Credit Suisse put on watchlist by FCA following scandals

THE City regulator has added Credit Suisse to its watchlist of companies needing strict supervision, in the latest blow to the scandal-hit bank.

The Financial Conduct Authority told the Swiss lender it had not done enough to improve its culture, governance and risk controls.

In a letter sent last month, officials at the FCA asked the bank’s management to provide evidence of the steps it would take to prevent misconduct and improve accountability.

The FCA also urged Credit Suisse to address “persistent” cultural issues, including a lack of internal challenges to risky transactions, and said it had not yet seen “sufficient evidence of effective remediation”.

The move, which was first reported by the Financial Times, comes after one of the most tumultuous periods in the bank’s history.

Credit Suisse was hit last year by the twin collapse of supply chain finance group Greensill Capital and family office Archegos. The scandals led to $10bn (£8bn) of its clients’ assets being frozen and a $5.5bn trading loss.

A Credit Suisse spokesman said: “We do not comment on our discussions with regulators.”

The FCA declined to comment.