**UBS Reviews Relationship Managers Over Currency Derivative Sales**
UBS Group AG is currently evaluating the roles of six relationship managers involved in selling complex currency derivatives to Swiss clients who may not have fully grasped the associated risks. Sources familiar with the situation indicate that some of these bankers have already left the firm, while the status of the remaining advisers is still under review.
A UBS spokesperson stated, “We have completed a review of this matter and determined that a very small number of clients in a few locations in Switzerland experienced unexpected effects from the US tariff-related market volatility in April 2025.” The spokesperson emphasized that UBS has taken the issue seriously, examining each client case individually, but declined to comment on the future of the advisers involved.
The bank is working to resolve the fallout from the losses incurred by these contracts, which have sparked significant concern in Switzerland. UBS has made what it describes as “goodwill payments” to clients who did not fully understand the risks of the investment products. This prompt action comes at a sensitive time for UBS, as it seeks to influence the Swiss government’s proposal for stricter capital requirements, which the bank has labeled as “extreme.”
Recent reports indicate that UBS has issued approximately 100 payments to Swiss customers affected by the losses. The derivatives sold by UBS were designed for professional and high-risk investors, who agreed to exchange dollars for Swiss francs at a fixed rate, provided the rate remained within specified limits. However, the market volatility in April resulted in losses for clients, some of which exceeded their initial investments, according to lawyers representing affected individuals.
The Swiss Association for the Protection of Investors has noted that many clients faced significant losses or margin calls, particularly impacting private clients with medium to large assets, including older individuals lacking specialized knowledge. General Secretary Arik Roeschke mentioned that most clients have reached agreements with UBS, with compensation reported to cover 80%-90% of their losses, although the specifics remain unclear due to non-disclosure agreements signed during settlements. One insider revealed that compensation amounts are typically determined on a case-by-case basis, often falling within the 50%-70% range.
As UBS navigates this challenging situation, the implications for its client relationships and regulatory standing remain to be seen.
**FAQ**
**What actions is UBS taking regarding the currency derivative issue?**
UBS is reviewing the roles of relationship managers involved in selling complex currency derivatives and has made goodwill payments to clients who did not fully understand the risks associated with these products.