PFGbest brokers - owner tries to kill himself; client accounts frozen

[rsh01]

And MF Global was supposed to be a one off.

Futures Brokerage PFG Best Freezes Accounts Following Discovery Of Accounting Irregularity | ZeroHedge

http://www.zerohedge.com/news/pfgbe...on-segregated-client-money-has-just-vaporized

 

[YouAreNotFree]

I wonder if this will be similar to the MF Global mess in that Congress in its infinite wisdom, proposed that in order to prevent something of the like ever happening again, that it should introduce some new laws to say that people cannot break the existing laws

We have no chance.

 

[rsh01]

That sounds about right. Apparently they were falsifying bank account statements. Nothing wrong with that.

 

[pogue-trader]

That sounds about right. Apparently they were falsifying bank account statements. Nothing wrong with that.

Only if you get caught. Reports now are that with a clever ploy depending on the use of.... a PO box....(yup, thats it) PFG CEO and founder was leading everyone on for 20 YEARS! Sorry, but I'm allowed to use capitals on this thread BECAUSE I WAS A FRAKKIN CUSTOMER!!!

Actually, I was a Canadian customer -- one of 1% (there's that number again) of PFG clients who are Canadians and the only customers who will see all funds recouped. In fact, it's already been transferred to a caretaker brokerage, less than a week after story broke, and I can close it out or trade with this new brokerage firm.

Most brokerages don't want to deal with Canadian regs. so they don't. There is very, very limited choice for futures brokers here. But is that a worse thing than losing 50g's to a corn-fed Iowan who was such a moron that he couldn't even off himself properly? Sorry, harsh, I know.

But the race to the bottom produces exactly this situation guys. The argument, "well some other guy will just do it anyway" is not sensible. It's insane. So other brokerages will take more chances and offer more services for less money. So what if the industry bitches and moans about losing market-share to offshores who are uninsured, thus offering deep discounts. Guys.... the race to the bottom is a race to the end of The West's pre-eminence in finance... in everything.... Anyone who blames outside forces is about to try to sell you something, I guarantee it.

 

[DaveyH]

@pogue-trader - So the regulations in Canada are super-tight, but they actually managed to protect you (well, your money, at least)? That sounds like a decent argument in favor of tighter regs. I'm just curious about what's up with the Canandian regulations, really-- not trying to start a regulation/de-regulation debate.

 

[pogue-trader]

@pogue-trader - So the regulations in Canada are super-tight, but they actually managed to protect you (well, your money, at least)? That sounds like a decent argument in favor of tighter regs. I'm just curious about what's up with the Canandian regulations, really-- not trying to start a regulation/de-regulation debate.

Yeah, I realized that sorting out just which regs saved my butt, as well as which regs the brokerages find to be particularly onerous and are keeping them away (in case they're not the same ones), would be helpful on this thread. Because its such an important issue (no argument there, right?) I'm going to hold off on sharing what I think I know, and double confirm this from multiple sources.

I reckon I'll have listed here in 24 hours:
1.) The major reg. requirements in Canada that are different from US ones (derivitives, futures... not equities)

2.) The Canada-only regs responsible for not only protecting my money, but appear to have put me in the front of the line in any liquidation scenarios.

3.) The Canadian regs that (futures) brokerages find incompatible with how they do business.

4.) Any other related info of interest.

If anyone has more intel, confirmed or otherwise, please speak up. I have great interest in the topic.

Please feel free to share, anyone, your thoughts, feelings, rumours, information and knowledge on this topic particularly, or general thoughts.

So check back, Dave. Sorry to leave you hanging, and I'm the one started the thread for pete's sake, stupid not to have done this ahead of time. As a former journalist I know that here-say is, more often than not, quite different from the facts. Like I say, important question to answer exactly right.

later trader

 

[pogue-trader]

Also of possible interest: As mentioned Canadian regs are quoted by Futures brokerages as reason for not doing business there... here.... This meant that only four futures brokerages were available to Canadians who wanted to trade futures, as of Junes last year when I was setting up my full-time trading biz.

A year later it's a fact that 50% of futures brokerages available to Canadian traders were engaged in a massive fraud and collapsed into a black hole so all-consuming that even objects travelling at the speed of money were pulled in.

One of the dominos to fall outside of Canada with respect to the two futures brokerages going tits up is that many banks will not allow you to count a futures trading account as a liquid item of collateral, and some will not recognize it at all, liquid or illiquid. Nice....

 

[DaveyH]

So check back, Dave. Sorry to leave you hanging, and I'm the one started the thread for pete's sake, stupid not to have done this ahead of time. As a former journalist I know that here-say is, more often than not, quite different from the facts. Like I say, important question to answer exactly right.

later trader

No worries! I appreciate your efforts as I am sure others will as well. Interesting stuff, indeed.

 

[Sam33r]

The CEO of PFG could not have produced a more outlandish drama if he were a writer in Hollywood. I can't get over the depth of his greed and deep seeded corruption. Soooo glad when I was choosing brokers last year that I crossed PFG off the list. I hope that the CEOs of MB Trading and Oanda (the brokers I use) are horrible with Photoshop and that they have internal checks and balances to keep people as honest as possible.

 

[RockLobster7]

I am Canadian and used to open accounts at US brokerages in the 90's. Is this not still allowed, ie why limit to the ones actually in Canada?
I ask as I am thinking of opening an account with Interactive Brokers (UK based I think) and trade futures with them. I assume this is allowed but let me know if I am misinformed.
PS - had no idea that we'd be more protected here, good to know.