Credit suisse fined more than the total FSA fines for 2007

The fine handed out to Credit Suisse for its deliberate mispricing of asset backed securities was more than the total fines issued by the FSA during 2007, according to accountants and business advisers BDO LLP.

During 2007 the FSA issued 23 fines (to both companies and individuals) totalling £5.3 million.  Credit Suisse, however, was fined £5.6 million.

One saving grace for the financial services giant is that it still falls some way behind the record £17 million fine faced by Shell for “market abuse” in August 2004.

George Quigley, financial services group risk adviser, at BDO says: “Time and time again we see individuals and companies being fined by the FSA for failing to meet regulatory requirements.  The penalties being levied by the FSA continue to increase as they take a tougher stance on enforcement in line with their overall policy of imposing higher penalties to achieve credible deterrence.”

“The UK is one of the most highly regulated countries in the world; therefore it is imperative that companies focus on making sure their internal controls are sufficient to mitigate their risks.  Having the essential controls in place to prevent these problems in the first place is not rocket science, it just requires a thorough risk assessment and evaluation of the supporting control framework,” he continues.

“Given the current economic climate, the financial services industry is in enough turmoil without adding trust issues into the mix,” he concludes.

For more information, please contact Dee Crooks at BDO on 020 7893 2761 / 07815 172 051 or email

Notes to editors:

* Raising capital is obtaining further external investment (i.e. through venture capital, going to market or private equity backing), whereas access to funding will also include traditional lenders (i.e. banks).

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