Sources tell Reuters the Federal Council intends to water down parts of its post-Credit-Suisse banking-reform package that could otherwise force UBS to raise an extra $11 billion in capital by 2027. The tweaks would relax how software and deferred-tax assets are valued, potentially saving the bank around $7 billion.
While the ordinance is still slated to require UBS to fully capitalise foreign subsidiaries—a costlier element in the regulation—Bern’s willingness to compromise follows intense lobbying from industry groups and several cantonal governments. UBS executives have privately floated moving the group’s headquarters abroad if Switzerland imposes standards exceeding Basel III norms, a threat that sharpened political focus on the broader economic fallout of losing a flagship multinational.
![Government poised to soften UBS capital rules amid relocation warnings]()
For global-mobility practitioners, the episode underscores how regulatory risk can drive corporate location decisions, impacting international assignment flows, head-office staffing and commuter patterns for thousands of employees. Should UBS ever revive its relocation scenarios, Swiss tax authorities could lose millions in wage withholding, and expatriate packages might need renegotiation under different social-security regimes.
The revised ordinance is expected in Q2 2026 and will come into force in January 2027, giving mobility teams a two-year window to map contingency plans. Employers in other sectors should track the precedent: softer rules may encourage firms to stay, but continuing uncertainty argues for flexible relocation budgets and early engagement with cantonal economic-development agencies when expansion plans are assessed.
While the ordinance is still slated to require UBS to fully capitalise foreign subsidiaries—a costlier element in the regulation—Bern’s willingness to compromise follows intense lobbying from industry groups and several cantonal governments. UBS executives have privately floated moving the group’s headquarters abroad if Switzerland imposes standards exceeding Basel III norms, a threat that sharpened political focus on the broader economic fallout of losing a flagship multinational.
For global-mobility practitioners, the episode underscores how regulatory risk can drive corporate location decisions, impacting international assignment flows, head-office staffing and commuter patterns for thousands of employees. Should UBS ever revive its relocation scenarios, Swiss tax authorities could lose millions in wage withholding, and expatriate packages might need renegotiation under different social-security regimes.
The revised ordinance is expected in Q2 2026 and will come into force in January 2027, giving mobility teams a two-year window to map contingency plans. Employers in other sectors should track the precedent: softer rules may encourage firms to stay, but continuing uncertainty argues for flexible relocation budgets and early engagement with cantonal economic-development agencies when expansion plans are assessed.
