Futures Regulator Hiring Law Firm To Examine Audit Rules
In another reaction to the collapse of futures trading firm PFGBest, the National Futures Association announced it is hiring a law firm to examine its own audit practices and procedures. Last week, the NFA issued an emergency enforcement action against PFGBest when it determined the firm had failed to keep enough funds in segregated accounts, and that CEO Russell Wasendorf had falsified bank records. PFGBest then collapsed and filed bankruptcy, with millions missing. The NFA is now hiring a national law firm, Jenner and Block, to investigate whether the association's own audit procedures are adequate, and whether they are being followed. The lawyers are also expected to identify any additional safeguards that can be taken to protect investors, the NFA said.