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FINRA sanctions Citigroup Global Markets $11.5M for inaccurate research ratings

Jaclyn Jaeger | January 5, 2018

The Financial Industry Regulatory Authority has fined Citigroup Global Markets $5.5 million and required the firm to pay at least $6 million in compensation to retail customers for displaying inaccurate research ratings for numerous equity securities during a nearly five-year period, and for related supervisory violations.

“Member firms must reasonably ensure that the research rating information that they display and on which they rely to supervise business activities is complete and correct. The display and use of incomplete and inaccurate research ratings can have widespread, adverse consequences to customers,” FINRA Executive Vice President and Head of Enforcement Susan Schroeder said in a statement. “Even when such inaccuracies are caused by technology problems, firms should react quickly to address those errors.”

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