UBS has made approximately 100 “goodwill payments” to clients in Switzerland who suffered steep losses on foreign exchange derivatives after market turmoil sparked by former U.S. President Donald Trump’s April 2 “liberation day” tariff announcement. As reported by the Financial Times, the Swiss bank is attempting to contain the fallout and close the chapter on a contentious episode that has raised fresh questions about client risk exposure and regulatory oversight.
The losses stem from a structured FX product tied to the USD/CHF exchange rate. These contracts, typically designed for high-risk and professional investors, oblige clients to exchange U.S. dollars for Swiss francs at a fixed rate as long as the currency remains within a set range. But when Trump’s surprise tariff declaration sent the dollar tumbling, many clients were forced to continue trading under rapidly deteriorating terms—leading to significant financial damage.
In response to a wave of complaints, UBS launched an internal task force to investigate the situation. A person familiar with the process told the Financial Times that the review revealed some clients held exposures disproportionate to their overall assets. The bank took remedial steps and ultimately issued goodwill payments to about 100 affected customers.
However, the crisis is far from over. While the task force is reportedly nearing the end of its work, UBS remains in discussions with some clients seeking further compensation. In parallel, the bank is also reviewing whether certain client advisers failed to adequately communicate the risks involved.
“These products effectively transfer risk from the bank to the client, who is left with minimal gain potential and substantial exposure to loss,” said Nicolas Ollivier, a lawyer at Swiss firm Lalive, which is representing several retail and professional investors. “Based on the documents reviewed, it appears the clients were not fully or clearly informed of these risks.”
Some clients have escalated their claims through criminal complaints filed in Zurich. These allegations—lodged against unknown perpetrators—cite possible violations of the Unfair Competition Act and are currently under preliminary review. Under Swiss legal procedures, such complaints are sometimes used to trigger investigations and gather evidence, given the absence of a formal discovery process.
The situation comes at a delicate time for UBS, the world’s second-largest wealth manager, as regulators intensify scrutiny of how banks handle complex financial products and client disclosures.
Two clients who spoke with the Financial Times described aggressive sales tactics by UBS advisers. One reported losses exceeding SFr3 million. Another said they had explicitly expressed concerns about the product’s risks and only received formal documentation months after trading had begun in 2023. That individual said they lost 15% of their assets and requested an exit days after Trump’s announcement, only to see the losses worsen.
“I repeatedly expressed concerns about the product and said I did not understand it. They kept telling me not to worry and then they would just restructure it,” the client told the Financial Times.
UBS, in an official statement, acknowledged the issue but downplayed the scope: “We have completed a review of this matter and determined that a very small number of clients in a few locations in Switzerland experienced unexpected effects from the U.S. tariff-related market volatility in April 2025. From the outset we have taken this matter seriously and have looked at each client case individually.”
