Back to News
Federal RegisterFederal
Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend FINRA Rule 6897 (Consolidated Audit Trail Funding Fees) To Establish Fees for Industry Members Related to Reasonably Budgeted CAT Costs of the National Market System Plan Governing the Consolidated Audit Trail for May 1, 2026 Through December 31, 2026
Plain English Summary
The Financial Industry Regulatory Authority (FINRA) has announced a new rule that will affect industry members by establishing fees related to the costs of the Consolidated Audit Trail (CAT) for the period from May 1, 2026, to December 31, 2026. These fees will cover necessary insurance costs, including cyber security liability, directors' and officers' liability, and errors and omissions liability. Insurance agents should be aware of these upcoming fees and prepare to inform their clients about the potential impact on their costs.
+View original text
A.1(2)(C) above.
It is anticipated that the <span class="match">insurance</span> costs for CAT during the CAT Fee 2026-1 Period will include costs related to cyber security liability <span class="match">insurance</span>, directors' and officers' liability <span class="match">insurance</span>, and errors and omissions liability <span class="match">insurance</span> brokered by USI <span class="match">Insurance</span> Services LLC (“USI”). Such policies are standard for corporate entities, and cyber security liability <span class="match">insurance</span> is important for the CAT System. CAT LLC anticipates that it will continue to maintain this <span class="match">insurance</span> during the CAT Fee 2026-1 Period, and notes that