Swiss bank UBS in Mexico closes brokerage firm – sources.

File photo: The UBS logo of the Swiss bank can be seen at its branch office in Zurich, Switzerland, on June 22, 2020. REUTERS / Arnd Wiegmann / File Photo

October 14, 2021

By Noe Torres and Rodrigo Campos

Mexico City / New York (Reuters) – Swiss bank UBS closes its brokerage firm in Mexico and follows in the footsteps of other major global financial institutions that have chosen to leave Latin America’s second-largest economy. Three people familiar with the matter said.

The reason for the closure was not immediately clear. It was also unclear whether UBS would use other local services.

Two sources said UBS would maintain its presence in Mexico but manage operations from other regions.

“We continue to do our best to do business in Mexico,” UBS said in a statement. “We regularly review all our businesses to identify growth opportunities and improve operational efficiency to ensure consistency with our global strategic priorities.”

UBS said it would hire Gustavo Galvanduke as head of wealth management in Mexico earlier this year and continue to look for “local talent.” Galvan-Duque did not immediately respond to the request for comment.

Bloomberg initially reported on UBS’s plans to withdraw the brokerage firm.

Mexican financial officials announced in July that Deutsche Bank and JP Morgan have decided to close their Mexican offices, saying that global players have lost interest in the significantly stagnant domestic market. Shown to analysts.

“This is related to the lack of movement and also to the poorest investment climate,” said Jonathan Zuroaga, a wealth adviser to Columbus, a Mexican investment consultancy.

He added that the climate under President Andres Manuel Lopez Obrador, who took office in 2018, was useless. The left wing clashed with the corporate sector over decisions such as stopping the construction of a new airport and changing rules in the energy sector.

“The fact that there has been so much hostility towards the private sector since the beginning of the current administration is not a good sign,” Zuroaga added.

(Report by Noe Torres and Rodrigo Campos, edited by Daina Beth Solomon and Chris Reese)

Swiss bank UBS in Mexico closes brokerage firm – sources

Source link Swiss bank UBS in Mexico closes brokerage firm – sources


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