NFA issues $25k fine to Direct Futures LLC

On September 8, 2010, the  National Futures Association (NFA) commenced a business conduct committee (BCC) action charging Direct Futures LLC and associated persons with failure to supervise and using deceptive sales practices.

On March 3, 2011, the NFA issued a decision accepting a settlement against Direct Futures, finding that it violated NFA Compliance Rule 2-9 by failing to diligently supervise the sales activity of its associated persons  and fining the company $25,000. In separate decisions Stuart Gillespie, Alfred Magliano, and Chas Pearson were each suspended from NFA membership for a period of 3 years, after which they must tape record all conversations between them and existing or potential customers for a period of a year. In the event that any of them becomes a principal of an NFA Member firm before December 31, 2018, that firm must tape record all conversations between its APs and existing or potential customers for a period of a year.

 

Read more about this NFA BCC action against Direct Futures LLC.

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