How does NFA check up and assure that you are following their rules. NFA performs compliance audits. A compliance audit consists of at least two NFA employees appearing at your door, unannounced, of course, and methodically proceeding to examine every document and every person in your office.
Audits can last a couple of days or a couple of weeks, depending on a variety of factors. Let me say that the length of time it takes to complete your audit is affected by the size of your office and the number of apparent violations" discovered by the auditors.
Also, the types of products traded, the degree of mass marketing, especially radio and TV advertising and the size of the commissions charged are also factors. The fact is, that if you are not ready for any audit before it happens, no good will come of it.
To be forewarned is to be forearmed and becoming an IB without the proper consultation in the compliance area can be a recipe for disaster. I urge every AP considering his own business to consult with a futures attorney or compliance professional before taking the giant step into the world of regulated self employment.
see my other posted about To Be Futures Introducing Broker or futures introducing broker
No comments:
Post a Comment