© Reuters. An individual walks previous the brand of Credit score Suisse exterior its workplace constructing in Hong Kong, China March 20, 2023. REUTERS/Tyrone Siu
By Engen Tham and Julie Zhu
SHANGHAI/HONG KONG (Reuters) -Credit score Suisse advised workers its wealth belongings are operationally separate from UBS for now, however as soon as they merged shoppers may wish to contemplate shifting some belongings to a different financial institution if focus was a priority, in accordance with an inner memo.
The memo, dated Sunday and seen by Reuters, gave speaking factors to Credit score Suisse workers for shopper conversations after a historic Swiss-backed acquisition of the troubled financial institution by UBS Group.
“For now, belongings are nonetheless legally separated. As soon as that modifications, you (shoppers) could in fact wish to contemplate shifting a few of your belongings to a different financial institution if focus is a priority,” the memo stated.
That response was advised to Credit score Suisse workers in the event that they have been requested by shoppers what they need to do in the event that they have been additionally a UBS shopper and needed to keep away from an excessive amount of asset focus, which could be a concern for rich prospects.
In a bundle orchestrated by Swiss regulators on Sunday, UBS can pay 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit score Suisse and assume as much as $5.4 billion in losses.
UBS will develop into the undisputed international chief in managing cash for the rich by means of the takeover of its essential rival, triggering some issues about focus dangers for shoppers.
Credit score Suisse additionally advised workers to tell shoppers that plans for its funding banking enterprise shall be communicated in the end as particulars of its acquisition by UBS have been nonetheless being labored out, in accordance with the memo.
“We don’t count on there to be any disruption to shopper providers. We’re totally targeted on making certain a clean transition and seamless expertise for our valued shoppers and prospects,” a Credit score Suisse spokesperson stated.
Credit score Suisse can also be going forward with its annual Asia Funding Convention in Hong Kong, beginning on Tuesday, the spokesperson stated, including the occasion, nevertheless, would now be closed to media.
In a separate memo on Sunday, the financial institution advised staff that its day-to-day operations have been unaffected after it agreed to the UBS takeover.
“Our branches and our international places of work will stay open, and all colleagues are anticipated to and will proceed to come back to work,” Credit score Suisse stated within the memo despatched globally and seen by Reuters.
Reuters reported on Friday, citing sources, that a lot of main banks together with Societe Generale (OTC:) SA and Deutsche Financial institution AG (NYSE:) have been proscribing new trades involving Credit score Suisse or its securities.
Relating to counterparties having stopped enterprise with Credit score Suisse, the financial institution stated within the shopper speaking factors memo that it believed the transaction “will assist to revive confidence to the monetary markets extra broadly.”
Market gamers stay involved in regards to the subsequent strikes at Credit score Suisse and the influence on staff, traders and shoppers.
UBS Chairman Colm Kelleher advised a media convention that it will wind down Credit score Suisse’s funding financial institution, which has hundreds of staff worldwide. UBS stated it anticipated annual price financial savings of some $7 billion by 2027.
