Citigroup will refund over $3 million to 114 retail customers for losses arising out of structured product investments offered between 2013 and 2017, according to an announcement from the corporate regulator.
About 1,000 customers remaining in the products can expect a letter from Citigroup providing them an opportunity to exit early without cost, ASIC said.
“ASIC investigated Citigroup’s sale and provision of general advice to customers for fixed coupon structured products, which are complex, capital at risk products tied to the performance of reference shares,” the statement said.
“ASIC was concerned that while Citigroup considered its financial advisers to be providing general advice, elements of its practice may have led some customers to believe that Citigroup was providing personal advice,” it said.
Following the investigation, from 1 January 2018, Citigroup ceased selling structured products to retail clients under a general advice model.