Regulatory Compliance: Citigroup Global Markets Limited (CGML)
CGML represents Citi's principal UK operating subsidiary, serving as an international broker-
dealer and underwriter in equity and fixed income securities. In 2019, Citigroup's UK
operations (which included CGML) were fined by the Prudential Regulation Authority (PRA) for
failings in their regulatory reporting governance and controls. The PRA is a part of the Bank of
England and is responsible for the regulation and supervision of banks, building societies,
credit unions, insurers, and major investment firms.
Sam Woods, Deputy Governor for Prudential Regulation and Chief Executive Officer of the
PRA reported that "Accurate regulatory returns from firms are vital for the PRA in fulfilling our
role. Citi failed to deliver accurate returns and failed to meet the standards of governance
and oversight of regulatory reporting which we expect of a systemically important bank."
The PRA investigation identified "the internal controls and governance arrangements which
underpinned Citi's UK regulatory reporting were not in a number of respects designed,
implemented or operating effectively. They were therefore inadequate to ensure accurate
regulatory reporting for an organization of Citi's size, complexity, and systemic importance.
This led to the significant number of errors and misstatements identified in Citi's returns."
Today's Top Risks
The list is long…and growing. Here, we highlight a few of the top threats that companies and
organizations are battling every day.
Cyber Risks
Due to the increasing array of data networks, cloud deployments, and the online transfer of
data (and storage), businesses are becoming increasingly vulnerable to these types of
attacks.
THE NEW RISK MANAGEMENT | 4
