Credit Suisse fined £5.9m by FSA

 
City A.M. Reporter
Credit Suisse has been fined £5.95m by the Financial Services Authority for system failures in its private bank, the second time it has fallen foul of the British regulator in less than two years.

The FSA said in an emailed statement on Tuesday it had fined Credit Suisse for "systems and control failings in relation to sales by its private bank of structured capital at risk products (SCARPs)."

"Credit Suisse UK's systems were not up to the level we, and their customers, are entitled to expect," said Tracey McDermott, acting director of enforcement and financial crime at the FSA.

The fine was announced just four months after the British regulator sent a 'Dear CEO' letter to leaders in the wealth management industry warning them that system improvements were needed.

The FSA said Credit Suisse UK had made "a significant number of changes to its advisory processes and has enhanced the systems and controls in place" since the discovery of the failings.

Credit Suisse was fined £1.75m by the FSA in April last year for not having adequate systems and controls in place to meet its transaction reporting obligations.