NFA charged an introducing broker ("IB") and its former sole principal with failing to properly maintain books and records, as well as submitting inaccurate financial statements.
According to NFA, the IB (i) failed to maintain minimum adjusted net capital, (ii) created misleading promotional materials, and (iii) submitted inaccurate financial statements and net capital calculations to NFA. The Hearing Panel found that the IB and the former principal failed to adequately supervise the IB's use of promotional material, and failed to have adequate procedures addressing ethics training, cybersecurity, forex operations and customer risk disclosures.
NFA imposed a five-year ban, as well as a fine of $25,000 if the IB reapplies for NFA membership after the ban. Separately, NFA imposed a five-year ban on the former principal, as well as a fine of $25,000 if the former principal reapplies for NFA membership after the ban.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
