MEXICO CITY/NEW YORK, Oct 14 (Businesshala) – Swiss bank UBS (UBSG.S) is closing its brokerage in Mexico, three people familiar with the matter said, following in the footsteps of other large global financial institutions that have quit. Has opted for the second largest economy of Latin America.
The reasons for the closure were not immediately clear. It was also not known whether UBS would be pulling other local services.
Two sources said UBS will maintain a presence in Mexico, but will manage operations from other regions.
“We remain fully committed to our business in Mexico,” UBS said in a statement. “To ensure alignment with our global strategic priorities, we regularly review all of our businesses to identify growth opportunities and generate operational efficiencies.”
UBS noted that it had appointed Gustavo Galvan-Duc as head of wealth management for Mexico earlier this year and will be on the lookout for “local talent.” Galvan-Duke did not immediately respond to a request for comment.
Businesshala originally reported on UBS’s plans to scale back its brokerage.
In July, Mexican financial officials said Deutsche Bank (DBKGn.DE) and JPMorgan (JPM.N) had decided to close their offices in Mexico, prompting analysts that global players were largely stagnant domestically. Losing interest in the market.
“It is related to the lack of movement, and also that the investment climate is not the most favorable,” said Jonathan Zuloga, wealth advisor at Columbus, a Mexican investment advisor.
He said the climate had not helped under the leadership of President Andres Manuel López Obrador, who took office in 2018. The Left has clashed with the business sector over decisions such as canceling new airport construction and changing regulations in the energy sector.
“The fact that there has been so much animosity towards the private sector since the beginning of the current administration is not a good sign,” Zuloga said.