NFA Business Conduct Committee Bans Forex Dealer from Membership
The NFA ordered a firm that was registered as a retail foreign exchange dealer, and registered provisionally as a swap dealer, to withdraw from NFA membership permanently.
The NFA Business Conduct Committee settled the matter after hearing allegations that the company failed to meet the following requirements:
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NFA Compliance Rule 2-49: Failure to comply with chief compliance officer requirements and to implement adequate risk management.
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NFA Financial Requirements Section 11(a), 11(d) and Section 14: Failure to properly calculate and maintain the required minimum-adjusted net capital, file the required notice, and enter into agreements with foreign institutions that held assets to cover the firm's customer forex.
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NFA Compliance Rule 2-10: Failure to maintain complete and accurate books and records.
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NFA Compliance Rule 2-36(e): Failure to supervise the firm's operations and its employees adequately.