11:15 AM EDT, 07/31/2024 (MT Newswires) -- (Updates with FINMA's comments in the fifth and sixth paragraphs.)

UBS (UBS) was being scrutinized by the Swiss Financial Market Supervisory Authority on how the company vets risky wealthy customers that it wants to transfer from Credit Suisse, Reuters reported Tuesday, citing unnamed sources with knowledge of the matter.

Earlier this year, FINMA reviewed the methods that UBS applied to vet Credit Suisse's wealth management clients, the sources told Reuters. However, the news outlet said it couldn't establish whether FINMA has asked UBS to take specific actions based on the reviews.

The regulator may conduct further reviews as the integration of UBS and Credit Suisse continues, the report said.

A UBS spokesperson told Reuters that as the bank "prepares for the transition of Credit Suisse clients onto its platforms, UBS upholds the stringent client due diligent procedures it already had in place prior to the acquisition."

A FINMA spokesperson told MT Newswires on Wednesday that the integration between UBS and Credit Suisse is a "top supervisory issue for FINMA and it is closely monitoring it accordingly -- with adequate resources and using all its instruments, such as on-site inspections."

The regulator is focusing on "both the financial and non-financial (e.g. operational risks, conduct) risk profile," the FINMA spokesperson said.

UBS didn't respond to a request for comment by MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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