Nominations for CTA/CPO representatives to the NFA Board of Directors for 2014 have been completed, and for the first time in the NFA’s history, a nominating subcommittee has put forth two candidates to contest seats held by incumbents. The CCC has encouraged the NFA to introduce choices for Members as to how the Board is composed to provide accountability to individual directors. While the NFA has put forth 2 qualified challenges, the CCC would like to formally endorse Doug Bry and Ernest Jaffarian.
The CCC has worked with closely with Messrs. Bry and Jaffarian since the organization was formed in the wake of the MF Global bankruptcy. Messrs. Bry and Jaffarian consistently championed the cause of MF Global customers to the Board and were responsible for the NFA’s public support of the CCC via an amicus brief filed in bankruptcy court and communication to JP Morgan urging them to the customer property they had improperly received from MF Global. Among other things, Messrs. Bry and Jaffarian have also been extremely reform-oriented within NFA regarding that organization’s role in the PFG fraud, and have pushed the adoption of the Certified Fraud Examiner standard for audit staff.
Since the CCC’s Co-Founders joined Messrs. Bry and Jaffarian on the NFA’s Board, the four of them have worked even more closely together to push a reform-based agenda of increasing customer protections while trying to streamline some of the regulatory processes that currently hamstring many CTA/CPOs’ abilities to conduct business efficiently. This work has been slow and deliberate due in large part to the institutional inertia prevalent throughout much of NFA. Their work is still in progress and we believe they deserve another term to continue to work for change within the industry.
The CCC has worked with challenger Adam Cooper through his role at the Managed Funds Association, and he has made major contributions to the industry. The CCC has not encountered Brandon Kalb’s in any of the venues in which we work to improve investor protections, but do not have any reason to doubt his qualifications. Nevertheless, the CCC feels that the Membership is best served by giving Messrs. Bry and Jaffarian another two years to continue their work.