Cevian Capital Urges UBS to Relocate Amid Swiss Capital Plans

Activist investor Cevian Capital, which holds a 1.4% stake in UBS, is urging the bank to relocate from Switzerland due to stricter capital requirements proposed by the Swiss government. Cevian's co-founder Lars Förberg says it is no longer possible to run a large international bank from Switzerland under the current proposals. UBS is considering relocating its headquarters to an overseas location if the Swiss government insists on the capital hike.

UBS Group AG is reportedly considering relocating its headquarters from Switzerland to the United States in response to proposed stricter capital requirements by the Swiss government. This potential move, first reported by the New York Post, underscores the bank's efforts to navigate regulatory pressures and maintain its competitive edge. The proposal follows Switzerland's Federal Department of Finance's June 2025 announcement that UBS should fully capitalize its foreign subsidiaries, up from the current 60% threshold. This move is expected to increase UBS’s common equity tier-one capital by up to $26 billion UBS Group AG Mulls U.S. Relocation as Swiss Capital Rules Tighten^[1].

Activist investor Cevian Capital, which holds a 1.4% stake in UBS, has urged the bank to relocate due to the proposed capital hike. Cevian's co-founder Lars Förberg stated that it is no longer feasible to run a large international bank from Switzerland under the current proposals. UBS has held preliminary discussions with U.S. officials to explore a potential headquarters move, which could involve acquiring or merging with a mid-sized U.S. bank to strengthen its presence Switzerland’s biggest bank UBS threatens to shift HQ to US^[2].

The Swiss government's proposal aims to strengthen the stability of the Swiss banking system and reduce the likelihood of another crisis similar to Credit Suisse. However, UBS has criticized the proposals, arguing that they could undermine competitiveness without enhancing stability. The bank has stressed that while it intends to remain a global bank headquartered in Switzerland, it is exploring ways to safeguard shareholder and stakeholder interests if the rules proceed as drafted UBS Group AG Mulls U.S. Relocation as Swiss Capital Rules Tighten^[1].

UBS has been steadily integrating Credit Suisse, having already merged 95 Swiss branches and achieved $9.1 billion in cost savings since the end of 2022. This represents about 70% of its ambitious $13 billion target set for completion by 2026. While legacy legal costs from Credit Suisse remain a drag, UBS is firmly on track to complete the integration by 2026, reinforcing its wealth management dominance and strengthening its capital position UBS Group AG Mulls U.S. Relocation as Swiss Capital Rules Tighten^[1].

The political climate in Switzerland has added to the strain. Finance minister Karin Keller-Sutter has insisted it was "not up to the Federal Council to determine the location of UBS’s head office" and noted that such threats were not new. The Swiss People's Party has voiced opposition to significantly higher capital demands, leaving the outcome uncertain as parliament begins its debates Switzerland’s biggest bank UBS threatens to shift HQ to US^[2].

The consequences for Switzerland should UBS leave would be far-reaching. Tax revenues for the federal government, cantons, and municipalities would shrink. Thousands of highly paid jobs in Zurich could disappear. Smaller businesses, which rely on UBS for credit, might also struggle to secure financing. Observers have warned that the reputational damage would be "immense" Switzerland’s biggest bank UBS threatens to shift HQ to US^[2].

UBS has started lobbying while parliament prepares to debate the law. The legislative process could take years, giving the bank time to press its case Switzerland’s biggest bank UBS threatens to shift HQ to US^[2].

The potential relocation of UBS's headquarters to the U.S. highlights the bank's adaptability and could provide greater opportunities for growth through deals and acquisitions in the robust U.S. financial market. However, such a move would entail complex logistical and legal hurdles. Analysts point to the need for restructuring holding companies, as UBS outlined in past mergers, including plans for a single U.S. intermediate entity post-Credit Suisse acquisition UBS Eyes US Headquarters Shift to Dodge Swiss Capital Rules^[3].