(Bloomberg) — UBS Group AG is reviewing the role of six relationship managers who sold complex currency derivatives to Swiss clients who didn’t fully understand the risk, according to people familiar with the matter.
Some of the bankers have already departed the bank, said one of the people, who like the others asked for anonymity to discuss the private information. The situation of the remaining advisers is still being assessed, the people said.
“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,” a spokesperson for UBS said.
“From the outset we have taken this matter seriously and have looked at each client case individually,” the spokesperson said, declining to comment on the fate of the advisers.
UBS is trying to put the issue to rest after the losses from the contracts caused an uproar in Switzerland. It has made what it called “goodwill payments” to clients it views as not having fully understood the risks associated with the complex investment products.
The bank’s swift response comes at a delicate time for its relations with Swiss politicians. It is lobbying to mitigate the Swiss government’s proposal for more stringent capital requirements, a move that it has called “extreme.”
The Financial Times reported earlier this month that UBS made about 100 payments to Swiss customers who suffered losses from the contracts. The products sold by the Swiss bank were tailored to professional and high-risk investors, who agreed to regularly exchange dollars for Swiss francs at a fixed rate, as long as the rate stayed within certain bounds, Reuters previously reported.
The wild moves in April left clients with losses that in some cases exceeded the amount invested, lawyers who represent affected clients told Bloomberg News. Some of those clients have yet to have their situation discussed with the bank.
The Swiss Association for the Protection of Investors has said that in several of the cases there were significant losses or even margin calls. Private clients with medium to large assets were particularly affected, including older people without specialist knowledge, the group said.
“Most of those have reached an agreement with UBS,” General Secretary Arik Roeschke told Bloomberg. He said that while he heard of UBS clients being compensated for 80%-90% of their losses, the terms remain unclear because clients signed a non-disclosure agreement as part of the settlement.
One of the people familiar said the payments are determined on a case-by-case basis and often land around the 50%-70% range.
(Adds political context in sixth paragraph.)
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