Futu Futures hit with $100K NFA fine for repeated failures
The US National Futures Association (NFA), the self-regulatory organization for the US derivatives industry, has ordered Futu Futures Inc to pay a $100,000 fine. Futu is an NFA Member futures commission merchant located in Jersey City, New Jersey.
The Decision, issued by NFA’s Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by Futu, in which the firm neither admitted nor denied the allegations of the Complaint. The BCC found that Futu failed to file various required financial reports and notifications timely with NFA.
The NFA’s Complaint alleged that Futu failed to file timely monthly financial reports and timely notice of material changes in its operations or senior management with the NFA. It also alleged that Futu failed to supervise its employees and agents in the conduct of their commodity interest activities for or on behalf of the firm.
According to the NFA, Futu’s conduct over the past three years involves a repeated failure to comply with financial reporting deadlines, notice filing deadlines, and inadequate measures to ensure its filings are timely, which also illustrates supervisory shortcomings at the firm. Futu’s explanations for its repeated late financial reports and late notice filings also raise questions about whether the firm and its employees understand the importance of, and take seriously, its reporting obligations.
Futu Futures Inc is controlled by Hong Kong entrepreneur Hua Li, via Futu Holdings Ltd.
The NFA’s Complaint and Decision regarding Futu Futures Inc can be seen here.