UBS Curbs Sales of Complex FX Derivatives After Client Losses

UBS Group AG has instructed its bankers to sharply reduce the marketing of complex foreign-exchange derivatives to most wealth-management clients after a wave of losses tied to volatile currency moves that followed U.S. President Donald Trump’s April "Liberation day" tariff announcements, according to the Financial Times. The Swiss lender told advisers to stop pitching Range Target Profit Forwards—structured products that cap gains but can leave investors exposed to unlimited losses—except to the most sophisticated clients. UBS has already issued more than 100 goodwill payments to customers hurt when the U.S. dollar swung unexpectedly, and it has begun internal role-play sessions aimed at strengthening suitability and risk-assessment checks. Investor-protection group SASV said it is assisting 46 clients, some of whom are negotiating settlements, while UBS is reviewing the conduct of six advisers involved in the sales. The clamp-down comes as the world’s second-largest wealth manager faces intensified regulatory scrutiny following its 2023 emergency takeover of Credit Suisse.