UBS reportedly wants its top private banker to drop a criminal complaint after his former employer, Credit Suisse, spied on him. The request underscores the worry rampant in an industry reliant on secrecy and discretion.

The Swiss wealth giant would «welcome» if Iqbal Khan were to withdraw his criminal complaint following an altercation with a surveillance man last month, Swiss weekly «Sonntagszeitung» (in German, behind paywall) reported. UBS fears that new details may come to light and damage Khan, or that the probe is shelved for lack of substance, the outlet reported.

The delicately-couched request underscores how damaging the spy scandal is not just for Credit Suisse and Khan, but for UBS and other Swiss wealth managers. The snafu threatens to attract the wrong kind of headlines for Khan, a 43-year-old private banker who is tipped as one of three internal UBS candidates to succeed CEO Sergio Ermotti.

Khan Resists

For his part, Khan has no intention of dropping the matter, the outlet reported, citing a source familiar with the matter. A former consultant who emerged as a private banking star in Credit Suisse's three-year revamp, Khan's complaint sparked a fierce and public battle between UBS and Credit Suisse which reached as far as Kronenhalle, a pricey lunch spot popular with Zurich's power brokers. 

On a practical level, Khan has little to win from pursuing a complaint, which centers around surveillance firm Investigo, except for the principle. Khan reportedly confronted an Investigo detective after he realized he was being followed. It later emerged that the firm was hired by Credit Suisse to shadow Khan after he defected to UBS.

Asian Field Trip

UBS didn't comment on the investigation, but said it is delighted to have Khan on its team. «He is fully concentrated on his job at UBS and is in frequent touch with employees and clients,» the bank told the outlet.

Khan is due this week to travel to Asia, where the Swiss wealth manager has a huge private banking operation. It is the first time that Khan is responsible for Asia – at Credit Suisse, the region was carved out regionally, under Helman Sitohang.