A US regulator fined Credit Suisse Group AG (CSGN.S) a $9 million penalty on Thursday for breaking several laws and procedures aimed at protecting investors, including those relating to capable conflicts of interest and the protection of customers assets, reports Reuters.
Between 2006 and 2017, the Swiss bank issued more than 20,000 research studies, according to the Financial Industry Regulatory Authority, which contained inaccuracies concerning potential conflicts of interest.
It said that approximately 6,400 reports were missing required information, such as whether the firms had been clients in the previous year or were planning to hire Credit Suisse for investment banking in the following three months.
Credit Suisse also failed to control billions of dollars in margin securities or hold possession it held for customers, according to FINRA, or appropriately calculate how much cash or securities it needed to put in a special customer reserve, according to the regulator.
It will also certify that measures have been put in place to comply with a US Assets and Exchange Commission rule aimed to protect customer cash and securities.
Credit Suisse Securities (USA) LLC, the settling entity, made neither admissions nor denials of wrongdoing. Credit Suisse said it worked with FINRA, was happy to reach an agreement, and has resolved the underlying concerns, which it claimed: “mainly relate code flaws in Credit Suisse systems.”
Ex-CEO Of Credit Suisse Resigns Recently
It has been revealed that banker António Horta-Osório, who resigned as CEO of Credit Suisse after violating Covid isolation guidelines, attended the Euros football final. He quit last weekend, according to sources, after losing the trust of other board members due to his attendance at the Wimbledon tennis finals last year.
However, sources reveal that the former Lloyds Bank chief watched a football match at Wembley on the same day. According to the Financial Times, the Swiss bank had arranged corporate hospitality at both events, but Mr Horta-Osório attended both with family members after other guests were unable to use the tickets.
In July, the executive from Portugal attended Wimbledon and the European Championship final while under quarantine in the UK due to Covid-19 limitations.
According to Reuters, Mr Horta-Osório also violated Swiss Covid rules by flying into the nation on November 28 and leaving on December 1. According to Swiss law, he should have been quarantined for ten days when he arrived.
He joined Credit Suisse in April of last year, following a series of problems including allegations of employee eavesdropping at the bank, and promised to transform the company’s culture.