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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 Historical Costs of the National Market System Plan Governing the Consolidated Audit Trail
Plain English Summary
The Financial Industry Regulatory Authority (FINRA) has made a change to its rules regarding fees for industry members related to the funding of the Consolidated Audit Trail (CAT). This change affects insurance companies and other financial industry members who are involved in the CAT system. Starting now, these members will be required to pay fees that cover historical costs associated with the CAT, which includes expenses for insurance policies that were evaluated and purchased in the past. Agents should be aware of these new fees and consider how they may impact their operations and costs moving forward.
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(VIII) <span class="match">Insurance</span>
The <span class="match">insurance</span> costs of $880,419 represent the cost incurred for <span class="match">insurance</span> for CAT during the Pre-FAM Period. Commencing in 2020, CAT LLC performed an evaluation of various potential alternatives for CAT <span class="match">insurance</span> policies, which included engaging in discussions with different <span class="match">insurance</span> companies and conducting cost comparisons of various alternative approaches to <span class="match">insurance</span>. Based on an analysis of a variety of factors, including coverage and premiums, CAT LLC determined to purchase cyber security liability <span class="match">insurance</span>, directors'