(Reuters) -Leonteq 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 MoreEditing by Dave Graham)
