UBS TAX MESS: Executive Management Claims ‘Our Bad’, Claws Back Mishandled Tax Payments

As if wirehouse advisors needed another reason to consider taking their books elsewhere, UBS announced they had messed up tax payments connected to recruiting bonuses for several years. Ouch.

And guess who’s left holding the bag? Yes, advisors.

Talking to several UBS folks it is a mixed bag of ‘what now’, ‘why’, and ‘how much’. Two advisors we spoke to may end up owing six figures back to the firm. Others in the low to mid five figure range. Disruption that isn’t appreciated.

And another opening for firms looking to recruit highly regarded advisors. UBS has some of the highest producing brokers (per capita) in wealth management. This gaffe only opens the door a little wider for them to ‘exit stage left’.

Is it that hard for a $2M dollar advisor to say to a recruiting competitor, “Hey, pay off my tax debt by adding another 5% to the deal and I commit right now.”

There are several firms that would make that deal on the spot. And you can bet those offers are playing out as you read this.

Protocol exits, payout grid missteps, and now tax issues. Many at UBS are wondering what actual value the firm adds to their practice at the moment

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