UBS chairman Colm Kelleher warned shareholders at the annual general meeting that looming regulatory changes could force the bank to make “key business decisions” soon. Swiss authorities are drafting a tougher “too‑big‑to‑fail” framework that would raise capital requirements for the nation’s largest lender. The plan focuses on UBS AG and could erode its market edge.

UBS estimates the new rules would compel its UBS AG arm to hold roughly $22 billion in extra capital. Meeting that level would push the group’s leverage ratio well above current targets and strain its balance sheet, prompting executives to reconsider dividend policy, share‑buyback plans and potential asset disposals as investors demand clearer returns amid tightening.

Kelleher reiterated UBS’s commitment to remain headquartered in Switzerland, stressing a willingness to work with the finance ministry, the central bank and regulators on a calibrated framework. He argued that the current Swiss proposal would make the bank an international outlier, weakening its position relative to European peers in both capital markets and client services.

Shareholders now face uncertainty as the bank weighs whether to expand its $3 billion buyback program or preserve cash for regulatory buffers. Analysts note that any reduction in capital returns could pressure UBS’s stock, already sensitive to Swiss policy shifts, while the firm’s strategic options narrow under the proposed regime and could trigger rating reviews soon.