Credit Suisse Faces FINMA’s Enforcement Proceedings

Swiss financial regulator FINMA announced that it began enforcement proceedings against Credit Suisse over two bank executives’ surveillance.

02 September, 2020 | AtoZ Markets – Credit Suisse is a financial services company. Headquartered in Zurich, Switzerland, it operates globally across mature and emerging markets, with approximately 48,800 people in more than 150 countries. It provides private banking & wealth management and investment banking services.

FINMA Launch Enforcement Proceedings Over Credit Suisse Observation Activities

FINMA appointed an independent auditor in December 2019 to investigate Credit Suisse regarding observational activities. The regulator also said the auditor’s investigation has now ended. Now, FINMA has begun enforcement proceedings against Credit Suisse regarding observational activities.

FINMAsaid it would look for potential breaches and scrutinize how observational activities were documented and controlled. Although FINMA does not have the power to fine banks, it can take measures such as banning executives from the industry.

According to FINMA, Credit Suisse involved in spying on its employees, including two former executives. Credit Suisse was spying on Iqbal Khan, a former Wealth Management exclusive, and former Human Resources manager Peter Goerke. The investigation concluded that former Executive Committee member Pierre Olivier Bouée had issued an order to put Peter Goerke and Iqbal Khan under observation. However, Credit Suisse said:

“Credit Suisse will continue to cooperate with Finma fully and determine to support the effort to ensure a complete and expeditious conclusion of the review of this episode and incorporate lessons learned. The Board of Directors and the Executive Board of Credit Suisse also agree and unequivocally affirm that the observation of employees is not part of the culture of Credit Suisse.”

Meanwhile, Credit Suisse paid a $75,000 penalty two months ago in response to the Market Disciplinary Commission’s (MDP) infringement notice. MDP said there was a valid reason to believe that Credit Suisse did not act in the customer’s direction. The company also violated the ASIC Market Integrity Rules (ASX Market) 2010.

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