The Financial Industry Regulatory Authority (“FINRA”) announced it has censured and fined Citigroup $750,000 for the firm’s failure to retain millions of e-mails sent by or to approximately 2,800 Citigroup brokers.
Pursuant to a Letter of Acceptance, Waiver and Consent (“AWC”) submitted by Citigroup, the failure was the result of a technical glitch that occurred when Citigroup updated its e-mail system from a backup tape-based system to a new journaling-based system. After the upgrade, three of Citigroup’s e-mail servers did not function as expected and, as a result, did not transmit e-mails to the archive for any of the individuals assigned to those e-mail servers.
According to FINRA, Citigroup’s e-mail retention deficiencies impacted at least five FINRA investigations. The AWC also included a finding by FINRA that deficiencies in Citigroup’s supervisory procedures relating to electronic communications resulted in the failure to timely detect the e-mail retention problems.
Investors nationwide who have incurred recoverable investment losses due to specific failures by stockbrokers and brokerage firms, and who may have a FINRA arbitration claim, may contact the Florida securities lawyers at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to firstname.lastname@example.org.