West STL News

Capital Markets Subcommittee Chair Ann Wagner, House Financial Services Committee Chairman French Hill, Senate Banking Committee Chairman Tim Scott, and Senator Tom Cotton have addressed a letter to the Securities and Exchange Commission (SEC) Acting Chairman Mark Uyeda. The letter calls for a comprehensive review of the Consolidated Audit Trail (CAT).

Senator Boozman, Senator Bill Hagerty, Senator John Kennedy, Rep. Bill Huizenga, and Rep. Barry Loudermilk also signed the letter.

The lawmakers expressed concerns over several aspects of CAT: "The prohibition on collecting investor PII must be formally codified (rather than via rescindable exemptive relief) and already-collected PII must be expunged. Cybersecurity measures for the remaining data must be enhanced. And the CAT’s bloated out-of-control budget must be addressed... Further, it would appear appropriate for the Commission to pause and reconsider its position with respect to ongoing litigation related to the CAT, as it has done for other cases commenced during the Biden administration."

They highlighted issues regarding the collection of personally identifiable information (PII), potential cybersecurity vulnerabilities, and funding structure inequities.

"We are pleased that you and fellow Commissioner Peirce have repeatedly acknowledged these longstanding concerns and applaud the Commission for its recent steps to protect the financial privacy of American investors," they wrote.

However, they noted that more action is needed: "The prohibition on collecting investor PII must be formally codified (rather than via rescindable exemptive relief) and already-collected PII must be expunged. Cybersecurity measures for the remaining data must be enhanced. And the CAT’s bloated out-of-control budget must be addressed."

They urged a thorough review covering all aspects of CAT: "Given these continuing concerns, the Commission should launch a comprehensive review that covers all aspects of the CAT." They also suggested pausing controversial elements like customer PII collection and addressing funding structure issues.

"Further," they added, "it would appear appropriate for the Commission to pause and reconsider its position with respect to ongoing litigation related to the CAT."

The lawmakers thanked Uyeda for his attention to this matter.