Credit Suisse Group AG (“CS”) has agreed to pay $196 million and admit wrongdoing in order to settle charges that it violated federal securities laws by providing cross-border brokerage and investment advisory services to US clients without registering with the SEC.
According to the SEC, CS relationship managers communicated with US clients from abroad and travelled to the US to solicit clients, provide investment advice, and induce securities transactions from 2002 onwards. During this time, CS amassed 8,500 client accounts containing an average total of $5.6 billion in securities assets. CS has acknowledged that its conduct violated the federal securities law and accepted a censure and a cease and desist order. CS is also due to pay fines, including $82,170,990 in disgorgement, $64,340,024 in prejudgment interest, and a $50 million penalty.