Citigroup to pay $15 million for analyst supervision lapses


A unit of Citigroup Inc must pay a $15 million fine for not adequately supervising communications among its equity research analysts, clients and the firm’s sales and trading staff, Wall Street’s industry funded regulator said on Monday.

Fortune

(Reuters) – A unit of Citigroup Inc must pay a $15 million fine for not adequately supervising communications among its equity research analysts, clients and the firm’s sales and trading staff, Wall Street’s industry funded regulator said on Monday.

The supervision lapses at Citigroup Global Markets Inc, which occurred between January 2005 and February 2014, included an instance in which the firm allowed one of its analysts to participate indirectly in two of its initiatives to promote clients’ initial public offerings to investors, the Financial Industry Regulatory Authority said.

Citigroup, which settled the allegations with FINRA, neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.

“We are pleased to have resolved and put this matter behind us,” a Citigroup spokeswoman said in a statement. “Citi takes its regulatory compliance obligations seriously, and we believe we have strong procedures and controls in place to address…

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