It has been a quick three months since I was elected as the Independent Introducing Broker representative on the NFA Board of Directors, and I wanted to take a moment to thank those members of the NIBA who supported me.
With just one meeting under my belt, I have begun to talk with various industry people about changes I believe need to be made at the NFA. These include better customer protections, accountability for mistakes made with MF Global and PFG, an overhaul of the promotional review process, better hiring and training for auditors, and an upgrade to the technology at NFA (who else struggles with the clunky online registration system) ? all of which I believe will make NFA not just a better self regulatory organization; but a better regulator for its members.
One thing that has surprised me in my initial talks with various industry people is that there isn't a great deal of knowledge about what happens down at the IB level in terms of interaction with the NFA. Indeed, there is just a single independent IB slot on the board of directors, with the rest made up of FCM and exchange reps, public directors, and CTAs and CPOs. This makes my voice just one amongst many who don't really know what it is like to deal with the NFA on a day to day basis. And this isn't the US Congress where I speak on behalf of the IBs. These are smart people who don't want to rush to any judgments and want proof that there are problems with the promotional material review process, proof of inexperienced audit teams, and proof that IBs would see business increase if there were a customer funds protection plan implemented.
This is where the NIBA comes in. The NIBA is well respected by those I speak with, and airing NFA related IB issues to the NIBA can be that second voice of reason, that proof, we need to push some of the needed reforms through. So I'm here to ask you to let the NIBA know how the NFA is doing. Good, Bad, or Neutral? And to ask you to let the NIBA know of specific items from my list which you would like to see happen, as well as items not on my list which you would like to see happen.
The IB business is at a bit of a crossroads in my opinion, and the views of the NIBA membership could go a long way to helping shape the discussion moving forward.
Thanks for your time and attention.
JEFF MALEC, CAIA
CEO, FOUNDING PARTNER | ATTAIN CAPITAL MANAGEMENT, LLC.
1 E. Wacker Dr., 30th Floor, Chicago, IL 60601
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