SHANGHAI/HONG KONG, March 20 (Reuters) – Credit Suisse told staff its wealth assets are operationally separate from UBS for now, but once they merged clients might want to consider moving some assets to another bank if concentration was a concern, according to an internal memo.
The memo dated Sunday, seen by Reuters, gave talking points to Credit Suisse (CSGN.S) staff for client conversations after a historic Swiss-backed acquisition of the troubled bank by UBS Group (UBSG.S).
In a package orchestrated by Swiss regulators on Sunday, UBS will pay 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse and assume up to $5.4 billion in losses.
UBS will become the undisputed global leader in managing money for the wealthy through the takeover of its main rival, triggering some concerns about concentration risks for clients.
Credit Suisse also told staff to inform clients that plans for its investment banking business will be communicated in due course as details of its acquisition by UBS were still being worked out, according to an internal memo.
“We do not expect there to be any disruption to client services. We are fully focused on ensuring a smooth transition and seamless experience for our valued clients and customers,” a Credit Suisse spokesperson said.
Credit Suisse is also going ahead with its annual Asia Investment Conference in Hong Kong, starting on Tuesday, the spokesperson said, in response to Reuters’ request for comment on the internal memo.
Reporting by Engen Tham and Julie Zhu; additional reporting by Scott Murdoch; Editing by Sumeet Chatterjee, Himani Sarkar and Jamie Freed
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