FINMA orders corrective measures from Credit Suisse successor UBS over Archegos

In the course of its enforcement proceedings, the Swiss Financial Market Supervisory Authority FINMA found that Credit Suisse (CS) had “seriously and systematically violated financial market law in the context of its business relationship with the Archegos family office.” In March 2021, several investment banks incurred large losses due to the collapse of the Archegos hedge fund. Credit Suisse suffered the biggest loss of over $5B. FINMA took various immediate risk-reducing measures in April 2021 and opened enforcement proceeding, the regulator stated. FINMA is ordering corrective measures from its legal successor, UBS (UBS). In addition, FINMA has opened enforcement proceedings against a former Credit Suisse manager. “At the same time as FINMA, the authorities in the USA and the UK are also announcing their findings in this matter,” FINMA announced. “FINMA acknowledges the good cooperation in the enforcement proceedings with the Federal Reserve Board (USA) and the Prudential Regulation Authority (UK). The US and UK authorities are also publishing the results of their investigations in this case. They imposed fines of USD 268.5 million and GBP 87 million respectively,” the regulator stated.