SIFMA's Hammerman outlines 3 major concerns with FINRA's CARDS proposal

05/8/2014 | InvestmentNews (free registration)

In a video interview, Ira Hammerman, SIFMA's executive vice president and general counsel, outlined SIFMA's three primary concerns with the Financial Industry Regulatory Authority's Comprehensive Automated Risk Data System: privacy, data security and cost of duplicative regulation. The CARDS initiative would require broker-dealers to provide information on the holdings of individual investors -- this highly personal, private and sensitive consumer financial data would be centralized with FINRA. Hammerman also explained that there is another system -- the Consolidated Audit Trail -- that will be developed and built. "Our point is if we already have to design, build and implement something called CAT ... then let's have a conversation with FINRA, see what essential ingredients they think should be reflected in the CAT, and let's just build one system -- the CAT -- and have it cover the needs of FINRA."

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