Regulatory Notice 14-37

FINRA Requests Comment on a Rule Proposal to Implement the Comprehensive Automated Risk Data System

Comment Period Expires: December 1, 2014

Executive Summary

FINRA is requesting comment on a proposed rule to implement the Comprehensive Automated Risk Data System (CARDS). FINRA initially released CARDS as a concept proposal in Regulatory Notice 13-42. This rule proposal reflects the comments received on the concept proposal.

The rule proposal would be implemented in phases and would exclude the collection of personally identifiable information (PII) for customers, including account name, account address and tax identification number. The first phase would require approximately 200 carrying or clearing firms (i.e., firms that carry customer or non-customer accounts or clear transactions) to periodically submit in an automated, standardized format specific information that is part of the firms’ books and records relating to their securities accounts and the securities accounts for which they clear. The information to be submitted would include data relating to securities and account transactions, holdings, account profile information (excluding PII), and securities reference data. A carrying or clearing firm would not, however, be required to submit specified account profile information primarily related to suitability, for the securities accounts it carries or clears on a fully-disclosed or omnibus basis for others. For all other securities accounts, carrying or clearing firms would be required to submit these account profile-related data elements as part of the first phase of CARDS. The second phase of CARDS would require fully-disclosed introducing firms to submit the specified account profile-related data elements either directly to FINRA or through a third party.

The text of the proposed rule can be found at www.finra.org/notices/14-37.

Questions concerning this Notice should be directed to:

  • Daniel M. Sibears, Executive Vice President, Regulatory Operations/Shared Services, at (202) 728-6911;
  • Jonathan Sokobin, Sr. Vice President, Office of the Chief Economist, at (202) 728-8248; or
  • Victoria L. Crane, Associate General Counsel, Office of General Counsel, at (202) 728-8104.
The views, expressions, findings and opinions expressed in the comments on this Web page are solely those of the author(s) and FINRA accepts no responsibility for the content of the comments: 
DateCommenterFormat - Size
11/6/2014867 Independent Financial Advisors PDF - 226.14 KB
10/2/2014Whitehall-Parker Securities, Inc.PDF - 41.84 KB
10/2/2014Sprott Global Resource Investments Ltd.PDF - 53.24 KB
10/6/2014M. E. Allison & Co., Inc.PDF - 58.24 KB
10/7/2014Buckman, Buckman & Reid, Inc.PDF - 136.47 KB
10/15/2014PFS Group PDF - 28.24 KB
10/30/2014Kenneth LoebelPDF - 18.79 KB
10/30/2014Cetera Advisor NetworksPDF - 17.12 KB
10/30/2014Woodbury Financial ServicesPDF - 18.04 KB
10/30/2014First Allied Advisory Services, Inc.PDF - 72.65 KB
10/30/2014Jamison Financial GroupPDF - 18.25 KB
10/31/2014Frank Deptola & Associates, LLCPDF - 18.6 KB
10/31/2014Martens & D’Angelo, LLCPDF - 18.91 KB
11/3/2014Mari Peterson ConsultingPDF - 17.61 KB
11/3/2014Myrna GrigsbyPDF - 17.33 KB
11/3/2014Foothill SecuritiesPDF - 18.75 KB
11/4/2014Daniel BonderPDF - 18.92 KB
11/6/2014The Linnwood Group, LLC PDF - 22.71 KB
11/7/2014Muriel Siebert & Co., Inc.PDF - 38.33 KB
11/11/2014TMiller FinancialPDF - 52.86 KB
11/11/2014Thomas Capital Management, LLCPDF - 45.23 KB
11/11/2014Bradford TharpPDF - 15.6 KB
11/12/2014Thomas DeppePDF - 15.95 KB
11/12/2014Conny Saab PDF - 80.69 KB
11/12/2014Dwight Moats PDF - 55.3 KB
11/12/2014Choice Mortgage BankPDF - 10.71 KB
11/14/2014Peter Elish Investments Securities PDF - 238.26 KB
11/21/2014Diamant Investment CorporationPDF - 376.67 KB
11/21/2014Cutter Advisors Group PDF - 41.74 KB
11/24/2014PIABAPDF - 256.23 KB
11/24/2014Nilos Sakellariou PDF - 77.5 KB
11/25/2014M Holdings Securities, Inc.PDF - 197.41 KB
11/26/2014First Asset Financial Inc. PDF - 18.93 KB
11/28/2014Cetera Financial Group PDF - 29.76 KB
11/28/2014Thomas Reuters PDF - 61.21 KB
11/28/2014Stephens Inc.PDF - 244.78 KB
11/28/2014Cantella & Co., Inc. PDF - 31.09 KB
11/29/2014The Center for Copyrights Integrity PDF - 104.6 KB
11/29/2014Stephen A. Kohn & Associates, Ltd. PDF - 47.22 KB
12/1/2014Michigan State University College of Law PDF - 450.21 KB
12/1/2014Financial Information Forum PDF - 318 KB
12/1/2014Lincoln Financial Network PDF - 172.46 KB
12/1/2014Consumer Federation of America PDF - 70.05 KB
12/1/2014Commonwealth Financial Network PDF - 56.52 KB
12/1/2014Charles Schwab & Co., Inc. PDF - 969.36 KB
12/1/2014Plexus Consulting Group, LLC PDF - 71.37 KB
12/1/2015Fidelity Investments PDF - 123.42 KB
12/1/2014Center for Capital Markets Competitiveness PDF - 260.17 KB
12/1/2014Insured Retirement Institute PDF - 800.17 KB
12/1/2014Michigan State University College of Law PDF - 1.94 MB
12/1/2014Wells Fargo Advisors, LLC PDF - 173.98 KB
12/1/2014Financial Services Roundtable PDF - 89.95 KB
12/1/2014Wachtel & Co., Inc.PDF - 452.92 KB
12/1/2014Stifel Financial Corp. PDF - 371.18 KB
12/1/2014M. A. NEAL Financial Services PDF - 13.37 KB
12/1/2014Cambridge Investment Research, Inc. PDF - 550.33 KB
12/1/2014DST Market Services, LLC PDF - 1.08 MB
12/1/2014SIFMA PDF - 1.35 MB
12/1/2014AARP PDF - 492.97 KB
12/1/2014Squire Asset Mangement LLC PDF - 45.32 KB
12/1/2014Bond Dealers of America PDF - 139.88 KB
12/1/2014Pace Law School PDF - 111.83 KB
12/1/2014Janney Montgomery Scott LLC PDF - 278.88 KB
12/1/2014Cornell Law School PDF - 183.66 KB
12/1/2014CFA Institute PDF - 67 KB
12/1/2014Financial Services Institute PDF - 363.35 KB
12/2/2014NASAA PDF - 263.89 KB
12/3/2014ACLU PDF - 282.65 KB
12/15/2014SIFMAPDF - 252.57 KB
12/18/2014Modern WoodmenPDF - 96.5 KB
12/19/2014Adamson Financial PlanningPDF - 115.16 KB
2/4/2015Mercatus Center at George Mason UniversityPDF - 586.21 KB
2/5/2015Sara HitchensPDF - 38.1 KB