Citigroup faces restrictions that will prevent it from selling investments in hedge funds and private equity funds to wealthy clients, following a recent deal with US regulators.

The curbs, which haven't previously been reported, result from the August 5 approval of a settlement between Citigroup and the Securities and Exchange Commission of claims related to the bank's earlier sale of certain debt products. The setback for Citigroup is partly due to timing. Other banks with similar settlements have been able to escape the restrictions because they came before a change in the law last year.