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Unjust Termination | Bespoke Funding Program
Executive Summary:
The incident involving a trader and Bespoke Trading has surfaced serious concerns regarding the firm's ability to effectively oversee traders with external financial interests. The trader’s account was prematurely terminated by Bespoke’s CEO, Kaler, due to informal discussions that took place within a public chat forum where the trader mentioned involvement with a hedge fund. Bespoke's commitment to honor financial obligations was indeed maintained, and the trader’s payouts were processed. However, the ban imposed on the trader seems disproportionate, particularly since the stated reasons — potential conflicts of interest and unauthorized access to advanced trading technologies — lack concrete evidence, as confirmed by the trader's testimony of having no such access. This event not only casts a light on Bespoke's risk management and decision-making processes but also potentially signifies operational difficulties in reconciling Bespoke's internal policies with the realities of their traders' activities outside the firm. The swift ban, absent a thorough investigation or dialogue, and despite the trader's profitability within the firm, points to a possible preemptive approach in policy enforcement. This could have broader implications for how Bespoke interacts with and manages its pool of traders, calling for a review of their communication strategies and dispute resolution mechanisms.
Incident Overview
The trader's mere mention of hedge fund trading in a monitored chat led to an immediate ban by CEO Kaler, citing policies against conflicts of interest and the hypothetical risk of accessing sophisticated trading technologies. Notably, if Bespoke had efficiently assessed the trader's strategies or abilities based on the supposed information access, any discrepancies should have been evident as the trader amassed profits. Moreover, our attempts to formally address these issues in the chat room were swiftly met with a ban, further stifling communication.
Presented Evidence
Analysis
The decision to ban the trader without conducting a thorough investigation suggests reliance on assumptions rather than concrete evidence. This action, combined with Bespoke's refusal to engage in formal discussions, indicates potential gaps in Bespoke's risk management and communication protocols.
Response and Firm's Actions:
Bespoke's prompt settlement with the trader post-ban indicates acknowledgment of the trader's account profitability. However, the absence of an opportunity for the trader to contest the allegations or clarify his role prior to the ban highlights a lack of procedural fairness.
Ethical and Regulatory Concerns
Professional Engagement and Observational Strategy:
We are methodically recording all pertinent details and evidence for any prospective future proceedings. In recognition of Bespoke's action to settle the trader’s payout, we are presently refraining from filing an immediate report, opting instead to closely watch the firm's ongoing cases and conduct.
Advocacy for Reconsideration
We are methodically recording all pertinent details and evidence for any prospective future proceedings. In recognition of Bespoke Trading's action to settle the trader’s payout, we are presently refraining from filing an immediate report, opting instead to closely watch the firm's ongoing cases and conduct.
Discrepancies and Need for Investigation:
The stark discrepancies between Bespoke's speculative concerns and the trader’s assertion of no technological advantage, coupled with Bespoke's failure to preemptively identify any irregularities based on these concerns, warrant a deeper examination to ensure equity.
Conclusion:
This incident reveals potential inadequacies in Bespoke’s approach to handling conflict of interest situations, indicating a need for improved management practices. While financial obligations were met, the rationale for the account termination and the lack of engagement with formal inquiries remain troubling. Moving forward, we will keep a vigilant eye on Bespoke's handling of similar cases, prepared to take appropriate actions should a concerning pattern emerge, ensuring adherence to ethical and regulatory standards.
From a Trader's Perspective
March 25, 2024
Bespoke Funding ProgramProp Firm
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