| INFORMED FUNDS LLC |
NFA 12BCC00016 |
NFA ID: 0407980 |
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| 0407980 | INFORMED FUNDS LLC | 09/11/2012 | | 0326052 | WARING, DAVID | 09/11/2012 |
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| 0407980 | INFORMED FUNDS LLC | • C.R.2-36(e) - FOREX DEALER MEMBERS SUPERVISION OF EMPLOYEES | | | | • C.R.2-13 - RECORDKEEPING FOR CPOS/CTAS | | | | • C.R.2-36(c) - FOREX DEALER MEMBERS OBSERVE HIGH STDS OF COMMERCIAL HONOR | | 0326052 | WARING, DAVID | • C.R.2-36(c) - FOREX DEALER MEMBERS OBSERVE HIGH STDS OF COMMERCIAL HONOR | | | | • C.R.2-36(e) - FOREX DEALER MEMBERS SUPERVISION OF EMPLOYEES |
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| 0407980 | INFORMED FUNDS LLC | • HEARING COMMITTEE | | | | • BUSINESS CONDUCT COMMITTEE | | 0326052 | WARING, DAVID | • HEARING COMMITTEE | | | | • BUSINESS CONDUCT COMMITTEE |
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| 0407980 | INFORMED FUNDS LLC | • GENERAL CONDUCT | | 0326052 | WARING, DAVID | • GENERAL CONDUCT |
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| 0407980 | INFORMED FUNDS LLC | • OTHER--SEE NARRATIVE | 08/27/2012 | | | | • FINE (JOINTLY AND SEVERALLY) $10000 | 08/27/2012 | | 0326052 | WARING, DAVID | • OTHER--SEE NARRATIVE | 08/27/2012 | | | | • FINE (JOINTLY AND SEVERALLY) $10000 | 08/27/2012 |
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| **TO VIEW DOCUMENTS, GO TO CASE DOCUMENTS.**
COMPLAINT:
On June 6, 2012, NFA issued a Complaint charging Informed with failure to maintain customer records and failure to provide an approved disclosure document to new customers. Informed and Waring were charged with failure to observe high standards of commercial honor and just and equitable principles of trade. Informed and Waring were also charged with failure to supervise firm operations.
ANSWER:
On August 1, 2012, Informed and Waring filed an Answer to the Complaint in which they denied the material allegations contained therein.
DECISION:
On August 27, 2012, pursuant to a settlement offer submitted by Informed and Waring, they were ordered to pay a $10,000 fine. In addition, Informed and Waring were ordered to disclose to all of Informed's customers who were obtained after Informed became an NFA Member on August 5, 2010 (and regardless of whether these customers' accounts are currently open) that the trading program used by Informed was initially developed by FXCM, the counterparty to their forex transactions, that FXCM made money when the customers lost money (except for transactions which were automatically offset), and that there was an incentive for the trading program to overtrade customers' accounts.
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| **TO VIEW DOCUMENTS, GO TO CASE DOCUMENTS.**
COMPLAINT:
On June 6, 2012, NFA issued a Complaint charging Informed with failure to maintain customer records and failure to provide an approved disclosure document to new customers. Informed and Waring were charged with failure to observe high standards of commercial honor and just and equitable principles of trade. Informed and Waring were also charged with failure to supervise firm operations.
ANSWER:
On August 1, 2012, Informed and Waring filed an Answer to the Complaint in which they denied the material allegations contained therein.
DECISION:
On August 27, 2012, pursuant to a settlement offer submitted by Informed and Waring, they were ordered to pay a $10,000 fine. In addition, Informed and Waring were ordered to disclose to all of Informed's customers who were obtained after Informed became an NFA Member on August 5, 2010 (and regardless of whether these customers' accounts are currently open) that the trading program used by Informed was initially developed by FXCM, the counterparty to their forex transactions, that FXCM made money when the customers lost money (except for transactions which were automatically offset), and that there was an incentive for the trading program to overtrade customers' accounts. | | |
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