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HONG KONG (Reuters) – Citigroup Inc. has fired eight bankers and suspended three others from its stock trading bureau in Hong Kong after an internal investigation revealed reprehensible behavior by their clients, informants said.
The action was taken after an examination raised concerns about the accuracy of the disclosure to customers by the vendors involved in certain transactions where Citi was acting principally, said one of the people .
The primary transaction is a brokerage acting as a counterparty to settle client transactions, instead of simply negotiating a securities transaction between different parties.
"An examination of the execution of cash shares based in Hong Kong revealed personal conduct that did not meet our standards and we took appropriate action," the US bank said in a statement to Reuters on Saturday.
"Cases where the capacity in which Citi was acting was not properly represented were detected in connection with the facilitation exchange," he said.
The names of traders against whom action has been taken are not immediately known.
Citi stated that it was fully compliant with local regulations and that "enhanced regional procedures and controls for facilitation exchanges" had been introduced to ensure full transparency.
The bank, which is very active in the Asian and Asian capital markets and activities, said that its clients had been informed of developments and that a team was in place to ensure minimal disruption early in the negotiations, Monday.
Bloomberg reported development on Friday.
Global banks tightened their compliance procedures in Hong Kong, as the Asian financial center's securities regulator stepped up its crackdown on non-compliance with trading and underwriting guidelines. ; actions.
Last week, the regulator banned UBS from entering the city's IPO for a year, fining it $ 100 million, including Morgan Stanley, for a total of $ 100 million. US dollars.
(Report by Anshuman Daga and Sumeet Chatterjee, edited by Tom Hogue)
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