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Capital Blu facing problems
Wednesday, 17 September 2008
Another foreign exchange trading entity has run into trouble with American regulators.
The Florida based Capital Blu Management (CBM) which had sought to set up operations in Jamaica has had its membership in the National Futures Association suspended.
The NFA order prohibits Capital Blu from soliciting or accepting funds or placing trades on behalf of any customer.
It also prohibits Capital Blu from disbursing or transferring any customer funds from any accounts without NFA's approval and from acting in any manner which requires registration under the Commodity Exchange Act.
The NFA said it took the action to protect Capital Blu's customers as the company has refused to fully cooperate with an NFA probe of its operations.
The investigation was prompted when NFA received allegations from customers that it had provided false statements to customers and participants in the CBM FX Fund and possibly other pools.
The Chicago based NFA, is a private regulatory body that regulates the derivatives market in the United States.
<span style="font-weight: bold">Earlier this year, Capital Blu held a series of seminars on foreign exchange trading in Jamaica where it sought to solicit business.</span>
This prompted the Financial Services Commission to issue a warning to the company to desist.
The FSC said Capital Blu had indicated an interest in operating in Jamaica but was not licensed to operate in the island.
Wednesday, 17 September 2008
Another foreign exchange trading entity has run into trouble with American regulators.
The Florida based Capital Blu Management (CBM) which had sought to set up operations in Jamaica has had its membership in the National Futures Association suspended.
The NFA order prohibits Capital Blu from soliciting or accepting funds or placing trades on behalf of any customer.
It also prohibits Capital Blu from disbursing or transferring any customer funds from any accounts without NFA's approval and from acting in any manner which requires registration under the Commodity Exchange Act.
The NFA said it took the action to protect Capital Blu's customers as the company has refused to fully cooperate with an NFA probe of its operations.
The investigation was prompted when NFA received allegations from customers that it had provided false statements to customers and participants in the CBM FX Fund and possibly other pools.
The Chicago based NFA, is a private regulatory body that regulates the derivatives market in the United States.
<span style="font-weight: bold">Earlier this year, Capital Blu held a series of seminars on foreign exchange trading in Jamaica where it sought to solicit business.</span>
This prompted the Financial Services Commission to issue a warning to the company to desist.
The FSC said Capital Blu had indicated an interest in operating in Jamaica but was not licensed to operate in the island.