Swiss financial regulator FINMA has opened enforcement proceedings against Credit Suisse for a spying scandal that erupted last year.

The regulator said it will pursue indications of supervisory law breaches in the bank’s observations.

It also intends to look into the manner how these activities were documented as well as controlled.

The regulator said that such proceedings usually take several months.

In a statement, the regulator said: “FINMA will inform the public about the conclusion of the enforcement proceedings.

“It will not comment further on the content of the ongoing proceedings or the date when the proceedings may be concluded.”

Background

The spying affair involved the surveillance of the firm’s former wealth management head Iqbal Khan.

This occurred in the wake of Khan’s defection to rival UBS as the co-president of wealth management.

However, an internal probe did not find any evidence of Khan trying to poach Credit Suisse employees or clients to UBS, which was said to be the reason behind his surveillance.

Spying scandal topples management 

Credit Suisse COO Pierre-Olivier Bouée was held responsible for the operation and was eventually ousted.

However, the Credit Suisse board opined that “the mandate for the observation of Iqbal Khan was wrong and disproportionate and has resulted in severe reputational damage to the bank”.

The probe absolved then CEO Tidjane Thiam from involvement in the matter though he resigned soon after.

Thomas Gottstein succeeded Thiam earlier this year.

Khan, previously tipped as Thiam’s potential successor, filed a criminal complaint with the Zurich attorney’s office over the incident.

Finma launched its own probe into the matter last December, appointing an independent auditor.

In May this year, Credit Suisse appealed to the highest court to review the lawyer appointed by FINMA for looking into its spying scandal.