Rodrigo Campos and Noe Torres

MEXICO CITY/NEW YORK – The brokerage of UBS in Mexico is being closed by the Swiss bank. Three people with knowledge of the matter said that UBS follows the lead of large financial institutions around the world who are leaving Latin America’s second-largest economy.

It was not clear at this time what caused the closure. UBS also did not say whether they would remove other local services.

According to two sources, UBS plans to maintain its presence in Mexico but will manage operations out of other locations.

UBS released a statement saying that they remain committed to Mexico’s businesses. We review every business regularly in order to find growth opportunities, and improve operational efficiency. This is to ensure that our strategic priorities are aligned globally.

UBS stated that it had hired Gustavo Galvan Duque as Mexico’s head of Wealth Management and will continue to search for local talent. Galvan Duque has not yet responded to my request for comment.

Bloomberg reported originally on UBS plans to pull its brokerage.

Mexican financial officials released this statement in July Deutsche Bank JPMorgan (NYSE 🙂 and DE: JPMorgan (DE:) decided to close Mexican branches. This was a signal to analysts that foreign players had lost interest in Mexico’s stagnant market.

Jonathan Zuloaga from Columbus, Mexico, an investment consultant, said, “It’s connected to the lack in movement, as well as that the investment climate is not favorable.”

He said that President Andres Manual Lopez Obrador’s 2018 administration had not been conducive to a better environment. Over decisions like cancelling the construction of an airport or changing the rules for the energy sector, the leftists have clashed against the business sector.

Zuloaga said, “It is not good that there was so much animosity towards the private sectors since the start of the current administration.”