Tullett Prebon Faced with Charges from NFA over Compliance Failure

Introducing broker Tullet Prebon Financial Services (TPFS) was charged by the National Futures Association (NFA) for multiple suspected violations of compliance rules, according to the U.S regulator.

The introducing broker, allegedly, failed to keep voice recordings of telephone calls associated with a block trade brokered by two of its associated persons on both the buy-side and sell-side, citing from the official complaint.

"TPFS was unable to produce the voice recordings NFA requested because the firm had failed to retain the voice recordings for either AP involved on January 7, 2020 block trade," stated the complaint.

Another charge arose from TPFS' failure to build a system to supervise its member employees' recordkeeping activities and communications. These companies are obligated to diligently supervise the member employees' commodity interest activities.

"The firm also failed to detect or ignored an error on a telecommunication report the IT department utilized during the 2018 office move since the report listed the incorrect retention period of 96 hours for one of the affected APs," added the complaint.

TPFS is likely to have its NFA membership suspended for a specified period of time, and perhaps a fine up to $500,000 for each violation count.

The decision is still yet to be made at the time of writing.