Credit Suisse Pays $75k Penalty to ASIC for Violating Trading Rules


Credit Suisse Equities Australia Limited (CSEAL) paid a penalty of $75,000 for violating trading rules of on-market buy-backs, according to the Australian Securities and Investments Commission (ASIC).

03 July, 2020 | AtoZ Markets – CSEAL is an investment banking and financial services provider. It serves individual and institutional investors across Australia by offering securities purchase and sale services. In May, the ASIC Markets Disciplinary Panel (MDP) gave infringement notice to CSEAL after finding it violated the ASIC Market Integrity Rule. CSEAL have to pay a $75,000 penalty to comply with this notice.

Credit Suisse Pays Penalty for ASIC MDP Infringement Notice

ASIC announced today that CSEAL paid full $75,000 penalty. MDP also alleges that CSEAL did not comply with regulations on customer directives. Moreover, ASIC said:

“The MDP had reasonable grounds to believe that Credit Suisse contravened Rule 3.3.1(b) of the ASIC Market Integrity Rules (ASX Market) 2010 (ASX Rules) by failing to act in accordance with its clients’ instructions.”

From March 6, 2017, to November 8, 2018, Credit Suisse was working as a broker to purchase on-market buy-back common shares on behalf of three ASX companies. However, it purchased a total of 54,160,067 securities across the buy-backs, including 12,244,313 securities using NXXT trading.

The Clients did not instruct Credit Suisse to perform a buy-back using the NXXT trades. Credit Suisse has not disputed that it did not follow the customer’s instructions by executing some buy-back transactions as NXXT trades. ASIC also said in the statement:

“The MDP considered Credit Suisse’s conduct to be careless. Because its execution desk employees inadequately trained in relation to on-market buy-backs. They were therefore unaware that NXXT Trades were not permitted during an on-market buy-back. Additionally, Credit Suisse’s surveillance systems had also failed to prevent the NXXT Trades from being executed.”

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