The NFA Business Conduct Committee ("BCC") issued a complaint against an introducing broker and its CEO for registration and supervision violations.
In the Complaint, the BCC alleged that the firm began trading in futures as early as 2012, requiring the firm's associated persons ("APs") to pass the Series 3 Examination. The BCC stated that the CEO and four other APs failed to take the Series 3 until 2020, placing the firm and its CEO in violation of NFA Registration Rule 401(a) ("Qualification Testing Requirement").
In addition, the Complaint alleged that the firm failed to properly implement adequate supervision policies. In particular, NFA noted a lack of procedures for (i) reviewing AP communications, (ii) reviewing trades for fraud or manipulation, and (iii) cybersecurity. NFA charged the respondents with violating NFA Compliance Rule 2-9 ("Supervision").
The potential penalties and disqualifications will be determined by the NFA at the conclusion of the proceedings.
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