-- Switzerland's Federal Council on Wednesday amended the Capital Adequacy Ordinance, deciding not to require full backing with Common Equity Tier 1, or CET1, capital for deferred tax assets and software.
The amendments will take effect on Jan. 1, 2027, the Federal Council said.
The council adopted the dispatch on the revision of the Banking Act, which will require systemically important banks in Switzerland to fully back their participations in foreign subsidiaries with CET1 capital. Switzerland's parliament will be able to debate the legislative proposal starting in the summer, the Federal Council said.
"Currently, only UBS (UBS) is affected to a significant extent," the Federal Council added.
In a statement, UBS Group said it is currently reviewing the Swiss government's regulatory announcements and the proposed package in detail, and plans to provide further comments at the time of its Q1 results on April 29.
The bank said it continues to evaluate the potential impact of the measures and will engage in the ongoing parliamentary process, while also assessing steps to protect shareholder interests and mitigate effects on clients and employees.
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