FINRA Fines Credit Suisse $345K For Worker Oversight Lapse
Al Barbarino, 06 April 2021
Credit Suisse Securities failed to monitor thousands of its employees’ outside brokerage accounts for “potentially deceptive” trading practices, according to a Financial Industry Regulatory Authority settlement that censures the broker-dealer and slaps it with a $345,000 fine.
The New York-based subsidiary of Credit Suisse Group failed to adequately track whether its new employees had disclosed outside brokerage accounts, according to the settlement, which was published Monday.
The firm had no automated system to track the required disclosures, employees were not required to certify their external accounts annually, and the personal account trading team in charge of monitoring the account activity in turn “had incomplete or inaccurate information … to conduct its surveillance,” FINRA said.
The firm did have a database in place to take in data from the brokerage firms where employees held their accounts, FINRA said.
