FINRA Proposes Adding CAT Compliance Disposition to FINRA Minor Rule Violation Plan

FINRA proposed amendments to add Consolidated Audit Trail ("CAT") compliance rules to FINRA's Minor Rule Violation Plan ("MRVP").

According to FINRA, the MRVP is intended to provide "reasonable but meaningful sanctions" for violations of rules that are minor or technical and may not warrant more robust, immediately reportable disciplinary sanctions. FINRA stated that under the proposed amendments, FINRA will have "additional flexibility to administer its enforcement program in the most effective and efficient manner, while still fully meeting FINRA’s remedial objectives in addressing violative conduct."

The proposed rule changes are effective upon approval by the SEC.