The WSJ has indicated that UBS is planning to split its investment bank and incorporate it outside of Switzerland as a separate legal entity to the rest of the group. Possibly London, NY or Singapore. The article also says it would have its own capital and be overseen by local regulators which could be read to mean it is looking for lower capital requirements and lighter regulation.
It appears howvever that the unit will still remain part of the overall group as a subsidiary. But of course the issue lies in whether this does protect fully the parent group in Switzerland from the investment bank failing ever again in the future- this remains to be seen, as the WSJ report notes that local regulators may still demand the Swiss to assist in a future bailout.
A separate legal entity could mean a separate issuing entity with higher funding costs than UBS AG currently enjoys.