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NOTICE OF MEMBER RESPONSIBILITY ACTION:
On July 9, 2012, NFA's Executive Committee issued a Member Responsibility Action (MRA) against Peregrine Financial Group, Inc. (PFG) and Peregrine Asset Management, Inc. (PAM), whereby:
1. Effective immediately, PFG and PAM are prohibited from soliciting or accepting any additional customer accounts or customer funds, except as margin for existing positions.
2. Effective immediately, PFG and PAM are prohibited from accepting or placing trades for any customer accounts except for the liquidation of existing customer positions.
3. Effective immediately, PFG and PAM are prohibited from distributing, disbursing or transferring any funds, including to existing customers, without the prior approval of NFA.
4. In taking any action under this MRA, PFG and PAM must act in the best interests of their customers.
This action is effective immediately and is deemed necessary to protect customers because PFG has failed to demonstrate that it meets the capital requirements of NFA Financial Requirements Sections 1 and segregated funds requirements of NFA Financial Requirements Section 4. Additionally, it appears that PFG does not have sufficient assets to meet its obligations to its customers.
The MRA will remain in effect until such time as PFG and PAM have demonstrated to the satisfaction of NFA that they are in complete compliance with all NFA Requirements. PFG and PAM are required to provide copies of this MRA, by overnight courier, to all of their customers, to all banks and other financial institutions with which they have money on deposit, and to all persons and entities that solicit for PFG or PAM, introduce customers to PFG or that manage customer accounts held at PFG.