ZURICH (Reuters) – Switzerland has opened enforcement proceedings against Credit Suisse over a spy scandal that led to the ouster of its former CEO, a rare challenge for one of the country’s top lenders.

FILE PHOTO: The logo of Swiss bank Credit Suisse can be seen at its headquarters in Zurich, Switzerland, June 22, 2020. REUTERS / Arnd Wiegmann / File Photo

Decision means further public scrutiny of senior Credit Suisse executives as market watchdog FINMA examines its culture and governance and whether management control failures have allowed former members to be spied on from the administration board.

FINMA said on Wednesday that it would pursue indications of violations of supervisory law and, in particular, the question of how these activities were documented and monitored. Such processes often take a few months, the agency said.

Credit Suisse said it would cooperate “to ensure a full and expeditious conclusion to the review of this episode and incorporate lessons learned.”

The move is a setback for President Urs Rohner, who is due to step down in 2021 after around a dozen years as head of the board.

Corporate espionage revelations rocked the secretive world of Swiss banking last year when it emerged that Credit Suisse had spied on former wealth management boss Khan, who was leaving for rival UBS, and former director of human resources Peter Goerke.

The bank had hoped that the departure of former chief executive Tidjane Thiam over the scandal and his replacement by Thomas Gottstein, a Credit Suisse veteran, would end the case.

An internal Credit Suisse investigation concluded that Thiam was unaware of the espionage and that COO Pierre-Olivier Bouee was responsible for it. Bouee, a longtime confidant of Thiam, was fired late last year and has not publicly commented on the scandal.

The rules of the Swiss Observatory allow it to act against individuals if it finds that a bank has violated its own internal communication rules or if it deviates from its usual framework for recording financial decisions. management.

Some measures that FINMA could take include requiring Credit Suisse to comply with supervisory laws in the event of a violation, issue sectoral bans or even file a complaint with the criminal authorities. He cannot impose fines.

Her decision to initiate enforcement proceedings comes after she hired an auditor to review the bank’s corporate governance and its use of electronic communications for oversight.

Credit Suisse tried to dismiss the auditor, Thomas Werlen, after his law firm Quinn Emanuel Urquhart & Sullivan had been involved in legal proceedings against him.

Credit Suisse’s appeal against a lower court ruling that upheld his appointment is pending before the Swiss Federal Court.

FINMA declined to comment on the impact of Credit Suisse’s appeal and the pending court ruling on its enforcement proceedings.

Credit Suisse reiterated on Wednesday that employee spying is not part of its culture.

Reporting by John Miller; edited by Thomas Seythal and Carmel Crimmins

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