NFA Bars BVI firms from Membership

The National Futures Association ("NFA") permanently barred a number of firms based in the British Virgin Islands from membership.The firms were ordered to withdraw from NFA membership and the firms' principal was ordered not to register as an associated person or act as a principal of an NFA Member for four years. An NFA hearing panel found the firms had (i) used misleading promotional material that exaggerated profit potential, downplayed the risk of trading futures and included hypothetical results that were not identified as such, (ii) recommended and/or placed trades that maximized commissions but did not serve the best economic interests of its customers, and (iii) failed to maintain adequate books and records, or to supervise diligently the firm's operations.