Why Regulatory Technology is Crucial for CAT and CAIS Compliance

LEWES, Del. - Aug. 29, 2025 - PRLog -- In today's highly regulated capital markets, compliance is no longer optional — it's a business-critical necessity. Broker-dealers, investment firms, and financial institutions are under increasing pressure to meet the requirements of FINRA CAT (Consolidated Audit Trail) and FINRA CAIS (Customer Account Information System). Failing to comply not only risks financial penalties but also damages market reputation.

This is where a robust Regulatory Surveillance and Management System (RSMS) becomes indispensable. By integrating advanced compliance tools like CAIS-Connect, firms can streamline reporting, reduce risks, and safeguard against the rising costs of non-compliance.

The Growing Importance of CAT and CAIS Compliance
The Consolidated Audit Trail (CAT) Compliance framework was designed to enhance market transparency by tracking orders and trades across U.S. exchanges. At the same time, Customer Account Information System (CAIS) ensures the accuracy of customer data linked to transactions.

Both CAT and CAIS require firms to meet strict data submission standards, often under tight deadlines. Errors or delays in reporting can quickly result in costly penalties. A strong compliance system is no longer a "good-to-have" — it's a survival tool.

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Challenges Firms Face Without Technology
Many firms still rely on outdated systems or manual processes, which exposes them to significant risks such as:

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Data mismatches between internal records and CAT/CAIS submissions
Missed deadlines due to manual reconciliation
High operational costs linked to correcting rejected reports
Regulatory scrutiny for repeated errors
These risks highlight the need for an automated and centralized solution like RSMS.