UBS sets up committee to follow probes (Haig Simonian)

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UBS

2 Oct 2008- UBS on Thursday gave its clearest indication yet of how seriously it is treating US probes into its former Swiss-based private banking activities for wealthy American clients by announcing it had set up a special boardroom committee to follow the issue.

Peter Kurer, chairman, said the task would be undertaken by the board’s risk committee. {xtypo_quote_right} UBS is also under investigation by the US Department of Justice and the Securities and Exchange Commission in separate, but linked, inquiries into whether bankers assisted clients in evading tax, or breached US rules on providing investment advice. The bank has said it is co-operating with the inquiries. {/xtypo_quote_right}

But, to underline the need for independence, Stephan Haeringer, a committee member and former UBS executive, had been replaced by Sergio Marchionne, the bank’s lead independent director, to ensure all participants were outsiders.

The announcement came as UBS adopted forthright language in recognising mistakes had been made at the operation, which is being wound down.

“Our own compliance rules have been broken . . . [w]e regret this extraordinarily,” Mr Kurer told investors.