The Financial Industry Regulatory Authority (FINRA) announced Monday that it had fined Citi International Financial Services LLC, a subsidiary of Citigroup, $600,000 and ordered more than $648,000 in restitution and interest to more than 3,600 customers for charging excessive markups and markdowns on corporate and agency bond transactions, and for related supervisory violations.
Thomas Gira, executive vice president for market regulation at FINRA, said the markups and markdowns charged by Citi International "were outside of appropriate standards for fair pricing in debt transactions, and FINRA will continue to identify and address transactions that violate fair pricing standards, regardless of whether a markup or markdown is above or below 5%."
In concluding the settlement, Citi International neither admitted nor denied the charges. FINRA found that from July 2007 through September 2010, Citi International charged excessive corporate and agency bond markups and markdowns.