Hong Kong’s Securities and Futures Commission has banned a former Citigroup Inc. banker from re-entering the industry for 10 years for regulatory breaches, one of the most high-profile disciplinary actions in recent years.
(Bloomberg) — Hong Kong’s Securities and Futures Commission has banned a former Citigroup Inc. banker from re-entering the industry for 10 years for regulatory breaches, one of the most high-profile disciplinary actions in recent years.
The financial watchdog said that breaches and internal control failures at Citigroup Global Markets Asia Ltd. were attributable to Philip John Shaw’s inability to discharge his duties as a responsible officer and senior manager, according to a statement on Monday.
The disciplinary action follows the SFC’s earlier sanctions against the bank unit for allowing various trading desks under its cash equities business to disseminate mislabeled indications of interest. The regulator also said the bank made misrepresentations to institutional clients when executing facilitation trades from 2008 to 2018.
“A key concern of the SFC is that Shaw had, through his misconduct, engendered a culture of chasing revenue at the expense of client interests and basic standards of honesty,” Christopher Wilson, the SFC’s executive director of enforcement, said in a statement.
The SFC in early 2022 fined Citigroup HK$348.3 million ($44.4 million) for “serious regulatory failures” when executing stock trades for clients between 2008 and 2018.
–With assistance from Denise Wee.
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