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Citigroup has been slapped with a $7.3m (£5.4m) fine by a Hong Kong regulator over failures in its role as sponsor for the listing of Real Gold Mining Ltd.
The Securities and Futures Commission said that Citigroup Global Markets Asia had failed to conduct adequate and reasonable due diligence on Real Gold’s customers.
According to reports, Citi was a sponsor for the IPO of China-based Real Gold Mining Limited but the mining company was suspended from trading in 2011 for accounting irregularities.
A spokesman at the bank said in a statement: A spokesperson for Citi said: “Citi has agreed to resolve this legacy issue with the SFC relating to its work as sponsor to Real Gold Mining`s listing application in 2009. The resolution announced by the SFC today does not involve any license suspension and does not place any constraints on Citi’s business activities or on any individual in Hong Kong or elsewhere. Citi cooperated fully with the SFC’s investigation and has already taken appropriate action to ensure that it meets its legal and regulatory obligations at all times.”
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