The Financial Conduct Authority (FCA) currently has Credit Suisse on a watchlist over concerns that the company has not done enough to improve its culture, governance and risk controls amid a series of scandals.
In a letter seen and reported on by the Financial Times, the FCA urged the investment bank's senior management to provide evidence of how it would go about preventing misconduct and improve its accountability.
Also in the letter, sent last month, the FCA said that it had not yet seen "sufficient evidence of effective remediation" to address what it deemed "persistent" cultural issues, including a lack of internal challenges to risky transactions, and urged the bank to make the appropriate changes.
The FCA further stated that it had concerns over whether Credit Suisse had adequately reported on its breaches of conduct rules, noting "a lack of curiosity" from the bank regarding the root causes of failings.
It then called for the bank to conduct a review in the second half of this year on the effectiveness of its board, risk and audit committees.
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Credit Suisse's addition to the regulator's watchlist follows several scandals which have hit the company over more than a year, including fines of £147m it had to pay to the FCA in October over financial due diligence failings on loans for the Republic of Mozambique worth over $1.3bn.
As a result of the failings, Credit Suisse agreed to forgive a further $200m of the debt owed.
Prior to this, in March 2021, Credit Suisse suffered financially from the breakdown of Greensill Capital, which cost the bank $10bn in supply chain finance funds, and the breakdown of Archegos Capital Management in the same month, which cost the firm $5.5bn.
The bank is still attempting to recover from the scandals and losses, adding that it expected a loss in reported earnings for the first quarter of 2022 due to increased litigation provisions and the impact of the Russian invasion of Ukraine.
The FCA's watchlist designation comes despite a shake up in Credit Suisse's executive management, which included the departure of its CEO Brian Chin in April 2021, replaced by Christian Meissner, and the departure of its chief risk and compliance officer Lara Warner in the same month.
In April this year, David Mathers, chief financial officer and CEO of Credit Suisse International, announced his intention to leave the company.
