Swiss financial market regulator FINMA has ordered an audit into Credit Suisse's handling of events leading to its demise in 2023, according to a report by Swiss newspaper SonntagsZeitung.

The investigation focuses on the 15-month period prior to the state-orchestrated merger with UBS in March last year.

FINMA reportedly commissioned law firm Wenger Plattner to conduct the audit, which has involved interviewing nearly a dozen current and former employees from both Credit Suisse and UBS. The regulator is examining crucial aspects of Credit Suisse's financial health during its final months, including the bank's liquidity, equity position, and overall management.

A key question under scrutiny is the timeline of Credit Suisse's collapse, with investigators seeking to determine when it became evident that the bank could no longer be saved. The audit aims to shed light on whether Credit Suisse's management potentially misled authorities during this critical period.

The probe follows a "secret" order issued by FINMA in September 2023, informing both banks of its intention to review Credit Suisse's crisis management. This latest development comes after FINMA's December report, which revealed that Credit Suisse had come perilously close to imploding months before its eventual takeover.

FINMA, the Swiss finance ministry, and the Swiss National Bank declined to comment on the investigation when approached by Reuters. Similarly, Wenger Plattner and UBS refused to provide any statements regarding the matter.

The audit is taking place against the backdrop of ongoing scrutiny of the Credit Suisse collapse. A Swiss parliamentary committee is expected to deliver its own report later this year, investigating how authorities handled the bank's demise.

In April, Swiss authorities introduced a package of measures aimed at preventing a repeat of the Credit Suisse meltdown. These proposals, which include stricter capital requirements for UBS, are set to be debated in parliament following the release of the parliamentary report.

Critics of the Credit Suisse takeover argue that Swiss authorities could have maintained the bank as a separate entity. They contend that officials were slow to act and should have provided stronger assurances of the bank's survival.

Defending their actions, authorities have pointed to failures within Credit Suisse as the root cause of its collapse. However, the ongoing investigations suggest that questions remain about the handling of the crisis by both the bank and regulators.

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