Citigroup Global Markets fined $1.25 million for screening failures

Citigroup Global Markets fined $1.25 million for screening failures
Finra says three individuals with criminal convictions worked for the firm due to inadequate background checks.
JUL 29, 2019

The Financial Industry Regulatory Authority Inc. has fined Citigroup Global Markets $1.25 million for failing to conduct timely or adequate background checks on approximately 10,400 nonregistered personnel between 2010 and 2017. (More: Finra censures, fines Citigroup over UIT sales violations) Finra also said that Citigroup did not fingerprint at least 520 of the 10,400 employees until after they began their association with the firm, which prevented Citigroup from determining whether any of them were subject to statutory disqualification from associating with a Finra member firm. In addition, the firm was unable to determine whether it fingerprinted at least an additional 520 non-registered persons in a timely manner, Finra said. While Citigroup fingerprinted other nonregistered associated persons, it failed to screen them as required by federal securities laws, instead limiting its screening to what was required by federal banking laws, Finra said. Because of these failures, Finra found that three individuals who were subject to statutory disqualification because of criminal convictions were allowed to remain associated with the firm between 2010 and 2017.

Latest News

LPL building out alts, banking services to chase wirehouse advisors, new CEO says
LPL building out alts, banking services to chase wirehouse advisors, new CEO says

New chief executive Rich Steinmeier replaced Dan Arnold on October 1.

Franklin Templeton CEO vows to "do what's right" amid record outflows
Franklin Templeton CEO vows to "do what's right" amid record outflows

The global firm is navigating a crisis of confidence as an SEC and DOJ probe into its Western Asset Management business sparked a historic $37B exodus.

For asset managers, easy experience is key to winning advisors' businesses
For asset managers, easy experience is key to winning advisors' businesses

Beyond returns, asset managers have to elevate their relationship with digital applications and a multichannel strategy, says JD Power.

Why retaining HNW clients ultimately comes down to one basic thing
Why retaining HNW clients ultimately comes down to one basic thing

New survey finds varied levels of loyalty to advisors by generation.

Stocks drop as investors digest Microsoft, Meta earnings
Stocks drop as investors digest Microsoft, Meta earnings

Busy day for results, key data give markets concerns.

SPONSORED Out with the old and in with the new: a 50% private markets portfolio

A great man died recently, but this did not make headlines. In fact, it barely even made the news. Maybe it’s because many have already mourned the departure of his greatest legacy: the 60/40 portfolio.

SPONSORED Destiny Wealth Partners: RIA Team of the Year shares keys to success

Discover the award-winning strategies behind Destiny Wealth Partners' client-centric approach.