SEC Announces Settlement with Credit Suisse Securities on Prohibited Mutual Fund Services

The Securities and Exchange Commission (SEC) announced that Credit Suisse Securities and two other affiliated entities agreed to a settlement on charges that they provided “prohibited underwriting and advising services to mutual funds.” The charges stem from an October 2022 New Jersey court consent order that alleged Credit Suisse Securities violated the antifraud provisions of New Jersey law in connection with its role as underwriter to residential mortgage-backed securities. The SEC charged that because of this court order, Credit Suisse was barred from “serving as principal underwriter or investment adviser to mutual funds and employees’ securities companies pursuant to the Investment Company Act of 1940.” The SEC found, however, that Credit Suisse had continued to act as an adviser on certain funds. The Credit Suisse entities “agreed to pay more than $6.7 million in disgorgement and prejudgment interest and civil penalties totaling $3.3 million.”

Click here to read the SEC press release covering the settlement.