Switzerland’s Federal Council unveiled a revised capital‑increase plan that will compel UBS to raise about $20bn of core equity. The move follows a months‑long consultation that softened earlier demands, yet keeps the core requirement that the Swiss bank fully back its foreign subsidiaries with high‑quality capital to safeguard systemic stability and protect investors worldwide today.

Under the compromise, the government trimmed its original $26bn target and eased rules on software and deferred tax assets (DTAs). The ordinance will allow DTAs to remain in capital calculations for now, while software assets will be phased out over three years, aligning UBS more closely with EU norms for global markets and investor confidence.

Parliament will debate the foreign‑subsidiary rule, a process that could reshape the package further. Analysts say the requirement forces UBS to hold an additional CET1 cushion, limiting risk absorption from overseas losses and easing future divestitures. The measure underscores Switzerland’s tougher stance than the US after Credit Suisse’s collapse today.

With the ordinance taking effect next January and a two‑year transition for software, UBS will need to reallocate capital across its global operations. The shift signals a broader European push to align Swiss banking standards with EU practice, potentially tightening oversight for other Swiss institutions and reshaping cross‑border capital flows today.