The Swiss Financial Market Supervisory Authority FINMA has initiated enforcement proceedings against Credit Suisse in light of a spying scandal within the group.
Earlier this year FINMA appointed an auditor to investigate Credit Suisse after allegations arose that the bank was using surveillance operations on senior employees within the company.
The alleged spying “raised various compliance issues”, according to the authority.
Following the allegations, FINMA announced that an investigation would be launched to clarify the relevant corporate governance questions, particularly in relation to the observation activities, the handling of information in this context and the use of electronic communications.
The auditor’s investigation has now been completed, and FINMA confirmed it has opened enforcement proceedings against the bank, in which it will “pursue indications of violations of supervisory law in the context of the bank’s observation and security activities and in particular the question of how these activities were documented and controlled”.
In a statement, the authority said: “FINMA will inform the public about the conclusion of the enforcement proceedings.
“It will not comment further on the content of the ongoing proceedings or the date when the proceedings may be concluded. Typically such proceedings can be expected to take several months.”
In a separate statement, Credit Suisse said: “Credit Suisse takes note of the decision announced today by Finma to open enforcement proceedings in the context of the “observation matter”.
“Credit Suisse will continue to fully cooperate with Finma and is determined to support the effort to ensure a complete and expeditious conclusion of the review of this episode and incorporate lessons learned.”
It added: “The board of directors and the executive board of Credit Suisse agree and unequivocally affirm that the observation of employees is not part of the culture of Credit Suisse. No further comments can be made at this stage until findings are presented by Finma.”