It is not just smaller brokers the CFTC is going after when it comes to segregating client funds.
The CFTC is making it very clear to brokers large and small that securing and segregating client funds is its priority number one, and that each broker had better be careful to stick to the letter of the law at all times when it comes to handling client money.
The CFTC has settled on a $1 million fine for ABN AMRO Clearing Chicago LLC, a U.S. subsidiary of Dutch global banking giant ABN AMRO Group, for failing to segregate or secure sufficient customer funds, as well as failing to meet certain minimum net capital requirements, failure to maintain accurate books and records, and failure to supervise its employees.
The CFTC findings included that these violations were a result of ABN AMRO’s insufficient controls, reflecting a lack of supervisory controls over commodity interest accounts.
For the complete CFTC press release click here.