Credit Suisse units to pay $10M in SEC mutual fund services case

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.