Banks involved in criminal or civil settlements often need waivers from US regulatory agencies to continue offering certain services. Regarding financial transactions for US pension funds the waiver is granted by the US Department of Labour (DoL). Having admitted to criminal behaviour in May 2014, Credit Suisse was waiting for the DoL decision to continue to manage US pension funds since then.
The FT relays the statement of Credit Suisse spokesman: ‘We are pleased that the Department of Labor has granted our [asset manager] exemption following a rigorous evaluation process, and we look forward to continuing to work on our clients’ behalf’.
It is important to note that waivers have come under increasing scrutiny from lawmakers and Wall Street critics. ‘To address the concerns, the labour department imposed certain conditions on the bank, including limiting the length of the exemption from 10 to five years for its main asset management unit and requiring an independent auditor’ says the FT.