- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-12-14T14:19:00
Three entities of Swiss bank Credit Suisse agreed to pay more than $10 million combined as part of a settlement with the Securities and Exchange Commission (SEC) for allegedly providing prohibited underwriting and advising services to mutual funds.
Credit Suisse Securities was assessed a civil penalty of $1 million, while two of its asset management affiliates were separately fined $2 million and $300,000. The asset managers also agreed to pay nearly $6.8 million in disgorgement and prejudgment interest, the SEC announced in a press release Wednesday.
In October 2022, a New Jersey court ruled on a 2013 case alleging Credit Suisse Securities violated the antifraud provisions of state laws in connection with its role as underwriter to residential mortgage-backed securities. The court prohibited Credit Suisse Securities and its affiliates from serving as principal underwriter or investment adviser to mutual funds and employees’ securities.
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Historically, the SEC has fiercely protected the rights of retail investors, and is constantly churning out enforcement actions against investment advisers it alleges have defrauded and manipulated its customers. So, it was somewhat unusual the agency issued an enforcement action this week that involved protecting the rights of institutional investors.
Aon Investments USA and its former partner agreed to pay nearly $1.6 million in combined penalties to settle charges by the Securities and Exchange Commission that they misled a Pennsylvania school pension fund.
A Singapore financial regulator will reportedly conduct an on-site inspection of a local Credit Suisse unit in connection with a 2.8 billion Singapore dollar (U.S. $2 billion) money laundering scandal.
German petrochemical parts supplier Aiotec agreed to pay $14.5 million to settle allegations that it engaged in a four-year conspiracy to dismantle and ship a plastics manufacturing plant owned by a U.S. company to Iran, in violation of U.S. sanctions.
Kiromic BioPharma will pay no fine to the Securities and Exchange Commission after self-reporting that it failed to disclose material information about two cancer drugs to investors.
The U.K. Financial Conduct Authority fined the London branch of Australian-based Macquarie Bank Limited more than 13 million pounds (U.S. $16.3 million) for “serious control failures” that allowed a trader to conceal hundreds of fictitious trades over a 20-month period.
