Japan May Penalize Credit Suisse Over Information Leak

The Japan securities watchdog has been investigating Credit Suisse since October last year for leaks of information from its research division to salespeople, who then used it to solicit clients. A penalty recommendation could be issued soon, possibly in the form of a business improvement order by the Financial Services Agency (FSA). This situation is reminiscent of a similar incident with Deutsche Bank, which was penalized by the FSA for leaking nonpublic information used by salespeople and investors. Deutsche Bank received a business improvement order to enhance compliance and internal controls.

What was the main reason for the investigation into Credit Suisse by the Japan securities watchdog?

• Unauthorized trading activities

• Fraudulent financial reporting

• Leaks of information from its research division

• Tax evasion

What form might the penalty for Credit Suisse take?

• A fine

• A business improvement order

• A suspension of trading

• A public apology

What was the nature of the information leaked by Deutsche Bank's analyst?

• Company's future merger plans

• Nonpublic information on a company's earnings

• Client personal data

• Internal compliance reports

What was the consequence for Deutsche Bank after the incident?

• A reduction in stock price

• A business improvement order

• A change in management

• A merger with another bank

What is the purpose of a business improvement order?

• To expand market share

• To reduce employee turnover

• To enhance compliance and prevent future incidents

• To increase company profits