The management of Credit Suisse UK failed to use their own internal evidencing tool properly in 44 per cent of cases.
The FSA today fined Credit Suisse UK £5.95m for systems and controls failings in relation to sales by its private bank advisers between January 2007 and December 2009. In the period, 623 Credit Suisse UK customers invested over £1bn in 1,701 Scarps.
The FSA’s final notice says the evidencing tool was updated in 2009 and was designed to demonstrate Credit Suisse management had reviewed the suitability of transactions.
But an internal report found that Credit Suisse management at the time did not use this system properly, finding that reviews performed by the management team were sub-standard in 44 per cent of cases.
As a result, the final notice says Credit Suisse UK customers were exposed to “an unacceptable risk of being sold a scarp which was unsuitable for them”.
The regulator’s notice also says Credit Suisse did not effectively monitor staff to ensure they took reasonable care to ensure suitability of advice.