FCA verdict on Credit Suisse cliquet revives backtesting debate

Credit Suisse and Yorkshire fined for serious breach of duty

fsa-building4
Financial Conduct Authority headquarters

The UK Financial Conduct Authority (FCA) fined Credit Suisse International (CSI) £2.4 million and Yorkshire Building Society (YBS) £1.4 million on June 16 for selling structured deposits accompanied by inadequate marketing material, in a verdict that raises questions about the use of backtesting and appropriate probability analysis, say bankers. The fines were in regard to sales of a cliquet product created by Credit Suisse, of which 75% - a total of £797 million - was distr

To continue reading...