The unit, which was rescued by the Swiss central bank during the global financial crisis, may be made into an independent legal entity incorporated in London, New York or Singapore, the Wall Street Journal reported, citing unidentified people familiar with the matter.
Swiss regulator hopes that UBS’s restructuring will protect the parent company and its asset management unit from being liable for losses at the investment bank, the Journal said.
UBS spokesman Chris Cockerill declined to comment on a Wall Street Journal report.
"This is speculation. We do not comment on speculation," the spokesman said.
Last month, the Swiss government pushed ahead with plans to make UBS and Credit Suisse reach tough new capital standards, saying the benefit to the economy outweighed costs to the banks.
UBS chief executive Oswald Gruebel has said the stiff Swiss standards could force UBS to move units abroad.
UBS’s investment-banking arm doesn’t do much business in Switzerland. Its main activities are in the US, UK and Asia, where it operates through various branches, subsidiaries and other legal structures.