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.

For more on the global FX market see the LeapRate-Dow Jones Forex Industry Report.

 

 

Read Also:

LeapRate is an independent research and advisory firm, specialized in covering the world of Forex trading. We are followed by hundreds of thousands of traders, investors and other FX industry participants via our website, Facebook, Twitter, LinkedIn, RSS and Email Newsletter. Copyright © All rights reserved Finaffiliates Limited Website:
https://finaffiliates.com CEO: Jason Hopgood Company number: 14540579 VAT identification number: GB 431522433

Location: Finaffiliates Limited, Lawrence House, 5 St. Andrews Hill, Norwich NR2 1AD, United Kingdom
Email: [email protected]

SUBSCRIBE TO OUR NEWSLETTER

IMPORTANT DISCLAIMERS

Foreign exchange trading comes with high level of risk. Before investing in foreign exchange, carefully consider your level of experience and risk appetite. CFDs are complex instruments and bring high risk of losing money because of the leverage they provide. No information or opinion contained on this site should be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. Past performance should not be considered evidence or guarantee for future performance. Between 74 and 89% of retail investors accounts lose money.