Credit Suisse Fined $9 Million by U.S. Regulator Over Research Report Conflicts
- Finra says firm didn’t properly account for client securities
- Firm says issues were primarily due to ‘coding errors’
Photographer: Stefan Wermuth/Bloomberg
Credit Suisse Group AG will pay $9 million to settle an industry regulator’s allegations that it violated customer protection rules by not properly accounting for billions of dollars in securities that it carried for clients and also didn’t disclose potential conflicts when publishing research reports.
Credit Suisse’s U.S. securities unit for eight years violated regulations by not maintaining proper control of excess margin securities it held on behalf of customers and for not accurately calculating its reserve account, the Financial Industry Regulatory Authority said in a Thursday statement. Additionally, from 2006 through 2017, the firm issued more than 20,000 reports that contained inaccurate disclosures about potential conflicts, the industry-backed regulator said.