FINRA Pursues CARDS Initiative

Posted on October 22nd, 2014 at 10:11 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

FINRA plans to pursue the Comprehensive Automated Risk Data System (CARDS) initiative to quickly respond and regulate potentially fraudulent behavior.  The data collected periodically is designed to readily identify situations in which firms constantly sell high-risk products to unsuitable clients.

Critics argue that the cost of the new data collecting technology will not be reasonable for smaller broker-dealers. FINRA counters that one benefit of CARDS will be the ability to eliminate extensive information requests from FINRA due to its ability to target suspicious activity immediately.

Another concern relates to data security in relation to investors’ personal account information. FINRA believes that any security breach would be highly unlikely due to its encryption of the raw data.

We will keep readers posted as to the status of the CARDS initiative.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: CARDS, FINRA, broker-dealers

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I cannot thank you enough for your efforts. You have proven to be a valuable resource

Jim T.


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