US SEC removes legal obstacle to UBS' crisis-resolution plan

The US SEC said it would not take enforcement action if UBS converts certain debt securities into equity without registering the offering with the regulator, removing a legal obstacle to the bank's crisis-resolution plans. The guidance relates to a potential bail-in mechanism where a failing lender recapitalizes by converting debt into equity instead of relying on taxpayer support. The letter also helps address cross-border legal conflicts highlighted by Swiss authorities' failure to implement Credit Suisse's resolution plan, which led to UBS's takeover.