In a significant shake-up of its wealth management arm, UBS has unveiled plans for a comprehensive reorganisation.

The changes were announced in an internal memo seen by Reuters that was sent on Thursday by the division's newly appointed co-leaders, Rob Karofsky and Iqbal Khan.

The Swiss banking giant will establish a new unit – GWM Solutions – set to launch on 1 July. This unit aims to integrate various client offerings, including investment management, lending, family and institutional wealth management, and alternative investments. Former Credit Suisse banker Yves-Alain Sommerhalder has been tapped to lead this new initiative.

In a notable development, Latin America will become a standalone business unit, reflecting its increased significance following UBS's recent acquisition of Credit Suisse. This move acknowledges the region's "significantly increased size and potential", according to the memo. Marcello Chilov, previously Credit Suisse's chief executive officer in Brazil, will head this new unit.

The restructuring also sees changes in the US operations, with JP Morgan veteran Michael Camacho joining UBS as Head of Global Wealth Management U.S., effective 16 September.

These changes come in the wake of UBS's decision last month to split its top wealth management role, creating new responsibilities for Karofsky and Khan. Both are seen as potential successors to current CEO Sergio Ermotti.

The wealth management division is crucial for UBS, accounting for over half of the bank's total revenues. This reorganisation comes as UBS continues to integrate Credit Suisse following last year's state-backed takeover, a move that has significantly expanded its wealth management capabilities.

As UBS navigates the complexities of this major restructuring, industry observers will be keenly watching how these changes impact the bank's market position and future growth strategies.

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