MFA Criticizes CAT Fee Schedule

The Managed Funds Association ("MFA") submitted a letter to the SEC expressing concerns with the proposed Consolidated Audit Trail ("CAT") fee schedule funding model.

The MFA stated that the funding model (i) should have been developed with input from broker-dealers instead of exclusively by self-regulatory organizations, and (ii) unfairly imposes fees on broker-dealers and indirectly on customers. The MFA alleged that the fee schedule implementation would adversely impact market competition by effectively limiting investors' choices in execution venues and by broker-dealers passing through costs to customers. Further, the MFA contended that "[f]unding the CAT should be a shared responsibility without indirectly advancing the commercial interest of [national securities exchanges] at the expense of others."

The MFA urged the SEC to suspend and reconsider the proposed CAT fee schedule rules.

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