Credit Suisse Entities to Pay $10 Million for Providing Prohibited Mutual Fund Services

The Securities and Exchange Commission today announced that Credit Suisse Securities (USA) LLC and two affiliated Credit Suisse entities (collectively, the Credit Suisse Entities) agreed to pay more than $10 million to settle the SEC’s charges that they provided prohibited underwriting and advising services to mutual funds. In October 2022, the Superior Court of New Jersey entered a consent order that resolved a case alleging that Credit Suisse Securities violated the antifraud provisions of the New Jersey Securities laws in connection with its role as underwriter to residential mortgage-backed securities. According to the SEC’s order, because the New Jersey court ordered that Credit Suisse Securities shall not violate New Jersey securities laws, Credit Suisse Securities and its affiliates were prohibited from serving as principal underwriter or investment adviser to mutual funds and employees’ securities companies pursuant to the Investment Company Act of 1940.