Hong Kong markets regulator has fined banking giant Credit Suisse AG about HK39.3 million, $5 million, for several regulatory breaches and various internal control failures spanning a 14 year period.
The Securities and Futures Commission (SFC) said the regulatory breaches, which took place between 2010 and 2016, had included failures in segregating client securities from house securities, reporting direct business transactions, and complying with short selling requirements, electronic trading requirements and contract notes.
The regulatory breaches and failings have been reported by the bank to the SFC in which they involved their senior management to settle the regulatory issues at an early stage, SFC said.
“In this instance, Credit Suisse’s prompt and extensive cooperation
“Otherwise, the sanctions for similar failures have been substantially higher.”
“Credit Suisse has taken appropriate action to ensure that Credit Suisse’s legal and regulatory obligations are upheld at all times and to prevent a repetition of these incidents,” Yukmin Hui, a Credit Suisse spokeswoman said in an emailed statement.
“The resolution announced by the SFC today does not place any constraints on Credit Suisse’s business activities in Hong Kong or elsewhere.”
The fine was the second-largest monetary fine imposed in the past 12 months. In November, the regulator penalized HSBC Holdings Plc’s private-banking unit a record HK$400 million over sales of structured products linked to Lehman Brothers Holdings Inc. in Hong Kong.
Zurich, Switzerland-based Credit Suisse has also been fined in November by the New York’s Department of Financial Services worth $135 million for a number of violations in foreign-exchange trading, stating it had engaged in “improper, unsafe, and unsound” conduct in FX markets for at least an eight-year period through 2015.
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