Top UBS wealth adviser suspended
One of UBS's most successful UK wealth advisers has been suspended, adding a further twist to the Swiss bank's troubles.
Julian Goodman, shortlisted as one of Europe's top 10 client advisers by Wealth Bulletin last year, has been suspended on full pay, according to sources familiar with the situation.
A UBS spokeswoman declined to comment but adviser suspensions normally take place following client complaints.
Clients confirmed Goodman is not in his London office and said they have been told the situation will be resolved soon.
A number of Goodman's clients had an exposure to products managed by collapsed insurer AIG, including the enhanced money market fund which unexpectedly lost value last year as a result of its exposure to higher risk instruments.
A friend of Goodman's said: "Somebody has got to pay for AIG and it's going to be him. You could say he's the fall guy."
However, sources familiar with Goodman's suspension pointed out that AIG products appeared on a list approved by the UBS product and sales department. They were not products sold only by Goodman.
Wealth managers are receiving a record number of complaints from clients, as portfolio values have plummetted as a result of the financial crisis.
According to an adviser working at a different organisation: "Large banks never want to fall foul of the Financial Services Authority and the Financial Ombudsman and, following recent events, you wouldn't blame UBS for taking every single complaint seriously.
"In circumstances like these, an employer would suspend advisers while an inquiry goes on. It wouldn't want advisers to stay in the office muddying the water. It's possible that advisers end up leaving, but it is equally possible for them to come back."
Goodman joined UBS as a result of its purchase of Scott Goodman Harris, a London wealth management boutique, in 2004. One of the firm's co-founders David Scott set up an independent advisory firm, Vestra Wealth, last year, taking several UBS advisers with him. The other co-founder, Philip Harris, still works at UBS.
An action group is campaigning for compensation for wealth individuals who bought AIG's enhanced money market fund through their private bank. A number of advisers have been caught up in the row.
An adviser working for a rival to UBS pointed out advisers often fall victim to complaints when investment performance is worse than expected: "You do not often come across clients prepared to take responsibility for what's gone wrong."
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