- Due to Citigroup's (NYSE:C) $285M fraud settlement earlier this month, the bank will no longer be able to sell investments in hedge funds and private-equity funds to private clients.
- The restriction is the result of the "bad actor" rule adopted by the SEC in July of last year, which bars companies or individuals with a criminal conviction that occurred after September 2013 from participating in private offerings.
- Citigroup's private bank manages $310B, with clients being required to have a net worth of at least $25M.