The U.S. Financial Industry Regulatory Authority Monday fined Credit Suisse Securities (USA), LLC, for failing to fully comply with one of the key terms of the industry research analyst settlement reached back in 2003.

Among other things, that settlement between regulators and 13 financial services firms required those firms to make independent research available to their customers. “The requirement was intended to restore investor confidence in a research industry badly tarnished by the firms’ misconduct,” notes FINRA.

However, it found that Credit Suisse “failed on a number of occasions to post all of the required, current independent research to its Website. For instance, the firm posted independent research for companies not covered by Credit Suisse and was delayed in providing independent research in a timely manner after offerings.”

As a result, the regulator said that it has imposed a fine of US$275,000 against the firm. Credit Suisse settled the case, neither admitting nor denying the charges, but it consented to the entry of FINRA’s findings.

“One of the primary purposes of the Global Settlement’s requirement to provide independent research is to ensure that individual investors could obtain reliable, objective investment advice,” said Susan Merrill, executive vice president and chief of enforcement at FINRA. “By failing to comply fully with this undertaking, on multiple occasions and for a prolonged period of time, Credit Suisse undermined this important goal.”

IE