SEC Fines Bank $196 Million and Requires Admission of Wrongdoing for Providing Unregistered Services to U.S. Clients

The SEC announced a settlement with Credit Suisse Group AG that resolved charges that CSAG, acting through a non-U.S. broker-dealer and investment adviser, violated federal securities laws by providing cross-border brokerage and investment advisory services to U.S. clients without registering with the SEC. The Order stated that Swiss-based relationship managers traveled to the U.S. to solicit clients, provide investment advice, and induce securities transactions. These employees were not registered to provide brokerage or investment advisory services, nor were they affiliated with a registered entity. Additionally, the SEC found that these Credit Suisse employees communicated with clients in the U.S. through overseas emails and phone calls.The SEC found that Credit Suisse provided cross-border securities services to thousands of U.S. clients and collected fees totaling approximately $82 million without adhering to the registration provisions of the federal securities laws.

See: SEC Order.