Credit Suisse became the second global bank to be penalised in Japan for leaking information about a company’s earnings, amid a regulatory probe that has raised questions about how brokerages handle stock research in the country.
Bloomberg News reports that the Financial Services Agency ordered the bank’s Japanese securities unit to improve its internal controls and compliance, the regulator said in a statement Monday. The firm has to submit a report by June 3. A spokeswoman for Credit Suisse in Japan wasn’t immediately available to comment.
An equity research analyst at Credit Suisse gave non-public information on a company’s earnings forecast to a customer and a colleague in the sales division, who then used it to solicit clients, the FSA’s securities watchdog said when it recommended action against the firm earlier this month. Deutsche Bank’s Japanese unit was sanctioned for a similar leak in December.
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