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The continued strength and vitality of the futures industry relies on the confidence of the investing public in the integrity of the marketplace. To maintain that market integrity, NFA has developed a wide range of investor protection rules and monitors all Members for compliance.
When a Member does not comply voluntarily with rules and requirements, NFA has the authority to enforce compliance and to take appropriate disciplinary actions. Depending upon the nature of the violation and the threat it poses to the public, sanctions can take a variety of forms, including the following:
Warning Letters are issued when rule infractions are considered unintentional, when customers or other Members were not harmed and when the firm or individual has taken prompt corrective measures. Warning Letters usually result from audit findings.
Formal Complaints are filed against a firm when NFA's Business Conduct Committee determines that the violations warrant prosecution. Disciplinary actions can include suspension of membership, fines of up to $250,000 per violation and expulsion from NFA.
Member Responsibility Actions are taken when rule violations are perceived to pose an immediate threat to investors or markets. These actions can be used to suspend a firm, freeze customer or firm accounts, prohibit the acceptance of additional customer funds or otherwise restrict trading.
Information regarding NFA's most recent regulatory actions can be found in the Regulatory Actions section of this Web site.
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