When it comes to CAT, supervisory procedures aren’t just another box to check—they’re at the heart of making sure your daily operations run smoothly, exceptions are managed before they become major headaches, and your firm is always ready for an audit. If you are into regulatory compliance, you already know how fast the landscape is changing. Data, technology, regulations, it’s all getting more complex, and the spotlight on WSPs is only getting brighter.
At Capital Market Solutions, we believe CAT WSPs are the backbone of effective compliance. Let us walk you through what makes them especially challenging, highlight some real-world pain points firms are facing, and share the smart moves that can help you stay one step ahead of regulators. We’ll also show you why more firms are choosing RSMS as their go-to regtech solution for compliance.
Why FINRA CAT WSPs Matter
CAT obligations have reshaped how firms monitor, capture, and report order and trade data. Regulatory bodies like FINRA now expect timely and accurate CAT compliance, with robust exception workflows and the ability to demonstrate proactive supervision, not just after-the-fact corrections. WSPs must address:
- Data oversight and integrity
- Escalation and exception handling
- Maintenance, review, and continuous improvement
Firms that view WSPs as dynamic and adaptable are more effective at managing risk, providing assurance to leadership, and focusing compliance team efforts on what matters most.
Key Areas to Address in FINRA CAT WSPs
To build a strong, regulator-ready CAT WSP, firms must focus on the following critical areas:
Data Accuracy, Completeness and Comparative Review
When it comes to regulatory reporting, data integrity is non-negotiable. Firms are on the hook to make sure every single data field in their CAT submissions is both accurate and complete—no missing pieces. This means not only capturing data but also cross-checking it against internal records to catch discrepancies before they hit the regulator’s lenses. Systematic errors can creep in easily, especially when data flows between platforms or systems that aren’t fully integrated. Smart firms are investing in consolidated reg reporting, on-time validation and reconciliation tools, so errors get flagged instantly, and nothing falls through the cracks. With best-of-the-breed solutions like RSMS for CAT, these checks become effortless, so compliance teams can focus on reviewing exceptions rather than data entry.
Timeliness of Submissions
Getting your CAT reports in on time isn’t just a best practice; it’s a hard requirement. FINRA CAT regulators expect data files to be submitted by strict deadlines, submissions monitored and if there’s an error, you typically have a limited window to make corrections. Missing a window can invite regulatory scrutiny or even penalties. RSMS help teams prep, review, and submit on schedule, every single time. If a file is late, it’s monitored, it’s flagged and users are alerted. If something’s wrong, the compliance team is looped in instantly. No more last-minute panic, making timeliness a shared responsibility across teams.
Error Correction Procedures
Even with robust systems, errors happen, and how firms respond makes a big difference. WSPs must spell out not just how to spot inaccuracies and errors, but also the step-by-step process for fixing them and getting corrected data back within the required timeframe. This includes daily monitoring of rejection reports, documenting steps, and making sure accurate audit-trail is maintained for later review. With a tool like RSMS, error management becomes part of the daily workflow, from immediate exception alerts to guided resolution and recordkeeping. When processes are automated, responses are faster, fewer errors recur, and the firm is always ready to show regulators how each exception was resolved.
Review Processes
Having a detailed review protocol is essential. Firms need to document who reviews CAT submissions, what those reviews entail, and how often they happen. Are reviews daily or weekly? Is there a sign-off requirement from compliance? These aren’t just operational questions; they’re regulatory expectations. Well-designed WSPs ensure review duties are actually performed, often backed by robust reporting and dashboard analytics.With RSMS, you get built-in review schedules, sign-offs, and a full history of every change and exception managed, a compliance officer’s dream for any audit.
Response to Regulatory Inquiries
Regulators will ask for supporting evidence, explanations, or follow-up on CAT data, sometimes with little lead time. WSPs should outline exactly how to respond, who handles the inquiries, what information should be provided, and how interactions are documented. Fast, accurate and consistent responses show that your firm takes compliance seriously and is in control. Centralized regtech makes it easy to pull up submissions, exceptions, actions taken, and any related decision, so you can turn regulatory requests into routine checks—not fire drills. The most forward-thinking firms are finding ways to turn CAT WSPs from a chronic pain into a smooth, risk-averse compliance operation. That means giving up disjoined systems, manual processes, and late-night data hunts for dashboards, secure recordkeeping, and proactive alerts.
Best Practices for CAT WSPs
Manual approaches to CAT compliance are unsustainable. Leading firms are moving away from spreadsheets and ad hoc checks, adopting modern, regtech solutions that provide:
- Timely exception reporting, alerting, and workflow management
- Robust dashboards showing multiple touchpoints for CAT submissions
- Built-in documentation for audits and regulatory exams
- Secure, long-term recordkeeping for all actions
- State of the art reconciliations and reviews
This shift reduces regulatory risk, empowers staff, and turns compliance into a continuous, proactive process.
Transform CAT WSPs into a Competitive Edge with RSMS
It’s mid-2025, and treating WSPs as a routine documentation exercise simply doesn’t cut it. Firms need active systems, providing visibility, oversight, and the ability to respond swiftly to any challenge or regulatory inquiry. That’s exactly where RSMS comes in. It’s purpose-built to manage data, flag and escalate high-risk issues, and retain full documentation for every compliance action, making everyday CAT supervision seamless. RSMS not only supports error detection and correction, but also gives compliance teams the reports, dashboards, and audit trails regulators now expect. By choosing RSMS, firms can move their CAT WSPs from legacy systems to a powerful, flexible system that drives confident, audit-ready compliance every day. Get in touch with us today and let RSMS help you navigate your compliance journey with clarity and control.