SFA imposes conditions on Salomon

SFA imposes conditions on Salomon

Salomon brothers, the giant American investment bank, has had "special conditions" imposed on it for the next 12 months by the Securities and Futures Authority (SFA). The SFA has concluded that Salomon had been in breach of SIB Principle 9 in that its control system had "failed to keep pace with the expansion and complexity of its business". Although Salomon has corrected these failings, the SFA has required the bank to provide special monthly reports highlighting any problems with general ledger accounts. Salomon's auditors will review these reports every quarter and pass on their findings to the SFA.