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UBS brings midsize customers to the wallet. Beginning January 1 of next year, they will have to pay a multiple of their previous fees and expenses for banking services.
That comes from a letter from UBS. Customers domiciled abroad are the first affected. So far, they have paid a few hundred francs a year for the number 1’s services.
Now it’s 330 francs a month. Extrapolated per year, this results in almost 4,000 francs, with assets of up to 500,000 francs.
The new fees apply regardless of whether the funds are invested or in a cash account.
The bank declined to comment on the on-demand price increases.
A Swiss resident in the Far East says the new rates would increase his current UBS rates ten times.
He is bothered by the fact that UBS is offering him a significant investment in internal products as an outlet.
“If you buy a UBS portfolio for 80 percent of my assets, the new fees will not apply,” he writes.
“I see this as coercion, not to say blackmail. An outrage “.
The bank calls the service “UBS Manage Advanced”. If you manage your money with this offer, the bank waives the new “WM Service Fee”; a trivialization of the ugly negative interest rate.
UBS is flexible in discussions. Anyone who has invested part of their assets in securities with the bank no longer has to put most of their money in “UBS Manage Advanced”.
Also, the remaining cash in the account will not be debited with the “WM Service Charge” or negative interest.
The consultants’ explanations, as well as the market leader’s price offensive in global asset management, show what it’s really all about. UBS is expanding its negative interest regime.
It does this through the term “WM Service Fee”. The amount is exorbitant, at least for the group of Swiss abroad.
If you want to avoid negative interest rates, you must invest a large part of your assets in the bank in UBS products. This is done in the form of the “Manage Advanced” offer.
UBS has not achieved impressive returns for its clients in recent years. Those who invested their money in solid Swiss stocks earned much more from their savings.
The turn of the rate screw occurs only for the change of CEO. On November 1, Dutchman Ralph Hamers will replace Sergio Ermotti from Ticino.
The two co-heads of the global wealth management business, Iqbal Khan and Tom Naratil, can expect better numbers for 2021 with the price increase.
That would strengthen his own position. What the customer receives in return is less clear.
