The Securities and Futures Commission handed Credit Suisse (Hong Kong), Credit Suisse Securities (Hong Kong) and Credit Suisse AG a fine of HK$39.3m ($5m, £3.6m, €4.11m).
The regulatory breaches include failures in segregating client securities, reporting direct business transactions, complying with short selling requirements, electronic trading requirements and contract notes rules, as well as failures in internal controls designed to ensure that investment products sold to customers were suitable.
SFC executive director of enforcement Thomas Atkinson, said: “In this instance, Credit Suisse’s prompt and extensive co-operation have significantly expedited the effective resolution of the issues that caused the SFC’s concerns.
“Otherwise, the sanctions for similar failures would have been substantially higher.”
The disciplinary action followed independent reviews agreed by the SFC and Credit Suisse and an investigation, which found that among a range of failings across the businesses Credit Suisse AG (CSAG) had failed to ensure compliance with all regulatory requirements pertaining to the sale of unsuitable, inappropriate and risky investment products.
In reaching the resolution, the SFC took into account all circumstances, including: Credit Suisse self-reporting, cooperation and remedial action.
CSAG will also compensate affected clients around HK$7.6m in respect of 10 transactions that were found to be either unsuitable or inconclusive as to their suitability for the clients.