UBS is restructuring its private bank, the first major move under new co-head Iqbal Khan, finews.com has learned. The move dramatically reduces the influence of two veterans of the Swiss bank.

The Zurich-based wealth manager is making a host of changes three months into the tenure of Iqbal Khan, who joined from Credit Suisse, as co-head of its private bank, according to a memo to staff seen by finews.com.

The biggest changes? Breaking up its European, Middle East, and African business, which dramatically curbs the purview of current head Christine Novakovic, into three parts. She is left with the EU piece including a Frankfurt hub for Europe, while Caroline Kuhnert takes on Central and Eastern Europe. Ali Janoudi will run UBS' business in the Middle East and Africa.

Product Engine Moved

UBS is also combining a speciality unit which tailors products for the ultra-wealthy, led by veteran Christian Wiesendanger, with a markets team within its investment bank. Wiesendanger, who took over sole leadership of the unit just over one year ago, will be offered a new, as-yet undisclosed new role at UBS, Khan and co-head Tom Naratil said in the memo.

The duo said the move is a bid to speed up how it makes decisions, limit duplication, and «delayer,» which generally means cutting jobs. Khan and Naratil made no mention of specific cuts. UBS plans to dismiss as many as 500 bankers as a result of the changes, according to «Bloomberg,» which first reported the move.

U.S. Families Push

The move is the second leg of UBS' referral of some of its super-rich and family office clients back into the regions. UBS' top executive for the super-rich, Josef «Joe» Stadler, is coming away from the revamp with a mandate to expand the bank's business with wealthy families, including in the U.S.

«We are pleased to announce that we will accelerate decision-making and time to market by delayering, reducing organizational duplication, and increasing business unit autonomy, which comes with more accountability,» Khan and Naratil wrote to staff.

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