NFA admits sins and orders self-audit

In an almost unprecedented move for an auditor, the NFA — the U.S.’s CFTC-empowered self regulatory agency for Forex and Futures firms — has basically admitted that it is not doing nearly as good a job as it should, and as such has ordered an outside audit of its practices, led by the Berkeley Research Group, LLC. 

CFTCLaw.com reports that based on the audit’s results, expected before the end of this year, the NFA’s Board of Directors will evaluate the future of NFA CEO Dan Roth and other senior staffers, in addition to the status of general staff bonuses for this year.

The NFA was roundly embarassed when leading Forex and Futures broker PFGBest went bust in July, with more than $200 million of client money gone missing, and it turned out that the fraud was being carried out right under the NFA’s nose for 20 years. Not once in 20 years, it turns out, did the NFA do something as simple as confirm PFGBest’s customer balances directly with the banks which (supposedly) held those funds.

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