Close

Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.

×

Status message

Start your free, no obligation 5-day trial to continue exploring with full access.

FINRA Fines Citigroup $15 Million for Supervisory Failures

Jaclyn Jaeger | November 25, 2014

The Financial Industry Regulatory Authority this week fined Citigroup Global Markets $15 million for failing to adequately supervise communications between its equity research analysts and its clients and Citigroup sales and trading staff.

According to FINRA, Citigroup failed to meet its supervisory obligations regarding the potential selective dissemination of non-public research to clients and sales and trading staff from 2005 to 2014. During this period, Citigroup issued approximately 100 internal warnings concerning communications by equity research analysts.

When Citigroup detected violations involving selective dissemination and client communications, however, a lengthy period of time passed before the firm disciplined the research analysts. Furthermore, disciplinary measures lacked the severity necessary to deter repeat violations of Citigroup policies,...

Buy this article for $49, or subscribe to Compliance Week for a month at $149 and get unlimited article access for 30 days.