NFA Ties Up Some Loose Ends
Meanwhile, back at the Dead Pool. The NFA appears to be wrapping up the closures of CFG and UGMFX. They released the following two press releases today regarding the regulatory actions they took against said firms. Once again both firms were very poorly capitalized and were not able to keep their books straight. Once again this is one of the reasons regulators want to raise capital requirements. Once again if regulators share these concerns the trading public should as well.
NFA permanently bars Virginia forex firm, Forefront Investments Corporation
August 13, Chicago - National Futures Association (NFA) has permanently barred Forefront Investments Corporation (Forefront), a Futures Commission Merchant and Forex Dealer Member located in Richmond, Virginia, from NFA membership. The Decision, issued by NFA's Business Conduct Committee, is based on a Complaint filed in April 2007 and a settlement offer submitted by Forefront.
The Complaint charged that Forefront used misleading promotional material. In addition, the Complaint charged that Forefront failed to comply with NFA financial requirements, file financial statements within a timely manner, and implement an adequate anti-money laundering program. Further, the Complaint charged that Forefront failed to have a principal also registered as an associated person (AP).
NFA permanently bars United Global Markets LLC and orders firm to pay $40,000 fine
August 13, Chicago - National Futures Association (NFA) has permanently barred United Global Markets LLC (UGM), a Futures Commission Merchant and Forex Dealer Member located in Boston, Massachusetts, from NFA membership. Additionally, NFA ordered UGM to pay a $40,000 fine. The Decision, issued by NFA's Business Conduct Committee, is based on a Complaint filed in August 2007 and a settlement offer submitted by UGM.
The Committee found that UGM failed to maintain the required minimum adjusted net capital.
The Decision follows a recent enforcement action taken against UGM. In June 2007, NFA issued an emergency Member Responsibility Action against UGM. See previous press release.
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