UBS’ joint venture (JV) company in Japan will acquire Credit Suisse’s wealth management business in the country, according to people familiar with the matter, following the lender’s takeover of its smaller Swiss rival last year.
UBS SuMi Trust Wealth Management will absorb Credit Suisse Securities Japan unit’s employees and clients’ assets, said the people who asked not to be identified as the information is not public. UBS Securities Japan owns 51 per cent of the JV and Sumitomo Mitsui Trust holds the other 49 per cent.
UBS, which completed the acquisition of Credit Suisse last year, provides wealth management services for clients with accounts of more than US$2 million, and this standard will be applied to clients held by Credit Suisse Securities, according to the people, possibly making some accounts ineligible.
The move comes as the number of affluent households in Japan has been increasing, making wealth management more attractive though the field is dominated by domestic banks. The financial assets of households with net financial assets of 500 million yen (S$4.4 million) or more totalled 105 trillion yen in 2021, compared with 46 trillion yen in 2005, according to a study by Nomura Research Institute.
Spokespeople for UBS Securities and Sumitomo Mitsui Trust declined to comment.
Across the Asia-Pacific region, UBS is planning to shut smaller-value Credit Suisse wealth accounts numbering in the low thousands, and the lender is reviewing the accounts with a balance of around US$2 million or less. BLOOMBERG
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