SEOUL : South Korea’s financial authorities have notified Credit Suisse AG it could face 50 billion won ($36.32 million) in fines over allegations it breached short-selling rules, South Korea’s Chosun Ilbo daily reported on Thursday, citing industry sources.

The notice was sent to the South Korean and Singaporean units of the bank, the report said.

The Financial Supervisory Service (FSS) is set to announce on Friday the mid-term findings from its investigation of short-selling by global investment banks.

The report said some 10 international banks could face fines totalling more than 100 billion won when the investigation wraps up, though the penalties will be confirmed after a review by committees at the FSS and the Financial Services Commission.

The FSS declined to comment on the Chosun Ilbo report.

UBS in Asia Pacific also said it had no comment. UBS completed the takeover of Credit Suisse in 2023.

The financial market watchdog said last week it was testing a new monitoring system designed to detect illegal short-selling of domestic stocks before lifting a blanket ban on short-selling in South Korea.

South Korea’s Capital Markets Act bans ‘naked’ short-selling of stocks, in which an investor sells shares without first borrowing them or determining they can be borrowed.

($1 = 1,376.6900 won)


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