The Securities and Futures Commission has reprimanded and fined Citigroup Global Markets Asia Limited HK$4 million over its regulatory breaches in relation to the operations of its alternative liquidity pool.
The regulator found that the operation of Citi Match, the ALP, failed to comply with the requirements during December 2015 to August 2016. Over 130 clients had accessed Citi Match without being assessed as to whether they were qualified investors due to an incorrect system setting of client profiles. CGMAL also failed to offer the clients the ALP guidelines prior to routing their first orders to Citi Match.
The SFC took into account all relevant circumstances, including that CGMAL took remedial action.
In response, CGMAL said that it has co-operated fully with the SFC and has agreed to resolve the issue.