October 5, 2016

Credit Suisse AG will pay a $90 million penalty and admit wrongdoing to settle charges that it misrepresented how it determined a key performance metric of its wealth management business.  Rolf Bӧgli, former Chief Operating Officer of Credit Suisse’s Private Banking Division, will pay an $800,000 penalty to settle charges he was the cause of Credit Suisse’s violations.  An SEC investigation found that Credit Suisse veered from its publicly disclosed methodology for determining net new assets (NNA), a metric valued by investors in financial institutions to measure success in attracting new business.  Disclosures stated that Credit Suisse was individually assessing assets based on each client’s intentions and objectives.  But Credit Suisse at times instead took an undisclosed results-driven approach to determine NNA.  According to the SEC’s orders, Bӧgli pressured employees to classify certain high net worth and ultra-high net worth client assets as NNA despite concerns raised by employees most knowledgeable about a particular client’s intent.  SEC

Tagged in: Financial Institution Fraud,