AccessFintech launches comprehensive Consolidated Audit Trail error resolution tool ahead of December 2022 deadline

LONDON, NEW YORK & TEL AVIV, October 11, 2022 – Deloitte, a leading professional services organization, and AccessFintech, a leading fintech company evolving the financial operating model through data and workflow tools, today announced a collaboration to support financial institutions grappling with the upcoming Consolidated Audit Trail (CAT) regulation. The two organizations developed and will work together to integrate AccessFintech’s new CAT solution into clients’ infrastructure.

The Security and Exchange Commission’s (SEC) CAT regulation presents several immediate implementation challenges for financial institutions as they mobilize now to meet the impending December 2022 deadline for CAT implementation, including:

• The inclusion of personal identifiable information (PII);
• An initial (T+1) reporting accuracy rate of 95%;
• A T+3 reporting accuracy rate of 98% upon repair; and
• Clear remediation timeframes.

To meet these standards, reporting entities, buy-side and sell-side alike, will need to aggregate and normalise reporting data, prioritise and investigate errors, and collaborate in a structured manner. Failing to meet these standards could result in monetary penalties.

AccessFintech has leveraged its Synergy Network to launch its new CAT Error Resolution workflow. The Synergy Network will provide clients with the ability to aggregate, normalise and pair FINRA and transaction reporting data within and between institutions, investigate discrepancies, collaborate and resolve errors across counterparties, and manage reporting and error reconciliation for CAT submission. Together with Deloitte, the company will provide a comprehensive workflow and network solution designed to help organisations manage CAT’s operational challenges, whilst significantly enhancing data transparency and collaboration.

Bob Walley, Principal, Deloitte & Touche LLP, said: “Banks and broker dealers need to modernize their non-financial regulatory reporting (NFRR) program to comply with regulatory obligations. Their efforts are often encumbered with legacy technology stacks and limited workflow enablers within their organizations. On top of this challenge, firms may likely find themselves very quickly having to manage millions of errors and rejected transactions, with limited capacity to resolve issues within CAT’s error correction timeframes. The operational costs of NFRR are escalating, alongside significant reputational and compliance risks. The industry needs a new operating model to create a sustainable environment for CAT compliance efforts, one that is supplemented and managed using modern, scalable, exception-based technology such as AccessFintech.”

Boaz Zilberman, EVP Business Development, AccessFintech, said: “CAT will create the single largest retail and institutional trading database. It will require a mammoth effort from financial institutions to manage, maintain, reconcile, and report millions of transactions per day. The burden on resources could be enormous without the proper preparation and technology. We are working with Deloitte, a leading advisor to the world’s largest banks and financial institutions, to help clients ready themselves for what promises to be one of the most time-consuming, and –  if not managed well – expensive, obligations in a quickly evolving regulatory landscape.”