HONG KONG (Reuters) - Hong Kong’s securities regulator said it has imposed a fine of HK$39.3 million ($5 million) on the local units of Credit Suisse Group AG (CSGN.S) for internal control failures that resulted in regulatory breaches.
The breaches included failures in separating client securities, reporting direct business transactions, complying with short selling requirements, the Securities and Futures Commission (SFC) said in an e-mailed statement on Thursday.
These breaches took place between 2010 and 2016.
Credit Suisse had reported their regulatory breaches and failings to the SFC and involved their senior management to address the regulatory concerns at an early stage, SFC said.
“In this instance, Credit Suisse’s prompt and extensive co-operation have significantly expedited the effective resolution of the issues that caused the SFC’s concerns,” said SFC’s executive director of enforcement, Thomas Atkinson.
“Otherwise, the sanctions for similar failures would have been substantially higher.”
Credit Suisse said it had taken “appropriate action to ensure its legal and regulatory obligations were upheld at all times”, and to prevent repetition of these incidents.
“The resolution announced by the SFC today does not place any constraints on Credit Suisse’s business activities in Hong Kong or elsewhere.”
($1 = 7.8191 Hong Kong dollars)
Reporting by Sumeet Chatterjee; Editing by Himani Sarkar