IB Complaint Update

[Annerae]

Any more dues on the complaint filed against Interactive Brokers?

(http://www.nfa.futures.org/BasicNet/CaseDocument.aspx?seqnum=723)

[Cassem]

What was the NFA complaint over?

[Guy]

Count 1 Looks like a minor record tracking issue. Apparently IB struggled to upgrade their computer systems to meet the requirements of the NFA record keeping in 2004/2005.

Count 2 Appears to be a dispute over assessment fees, a common problem. The NFA asserts that IB did not produce paperwork to back up their claims.

Count 3 Claims that IB should have provided more oversight in a situation in which an account holder in Canada defrauded others. They state that the pattern of deposits & withdrawals from the account should have made it clear it was not an individual account but a CPO on the behalf of third parties & required NFA membership.

They will probably end up having to pay a fine.