UBS Appoints Stott Head of European Wealth Management
Stott, 55, will be responsible for rich customers who bank “onshore,” or in their countries of residence, including France, Germany, Italy and the U.K. He starts in the new position at UBS on Oct. 1, and will report to Juerg Zeltner, 43, the head of wealth management, Zurich-based UBS said today.
UBS, which is trying to return the business to profit, may need longer than this year to achieve the goal because of the “difficult” economic environment, Zeltner said in an interview last month. Stott’s responsibilities will not include the business with European clients that book their assets outside of their home countries, which has come under pressure as governments from the U.S. to Germany crack down on tax evasion.
“Onshore business will be gaining more and more importance in the future for wealth managers,” said Dirk Becker, a Frankfurt-based analyst at Kepler Capital Markets. “It is also a big strategic push at UBS, which has been going on for years.”
UBS’s wealthy clients withdrew a net 243.5 billion Swiss francs ($231.9 billion) in the two years through March after credit-crisis losses and attacks on Switzerland’s banking secrecy. Chief Executive Officer Oswald Gruebel said last month he’s “confident” the bank can stop outflows this year after withdrawals slowed in the second quarter.
UBS rose 11 centimes, or 0.6 percent, to 17.41 francs by 3:28 p.m. in Swiss trading. The stock has climbed 8.5 percent this year, compared with a 1.8 percent decline in the 54-company Bloomberg Europe Banks and Financial Services Index.
Stott, a Danish citizen, was the chief operating officer for JPMorgan’s investment bank in Europe until June. At UBS he will be a member of Zeltner’s executive committee and have Andre Cronje, head of U.K. wealth management, Axel Hoerger, who leads the business in Germany, and Rene Mottas, who’s responsible for the rest of Europe, report to him.
The onshore business in Europe, excluding Switzerland, accounts for more than a third of wealth management’s 786 billion francs in assets under management. UBS’s wealth management Americas, which includes the former Paine Webber Inc., has 693 billion francs in invested assets.
UBS, once the world’s biggest money manager for the wealthy, is seeking to stem defections after admitting last year to participating “in a scheme to defraud the U.S.” by helping American clients hide assets from the Internal Revenue Service. The Swiss bank ranked second behind Bank of America Corp. among the world’s biggest wealth managers in 2009, Scorpio Partnership said in an annual study in July.
Stott, who was also the global head of reputation risk office at JPMorgan before his departure, joined the U.S. firm in London in 1982 as a derivatives trader. He became managing director and treasurer of JPMorgan in Frankfurt in 1990 and head of the Frankfurt office a year later, before relocating to Asia Pacific as the regional head of global markets in January of 1993 and adding the role of general manager in Singapore in 1994.
Born in Aarhus, Denmark’s second-biggest city, Stott got a master’s degree in economics from the University of Copenhagen in 1980 and a master’s of business administration from Northwestern University’s J.L. Kellogg School of Management in 1982.
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