Mastering CAT & CAIS Compliance: How RSMS Empowers Firms for Audits, Inquiries, and Data Quality

Regulatory expectations are only moving in one direction — up. For broker-dealers and investment firms, the twin challenges of Consolidated Audit Trail (CAT) compliance and Customer Account Information System (CAIS) reporting have created an environment where accuracy, transparency, and readiness are non-negotiable. FINRA CAT and FINRA CAIS requirements are tightening, and regulators are putting firms under sharper scrutiny than ever before.

The real question is: Is your firm truly prepared for an audit, inquiry, or data quality review?

The answer often comes down to the systems in place. Relying on siloed tools, manual reconciliations, or last-minute scrambles is no longer sustainable. This is where the Regulatory Surveillance and Management System (RSMS) from Capital Market Solutions becomes a game-changer.

Why Comparative Reviews Matter in FINRA CAT

At the core of FINRA CAT compliance is the comparative review — a structured validation check that compares CAT submissions against source data from OMS, EMS, or algorithmic systems. Done properly, comparative reviews expose inconsistencies, missing events, or misaligned mappings before regulators do.

The challenge? Comparative reviews have historically been fragmented. Compliance teams bounced between screens and reports, manually reconciling fields and logging exceptions — an inefficient process prone to oversight.

RSMS changes that. Its Comparative Review module brings everything into one unified screen, allowing firms to compare, reconcile, and investigate discrepancies seamlessly. By consolidating this critical function, RSMS cuts down review cycles, reduces operational risk, and ensures defensible accuracy in CAT submissions.

From Reactive to Proactive: RSMS for Audit & Inquiry Readiness

When FINRA or the SEC issues an audit or inquiry, most firms scramble. Data fragmentation, incomplete logs, and inconsistent reconciliation practices often lead to delayed or incomplete responses. This reactive approach not only increases stress but also raises red flags with regulators.

RSMS flips the script.

  • Centralized Repository (RSMS Vault): All CAT and CAIS compliance records — submissions, error fixes, regulatory notices — are securely stored in one location, complete with end-to-end data lineage.
  • Audit-Ready Reports: Every error repair, exception note, and submission adjustment is time-stamped and instantly retrievable. When inquiries come, responses can be generated in minutes, not weeks.
  • Reconciliation & Exception Handling (CAT-Recon): Automated event matching against OMS/EMS eliminates manual cross-checking. Breaks, duplicates, and missing fields like Event Timestamp or FDID are flagged proactively.
  • Analytics & Surveillance (CATalyst): Compliance teams can slice, dice, and drill down into CAT submissions to detect anomalies daily, well before regulators raise concerns.

Together, these features position RSMS as more than a reporting tool — it becomes a regulatory command center.

Extending Beyond CAT: CAIS Compliance and CAIS-Connect

While CAT reporting captures order lifecycle events, CAIS compliance focuses on customer and account data accuracy. Both systems are deeply intertwined, and errors in one can cascade into the other.

That’s why Capital Market Solutions developed CAIS-Connect, a dedicated RSMS extension that ensures accurate CAIS submissions. With automated validations, lineage tracking, and secure record retention, CAIS-Connect simplifies CAIS reporting and reduces the risk of FINRA enforcement actions.

By integrating CAIS-Connect into the broader RSMS platform, firms can achieve holistic compliance — managing both FINRA CAT and FINRA CAIS obligations in one ecosystem.

Real-World Impact: Compliance Without the Fire Drills

Picture two firms facing an unscheduled inquiry:

  • Without RSMS: Teams scramble across OMS, EMS, and Excel files. Incomplete logs and manual reconciliations slow responses. Weeks are lost, and regulators flag operational weaknesses.
  • With RSMS: Compliance instantly pulls a full lifecycle history, complete with reconciliations, repair logs, and regulatory correspondence. A polished, defensible report is delivered in hours.

The difference isn’t just time saved — it’s the confidence regulators gain in your firm’s control environment.

The Future of Regulatory Confidence

Compliance isn’t just about avoiding fines — it’s about building trust with regulators, investors, and clients. With RSMS, firms move from firefighting to future-proofing, from reactive to proactive.

  • For CAT compliance, RSMS ensures accurate comparative reviews, reconciliations, and exception handling.
  • For CAIS compliance, CAIS-Connect delivers clean, auditable customer data reporting.
  • For audit readiness, RSMS Vault and CATalyst provide instant access and insights.

In an era of heightened expectations, RSMS helps firms not just meet regulatory standards, but exceed them. 

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