FINRA Sanctions Citigroup for Supervisory Issues
According to FINRA on February 9, an AWC was issued in which Citigroup Global Markets Inc. (CRD #7059, New York, New York) was censured, fined $450,000, and required to revise its WSPs.
Without admitting or denying the findings, Citigroup consented to the sanctions and to the entry of findings that its proprietary trading accounts were organized into aggregation units for purposes of Rule 200(f) of Regulation SHO compliance.
FINRA’s findings stated that starting in November 2008, the two accounts commenced engaging in proprietary transactions to facilitate certain broker-dealer order flow. However, Citigroup Global Market allegedly failed to include the securities positions in those accounts in its aggregate calculations for any independent aggregation unit.
The findings also stated that the firm’s supervisory system, including its WSPs, reportedly did not provide for supervision reasonably designed to achieve compliance with the applicable securities laws and regulations, including SEC and FINRA rules, to ensure that all firm accounts conducting proprietary business were appropriately included in aggregation units.
For FINRA’s full findings see FINRA Case #2014041142501.
Free Consultation with a Securities Attorney
Brokerage firms are required to adequately supervise their agents to ensure they are complying with FINRA rules. If it is determined that the broker dealer failed to supervise their agents, they can be held responsible for losses in a FINRA arbitration claim.
FINRA is dedicated to investor protection and market integrity. It regulates one critical part of the securities industry – brokerage firms doing business with the public in the United States. FINRA administers a dispute resolution forum for investors and brokerage firms and their registered employees.
If you are concerned about your investments with Citigroup Global Markets, the securities attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.
The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, please visit www.whitesecuritieslaw.com