The Financial Industry Regulatory Authority (FINRA) is fining Citigroup Global Markets Inc. $15 million for failing to adequately supervise communications between research analysts, clients, and sales and trading staff, according to a recent statement. The sanction also is for allowing an analyst to indirectly participate in two roadshows promoting initial public offerings to investors.
“In this case, Citigroup did not enforce the boundaries of permissible communications to ensure that its analysts did not provide certain clients with improper access to nonpublic research information,” said Cameron Funkhouser, an executive vice president of FINRA, in the statement. FINRA determined that between January 2005 and February 2014, Citigroup failed to meet its supervisory obligations with respect to spreading nonpublic research.
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