CFTC fines Gain Capital UK nearly $500K for registration and supervision violations

The regulator alleged that Gain UK failed to supervise diligently its US forex customers and missed warning signs of the underlying fraudulent conduct by an unregistered CTA. The company had extensive communication about creating an account with the company with an unregistered CTA with knowledge that the CTA had been rejected from managing accounts with Gain UK and its affiliates because it was soliciting managed accounts through social media and a website without CFTC registration.

Due to the unregistered CTA’s fraudulent conduct, a customer lost $280,000 while Gain UK earned $241,671 in commissions.

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