Comprehensive Automated Risk Data System (CARDS)

AAA

DEFINITION of 'Comprehensive Automated Risk Data System (CARDS)'

The Comprehensive Automated Risk Data System (CARDS) is an initiative by the Financial Industry Regulatory Authority (FINRA) to better oversee investment activity in the U.S. It is still in proposal form, but is expected to roll out in stages beginning in 2015. Through CARDS, the nonprofit securities regulator will regularly collect customer and product information, as well as account activity, from its more than 4,100 member firms. FINRA polices its members and hopes that running analytics on the collected data will enable it to more quickly flag brokerages engaging in sales misconduct.

INVESTOPEDIA EXPLAINS 'Comprehensive Automated Risk Data System (CARDS)'

The CARDS initiative was proposed in 2013 and is subject to tweaking as FINRA's board must still vote to approve it, before sending it on to the Security and Exchange Commission and out for public comment. Critics within the financial community say CARDS reporting will add significant cost to doing business. Some also worry that it’s a security risk to allow FINRA to access so much client information, though the organization has noted that it will not hold individual client names, addresses, Social Security Numbers or other personally identifiable information.

RELATED TERMS
  1. Associate In Personal Insurance ...

    A designation earned by professionals looking for training in ...
  2. Fintech

    Fintech is a portmanteau of financial technology that describes ...
  3. Associate In Reinsurance (ARe)

    A designation earned by insurance professionals looking for reinsurance ...
  4. Associate In Surplus Lines Insurance ...

    A designation earned by insurance professionals involved with ...
  5. Associate In Fidelity And Surety ...

    A designation earned by bond producers, bond underwriters, and ...
  6. Associate In Insurance Services ...

    A designation earned by insurance professionals and conferred ...
RELATED FAQS
  1. I have a CFA designation. Do I qualify for any exemptions from FINRA licensing exams?

    Unfortunately, a CFA charter does not qualify you for any FINRA exam exemptions. Read Full Answer >>
  2. How can I find out if my employer is a member of FINRA?

    To find out if your employer is a member of the Financial Industry Regulatory Authority or FINRA (previously the National ... Read Full Answer >>
  3. Does FINRA make any allowances for people whose first language is not English?

    The Financial Industry Regulatory Authority (FINRA) indicates that if your first language is not English, you may request ... Read Full Answer >>
  4. I want to start my own brokerage company, how do I become a member of FINRA?

    Before you read on, note that the Financial Industry Regulatory Authority (FINRA), (previously the National Association of ... Read Full Answer >>
Related Articles
  1. Fundamental Analysis

    FINRA: How It Protects Investors

    Find out the history of FINRA, and how it's organized to monitor the markets and protect investors.
  2. Professionals

    Web Site Tips for Financial Advisors

    Many financial advisors leave a first impression far before a client walks through the door — it often happens online via their web presence.
  3. Professionals

    Getting the Most Out of Your Web Presence

    Curating a person’s online presence has become essential. Here are tips specific to financial advisors (but could apply to any professional).
  4. Professionals

    Top Strategies for Winning Business in 2015

    Looking to grow your financial advisory practice in 2015? These strategies will help.
  5. Investing

    How Do Millennial Women Invest?

    The theme for Women’s History Month is “Make it Happen”, and that is exactly what millennial women are doing when it comes to their investments.
  6. Investing

    Meet The Advisors To The Richest People In The U.S

    Celebirty financial advisors to the rich can offer important money lessons anyone can learn — as well as a whole host of mistakes to avoid.
  7. Professionals

    Advisors: Have Clients Try on Retirement for Size

    Retirement planning in today’s world involves a lot more than just money.
  8. Professionals

    Advisors: Avoid These Acquisition Missteps

    When acquiring a new financial advisory practice, make sure that your game plan avoids these acquisition missteps.
  9. Professionals

    Tips for Spreading the Wealth to Relatives

    There are many ways that your clients can move money or other assets to relatives in order to reduce their tax bills. Here's a primer on best practices.
  10. Professionals

    Can Long Term Care Insurance be Affordable?

    The cost of managed care and insurance covering it will only become more expensive. Here's how to help your clients formulate a plan. If your clients lack coverage now is the time to begin formulating ...

You May Also Like

Hot Definitions
  1. Loan-To-Value Ratio - LTV Ratio

    A lending risk assessment ratio that financial institutions and others lenders examine before approving a mortgage.
  2. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  3. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  4. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  5. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  6. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
Trading Center