In late January this year, LeapRate reported that the US National Futures Association (NFA) had issued a notice concluding that British financial consultancy 80Plus LLP, based in Bradford-On-Avon, Wiltshire, England, had been denied membership of the NFA.
Six months previously, The NFA’s investigation into the suitability of 80Plus for had reached a turning point, when on July 9, 2014, the NFA’s President issued a Notice of Intent to Deny Registrations to James T. Sherwin, 80Plus Partners US Fund LLC, and 80Plus Partners Master Fund Limited.
In terms of background, the NFA stated that on or about March 8, 1990, in the United States District Court for the District of Columbia, in Securities and Exchange Commission v. GAF Corporation and James T. Sherwin, Case No. 90-0527, a Final Judgment of Permanent Injunction (Settlement) was entered wherein Mr. Sherwin was permanently enjoined from violating Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Exchange Act Rules 10b-5 and 13b2-1 and from aiding and abetting violations of Exchange Act Sections 13(b)(2)(A) and l3(d)(2) and Exchange Act Rule 13d-2.
The NFA’s President subsequently issued an Amended Notice of Intent to Deny Registrations on January 2, 2015 to James T. Sherwin and 80Plus Partners LLP, clearly showing that, despite the passing of some 25, years, the NFA has a very long memory.
As last week drew to a close, Mr. Sherwin spoke to LeapRate in order to explain a change in circumstances. “On 26 January, the NFA issued a Withdrawal of Notice of Intent and a Final Order Granting Conditional Registrations” explained Mr. Sherwin.
He continued “I had previously obtained the necessary approvals from the Financial Conduct Authority (FCA) on this side of the water. My hedge fund, 80Plus Partners, started up on 1 April.”
“I am the principal investor for the first month with just under $5 million but I expect to be at about $10 million by 1 May. The hedge fund will principally do foreign exchange in which I have been active for over 50 years. I think it is probably the only hedge fund of which the active principal is 80+ and one of my three directors is also over 80” concluded Mr. Sherwin.
Mr. Sherwin provided LeapRate with an official notice from the NFA in the form of a Final Order, in which the NFA grants conditional registration subject to a settlement offer which consists of 11 conditions which must be adhered to by 80Plus Partners and Mr. Sherwin concerning the operation of the business.