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Press Release

Conclusion of FINMA’s proceedings in connection with the Supply Chain Finance Funds

Credit Suisse welcomes FINMA’s announcement today that it has concluded its proceedings in connection with the Supply Chain Finance Funds (SCFF) matter. Over the course of the last two years, since the closing of the SCFFs, Credit Suisse has implemented a series of extensive organizational measures. Many of these measures were based on the independent investigation into the SCFF matter by Deloitte/Walder Wyss and have addressed FINMA’s findings.

Ulrich Körner, Chief Executive Officer of Credit Suisse Group AG, commented:

“We welcome the conclusion of FINMA’s work. This marks an important step towards the final resolution of the SCFF issue. FINMA’s review has reinforced many of the findings of the Board-initiated independent review and underlines the importance of the actions we have taken in recent years to strengthen our Risk and Compliance culture. We also continue to focus on maximizing recovery for fund investors.”

Since March 2021, Credit Suisse has taken action to directly address many of the issues subsequently highlighted by FINMA, and notes that FINMA is supportive of the measures already taken to strengthen governance and control processes. Specifically in Asset Management we have implemented steps which include:

  • Senior management changes, including dismissal of several managers and employees, alongside the implementation of disciplinary measures and the recovery of previously granted compensation awards through malus and clawback
  • Implementation of a global operating model to improve accountability
  • Improvements to governance, increasing the level of oversight and accountability through simplified and streamlined committees across all levels
  • Strengthening controls by moving risk oversight into a dedicated divisional risk management function
  • Fundamental redesign of the product development and approval process to improve global consistency, transparency and oversight

All of the requirements identified by FINMA are being addressed through the organizational measures already underway. FINMA has not ordered any confiscation of profits in connection with the proceedings and the implementation of the additional measures is not expected to result in significant costs for Credit Suisse.

Risk & Compliance improvements

In addition, over the last two years Credit Suisse has significantly strengthened its overall risk management and controls across the Group. We have taken actions which include:

  • The appointment of new Chief Risk and Chief Compliance Officers and a number of other senior leaders across the Risk and Compliance functions
  • Enhancement of the Risk and Compliance measurements in performance objectives and reward considerations for Executive Board members and senior managers
  • Significant investment across Risk and Compliance, and further strengthening of our first line of defense
  • Investment in risk culture training across the organization

Credit Suisse has a clear strategic plan in place, as communicated on October 27, 2022, which is being executed by a new leadership team. We have made significant progress in terms of embedding a risk management mindset across the Group, and the focus on strengthening Risk and Compliance continues to be a critical part of our broader transformation program.

Progress continues on recovery for Supply Chain Finance Fund investors

Credit Suisse continues to prioritize maximizing recovery for investors in the SCFFs. To date, together with the cash already distributed to investors and cash remaining in the funds, total cash collected amounts to USD 7.4 bn, or 74% of the total USD 10 bn net asset value at the time of the funds’ suspension. As previously announced, the liquidation of two of the four SCFFs – the Liechtenstein-domiciled Credit Suisse Supply Chain Finance Investment Grade Fund and the Credit Suisse Nova (Lux) Supply Chain Finance Investment Grade Fund – has been completed.

Credit Suisse also monitors the free cash available for distribution in the Credit Suisse (Lux) Supply Chain Finance Fund and Credit Suisse Nova (Lux) Supply Chain Finance High Income Fund and, without any assurance that a payment of liquidation proceeds will be made, will assess a further payout to investors in these funds in the first half of this year.