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NFA Sanctions Introducing Broker

The NFA barred an introducing broker ("IB") from membership permanently for failing to (i) maintain required minimum adjusted net capital, (ii) keep current and accurate books and records, and (iii) supervise employees adequately. In addition, the NFA barred the firm's sole principal from acting as the principal of an NFA Member for ten years and ordered him to pay a $15,000 fine.

Regarding the failure to supervise charge, the NFA faulted the IB for allowing two associated persons to solicit business from their home offices without listing the homes as branch offices.

Primary Sources

  1. NFA Press Release regarding Permanent Bar of Introducing Broker
  2. NFA Decision in the Matter of Vankar Trading Corp. and John S. Karvelas
  3. NFA Complaint in the Matter of Vankar Trading Corp. and John S. Karvelas

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Tags

Regulated Activities
Capital Recordkeeping Supervision / Compliance Branch Offices
Regulated Entities
FCMs and IBs, Floor Brokers
Body of Law
CEA Regulation
Jurisdiction
US - Federal
Organization
CFTC, NFA, CFTC Markets
Sub-Author
NFA