Swiss investment banking company UBS is set to pay $388m to the US and the UK regulators, over Credit Suisse’s relationship with private investment firm Archegos Capital Management.

The settlement will resolve the claims by the US Federal Reserve System the UK Prudential Regulation Authority (PRA) and the Swiss Financial Market Supervisory Authority (FINMA).

Under the terms of the settlement agreement, Credit Suisse, now a subsidiary of UBS, will pay $269m to the Federal Reserve and £87m ($119m) to the PRA.

The Federal Reserve and FINMA have imposed certain remedial measures related to credit, liquidity and non-financial risk management, along with oversight of remedial efforts.

Credit Suisse, in its statement, said: “Credit Suisse will record an additional provision in its second quarter 2023 financial statements to reflect these resolutions.

UBS will reflect the provision in purchase accounting for the acquisition of Credit Suisse, which was completed on 12 June 2023.”

In March 2021, the collapse of US hedge fund Archegos pushed several investment banks into huge losses, where Credit Suisse suffered a loss of more than $5bn.

In April, FINMA opened enforcement proceedings against Credit Suisse after the bank suffered significant losses in connection with Archegos.

Also, the regulator has opened proceedings against the bank, related to the Greensill case, and required the bank to take various risk-reducing measures.

In its enforcement proceedings, FINMA found that Credit Suisse had seriously violated financial market law, as part of its business relationship with the Archegos family office.

UBS, the current owner of Credit Suisse, has been ordered by FINMA to implement certain corrective measures.

According to Credit Suisse, UBS has already started implementing its risk framework, including actions addressing these regulatory findings, across Credit Suisse.

UBS will resolve its outstanding litigation and regulatory matters in the best interest of its stakeholders, including investors, clients and employees, said Credit Suisse.