UBS’s new wealth management co-leaders announce reshuffle

By Noele Illien and Oliver Hirt

ZURICH (Reuters) – UBS is making changes to its wealth management arm, the division’s new co-leaders Rob Karofsky and Iqbal Khan said in their first internal memo sent on Thursday and seen by Reuters.

Last month UBS said it would split its top wealth management role as part of a shake-up of its executive board, creating new responsibilities for Karofsky and Khan as two leading contenders to eventually succeed CEO Sergio Ermotti.

The memo said UBS will create a new unit from July 1, named GWM Solutions, to integrate various client offerings, such as investment management, lending, family and institutional wealth management and alternative investments.

The unit will be lead by former Credit Suisse banker Yves-Alain Sommerhalder.

Wealth management is UBS’ flagship business, making up more than half of total revenues at the Swiss bank, which last year took over Credit Suisse in a state-sponsored rescue and is in the process of integrating its former rival.

In a further move, Latin America is to become its own business unit “following our combination with Credit Suisse, and recognising its significantly increased size and potential,” the memo said.

It will be led by Marcello Chilov, Credit Suisse’s former chief executive officer in Brazil.

In the United States, JP Morgan banker Michael Camacho will join UBS as Head of Global Wealth Management U.S., starting on Sept. 16.