ASA Urges the SEC to Reject or Defer Action on 2025 CAT Funding Proposal

WASHINGTON – The American Securities Association (ASA) today sent a letter to the U.S. Securities and Exchange Commission (SEC) in response to the proposed new funding plan for the Consolidated Audit Trail (CAT) submitted by the self-regulatory organizations (SROs) in 2025. In the letter, ASA outlined its concerns and urged the SEC to reject or defer action on the 2025 Proposal.

"ASA appreciates the Commission’s willingness to revisit the CAT and its funding model, and we strongly support a comprehensive, top-to-bottom review of this project," wrote ASA President and CEO Chris Iacovella. "However, until the Commission resolves the fundamental legal and privacy issues surrounding the CAT, completes an accurate and transparent economic analysis, audits and publicly reports on CAT costs and reserves, and ensures that broker-dealers and their customers are not saddled with unlawful or unreasonable burdens, ASA does not believe the Proposal should be approved."

"ASA respectfully urges the Commission to reject or defer action on the 2025 CAT Funding Proposal and instead focus its efforts on the broader legal, economic, and policy questions that must be answered before any durable funding solution can be considered," Iacovella wrote.

To read the full letter, click here.

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The American Securities Association (ASA) represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.