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Release Date:17th May 2024

To access the original FCA document, click here.

Summary

Citigroup Global Markets Limited (CGML) has been fined £27,766,200 by the Financial Conduct Authority (FCA) for breaches of Principles 2 (skill, care, and diligence) and 3 (management and control) of the Authority’s Principles for Businesses, as well as Rule 7A.3.2 of the Market Conduct part of the FCA’s handbook (MAR). This fine was reduced from £39,666,000 due to CGML’s early resolution of the matter.

Reasons for the FCA Fine:

Key Takeaways for Other Firms:

Conclusion

The FCA’s fine against CGML underscores the importance of maintaining robust trading controls and effective risk management systems. Financial institutions must ensure that their systems and controls are adequately designed and implemented to prevent significant errors and maintain market integrity, thereby avoiding substantial penalties and operational losses.

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