Congressman Scott Garrett

Representing the 5th District of New Jersey

Garrett: FINRA CARDS Proposal Short of a Full Deck

Oct 14, 2014
Press Release

WASHINGTON, D.C. – Rep. Scott Garrett (R-NJ), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, issued the following statement regarding a Financial Industry Regulatory Authority (FINRA) proposed rule to implement the Comprehensive Automated Risk Data System (CARDS):

“After a preliminary reading of the proposed rule, I remain far from convinced that this new, costly, and burdensome proposal is needed.  Moreover, I question whether the purported benefits will justify the significant costs.  But even beyond the costs of the proposed rule, significant privacy concerns still linger, especially when the data are combined with other data in FINRA's database.  Before moving forward with this proposal, there needs to be a much better explanation of why this burdensome rule is necessary in the first place and what steps are being taken to protect investors’ personal financial information.  The Capital Markets and GSE Subcommittee will continue robust oversight of this potential new rule and, more broadly, FINRA’s structure, mission and regulatory activities.”