Broker-Dealer Settles FINRA Charges for Failing to Apply Sales Charge Discounts

A broker-dealer agreed to settle FINRA charges of failing to identify and apply discounts for investors on Unit Investment Trust ("UIT") purchases.

According to FINRA, Citigroup Global Markets Inc. ("CGMI") failed to implement supervisory systems and written supervisory procedures to (i) achieve compliance regarding the crediting of available sales charge discounts to eligible UIT purchases and (ii) supervise UIT trading. To settle the charges of violations of NASD Rule 3010 and FINRA Rules 2010 and 3110, CGMI agreed to a censure, a $225,000 fine and to pay restitution in the amount of $152,488.59, plus interest.