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Hong Kong regulator fines Credit Suisse HK$39.3M over control failures

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Hong Kong regulator fines Credit Suisse HK$39.3M over control failures

Hong Kong's Securities and Futures Commission fined Credit Suisse Group AG units a total of HK$39.3 million over internal control failures during the period from April 2003 and April 2017.

Credit Suisse (Hong Kong) Ltd. and Credit Suisse Securities (Hong Kong) Ltd. were fined HK$18 million and HK$9 million, respectively, while Credit Suisse AG received a penalty of HK$12.3 million.

The violations include noncompliance in reporting short positions, failure to segregate client securities from in-house securities, lack of governance on product sales in Hong Kong and failure to properly disclose information to clients, according to the regulator.

The regulator reduced the actual fine, noting that the bank had flagged problems itself and involved senior management to address regulatory concerns at an early stage.

It comes after a New York regulator imposed in November 2017 a $135 million penalty on the bank for regulatory breaches in its foreign exchange trading business.

As of Feb. 7, US$1 was equivalent to 7.82 Hong Kong dollars.