Citigroup to refund 114 customers in Australia for investment losses
SYDNEY: Citigroup is refunding more than A$3 million (S$2.9 million) to retail customers in Australia who suffered losses from complex investments sold by the bank without adequate advice, the country's corporate watchdog said yesterday.
The Australian Securities and Investments Commission (Asic) said it had concerns Citi's financial advisers had sold the products without complying with regulatory and disclosure obligations required to provide personal financial advice.
Following an investigation, Citi will refund 114 customers who invested in complex fixed coupon products and other capital at risk products between 2013 and 2017 and lost money.
Citi will also give customers with remaining investments in the products an opportunity to exit "without cost", the regulator said.
Following Asic's probe, Citi on Jan 1 last year stopped selling structured products to retail clients without adequate personal financial advice, it said.
"While Citi maintains the view that none of its actions amounted to a breach of its obligations, Citi has acknowledged Asic's concerns and is making a payment to this (small) group of clients," a Citi spokesman said in a statement. Citi has completed about 75 per cent of the refunds. - REUTERS