PFGBest Update: Will NFA Heads Roll?

The NFA’s failure to detect the fraud at PFGBest was inexcusable, and at the risk of sounding like a broken record, we still think that a thorough investigation into the people and practices of the organization is warranted. Nevertheless, it does appear that at least one person who should have been responsible for confirming PFG’s customer balances will no longer be on board. Via the Wall St. Journal:

A key regulator has departed the National Futures Association, as the derivatives industry’s self-regulatory body seeks to tighten oversight of firms and assume oversight of the huge swaps trading market.

Lauren Brinati, director of audits and investigations for the Chicago-based NFA, this month left the agency for a job with big-four accounting firm Ernst & Young LLP, according to representatives of both organizations.

Unfortunately, this doesn’t sound like much of a “heads rolling” kind of scenario. Switching over to Ernst & Young, one of the “big four” accounting firms, can hardly be considered a step down from the NFA, and we’re not sure what it says about Ernst & Young, either – especially since Brianti has been the subject of some pretty major competency concerns outside of the PFGBest scandal (even if they did come from Ann Barnhardt). What about the auditing staff that worked the PFGBest case itself? What about the management that rubber stamped the reviews? What about the leadership that thought mysterious faxes didn’t warrant any further investigation?

Don’t get us wrong – some of the changes we’ve seen take hold are positive, and a step in the right direction. That being said, we’ve yet to see anyone at the NFA truly held accountable for the incompetency that paved the way for futures investors across the industry, and if a cushy new job elsewhere is their version of justice, we’re not holding our breath.

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Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

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