Who uses them as an IB? Any other brokers?
The guy sitting at the top with the money wont even have his name on any of it hes laughing like an evil bastard.
NOTICE OF MEMBER RESPONSIBILITY ACTION:
On December 4, 2007, NFA issued a Member Resonsibility Action ("MRA") against FXLQ whereby:
1. Effective immediately, FXLQ is prohibited from soliciting or accepting any additional customer accounts or customer funds, except as security deposits for existing positions. The prohibition on solicitation includes, without limitation, ceasing solicitation through the firm's website.
2. Effective immediately, FXLQ is prohibited from accepting or placing trades for any customer accounts except for the rollover or liquidation of currently existing customer positions. FXLQ must obtain the ongoing assent of customers to rollover any customer's existing positions.
3. FXLQ is required to liquidate all Forex positions held in any account for FXLQ or any FXLQ principal except for positions that are held to offset FXLQ's exposure resulting from its customers' positions by 3:00 p.m. (PST) on Wednesday, December 5, 2007, and, further, is prohibited from initiating any additional positions in such accounts.
4. FXLQ is prohibited from distributing, disbursing or transferring any funds, including to existing customers, without the prior approval of NFA.
5. Unless otherwise authorized by NFA in writing, FXLQ must transfer any and all assets not currently held at US Bank or an NFA Member FCM to US Bank or an NFA Member FCM by 3:00 p.m. (PST) on Wednesday, December 5, 2007, and provide documentation that such transfer has occurred.
6. FXLQ is required to produce to NFA financial statements including net capital computations as of December 4, 2007. The financial statements must properly reflect all assets and liabilities and the firm's current capital position as well as a listing of all current assets and liabilities and provide third party documentation supporting the existence and location of those items.
7. This MRA shall remain in effect until such time as FXLQ has demonstrated to the satisfaction of NFA that it is in complete compliance with all NFA requirements. In making such a demonstration FXLQ must provide NFA with an internal control report and certified financial statement, which are prepared by an independent public accountant who is registered under Section 102 of the Sarbanes Oxley Act and has demonstrated experience and competence in auditing matters required under Section 404 of the Sarbanes Oxley Act.
The internal control report shall contain, at a minimum, a detailed explanation of the examination performed by the accountant and a representation by the accountant that it has examined and tested FXLQ's system of internal controls to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles ("GAAP"), including those policies and procedures that:
a. Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets and customer liabilities of FXLQ;
b. Provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures are being made only in accordance with authorizations of management and directors of FXLQ; and
c. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of FXLQ's assets and customer liabilities that could have a material effect on the financial statements.
The internal control report must contain a representation by the public accountant that it has found FXLQ's system of internal controls has no material weaknesses and that it is adequate for establishing and maintaining internal control over financial reporting by FXLQ.
8. In taking any action under this MRA, FXLQ must act in the best interests of its customers.
This action is effective immediately and is deemed necessary to protect customers because FXLQ has failed to demonstrate that it meets the capital requirements of NFA Financial Requirements Sections 1 and 11. Additionally, FXLQ provided materially false or misleading information to NFA.
The MRA will remain in effect until such time as FXLQ has demonstrated to the satisfaction of NFA that it is in complete compliance with all NFA Requirements. FXLQ is required to provide copies of this MRA, by overnight courier, to all of its customers, to all banks and other financial institutions with which it has money on deposit, and to all persons that solicit or introduce customers to FXLQ or that manage customer accounts held at FXLQ.
