Finra Releases New Guidelines for Brokerage Tracking System

The Financial Industry Regulatory Authority on Tuesday released new guidelines for a proposed computerized method to track balances and transactions in brokerage accounts, a step toward a system that could transform how regulators oversee the brokerage industry. Finra says the system, which it calls the Comprehensive Automated Risk Data System, or Cards, will give it the ability to follow more closely how brokers handle customer funds. Cards will give examiners the ability to spot unscrupulous behavior by brokers, such as making trades that benefit the broker rather than investors, Finra says. More in the Wall Street Journal here.