{"id":5545,"date":"2013-12-27T00:00:00","date_gmt":"2013-12-27T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2013\/12\/finra_considers_system_that_wo"},"modified":"2022-05-05T08:51:03","modified_gmt":"2022-05-05T13:51:03","slug":"finra-considers-system-that-wo","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/finra-considers-system-that-wo\/","title":{"rendered":"FINRA Considers System That Would \u2018Red Flag\u2019 Customer Accounts at Brokerage Firms"},"content":{"rendered":"<p>The Financial Industry Regulatory Authority is looking at a system that would let the SRO run analytics on the customers accounts at brokerage firms that would allow it to identify \u201cred flags\u201d involving business and sales misconduct involving branches, firms, and registered representatives. The agency is now seeking comments for its proposal for the Comprehensive Automatic Risk Data System (CARDS).<\/p>\n<p>Upon implementation of CARDS, clearing firms and self-clearing firms would regularly turn in, in standardized, automated format, specific data about customer accounts and the customers accounts of each member account that they clear for. This would allow FINRA to conduct analytics so it can identify excessive commissions, churning, markups, pump and dump scamps, and mutual fund switches. The information would also be used to examine broker-dealers.<\/p>\n<p>FINRA says it wants to be able to find the risks and red flags earlier. According to a notice from the SRO, the agency says that this type of automated reporting would get rid of some of the one-off reporting that brokerage firms now have to engage in. This would also let FINRA compare broker-dealers and identify trends and patterns in the industry.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/finra-considers-system-that-wo\/\"  title=\"Continue Reading FINRA Considers System That Would \u2018Red Flag\u2019 Customer Accounts at Brokerage Firms\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Financial Industry Regulatory Authority is looking at a system that would let the SRO run analytics on the customers accounts at brokerage firms that would allow it to identify \u201cred flags\u201d involving business and sales misconduct involving branches, firms, and registered representatives. The agency is now seeking comments for its proposal for the Comprehensive [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3783,3739],"tags":[],"class_list":["post-5545","post","type-post","status-publish","format-standard","hentry","category-broker-misconduct","category-finra"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>FINRA Considers System That Would \u2018Red Flag\u2019 Customer Accounts at Brokerage Firms &#8212; Investor Lawyers Blog &#8212; December 27, 2013<\/title>\n<meta name=\"description\" content=\"The Financial Industry Regulatory Authority is looking at a system that would let the SRO run analytics on the customers accounts at brokerage firms that &#8212; December 27, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/finra-considers-system-that-wo\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"FINRA Considers System That Would \u2018Red Flag\u2019 Customer Accounts at Brokerage Firms &#8212; 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Investor Lawyers Blog &#8212; December 27, 2013","twitter_description":"The Financial Industry Regulatory Authority is looking at a system that would let the SRO run analytics on the customers accounts at brokerage firms that &#8212; December 27, 2013","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/finra-considers-system-that-wo\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/finra-considers-system-that-wo\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"FINRA Considers System That Would \u2018Red Flag\u2019 Customer Accounts at Brokerage Firms","datePublished":"2013-12-27T06:00:00+00:00","dateModified":"2022-05-05T13:51:03+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/finra-considers-system-that-wo\/"},"wordCount":440,"articleSection":["Broker Misconduct","FINRA"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/finra-considers-system-that-wo\/","url":"https:\/\/www.investorlawyers.com\/blog\/finra-considers-system-that-wo\/","name":"FINRA Considers System That Would \u2018Red Flag\u2019 Customer Accounts at Brokerage Firms &#8212; 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