3.9 million Singapore dollars - a hefty fine looming over Credit Suisse. The bank, which has been taken over by UBS, has failed to prevent or uncover misconduct by its client advisors. This is revealed in an investigation by the Monetary Authority of Singapore (MAS).

Specifically, it concerns bank employees of Credit Suisse in Singapore providing their clients with inaccurate or incomplete post-trade information. This resulted in spreads being charged above the mutually agreed rates in 39 over-the-counter bond transactions. MAS warns against this practice and emphasizes the importance of disclosing all relevant information in such transactions.

The MAS examined the pricing and disclosure practices of the private banking industry, and discovered deficiencies at Credit Suisse. According to the MAS, the bank has not implemented adequate controls to prevent or uncover misconduct by its bankers.

Credit Suisse assumes responsibility for misconduct and has already paid the fine. Additionally, the affected customers have been compensated separately. A spokesperson for the bank in Singapore emphasized that they are relieved to be able to conclude the matter after independent investigations with MAS.

The news caused a stir and the UBS stock on the Swiss SIX exchange had to take a hit. It temporarily lost 1.40 percent and was quoted at 26.00 Swiss francs. Investors are concerned because the fine shows that even big banks cannot protect themselves from misconduct by their employees.

This development once again demonstrates how important it is to comply with strict controls and guidelines in financial transactions. The MAS emphasizes that it will continue to not tolerate such violations and wants to remind all parties that they are responsible for their actions. However, good news is that the cooperation with Credit Suisse in this matter was constructive and solution-oriented, and the issue has now been resolved.