Release: 5727-09
For Release: October 1, 2009

CFTC Sanctions Citigroup Private Bank GP, Inc. for Failure to File Annual Reports on Time for the Commodity Pools it Operates

Citigroup Private Bank ordered to pay a $100,000 civil penalty.

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today simultaneously filed and settled charges of compliance violations against Citigroup Private Bank GP, Inc. (CPBG), a commodity pool operator (CPO) based in New York, N.Y., and sanctioned CPBG $100,000. CPBG is a registered CPO for pools that operate as funds-of-funds; all pools CPBG operated were employee benefit pools.

The CFTC issued an order on October 1, 2009, which finds that, for the fiscal years ending December 31, 2004 - 2007, CPBG failed to file one or more of its commodity pools’ annual reports with the National Futures Association (NFA) in a timely manner. CPBG is required to file its commodity pools’ annual reports with the NFA no later than 90 days from the close of the pools’ fiscal year, which can be extended by the NFA for not more than an additional 90 days. CPBG failed to file timely reports despite having received grants of extension from NFA.

An annual report is designed to “provide [pool] participants with the information necessary to assess the overall trading performance and financial condition of the pool.” (See Commodity Pool Operators and Commodity Trading Advisors, Final Rules, 44 Fed. Reg. 1918 [CFTC Jan. 8, 1979], regarding the adoption of Rule 4.22.) According to the CFTC order, the CFTC’s goal of providing pool participants with complete and necessary data is hampered without timely reporting to pool participants.

The following CFTC Division of Enforcement staff are responsible for this case: Linda Y. Peng, David W. MacGregor, Lenel Hickson, Jr., and Vincent A. McGonagle.

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Last Updated: October 1, 2009