The Financial Services Authority, the UK regulator, today said it has fined Credit Suisse (UK) £5.95 million ($9.5 million) for “systems and control failings” at the private banking arm, confirming months of speculation that the Swiss firm was to be hit with a big fine
The Financial Services Authority, the UK regulator, today said it has fined Credit Suisse (UK) £5.95 million ($9.5 million) for “systems and control failings” at the private banking arm, confirming months of speculation that the Swiss firm was to be hit with a big fine.
The failings related to “sales by its private bank of structured capital at risk products (SCARPs)”, the FSA said in a statement.
For months, this publication, along with many other media groups, had been aware that Credit Suisse was the subject of a major FSA investigation and that some form of severe punishment, including a large fine, was due. However, the bank and the regulator repeatedly declined to comment on the matter when questioned by WealthBriefing.
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IN a statement today, Credit Suisse said: “We deeply regret the failings of systems and controls in the period 2007 – 2009 around the provision of advice to UK private banking clients on structured capital at risk products. We have made significant improvements to our processes and controls since 2009 and we are confident that we currently comply with our regulatory obligations. We fully cooperated with the FSA and are pleased to put this matter behind us.”
In its statement, the FSA said that SCARPs are “complex financial products that provide income to customers but also expose them to the risk that they lose all or part of their initial capital”.
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