Citigroup Global Markets Inc. (CRD #7059, New York, New York) recently submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured, fined $25,000, and required to amend its Unit Investment Trust (UIT) confirmations to include a disclosure concerning deferred sales charges and to have a firm officer notify FINRA in writing that it has amended its UIT confirmations. Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it sold UITs that imposed a deferred sales charge without disclosing that the UITs were subject to a deferred sales charge on its confirmations as NASD Rule 2830(n) required. The findings stated that the rule provides that purchase confirmations of investment company products in which a deferred sales charge is imposed on redemption include the legend, “On selling your shares, you may pay a sales charge. For the charge and other fees, see the prospectus.” The findings also stated that the firm issued more than 250,000 UIT purchase confirmations without such a disclosure.
This information which is publicly available on FINRA’s website has been provided by The White Law Group, LLC.
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