NFA Charges FCM with Excess Segregated Funds/Secured Amount/Disbursements
NFA issued a Complaint and Decision charging UBS Financial Services, Inc. ("UBS"), an NFA-registered futures commission merchant ("FCM"), with withdrawing more than 25 percent of the target residual interest amount.
Additionally, NFA charged UBS with failing to obtain written pre-approval of a financial principal and submit such pre-approval to NFA prior to making such withdrawal as provided under NFA Financial Requirements Section 16(a).
NFA Financial Requirements Section 16(c) provides that no FCM may withdraw, transfer, or otherwise disburse funds from foreign futures and foreign options customer secured amount funds accounts that exceed 25 percent of the FCM's residual interest in foreign futures and foreign option customer secured amount funds without pre-approval with the NFA.
Pursuant to a settlement offer submitted by UBS, the firm was ordered to pay a $17,500 fine to NFA.