FCM Fined for Failing to Record Cell Phone Calls

A futures commission merchant ("FCM") settled charges with the National Futures Association ("NFA") for failing to maintain communications records and for failing to protect customer information.

In a Decision, NFA found that the firm failed to record calls made on its broker's personal cell phones. The NFA also found that the firm disclosed customers' confidential non-public information. As a result, NFA determined that the FCM violated NFA Compliance Rule 2-10(a) ("Recordkeeping"), Rule 2-26 ("FCM and IB Regulations") and Rule 2-9(a) ("Supervision").

To settle the charges, the firm agreed to pay a fine of $140,000.

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