Credit Suisse faced a penalty of S$3.9 million (US$3 million) for its failure to prevent or detect misconduct by its relationship managers. (AP pic)
SINGAPORE: Singapore penalised Credit Suisse S$3.9 million (US$3 million) for its failure to prevent or detect misconduct by its relationship managers in the city-state.
The bankers had provided clients with inaccurate or incomplete post-trade disclosures, resulting in customers being charged spreads which were above bilaterally agreed rates for 39 over-the-counter bond transactions, the Monetary Authority of Singapore said in a statement on Thursday.
The action on Credit Suisse follows its review of pricing and disclosure practices in the private banking industry, according to the MAS.
The regulator said that its investigations revealed that Credit Suisse had failed to put in place adequate controls, such as post-trade monitoring, to prevent or detect the bankers’ misconduct.
It added that the bank has paid the penalty and separately compensated its affected clients. The firm, which has been taken over by Swiss rival UBS Group AG, has since strengthened its internal controls, the MAS statement said.
A Singapore-based UBS spokesperson didn’t immediately respond to an email seeking comment.
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