Finra censures, fines Citigroup over UIT sales violations
A Citibank logo is pictured on a wall inside a Citibank branch in Mumbai, India, on Friday, February 21, 2014. Photographer: Vivek Prakash/Bloomberg
For failing to credit discounts to customers, Citi will pay $377,000.
The Financial Industry Regulatory Authority Inc. has censured Citigroup Global Markets for its supervisory failures between 2011 and 2017 in connection with sales of unit investment trusts.
Finra also imposed a fine of $225,000 and restitution in the amount of $152,488.59, plus interest.
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In a letter of acceptance, waiver and consent, Finra said that Citi failed to identify and apply sales charge discounts to certain eligible purchases of UITs and failed to establish written supervisory procedures for UIT sales.
Over a six-year period, Finra said, there were 1,476 transactions at Citi eligible to receive a rollover discount in addition to or independent of a breakpoint discount. Finra said that Citi failed to apply sales charge discounts to 594 of these eligible UIT purchase transactions, resulting in customers paying excessive sales charges of $152,488.59.
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