Finma hits UBS with $7bn add-ons
Bank’s prime brokerage unit and VAR model targeted by the Swiss regulator
The Swiss regulator hit UBS with $7 billion of risk-weighted asset (RWA) add-ons in the third quarter, directed at the bank’s regulatory value-at-risk model and its prime brokerage activities.
The Financial Markets Supervisory Authority overlaid $5.5 billion on market RWAs underpinned by the VAR measure – a gauge of maximum potential trading loss over any 10-day window – to account for profit-and-loss time decay. The additional capital buffer was the result of discussions with Finma on the VAR
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