Loophole at MF Global is Headache for Regulators
I find this really quite astounding. The gist of the story is that most of the executives at MF Global who have been implicated in the misplacement of funds were not registered with the National Futures Association (the SRO for the futures industry). Hence they cannot be cited for failure to supervise. Jon Corzine was registered but his direct involvement with the cash transfers is in question. However, Bradley Abelow (COO), Laurie Ferber (General Counsel), Henri Steenkamp (CFO), Vinay Mahajan (Treasurer), and Edith O'Brien (Assistant Treasury in charge of approving cash movements) were not registered with the NFA.
After reading through the rules of the NFA - it appears that every member firm must have a at least one registered supervisory principal - however it does not appear to require that all persons who are in supervisory roles be registered principals. I suspect that rule will be changed soon.
NFA manual
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