Swiss Exchange Reprimands Swiss Private Bank

Christopher Owen

29 January 2008

The Sanction Commission of the Swiss Exchange has imposed a SFr100,000 fine on Geneva-based Société Bancaire Privée for repeated breaches of its regulations governing publicity and financial reporting. Last month Italy’s Banca Profilo acquired a majority 60.25 per cent stake in SBP, fulfilling an obligation to find a buyer for the equity stake of one of its core shareholders, after the Swiss Federal Banking Commission threatened to revoke SBP’s licence after finding the shareholder guilty of conflict of interest. The SWX found SBP in breach of the following rules: • On 18 August 2006, SBP published its semi-annual report while trading was in progress, without having given the SWX the required 90-minutes' notice. • On 19 December 2006, SBP announced that it was to replace its board of directors and strengthen its senior management without explanation. The following day it emerged in the press that the changes had been prompted by a SFBC investigation that had been ongoing since October 2006. • On 19 March 2007, SBP announced that the SFBC investigation had identified considerable organisational shortcomings and that it had to be sold or the SFBC would withdraw its banking licence. The main shareholder had already signed a declaration of intent with a purchaser, but SBP named neither the buyer nor the agreed price although both appeared in the press on the same day. • SBP failed to comply with the set deadlines for both publication and submission of its 2006 annual report. The SWX ordered SBP to pay a fine of SFr100,000, and for the sanction to be published.