Credit Suisse fined for market error
Credit Suisse has paid a fine of $88,400 for a costly trading error that was not properly reported.
The global financial services company was found to have compromised market integrity after one of its representatives mistakenly sold 2000 shares at an incorrect rate in September 2012.
The Credit Suisse representative called the client to report the error and the client said they would accept the mistake, but wanted the brokerage waived — a request that was granted, according to the Australian Securities and Investments Commission (ASIC).
The error reportedly cost the client $24,660.
However, neither the Credit Suisse representative nor their supervisor documented the error in a formal report on the day.
Instead, the company's compliance division found out about it through routine surveillance and then investigated it.
The company gave both employees formal warnings and no bonus for the year.
In determining the appropriate remediation, the Markets Disciplinary Panel (MDP) said that while they were isolated incidents, the mistake may have compromised confidence in the market's integrity.
Credit Suisse was therefore given a fine of $88,400 and reimbursed the client for their losses.
Recommended for you
With an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
