The Credit Suisse Group has been fined £5.95 million (SFr8.37 million) by the British Financial Services Authority (FSA).This content was published on October 25, 2011 - 14:27
The fine was imposed because in the period from January 2007 to December 2009 the bank failed to explain sufficiently the dangers involved in buying so-called “structured capital at risk products”, or Scarps, the FSA said on Tuesday.
During the three year period studied by the FSA, Credit Suisse UK sold about £1.1 billion worth of Scarps to more than 600 clients in Britain. It says the customers lost nearly £200 million during the financial crisis.
The FSA became aware of the possible failings in Credit Suisse’s sales methods during a routine visit in December 2009. The bank immediately cooperated with the review, and its potential fine was cut by 30 per cent as a result.
Credit Suisse UK says it has revised its advisory service to its clients and instituted a better monitoring system.
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