New co-heads of wealth management at UBS announce reshuffle By Reuters

Written by Noelle Eileen and Oliver Hurt

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

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

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

The unit will be led by former Credit Suisse banker Yves Alain Somerhalder.

Wealth management is UBS’s core business, accounting for more than half of total revenue at the Swiss bank, which last year took over Credit Suisse in a state-sponsored rescue and is in the process of merging its former rival.

In another move, Latin America will become its own business unit “following our merger with Credit Suisse, and in recognition of its significantly increased size and potential,” the memo said.

It will be chaired by Marcelo Chilov, former CEO of Credit Suisse in Brazil.

In the US, Michael Camacho, a banker at JP Morgan, will join UBS as head of global wealth management in the US, effective September 16.