Through a

series of transactions which were completed for the most part in early June,

UBS AG and other UBS group companies transferred group shared services

functions, which are mainly based in Switzerland, in the UK and the US, to UBS

Business Solutions AG and other related service companies. UBS Business

Solutions AG now operates as the group service company of UBS and is a wholly

owned subsidiary of UBS Group AG. The implementation of UBS Business Solutions

AG enables UBS to maintain operational continuity of critical services should a

recovery or resolution occur. It represents an important step towards improved

resolvability, and is in line with global guidance defined by the Financial

Stability Board.

Bär &

Karrer AG acted in this transaction as lead external advisor with respect to all

relevant legal, regulatory and tax issues in close cooperation with the project

team and the legal and tax departments of UBS. The Bär & Karrer team

included Urs Kägi and Peter Hsu (both M&A, Corporate and Commercial Law,

Banking and Regulatory), Rolf Watter, Daniel Küpfer, Nadina Duss, and Cyrill

Tschudin (all M&A, Corporate and Commercial Law) Daniel Flühmann (Banking

and Regulatory), Markus Wang (IP), Susanne Schreiber, Corinna Seiler and

Laurent Riedweg (all Tax) as well as Daniel Hochstrasser and Isabelle Oehri (both

Litigation).