Citigroup Fined for Compliance Issue

Posted on November 28th, 2014 at 10:12 AM
Citigroup Fined for Compliance Issue

From the Desk of Jim Eccleston at Eccleston Law Offices:

FINRA fined Citigroup $15 million for failing to supervise research analysts and their handling of material non-public information.

According to FINRA, Citigroup didn’t adequately protect against “potential selective dissemination of non-public research to clients and sales and trading staff” from January 2005 to February 2014.

From 2011 to 2013, Citigroup didn’t prohibit analysts from helping companies prepare for so-called road show presentations, and in 2011 an analyst helped two firms prepare such materials. In addition, Citigroup analysts also provided stock picks at idea dinners hosted by the bank that in some cases differed from their published research.

Citigroup has issued roughly 100 warnings about analyst communications with clients and sales and trading staff when it found violations. But it took too long to discipline staff.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: FINRA, Citigroup, Eccleston Law, Compliance

Return to Archive



I want to extend a tremendous thank you for your dedication, professionalism, hard work and patient demeanor through this challenging time. It was enjoyable interacting with everyone on your team, this certainly helped while dealing with the situation and working towards resolution.

Dan M.


February 22, 2024
Key Considerations for Advisors When Assessing the Financial Soundness of Annuities

While rating agencies like Fitch and S&P Global Ratings generally highlight the strength of annuity issuers, advisors still should scrutinize certain factors in their assessment process.

February 21, 2024
SEC Alleges Fraud Against Morgan Stanley and Former Executive in Block Trading Business

As reported by the Wall Street Journal, the Securities and Exchange Commission (SEC) has charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with a multi-year fraud involving the disclosure of confidential information related to block trades.

February 20, 2024
Challenges Persist: Firms Struggle to Comply with Regulation Best Interest

FINRA's annual report for 2024 reveals a concerning trend among broker-dealers, with numerous instances of violations of Regulation Best Interest (Reg BI).