ZURICH (Bloomberg) — The Swiss National Bank said a special purpose vehicle it plans to set up to buy troubled assets of UBS AG, the country's largest bank, will be domiciled in the capital Bern, rather than in the Cayman Islands as originally planned.

The fund has received the requisite authorisation of the Swiss Federal Banking Commission and the transfer of UBS assets to the vehicle will be completed by the end of March, the Swiss central bank said yesterday in a statement.

SNB directorate member Thomas Jordan will head the fund's board. UBS is represented on the board by chief financial officer John Cryan and chief risk officer Philip Lofts.