Credit Suisse Group AG will pay $9 million to settle a industry regulator’s allegations that it failed to disclose conflicts in thousands of research reports and violated other securities rules.
From 2006 through 2017, Credit Suisse’s U.S. securities unit issued more than 20,000 reports that contained inaccurate disclosures about potential conflicts, the Financial Industry Regulatory Authority said in a Thursday statement. The bank also failed to maintain possession of billions of dollars of excess margin securities it carried for clients, the brokerage regulator said.
Credit Suisse also failed to “establish, maintain and enforce” a supervisory system that complied with federal securities laws and Finra rules, according to the regulator. The bank agreed to the penalty without admitting or denying the allegations.
“The bank has fully cooperated with Finra and has remediated the underlying issues, which primarily concern coding errors in Credit Suisse systems,” the firm said in a statement.
This article was provided by Bloomberg News.