Rosenthal Collins Group LLC has reached an agreement to settle Commodity Futures Trading Commission charges that it neglected to properly supervise employees and enforce compliance procedures. The futures commission merchant says it will pay $310,000 to settle the charges for violations that the CFTC says took place for over two years, between April 2003 and December 2005.The company also agreed to monitor and enforce its compliance rules in the future.
According to RCG’s compliance rules and procedures, issuing third party checks was prohibited unless the Compliance Department approved the checks or they were used to pay for a customer’s business expenses. The approval of the company’s compliance department was also required for any cash payments to customers.
The CFTC says that RCG did disburse cash to someone that worked for a New York Mercantile Exchange floor brokerage operation even though the worker was not an account holder that had been authorized to receive cash from the account. The futures commission merchant also disbursed a number of checks to third parties while failing to obtain the proper approval.
Related Web Resources:
CFTC Sanctions Rosenthal Collins Group, LLC $310,000 for Failing to Enforce Compliance Procedures and Diligently Supervise Employees, CFTC.gov, August 26, 2008
Rosenthal Collins Group, LLC
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