When?

I’ve heard conflicting reports out of the Chairman’s Council meetings, but it sounds like UBS wants to pursue the Credit Suisse USWM model on a larger scale (which shouldn’t be a surprise to anyone since Ozzie is now at the helm).  The word is they want the US operations to focus on large market advisors with $100MM in assets and $1MM in T12 who work almost exclusively with clients $1MM and up (which is more analagous to the non-US model).  Obviously, this doesn’t happen overnight.  So, do they cut everyone under these numbers in the upcoming layoffs?  I doubt it.  Does this mean that any advisor who can’t realistically put up these kind of numbers in the next year is going to be miserable at UBS if they survive the cuts.  Likely.

Again, this is all secondhand info.  Could be completely inaccurate, but given what I’ve heard from Hoekstra and management, it doesn’t seem too far fetched.

The misreable part if you make the cut is my biggest fear. My clients do not fit the new model and  I didn’t spend the last 12 years building my client base to have them feel  like 2nd rate citizens. I live in a city of approx. 500,000 -600,000 population and I can tell you the clients UBS are looking to focus on are not found on every corner especially given the recent dowturn. Do you think maybe UBS is positioning to sell the US Wealth Managment group?  You know trim the fat, bump up the profits and sell baby sell??

JP Morgan is the rumored suitor.  Not sure how accurate that is.  Regardless, UBS is clearly no longer interested in competing with the MS/SM, Merrills and Wachovias of the world.  They want to brand themselves in the US as a mid size firm exclusively servicing HNW/UNW clientele with seasoned $1MM plus advisors in the field.  The Paine Webber model is officially dead and buried.  

One last question for you. I understand the Asia market got their layoffs today, not near what we will see here in the US. Switzerland is slated for tomorrow, when do you think the layoffs will occur for us?

No idea.  I’m completely in the dark like everyone else.  I think the announcement tomorrow may offer some clues as to what’s going to happen to the US and when.  

I am with Georgiaclose on this one for sure based on things I have heard from other offices. They are going to significantly slim down the operation and possibly sell another piece of it ala the SF deal a few weeks ago. How much of what is left, is anyone's clue but it maybe very close to the CS model as mentioned.

I have no idea on when or what the cut off will be for the coming cuts.

US cuts are coming next week for the home office. Advisors have been actively “counseled out” in the last few weeks so there shouldn’t be any surprises on the rep side.

[quote=georgicaclose]JP Morgan is the rumored suitor.  Not sure how accurate that is.  Regardless, UBS is clearly no longer interested in competing with the MS/SM, Merrills and Wachovias of the world.  They want to brand themselves in the US as a mid size firm exclusively servicing HNW/UNW clientele with seasoned $1MM plus advisors in the field.  The Paine Webber model is officially dead and buried.  
[/quote]

It was dead and buried a long time ago…this is just the last official sign.  The Swiss don’t understand how to do business here and they ruined a great firm.

What do you mean "advisors have been actively ‘counseled out’? Have the advisors that will be affected been notified already?

Let’s say you’re doing $350k or $400k and you’re NOT cut in this round at UBS.  Maybe you just barely miss the cut.  Why would you stay long term? Just a common sense question. Is there a place for that type of guy at UBS in the future? Is this where you want to continue to build or grow your way out of this crap market? 

Exactly.  You should start looking at your options before everyone else hits the street.  There are some firms paying good money right now for those types of producers.

I would be glad to talk to anyone interested in the independent model. We offer excellent service, selling agreements with just about every fund company and insurance carrier and managed money platforms. The firm is about 100 years old, self clearing and privately held. If would like some information you can send me a PM.

According to Investment News UBS brokers are not on the chopping block. See link-

http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20090415/REG/904159991

We had 3 guys in our office get “counseled out”: 1 went to a small regional (still in the training program and doing t-12 of $36k), 1 joined a team, and another signed a retirement deal. 2 other guys who thought they were on the chopping block were told they were okay. So, unless it’s a regional thing, they appear to be giving fair warning to those who they want to cut.

Were the guys that feared the chopping block but were ok given a “business plan”, were they warned of a possible reduction in staff down the road if their numbers weren’t in line with a particular expectation?

There are FAs on the chopping block.  I have talked to some that were warned if you are bottom quintile you are at risk and some were told they are on a list.  Many are NFAs.  NFAs were judged on either assets or revenue as of May 2007.  Contracts are “at will” which means UBS can change the rules at any time.  Others that were notified had LOS 5 plus years and gross was below 250.  The Manager claimed to save some.  Dont know if he really did have ability.  We will see.  Effective June non fee accounts below 50k FAs will get credit but no comp.  Trades below $50, no comp (CDs and Treas biz will go away).  My guess these levels will go up and payout will go down for those that were saved.  If you are under 400 start looking.  Reuters says D-Day is the 22nd.

In my discussions with management, a retirement was not an option.  Would you clarify this for me, if possible.  What office?

FAs are certainly on the chopping block.  Those who think otherwise are deluding themselves.  Ozzie pretty much said that cuts will be heavy in USWM today and nobody is safe.   

Latest I hear is that the investment center is gearing up for a massive uptick in accounts that will be sent over after the culling.  Word is they have staffed up and are expecting tens of thousands of accounts to be reassigned to the center in the coming weeks.  Marching orders are to try to retain as many of these accounts as possible. 

Clearly, UBS would prefer to pay investment center advisors a meager salary plus bonus to manage these accounts rather than pay commissions to advisors in the field.  My sense is that they do not want to be in the business of servicing emerging affluent clients for the long haul and will look to flip the investment center branches to a competitor (a la the Stifel deal) when the time is right.
 

May 07? Where does that factor in? Do you know the logic behind that? PM me if needed.

Kicking