Citigroup forced to refund customers in Australia

SYDNEY (Reuters) – Citigroup is refunding more than A$3 million ($2.2 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 on Monday. The bank will also give customers with remaining investments in the products an opportunity to exit “without cost,” the regulator said. Following ASIC’s investigation, Citi on Jan. 1, 2018, stopped selling structured products to retail clients without adequate personal financial advice, it said. Following an investigation by the regulator, 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, the regulator said in a statement. The Australian Securities and Investments Commission (ASIC) said it had concerns the bank’s financial advisers had sold the complex products without complying with regulatory and disclosure obligations required to provide personal financial advice.