The SEC is not the only regulator of which private fund advisers must be mindful. Advisers that trade futures, swaps and certain other derivatives may also fall under the watchful eye of the NFA. Taking aggressive action against fairly egregious misconduct, the NFA’s Business Conduct Committee (BCC) recently barred a commodity pool operator/commodity trading advisor and its principal from NFA membership for allegedly charging incentive fees on fictitiously valued assets; making misleading statements to pool participants, including promising to indemnify investors for trading losses notwithstanding the fact that they did not have the financial wherewithal to fulfill those obligations; and failing to cooperate with NFA examiners. This article discusses the relevant facts set forth in the BCC’s complaint and its decision. For coverage of another recent NFA proceeding, see “NFA Sanctions CPO and Principal for Performance Advertising Violations” (Jul. 11, 2019).