Singapore’s regulator imposed a penalty against Credit Suisse over misconduct by its relationship managers in the city-state.
The Monetary Authority of Singapore (MAS) has imposed a civil penalty of S$3.9 million ($3 million) on Credit Suisse for its «failure to prevent or detect misconduct by its relationship managers», according to a statement.
According to the MAS, Credit Suisse’s relationship managers had provided clients with inaccurate or incomplete post-trade disclosures resulting in spreads for 39 over-the-counter (OTC) bond transactions being charged above agreed rates.
Civil Penalty Settlement
Credit Suisse has admitted liability for its failure to prevent or detect the misconduct and paid the civil penalty. As part of the settlement, it had also separately compensated its affected clients.
«Financial institutions should implement robust governance frameworks and processes to ensure fair and transparent pricing to their customers,» said Ho Hern Shin, deputy managing director (financial supervision), MAS.
«We will continue to engage the banks to improve their controls in this area and will not hesitate to take firm enforcement action against financial institutions found to have breached our laws.»