June 14, 2018 / 5:32 AM / in 10 months

FINMA finds serious breach at Raiffeisen Switzerland

ZURICH, June 14 (Reuters) - Switzerland’s financial market supervisor FINMA found serious breaches at Raiffeisen Switzerland in a probe related to fraud allegations against former Chief Executive Pierin Vincenz.

“FINMA has found that the bank’s handling of conflicts of interest was inadequate. In addition, Raiffeisen’s board of directors failed to adequately supervise its former CEO, thereby enabling him, at least potentially, to generate personal financial gain at the bank’s expense,” the financial supervisor said in a statement on Thursday.

Swiss prosecutors are investigating Vincenz, who denies wrongdoing but has been forced to resign from various business roles, on suspicion of breach of trust linked to cashless payments business Aduno as well as private equity firm Investnet.

He was released from custody on Wednesday after being held for three months. The investigation remains ongoing.

Raiffeisen on Thursday said it acknowledged FINMA’s ordinance and had already begun implementing many of the measures ordered by FINMA. (Reporting by Brenna Hughes Neghaiwi)

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