Citigroup Global Markets, Inc. has been fined US$15 million by U.S. securities regulators for failing to prevent its equity analysts from selectively disclosing research to both clients and the firm’s sales and trading staff.

The Financial Industry Regulatory Authority (FINRA) reports that it found that from January 2005 to February 2014, Citigroup failed to meet its supervisory obligations regarding the potential selective dissemination of non-public research to clients, its salespeople and traders. Citigroup settled the case, neither admitting nor denying the charges, but consenting to the entry of FINRA’s findings.

The regulator notes that the firm issued approximately 100 internal warnings concerning communications by analysts during the period, but that when Citigroup detected violations there were lengthy delays before the firm disciplined the analysts, and it says that the disciplinary measures weren’t severe enough to deter repeat violations.

It also found that, in 2011, a senior analyst assisted two companies in preparing presentations for investment banking road shows. And, that between 2011 and 2013, Citigroup did not expressly prohibit analysts from assisting issuers in preparing road show presentations.

“The frequent interactions between Citigroup analysts and clients at events like ‘idea dinners’ created a heightened risk that views inconsistent with research would selectively be disclosed to clients. Citigroup failed to effectively police these risks,” said Brad Bennett, FINRA executive vice president and chief of enforcement.

“In this case, Citigroup did not enforce the boundaries of permissible communications to ensure that its analysts did not provide certain clients with improper access to non-public research information. Investment banking and research departments are guardians of material, non-public information and have the responsibility to maintain strict control and protection of that information,” added Cameron Funkhouser, executive vice president of FINRA’s Office of Fraud Detection and Market Intelligence.