In the US, Finra has fined a subsidiary of Credit Suisse. The regulator has also fined UBS this year.
The US Financial Industry Regulatory Authority (Finra) fined Credit Suisse $900,000 for reporting late financial statements and inaccurate TRACE reports designed to promote transparency in the US market for over-the-counter traded securities.
The penalty was imposed on Credit Suisse Securities (USA), according to a document. The company previously submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the agency, acknowledging several violations of the agency's rules. Finra is a non-governmental entity providing services to the US securities industry.
Hundreds of Thousands of Inaccuracies
From November 2015 until at least March 2023, the documents say Credit Suisse reported about 9,000 late trades to the Trade Reporting and Compliance Engine (TRACE), primarily in securitized products, along with hundreds of thousands of inaccurate TRACE reports. From July 2016 through June 2021 it also failed to report to the regulator on a timely basis some 190 new issues of TRACE-reportable securities.
The monitoring system established by Credit Suisse to verify the accuracy and timeliness of TRACE reports was deemed inadequate.
Not an Isolated Case
Finra also fined UBS earlier his year. In February, New York-based UBS Securities had to pay $475,000 for publishing «inaccurate» monthly statistics on the execution of its covered orders between September 2015 and January 2019.
Goldman Sachs was hit even harder in April, when it was ordered to pay a $3 million fine when it mislabeled about 60 million short orders as long orders between October 2015 and April 2018.
