Congress Must Stop the Collection of Retail Investor Data

ASA fully supports the ability of the SEC to properly oversee markets and the creation of a market-wide surveillance system without PII.

WASHINGTON – Following the Senate Banking Committee’s request for feedback on data privacy, protection and collection, the American Securities Association (ASA) sent a letter highlighting numerous data security and privacy concerns associated with the collection of retail investor personally identifiable information (PII) by the U.S. Securities and Exchange Commission’s (SEC) Consolidated Audit Trail (CAT).

“As the Committee undertakes its review of how personal data is collected and used by financial regulators, we strongly believe the potential collection of retail investor PII under the CAT requires your attention,” wrote ASA CEO Chris Iacovella. “ASA fully supports the ability of the SEC to properly oversee markets and the creation of a market-wide surveillance system without PII. We will not support the CAT if it will collect and store the PII of millions of America’s retail investors, creating a target-rich environment for bad actors”

“We believe the continued potential for PII collection under CAT represents one of the largest risks to the personal data security of American investors,” Iacovella continued. “We implore members of the Committee to – if necessary – assert their constitutional prerogative to protect America’s retail investors and retirement savers.”

ASA stands ready to work with the SEC, FINRA, and Members of Congress to move the CAT implementation forward with an alternative identifier to retail investor PII.

To read ASA’s full letter to the Senate Banking Committee, click here. To view ASA’s Morning Consult national survey showing an overwhelming majority of Americans oppose sending their PII to the CAT, click here.

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