UBS charge for ac­counts above €1m

New Straits Times - - Business -

ZURICH: UBS Group AG is ex­tend­ing charges on cash hold­ings to more of its cus­tomers, be­com­ing the lat­est bank to pass on the euro­zone’s neg­a­tive in­ter­est rates.

The world’s largest wealth man­ager in­tro­duced a charge of 0.6 per cent on euro-de­nom­i­nated ac­counts with cash hold­ings ex­ceed­ing €1 mil­lion (RM4.77 mil­lion), the bank told clients in a let­ter seen by Bloomberg.

UBS con­firmed the con­tent of the let­ter.

“This charge re­flects our costs re­sult­ing from the con­tin­u­ing ex­traor­di­nar­ily low in­ter­est rates in the euro area and in­creased liq­uid­ity reg­u­la­tions,” said the bank in the let­ter.

Clients who don’t agree to the con­di­tions need to in­form UBS and close their ac­count by the end of next month.

The Euro­pean Cen­tral Bank is try­ing to re­vive the euro-area econ­omy by charg­ing banks to keep money overnight at the ECB rather than lend or in­vest it, and by pur­chas­ing bonds to drive bor­row­ing costs lower for firms.

UBS is among lenders grap­pling with the head­winds of neg­a­tive in­ter­est rates and in­tro­duc­ing fees for clients.

The new UBS charge will be cal­cu­lated and deb­ited daily and ap­plies to the to­tal com­bined bal­ance in mul­ti­ple ac­counts held by the same cus­tomer.

It doesn’t ap­ply to euro ac­counts held in other in­vest­ment ad­vi­sory or dis­cre­tionary man­dates. Bloomberg

BLOOMBERG PIC

UBS Group AG will charge de­pos­i­tors 0.6 per cent on eu­ro­de­nom­i­nated ac­counts with cash hold­ings ex­ceed­ing €1 mil­lion.

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