Switzerland’s Financial Market Supervisory Authority (FINMA) today confirms that it has launched enforcement proceedings against Credit Suisse after the bank suffered significant losses in connection with a US hedge fund (Archegos). Furthermore, FINMA announces that it opened proceedings against the bank in the context of the “Greensill” case in March 2021.

Supplementing measures taken by the bank, FINMA has in addition required various risk-reducing measures.

FINMA has opened enforcement proceedings against Credit Suisse in the context of the significant losses resulting from the business relationship with the US hedge fund “Archegos”. FINMA will investigate in particular possible shortcomings in risk management. FINMA will also appoint a third-party agent to investigate the matter at the bank. In addition, the regulator will continue to exchange information with the competent authorities in the UK and the USA.

In March 2021, FINMA opened proceedings against Credit Suisse in the context of the “Greensill” case and the corresponding supply chain finance funds. An investigating agent has already been appointed. The proceedings against the bank will also focus on issues of risk management.

Typically such proceedings can be expected to take several months, particularly where complex international matters are involved.

As a result of these two cases, FINMA has in recent weeks ordered various short-term measures to be put in place. These include organisational and risk-reducing measures and capital surcharges as well as reductions in or suspensions of variable remuneration components. These precautionary and temporary measures are intended to complement and reinforce steps already taken by the bank.