Lafayette Reporter

Senators John Kennedy, Tom Cotton, and Tim Scott have urged the U.S. Securities and Exchange Commission (SEC) to conduct a thorough review of the Consolidated Audit Trail (CAT). The call was made in a letter addressed to Mark Uyeda, the acting chairman of the SEC. The CAT database currently requires brokers to submit investors' personally identifiable information (PII).

The senators expressed satisfaction with recent steps taken by the SEC to protect investor privacy but highlighted ongoing concerns. "The Consolidated Audit Trail (CAT) has been a highly controversial endeavor that has raised many concerns from Members of Congress . . . We are pleased that you and fellow Commissioner Peirce have repeatedly acknowledged these longstanding concerns and applaud the Commission for its recent steps to protect the financial privacy of American investors," they stated.

They emphasized that more work is necessary, particularly regarding PII. "However, there is more work to be done. The prohibition on collecting investor PII must be formally codified (rather than via rescindable exemptive relief) and already-collected PII must be expunged," they continued.

The lawmakers also noted issues with cybersecurity measures and budgetary concerns associated with CAT. They urged a comprehensive review covering all aspects of CAT, including pausing its most controversial elements like customer PII collection and funding structure.

Kennedy recently introduced legislation aimed at protecting investors' PII by prohibiting its submission to CAT and mandating its deletion after relevant investigations or issues are resolved. Other legislators who joined this initiative include Senators John Boozman, Bill Hagerty, Representatives French Hill, Bill Huizenga, Ann Wagner, and Barry Loudermilk.