Citi, UBS, Others Fined $9M Over Unsupervised ETFs

Law360, New York (May 1, 2012, 3:29 PM EDT) -- The Financial Industry Regulatory Authority on Tuesday sanctioned Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Financial Services and Wells Fargo Advisors LLC over $9.1 million for selling leveraged and inverse exchange-traded funds without proper supervision.

The financial watchdog fined the companies and required them to pay restitution for offering the ETFs to customers without conducting due diligence or having a reasonable basis for recommending the securities.

Citigroup will pay a $2 million fine and over $146,000 in restitution, Morgan Stanley will pay a...
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