National Futures Association Adopts Recommendations as to its Audits of Futures Commission Merchants

NFA announced that its Board of Directors had accepted various recommendations made by the Berkeley Research Group ("BRG") that were part of BRG's independent analysis of NFA's audits of Peregrine Financial Group, Inc., the FCM that failed in connection with a massive fraud, and that NFA's staff is developing a plan to act on the recommendations. NFA's Board of Directors will also appoint a special committee to oversee the timely implementation of the recommendations.

The recommendations cover a wide range of topics, with particular attention given to NFA's training and procedures, stating that enhancements were needed to ensure a greater sense of "professional skepticism" among its audit staff.

Click here to view NFA Press Release in full.See also: Report of and Recommendations made by Berkeley Research Group (BRG)See also: A letter from NFA's CEO and Chairman on the Peregrine Collapse and the BRG Report (January 31, 2013).Related News Item: NFA President and CEO Daniel J. Roth's Testimony on Peregrine Fraud (August 16, 2012).