Swiss financial services giant UBS has cancelled plans to grant near independence to UBS Capital, its wholly-owned private equity arm, because of the slump in global markets and dwindling private equity returns.

Pierre de Weck, chief executive of UBS Capital, will also resign at the end of July following the shelving of plans to spin off the unit. As Financial News revealed in late February, UBS had been negotiating plans to sell 80% of UBS Capital to a management team led by de Weck.