Credit Suisse UK has been fined £5.95m by the Financial Services Authority for failings on structured products.

The FSA noted systems and control failings related to Credit Suisse UK’s sale of structured capital at risk products (Scarps).

These are complex products which provide income to customers but expose them to the risk of losing their initial capital.

Between January 2007 and December 2009, Credit Suisse UK customers invested over £1bn into Scarps.

However, the firm failed to correctly assess customers’ attitude to risk, take reasonable care to evidence the suitability of the product for customers and monitor staff effectively when giving advice.

The concerns were noticed by the FSA during a supervisory visit to the firm and it was decided customers were being exposed to an unacceptable risk of being sold a Scarp which was unsuitable for them.

Credit Suisse UK has since enhanced its systems and controls procedures and agreed to carry out a past business review. Redress will be paid to any customers who were advised to purchase an unsuitable product.

Tracey McDermott, acting director of enforcement and financial crime, said: “We have seen all too frequently the consequences of financial services firms failing to implement proper systems and controls to ensure their customers invest in suitable products.

“A proper assessment of customers’ individual needs and circumstances is even more critical where firms are selling complex products like Scarps.

“Credit Suisse UK’s systems were not up to the level we, and their customers, are entitled to expect.”

Credit Suisse UK agreed to settle at an early stage entitling it to a 30 per cent discount on its fine.