FSA fines Credit Suisse UK £5.95 million for systems and control failings
October 25, 2011
The FSA has fined Credit Suisse UK pound;5.95 million for systems and controls failings in relation to sales by its private bank of structured capital at risk products ("SCARPs").
Concerns were identified by the FSA during a supervisory visit to the firm, which subsequently led to the FSA commencing its enforcement investigation. The FSA found that Credit Suisse UK had poor systems and controls in place and failed to maintain adequate records regarding its advice on these products. These failings amounted to a breach of Principle 3 (FSA Handbook, Principles for Business). As a result, customers were exposed to an unacceptable risk of being sold a SCARP that was unsuitable for them.
Since the discovery of these failings, Credit Suisse UK has made a significant number of changes to its advisory processes and has enhanced the systems and controls in place to ensure the suitability of its advice to its customers.