Credit Suisse UK fined £6m for structured product failings

The Financial Services Authority (FSA) has fined Credit Suisse £5.95m for systems and controls failings in relation to sales by its private bank of structured capital at risk products (SCARPs).

The FSA defines SCARPs as "complex financial products" that provide income to customers but also expose them to the risk that they lose all or part of their initial capital. Between January 2007 and December 2009, Credit Suisse UK customers invested over £1bn in SCARPs. However, during that period there were a number of serious failings in the systems and controls in respect of those sales. These included inadequate systems and controls in relation to assessing customers' attitudes to risk, failing to take reasonable care to properly evidence the suitability of SCARPs for customers, a...