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Chairman’s Letter – October 2019

National Pizza Month/Octoberfest

Most NIBA members were severely affected – directly or as industry professionals – by MF Global’s failure under Jon Corzine’s leadership. We have all spent the last several years repairing the damage done to our businesses, our client relationships and to our industry’s reputation. On behalf of our membership, NIBA fully supported the decision to revoke Mr. Corzine’s license following the collapse of MF Global and we have voiced strong opposition to granting registration individually or to any company controlled by Corzine. Most of you likely signed the petition addressed to the SEC which CTA representatives to the NFA Board of Directors Doug Bry and Ernest Jaffarian circulated this summer.

So, we were stunned when the SEC decided to grant a Corzine-controlled firm investment advisor registration status. True, the registration comes with some specific conditions negotiated by Mr. Corzine’s attorneys. But, even with those limitations, it is difficult to understand the SEC’s decision. NIBA has again voiced objections on behalf of the Association. While it is unlikely the SEC will actually revoke the Corzine firm registration, we will continue to follow this issue, and any reconsideration by the Commission which we and our colleagues have sparked.

NFA has announced an effective date of January 1, 2020 for required compliance with updated supervision of branch offices and GIB requirements. The updates cover three areas of supervision specifically: (i) due diligence, (ii) written supervisory policies and procedures, and (iii) ongoing training. NIBA was consulted during the updating process for input regarding our members thoughts and needs. We are happy that NFA incorporated many of our suggestions into the final product, especially those concerning the need for flexibility with respect to the diverse characteristics of IBs and branch offices. Consult your compliance officer or the NFA for more information on how to comply.

FIA EXPO is back in town. This one-of-a-kind trade show, the largest in our industry is at the Hilton, Chicago, October 29-31. Many business sessions are being presented by friends of the NIBA this year.

NIBA’s Annual New York meeting is scheduled for April 22 at the New York Athletic Club. To suggest a topic or speaker, or to volunteer for the planning committee, contact me or Steve Petillo, [email protected].


Melinda Schramm, Founder & Chairman
[email protected]