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.
