UBS has received a new waiver from the U.S. Department of Labor to manage U.S. retirement plans. This comes after the Swiss bank rectified a paperwork error that had jeopardized its license. The waiver allows UBS to continue its operations in the U.S. pension fund management sector without disruption.
It is effective from June 2023, coinciding with UBS’s takeover of Credit Suisse, and stretches through to June 2029. UBS expressed regret for the delay in submitting an essential audit report document by January 2024. The bank attributed the delay to the complex process of integrating Credit Suisse.
UBS’s legal counsel informed the U.S. Department of Labor in July that without the waiver, the bank would likely have to cease its asset management activities for U.S. pensions.
U.S. pensions waiver secured
The waiver secures UBS’s position in the U.S. retirement market, allowing it to continue providing services without disruption.
The decision comes as a relief to the firm and its clients who were potentially affected by the oversight. It highlights the importance of maintaining accurate and timely documentation in the heavily regulated financial services industry. UBS’s quick remediation and cooperation with regulators demonstrate its commitment to compliance and client service.
The development is significant not only for UBS but also for the broader financial services community. It underscores the regulatory scrutiny that firms managing retirement assets face and the potential repercussions of administrative oversights. When contacted for further comments by Dow Jones Newswires, UBS declined to comment.