UBS will exit fund administration and hand the business to Northern Trust, building on a long-standing tie between the two firms. The plan still needs approval from regulators.

Under the new agreements, UBS’s Swiss and Luxembourg management companies will extend their current fund administration contract with Northern Trust.

It will now cover funds whose administration UBS handles itself today.

In addition, UBS will transfer the fund administration units it took over from Credit Suisse in both countries to Northern Trust. These units service traditional and alternative funds.

The transfer is set to close in the second quarter of 2027, when UBS will leave the business. Services will move to Northern Trust in stages over two years.

Separately, UBS will simplify how its Luxembourg management company operates, so that it mainly serves the bank’s own funds.

For white labelling clients in Luxembourg, UBS has picked Universal Investment as the preferred third-party fund management company.

“With this step, we are further focusing our asset servicing offering on our core strengths to meet clients’ evolving needs, while enabling them to benefit from Northern Trust’s leading fund administration capabilities and commitment to continuously invest in the long-term development of their platform,”

said Andreas Toscan, Head of Institutional Clients and Global Asset Servicing at UBS.

“This expanded mandate is a testament to the quality of our people, the strength of our platform and our shared commitment to delivering outstanding outcomes for clients,”

said Clive Bellows, Co-President Asset Servicing and Head of Europe, the Middle East and Africa at Northern Trust.

Northern Trust already does some of this work for UBS. In 2017, UBS Asset Management sold its traditional fund administration business in Switzerland and Luxembourg to Northern Trust and signed a long-term servicing deal.

Featured image: Edited by Fintech News Switzerland, based on image by topntp26 via Magnific.