South Korea’s Financial Services Commission (FSC) has levied record fines on two subsidiaries of the former Credit Suisse group for stock short-selling violations, the regulator announced on Wednesday.
The FSC has imposed fines of 16.9 billion won ($12.17 million) on Credit Suisse AG, now UBS AG, and 10.2 billion won on Credit Suisse Singapore Ltd. These penalties mark the highest fines ever imposed by the regulator.
Credit Suisse AG was found to have engaged in naked short-selling trades worth 60.3 billion won between April 7, 2021, and June 9, 2022. Similarly, Credit Suisse Singapore Ltd. conducted such trades worth 35.3 billion won from November 29, 2021, to June 9, 2022, according to the FSC.
UBS, which acquired Credit Suisse last year, has yet to respond to requests for comment.
Naked short-selling, where investors sell shares without borrowing them first or ensuring they can be borrowed, is prohibited under South Korea’s Capital Markets Act.
Last month, South Korea extended a market-wide ban on short-selling stocks through the first quarter of 2025, aiming to establish a system to curb illicit trading practices.
