UBS is making contingency plans, including moving its headquarters abroad or merging with another bank, if Switzerland passes legislation it finds overly strict, Reuters reported.

Switzerland is in the process of passing legislation in response to the 2023 Credit Suisse collapse, and later this month its Lower House will begin debating bills passed by the Upper House last month.

Earlier in September, UBS chief executive Sergio Ermotti argued that the proposals were
intended to “eliminate all risks” at the expense of the bank’s competitiveness.

Citing people familiar with the matter, Reuters reported that a group inside the bank is considering a variety of options should the legislation prove intolerable, including drawing up a list of smaller US banks that UBS could potentially buy and the takeover of UBS itself.

There are no talks currently underway, the people added.

In a statement to the newswire, UBS said: “We don't comment on speculation or views expressed on such matters.”

On Friday, the Financial Times reported that UK officials were working to convince the bank to move its headquarters to the country in the event of a move. A source told Reuters at the time that London had emerged as one of the best options in UBS’s 2025 contingency planning.

The rules as passed by the upper house will require UBS to hold up to 90 per cent of its foreign holdings with CET1 capital, which must be cash or cash-equivalent. The initial proposal of 100 per cent would have forced the bank to hold up to $24 billion in additional capital, it said.

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