Citigroup Fined $725,000 by FINRA for Failure to Disclose Conflicts
Citigroup Global Markets, Inc. failed to disclose certain conflicts of interest in its research reports and research analysts’ public appearances, according to The Financial Industry Regulatory Authority (FINRA). The company was fined $725,000.
Citigroup and/or its affiliates managed or co-managed public securities offerings, received investment banking or other revenue from, made a market in the securities of and/or had a 1 percent or greater beneficial ownership in covered companies, and did not make these required disclosures in certain research reports. In addition, Citigroup research analysts failed to disclose these same potential conflicts of interest in connection with public appearances in which covered companies were mentioned.
Research reports published from January 2007 through March 2010 were identified as lacking the required disclosures, according to a January 18, 2012 FINRA press release.
Contact Fort Lauderdale securities litigation attorney Howard Kahn, Esq., if you relied on Citigroup research report from this time period to make investments. A former Certified Public Accountant, Mr. Kahn also serves as an arbitrator for the Financial Industry Regulatory Authority (FINRA).
