C Suisse slapped with £4m fine from the Hong Kong markets regulator

Hong Kong's markets regulator has slapped banking giant Credit Suisse with a HK$39.3m (£3.6m) fine for historic "internal control failures".

The Securities and Futures Commission (SFC) said the regulatory breaches had included failures in segregating client securities, reporting direct business transactions, and complying with short selling requirements, electronic trading requirements and contract notes.

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The Swiss bank also fell short in its internal controls designed to ensure that the investment products sold to customers were suitable.

According to the SFC, Credit Suisse reported the breaches and cooperated fully with the probe. "Otherwise, the sanctions for similar failures would have been substantially higher," said the regulator's enforcement director Thomas Atkinson.

The fine from Hong Kong follows an investigation by the US's Securities and Exchange Committee, which at the end of last year levied Credit Suisse with a much larger $135m (£103m) penalty after finding malpractice in the bank's foreign exchange trading business.

Among other more technical errors, stretching back as far as 2003, the SFC found that Credit Suisse did not correctly segregate client securities from house securities, and on 672 occasions used client securities to settle proprietary transactions.

Read more: Credit Suisse fined $135m for New York forex investigation

Full story: Credit Suisse slapped with £4m fine from the Hong Kong markets regulator: City A.M.

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