Swiss regulator orders Leonteq to disgorge 9.3 mln francs in profit (updated)

Leonteq AG

12/12/2024 06:32

(Adds company statement from paragraph 4 onwards)
       Dec 12 (Reuters) - Leonteq  LEON.S  has been ordered to
disgorge profits worth 9.3 million Swiss francs ($10.52
million), Switzerland's financial regulator said on Thursday,
following a probe that found the investment services firm
breached risk management obligations.
    The regulator, FINMA, said it would appoint an audit
mandatary to monitor the correct implementation of measures
imposed to ensure compliance with the law is restored.
    The decision, which is linked to Leonteq's distribution of
financial market products by some distributors abroad, is not
yet legally binding, according to a statement from the agency.
    "Leonteq has fully cooperated with FINMA and regrets the
shortcomings identified," the company said in a statement.
        Leonteq said it would implement the additional measures
ordered by FINMA "with high priority" and that the regulator's
decision related to transactions with two former distributors in
the period from January 2018 to June 2022.
  
        The fintech company now expects profit before taxes for
2024 to be in the single-digit millions, it added.
  
($1 = 0.8838 Swiss francs)

 (Reporting by Rachel More
Editing by Dave Graham)
 ((rachel.more@thomsonreuters.com;))