The Securities and Exchange Commission has relaxed a rule that now allows Citigroup Inc (NYSE:C) to sell hedge fund investments to sophisticated wealthy investors. The move comes despite the SEC finding finding that Citigroup violated anti-fraud provisions of U.S. securities laws and is drawing criticism from a reform-minded SEC commissioner.
Citigroup retains special status for marketing hedge funds
In addition to providing Citigroup Inc (NYSE:C) more flexible standards in marketing hedge funds, the bank also retained special status as what is known as a “well-known seasoned issuer,” or WKSI, according to a report in The Wall Street Journal. Such “well-known” status allows Citigroup involvement in issuing stocks and bonds without a review by the SEC, implying a degree...
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