WASHINGTON May 20 Wall Street's industry-funded
watchdog aims to build and launch the initial phases of a
mammoth broker data collection system in 2015, assuming it
secures approval for the plan, the regulator's head said on
Brokerages have objected to the plan, known as the
Comprehensive Automated Risk Data System, or CARDS. It would
require firms to submit vast quantities of data to the Financial
Industry Regulatory Authority (FINRA) in an ongoing stream.
FINRA could then use that data to analyze everything from
securities transactions and asset movements to customers' risk
tolerances and time lines.
FINRA Chief Executive Officer Richard Ketchum, who spoke to
reporters at FINRA's annual conference on Tuesday, said
FINRA plans to launch CARDS in stages, in order to make the
costs for complying easier for firms to absorb.
It would put the first two stages into motion during 2015,
assuming the Securities and Exchange Commission approves the
plan, Ketchum said.
Firms would not have to submit certain details to FINRA
during the earliest stages, including information about products
they don't hold directly, such as variable annuities.
Brokerages have criticized the plan for everything from
being overly broad as well as burdensome and costly. Ketchum
sought to promote the system as a benefit to the industry that
would help eliminate unfounded concerns a brokerage may have
engaged in wrongdoing.
The CARDS plan will require approval from the SEC, which
oversees FINRA and must review and approve its rules.
A formal proposal for the SEC could be ready as early as
this summer, Ketchum said on Monday. [ID: L1N0O519W]
(Reporting by Suzanne Barlyn; Editing by Cynthia Osterman)