Citigroup Global Markets, Inc. has been fined US$725,000 by U.S. regulators for failing to disclose certain conflicts of interest in its research reports and research analysts’ public appearances.

The Financial Industry Regulatory Authority announced it sanctioned the firm after it found that Citigroup failed to disclose potential conflicts of interest (namely that it generated investment banking revenue from, made a market in the securities of, or owned securities in covered companies) in certain research reports it published from January 2007 through March 2010.

It says that the firm failed to disclose the required information because the database it used to identify and create the disclosures was inaccurate and/or incomplete due primarily to technical deficiencies. In addition, Citigroup failed to have reasonable supervisory procedures in place to ensure that the firm was populating its research reports with required disclosures, it notes.

In settling the case, the firm neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.

Brad Bennett, FINRA executive vice president and chief of enforcement, said, “Citigroup failed to make required conflict of interest disclosures which prevented investors from being aware of potential biases in its research recommendations. Firms need to provide investors with full and accurate information so they will be able to take it into consideration before making an investment decision.”