SEC: Credit Suisse to pay $90 million penalty

SEC: Credit Suisse to pay $90 million penalty
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Credit Suisse AG has agreed to pay $90 million and admit to falsifying a key performance metric, the Securities and Exchange Commission announced.

The SEC found Credit Suisse guilty of reworking the methodology behind net new assets (NNA) to meet targets established by senior management. NNA is used by financial institution investors to measure a firm's success in attracting new business. Disclosures stated Credit Suisse was assessing assets to address specific client needs and objectives, but that wasn't the case. 


"Credit Suisse conveyed to the investing community that it followed a structured process for recognizing net new assets when, in fact, the process was reverse-engineered to meet targets," SEC Enforcement Division Director Andrew Ceresney said. "Credit Suisse's failure to disclose this results-driven approach deprived investors of the opportunity to fairly judge the firm's success in attracting new money."

Rolf Bogli, chief operating officer of the firm's private banking division at the time of the malfeasance, pressured employees to classify certain high net worth client assets as net new assets despite employee concerns about a client's intent, the SEC said.

Bogli agreed to pay a penalty of $80,000.

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