Citigroup agreed to pay a $3m fine after discovering that it failed to deliver paperwork on more than 250,000 customer purchases of exchange-traded funds.
Bloomberg News reports that the bank didn’t send prospectuses on 160 ETFs bought by clients in late 2010, the Financial Industry Regulatory Authority said last week in a document on its website.
Citigroup also may have failed to deliver prospectuses on more than 1.5m ETF purchases from 2009 through April 2011, Finra said. The Wall Street Journal first reported on the fine.
In September, Morgan Stanley said it failed to make mutual fund prospectuses accessible online and would absorb some losses incurred by customers who bought the funds.
To access the complete Bloomberg News article hit the link below:
Citigroup Fined by Finra for Failing to Deliver ETF Prospectuses
SocGen Defies Industry Retreat in Pompidou-Sized Venue