealth management at UBS, said the decision to quite wealth-management operations in Australia was based on a number of factors. The industry was experiencing substantial changes due to increased regulatory and client requirements that had made it increasingly difficult to operate on a sustainable basis in Australia, he said in a statement.

Still, UBS said Australia remained strategically important and the bank would continue investing in its investment banking and asset management businesses in the country

Separately, Mr. Chisholm said almost all of the client advisers and the senior management of the local UBS business had indicated they will join Crestone, which is expected to be operational in October.

"Our objective is to create Australia's first independent global wealth manager," he said.

The new business will offer a range of products and aims to have a leading information-technology platform to provide clients with real-time data and portfolio reporting, It also is in discussions with unnamed domestic banks to add to the products it can offer, Mr. Chisholm said.

Crestone plans to continue to access UBS's global macroeconomic and local equities research.

Geoff Stansen, Gary MacKenzie, Andrew Lees, Leigh Birtles and Don Chandler are among the advisers from Melbourne, Sydney and Brisbane who with senior management have joined Mr. Chisholm in creating the new business.

Write to Robb M. Stewart at [e-mail]

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