UBS 3 Keys to Advisor Exit Strategy

The UBS logo with three keys was created in 1937. The keys represent confidence, security, and discretion. In this segment, we will share how UBS advisors in the U.S. can use these three keys to unlock the doors to exit UBS.

While we realize some UBS Swiss bankers in Zurich will be appalled and consider this SwissSacrilege. We are not followers of Swissnessism, we are liberators of it.

We help UBS U.S. advisors with recruiting options. We help UBS advisors who refuse to exchange their individuality and sanctity of the advisor-client relationship for Swissness and the salary based banker model UBS is evolving towards.

Confidence (in leaving with relative ease)

UBS advisors can have confidence they can leave UBS even though UBS pulled out of Protocol. UBS is trying to close all the doors they can to trap advisors. Not only did they pull out of protocol but they did it in such a sleazy way. Yes, sleazy. They manipulated the protocol reporting (following Morgan Stanley’s example) and then provided their advisors with a few-day notice. That’s sleazy.

Thankfully, for U.S. advisors at the present time, it is still very easy to leave UBS under non-protocol. In most all of the bonus agreements advisors have signed with UBS thus far all an advisor has to do is pay back any loan amount outstanding on the note received and the advisor is released from non-solicit provisions.

If you feel trapped because you want to leave but do not have cash on hand to pay back a bonus or recruiting note, you can have confidence that there are many options and solutions available now in the industry. We work with a lot of traditional regional firms and independent models who are willing to pay off notes to land quality UBS advisors.

Security (Protecting your advisor-client relationship)

In order to protect the security of your advisor-client relationship we suggest three things to consider:

1. DON’T FALL FOR UBS FAKE NEWS.
2. DO NOT SIGN ANYTHING UBS PUTS IN FRONT OF YOU.
3. TRUST BUT VERIFY YOUR MANAGER’S COMMENTS.

There is a lot of misinformation and flat out erroneous information being spread through the rank and file at UBS. We spoke with two UBS managers just yesterday who both believed that UBS reversed the non-solicit provision and that bonus payments went back to the way they used to be.

We have spoken with a handful of advisors in just this past week who also thought that while UBS tried to sneak in non-solicitation language and got caught, they reversed course.

We are SHOCKED at the smoke and mirrors being implemented by UBS regarding non-solicit provisions being attached to bonuses. While UBS employs many of the sharpest managers in the country, not all are good apples. We are not sure if the examples advisors are sharing with us about what their manager is telling them is purposefully “fake news” or if the facts have not been clearly communicated from above. Regardless, advisors beware.

Demand a copy of the UBS Non-Solicit Memo

Don’t take our word for it and don’t take your manager’s word for it, read it yourself. Advisors that have actually have taken the time to read the 2.5-page memo have told us they are stunned at UBS’s change in direction.

We suggest you start with the last section first. Read the section titled:

Non-solicit language in the agreements for SOAs awarded with respect to calendar year 2018

This clearly states any bonus money earned in 2018 will have a 12-month non-solicitation provision attached to it if you want to get paid in 2019.

IT NOW NO LONGER MATTERS IF YOU PAY BACK THE NOTE. NOW YOU HAVE TO PAY BACK THE NOTE AND YOU STILL ARE UNDER THE NON-SOLICIT PROVISION.

UBS is being sneaky so you have to pay attention. The language for 2017 section of the memo is different than the language in the 2018 section.

What’s the biggest irony in this memo?

It was written by Tom Naratil and Brian Hull. They have the audacity to state in the memo, “Our goal is always to focus on doing what’s best for you and for our clients.” First, notice how they stated, “for you and for our clients.” Not for you and your clients. UBS does not consider your clients yours, they consider your clients theirs, and placate by using the term “our clients.” Your clients are our clients until you try to leave and then they are just ours and not yours. It would be humorous if it wasn’t so harmful to advisors, that Naratil and Hull have the audacity to write how they are “always” focusing on “doing what’s best for you” on the same memo they implement one of the strictest non-compete provision in the industry and remove the longstanding practice of allowing advisors to sidestep the non-solicit if they just paid back any monies owed to UBS. Does this sound like UBS really is focused on what is best for you the advisor?

Read: UBS’s Ham-Handed and Under-Handed Non-Solicitation Reality

Discretion (Keep your plans of leaving to yourself)

Don’t tell a soul you are considering leaving. Call Advisorbox for a confidential conversation about your options. Confidentiality is our stock and trade.

UBS isn’t the same place it used to be. Be careful who you trust and the safest path is to not tell or imply to anyone at your office or firm, including an assistant, even an assistant you plan on taking with you.

Get your due diligence and information that will be needed so if you do make a slip and get terminated, you are able to quickly move to another firm as soon as your U5 language is released.

Call us to discuss your options and specific situation. We have a lot of materials to send you on discretion and confidentiality concerning transitioning to a different firm or model. We work all the time so if it is easier to have a confidential conversation in the evenings or weekends we are always available.