UPDATE 1-UK FCA places Credit Suisse on watchlist requiring stricter oversight -FT


(Adds FT report details, context)

June 12 (Reuters) – The UK’s Financial Conduct Authority has placed Credit Suisse on a watch list of institutions requiring stricter supervision, the Financial Times reported on Sunday, citing a letter sent in May.

The regulator told the Swiss bank last month that the move was taken because it was concerned the bank had not made enough improvements to its culture, governance and risk controls, according to the report.

The bank’s addition to the watch list, which includes around 20 institutions at any one time out of the roughly 60,000 the FCA monitors, suggests the regulator has serious concerns, the FT said, quoting a person familiar with how the list works.

Credit Suisse was fined around $475 million last year by the Securities and Exchange Commission and the US FCA, to resolve bribery and fraud charges related to a Mozambican bribery scandal of $2 billion.

The FCA also asked senior Credit Suisse executives to provide evidence of steps the bank would take to prevent misconduct and improve accountability, the newspaper said.

In the May letter, the FCA said it had asked the lender to conduct reviews in the second half of the year on the effectiveness of its international board, risk and audit committees. FCA made the requests for review after consultation with Swiss regulator Finma, according to the report.

The regulator said in the letter it was also concerned about whether the bank had adequately reported breached conduct rules for a number of years, the FT report added.

Credit Suisse suffered a loss of 1.6 billion Swiss francs ($1.62 billion) last year when it was hit by the implosion of investment fund Archegos and the collapse of 10 billion dollars from SCFF linked to insolvent British financier Greensill.

The FCA and Credit Suisse both declined to comment on the report, with the bank saying “we do not comment on our discussions with regulators, and it would not be appropriate for us to do so.” ($1 = 0.9870 Swiss francs) (Reporting by Nishit Jogi in Bengaluru; Additional reporting by Ann Maria Shibu Editing by Chris Reese)

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