Global firm fined US$196M

Global firm fined US$196M

Global firm fined US$196M

Credit Suisse has agreed to pay U.S. regulators US$196 million after admitting to violating securities laws by providing services to U.S. clients without being registered.

The U.S. Securities and Exchange Commission (SEC) announced Friday that it has come to a settlement with Credit Suisse Group AG, which allegedly provided
cross-border brokerage and investment advisory services to thousands of clients without registering with the SEC, collecting fess of approximately $82 million.

The $196-million fine includes $82.2 million in disgorgement, $64.3 million in prejudgment interest, and a $50-million penalty.
The global financial services firm - which is headquartered in Zurich, and entered the U.S. market as early as 2002 - build up a client base upwards of 8,500 clients with an average total of US$5.6 billion in assets, according to the SEC.

The SEC says that Credit Suisse was aware of registration requirements but actions to prevent violations were ineffectively implemented and monitored.

The firm has admitted to the facts in the SEC order, accepting an ensure and a cease-and-desist order, and agreeing to retain an independent consultant.