<p>The National Futures Association (NFA) in the United States has brought a total penalty of $350,000 against a London-based introducing broker, GMG Brokers LTD, and two employees for engaging in deceptive conduct and failing to observe high business standards, among other things.</p><p>NFA Fines GMG Brokers</p><p>The self-regulatory organization passed two orders to impose the penalty. One was against GMG, <a href=”https://www.financemagnates.com/binary-options/nfa-fines-us-broker-coquest-275000-for-compliance-failure/” target=”_blank” rel=”follow”>imposing a monetary penalty</a> of $225,000, which also named CEO Marco Saviozzi, asking him to share liability with the firm jointly and severally for $50,000. </p><p>The other order was against Jason Terence Lyons, another GMG employee, who needed to pay a fine of $125,000. He also has to withdraw from NFA associate membership before 1 May 2023. He also faces a four-month ban from NFA associate membership and principal status.</p><p>Severe Deception and Violation of Compliance Rules</p><p>GMG was founded in 2009 and operated from its offices in Dubai and London. The NFA membership as an introducing broker allows the company to take clients from the United States.</p><p>According to the two NFA orders, GMG and Lyons violated multiple <a href=”https://www.financemagnates.com/terms/c/compliance/” class=”terms__main-term” id=”569f58ee-534c-44f0-a7cd-f55b0f9a2b2a” target=”_blank”>compliance</a> rules.</p><p>”The Complaint alleged that GMG and Lyons violated NFA Compliance Rules 2-2(a) and 2-4 by engaging in deceptive conduct, failing to observe high standards of commercial honor and just and equitable principals of trade, and acting contrary to their customers’ best interests through Lyons’ misleading communications with GMG customers and in trading activities that placed GMG and his interests—as well as the interests of a “favored” GMG customer—ahead of other GMG customers to generate additional brokerage fees,” the official notice stated.</p><p>The introducing broker and the two employees agreed to a settlement by paying the penalty but did not admit or deny the charges.</p><p>Meanwhile, the NFA has recently imposed heavy penalties on some companies for compliance violations. <a href=”https://www.financemagnates.com/forex/nfa-fines-gain-capital-700k-for-compliance-violations/” target=”_blank” rel=”follow”>StoneX-owned GAIN Capital was fined $700,000</a> last December, only months after <a href=”https://www.financemagnates.com/forex/nfa-orders-introducing-broker-marex-to-pay-a-250000-fine/” target=”_blank” rel=”follow”>Marex </a>and <a href=”https://www.financemagnates.com/forex/nfa-orders-introducing-broker-marex-to-pay-a-250000-fine/” target=”_blank” rel=”follow”>Interactive Brokers </a>paid $250,000 each.</p>
This article was written by Arnab Shome at www.financemagnates.com.
