** Shares in UBS Group UBSG.S drop 3.5%

** Bofa Global Research cuts to "underperform" from "neutral" citing uncertainties over the new regulatory framework

** The Federal Assembly in May is likely to propose a full deduction of foreign subsidiaries from capital, which will result in a $20-25 billion capital bill, the brokerage says

** "We expect a long grandfathering period as this legislative process would not reach its final stage until 2027," Bofa adds

** The 2023 collapse of Credit Suisse was a watershed for Switzerland, leaving it with just one global lender and prompting regulators to demand it hold more capital to make the industry safer

** Out of 20 analysts, ten rate the stock "strong buy" or "buy, "​six rate it "hold" and four​ "strong sell" or "sell"

(Reporting by Anastasiia Kozlova)

((Anastasiia.Kozlova@thomsonreuters.com))