About RSMS for CAT
Capital Market Solutions, a leading provider of regulatory, compliance, and reporting solutions for the financial industry, has developed a comprehensive platform called RSMS (Regulatory Submission Management System) to help firms navigate the complex regulatory landscape. One of the key components of RSMS is its dedicated solution for the Consolidated Audit Trail (CAT) reporting requirements.
The Case
In this case study, a mid-size institutional firm that utilizes CMS’s RSMS solution for CAT reporting encountered an issue with the proper reporting of certain transactions. The firm failed to mark specific transactions as “Not-Held” orders in the “Order Handling Instructions” section of the CAT reporting.
The accurate reporting of “Order Handling Instructions” is crucial, as regulators closely monitor firms to ensure strict adherence to customer-provided order handling instructions. Any discrepancies or improper reporting can potentially result in disciplinary actions and fines.
How RSMS Helped
The RSMS solution, equipped with its powerful CAT Analytics tool, played a key role in detecting the anomaly in the firm’s CAT reporting. The CAT Analytics engine is designed to identify any discrepancies in daily CAT reporting records by comparing them to 5-day and 30-day averages.
In this case, the RSMS CAT Analytics tool promptly detected the issue with the improper reporting of “Order Handling Instructions” and immediately alerted the firm’s support team. This early detection allowed the firm to take corrective action before the issue escalated or came under the scrutiny of regulatory authorities.
Without the RSMS CAT Analytics, the firm would have remained unaware of the incorrect reporting of “Order Handling Instructions”. This could have exposed the firm to a potential FINRA audit, which could have resulted in disciplinary fines and other regulatory consequences.
The RSMS solution’s ability to identify and highlight such reporting discrepancies promptly proved to be invaluable for the mid-size institutional firm. It enabled the firm to address the issue promptly, ensuring accurate and compliant CAT reporting, and avoiding potential regulatory pitfalls.
Conclusion
The case study highlights the importance of having a robust and comprehensive regulatory compliance solution like RSMS by Capital Market Solutions. The RSMS platform, with its specialized CAT Analytics capabilities, helps firms proactively identify and address reporting issues, mitigating the risk of regulatory non-compliance and potential financial penalties.
By leveraging the RSMS solution, the mid-size institutional firm in this case was able to maintain strict adherence to the CAT reporting requirements, demonstrating its commitment to regulatory compliance and minimizing its exposure to regulatory scrutiny. The timely detection and remediation of the “Order Handling Instructions” reporting issue underscores the value that RSMS brings to financial firms navigating the complex regulatory landscape.