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Credit Suisse UK receives $9.5m fine by FSA

Credit Suisse has been issued with a $9.5 million fine after an investigation revealed failings in its structured capital at risk products (SCARPs) sales business in the UK.

The Financial Services Authority (FSA) conducted analysis into the way the Swiss bank - which was established in Zurich in 1856 and now has more than 50,000 employees worldwide - operated in this arena and found numerous faults.

Between January 2007 and December 2009, the lender's UK customers invested more than £1 billion in SCARPs, but it has now emerged there were several "serious failings in the systems and controls" relating to these agreements.

For instance, the FSA established that Credit Suisse had not sufficiently monitored its members of staff involved in these deals, while also not having offered proper advice to individuals looking to invest.

Tracey McDermott, acting director of enforcement and financial crime, observed: "Credit Suisse UK's systems were not up to the level we - and their customers - are entitled to expect."

By Gary Cooper