The National Association of Securities Dealers announced that it has imposed fines totaling US$775,000 against Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, and Morgan Stanley & Co. Inc. for numerous violations of its research analyst conflict of interest rules.

The regulator fined Citigroup US$350,000, Credit Suisse US$225,000 and Morgan Stanley US$200,000. In addition to the fines, Citigroup and Credit Suisse agreed to review research reports and certify to the NASD that they contain proper disclosure of price target valuation methods and risks. Those reviews and certifications must take place quarterly, for one year.

In connection with these settlements, Citigroup, Credit Suisse and Morgan Stanley neither admitted nor denied the charges, but consented to the entry of the NASD’s findings.

“The failures on the part of Citigroup, Credit Suisse and Morgan Stanley to abide by these rules undermine the important disclosure obligations mandated by NASD in the wake of the research analyst conflict of interest scandals,” said James Shorris, executive vice president and head of enforcement. “These cases should send a clear message to firms that NASD expects full compliance with the research disclosure requirements, especially after NASD notifies a firm that its practices violate our rules.”