FT: UK government sought to persuade UBS to shift headquarters

Britain’s Labour government sought to persuade UBS Group AG to shift its headquarters and stock market listing to London should the Swiss banking giant relocate from Switzerland due to strict new capital rules, the Financial Times reported on Friday. Former UK Chancellor Rachel Reeves pitched the City of London as an alternative home for the bank during discussions with UBS Chair Colm Kelleher.

Former Chancellor Rachel Reeves Pitches London to UBS Chair Colm Kelleher

The UK government’s outreach to UBS took place during a series of discussions between Reeves and Kelleher, with the most recent meeting occurring earlier this year. The talks covered the potential for UBS to move its legal headquarters and stock market listing to the United Kingdom if the bank decides to redomicile.

Those talks illustrate how foreign governments have attempted to court Switzerland's biggest bank while it manages a protracted political battle over regulatory reforms in its home market. Securing UBS would represent a major financial coup for London. With a market valuation of CHF129 billion, roughly $157 billion, the bank would immediately become the fourth-largest company in the FTSE 100 index, trailing only HSBC, Shell, and AstraZeneca.

UBS already maintains a substantial footprint in the UK. The lender employs approximately 8,000 people across investment banking, wealth management, and asset management in the country.

Stricter Swiss Capital Requirements Drive Relocation Speculation

The push by British officials follows a regulatory escalation in Switzerland. Swiss lawmakers rejected a compromise proposal and pressed ahead with strict new rules that UBS stated would force the lender to hold approximately $16 billion of additional capital.

The regulatory clampdown has sparked intense debate over the bank’s long-term future in its home jurisdiction. While UBS leadership maintains that its primary goal is to continue operating out of Switzerland, Kelleher publicly acknowledged last month that the lender could reconsider its base if the rules prove too burdensome.

Shareholders have begun echoing those concerns. US asset manager Artisan Partners, a major shareholder, stated in recent weeks that Switzerland is no longer an attractive or desirable location for the financial institution.

UBS Board Examines Redomiciling as Contingency Plan

UBS board members have examined contingency plans in response to the capital reforms, which include redomiciling the business. However, reporting indicates that the bank is not actively planning an immediate relocation to the UK or any other foreign market.

Many industry observers view the United States as a more probable alternative destination for the Swiss lender.

Senior executives at the bank held discussions with Donald Trump’s administration officials last year regarding a potential relocation to the US. Some financial analysts suggest a merger with a large US or European bank remains a more viable alternative.

Banking Executives Fear Potential Tax Increases

The dialogues between Reeves and Kelleher highlight the Labour administration’s broader push to attract international businesses since taking power in 2024. Reeves previously earned praise from banking executives after shielding the sector from tax increases in last year’s Budget following intense lobbying.

Despite that prior goodwill, financial executives remain concerned that her successor, John Healey, could target the banking industry for tax increases in his first Budget this month.

UBS and Rachel Reeves declined to comment on the reported headquarters discussions. The UK Treasury did not respond to a request for comment.