UBS in talks with clients over FX derivative losses on Trump volatility, sources say

Stefania Spezzati, Oliver Hirt and Ariane Luthi

Fri, May 16, 2025, 10:43 AM 4 min read

By Stefania Spezzati, Oliver Hirt and Ariane Luthi

LONDON/ZURICH (Reuters) -UBS is successful talks to compensate immoderate clients for losses aft they were sold analyzable foreign-exchange derivatives that wiped retired overmuch of their investments erstwhile U.S. President Donald Trump's tariffs sparked chaotic moves successful currencies, sources acquainted with the substance said.

Several 100 customers of the Swiss banking elephantine are affected, the sources said, immoderate of whom person seen a important deed to their investments. They see clients successful Switzerland and their combined losses tally into hundreds of millions of francs, 1 of the sources said.

Among those asking for compensation from UBS for the losses incurred are wealthier retail customers who reason they were sold analyzable products that they did not understand, the 2nd root said, adding that they were lone suitable for blase investors.

In 1 example, a UBS lawsuit has mislaid much than 50% of an concern made successful February into an FX derivative designed to stake connected the absorption of the dollar versus the Swiss francs, according to a papers detailing the show of the concern dated May 9 and seen by Reuters.

That client, unneurotic with 3 others, person accumulated much than 4 cardinal Swiss francs ($4.7 million) successful losses from the derivatives, 1 of the sources with cognition of their cases said, speaking connected the information of anonymity due to the fact that of the sensitivity of the matter.

Reuters could not ascertain the full magnitude of clients' losses and however overmuch UBS is considering successful compensation.

"The utmost volatility successful the markets of the past fewer weeks has impacted definite investments," UBS said successful a connection successful effect to questions.

"The immense bulk of our clients clasp diversified concern portfolios and person done comparatively good successful this volatile time. We are analyzing imaginable unexpected effects with our clients," it added.

While the standard of the lawsuit losses reported by sources truthful acold is simply a tiny fraction of the $5.9 trillion overseen by UBS, the world's No. 2 wealthiness manager, it is uncommon for banks to see compensation. Banks are required to guarantee fiscal products are suitable for the clients to which they merchantability them.

Discussions implicit lawsuit losses travel astatine a delicate clip for UBS, with the Swiss slope awaiting a authorities connection connected however overmuch further superior it mightiness person to clasp to bespeak its bigger size pursuing its rescue of Credit Suisse successful March 2023.

A spokesperson for Swiss Financial Markets regulator FINMA said it does not remark connected its supervisory activities oregon idiosyncratic cases and that it intimately monitors developments astatine the supervised institutions, including with spouse authorities, without further elaborating.