Citigroup Fined by Finra for Failing to Deliver ETF Prospectuses
This article is for subscribers only.
Citigroup Inc., the third-biggest U.S. bank, agreed to pay a $3 million fine after discovering that it failed to deliver paperwork on more than 250,000 customer purchases of exchange-traded funds.
The bank didn’t send prospectuses on 160 ETFs bought by clients in late 2010, the Financial Industry Regulatory Authority said today in a document on its website. New York-based Citigroup also may have failed to deliver prospectuses on more than 1.5 million ETF purchases from 2009 through April 2011, Finra said. The Wall Street Journal reported on the fine earlier today.