FINMA Identifies Serious Breaches of Supervisory Law in Credit Suisse' s Observations

The Swiss Financial Market Supervisory Authority (FINMA) has found in its investigation against Credit Suisse that the bank has broken the supervisory law by operating at least seven surveillance campaigns on top executives.

FINMA’s investigation revealed that in the period between 2016 and 2019, Credit Suisse planned seven observations, most of which were carried out. In two cases members of the executive board were observed in Switzerland and, in addition, other former employees and third parties abroad. 

The observations and, in particular, the way in which they were conducted, kept secret and partly concealed has showed an inappropriate corporate culture among parts of Credit Suisse’s operational management. Furthermore, FINMA identified organisational shortcomings encompassing the policy level, the behaviour of parts of the executive board, the documentation, the investigation of risk-relevant events and the bank’s internal communication. 

“We will check that the measures the bank implemented to ensure responsibility at the appropriate hierarchical level as well as clear decision-making processes and monitoring mechanisms , and that the organizational shortcomings of the bank are addressed,” FINMA has commented on the ongoing proceedings against the bank.“we have also reprimanded two individuals in writing and opened enforcement proceedings against three further individuals. In these proceedings, FINMA will investigate in depth the knowledge, behaviour (including with regard to information provided to FINMA) as well as the individual responsibility of these individuals in the context of the identified violations of the law by the bank.”