UBS changes corporate governance rules

Swiss bank UBS AG introduced new corporate governance measures today, including a clear separation of the responsibilities of…

Swiss bank UBS AG introduced new corporate governance measures today, including a clear separation of the responsibilities of the board of directors and executive management.

UBS, Europe's biggest casualty of the credit crisis so far, said a governance committee had completed a review of the bank and its recommendations - including strengthening the board's oversight role - would be implemented immediately.

The bank is under pressure from the Swiss financial watchdog and one of its top shareholders, Olivant, to overhaul its business after more than $37 billion in writedowns during the global credit turmoil.

"The Board of Directors will have a clear strategy setting responsibility, and it will supervise and monitor the business," UBS said in a statement.

"The duties and responsibilities of the former Chairman's office are now allocated to a greater number of committees of the Board, including new Risk and Strategy Committees," it said.

Four board members would resign and replacements would be elected at an extraordinary general meeting planned for October 2nd, UBS said.

Sergio Marchionne, chief executive of Italian automaker Fiat SpA, would fill a new post as senior independent director, and continue as non-executive vice-chairman of UBS.

The board and its strategy committee are continuing their review of the strategic positioning of the bank and its businesses, UBS said.