FINRA CAT reporting has become a core compliance function for broker-dealers, yet many firms continue to face high rejection rates and reporting inconsistencies. Even small data mismatches can lead to significant regulatory exposure.
Understanding the most common reporting errors is the first step toward improving accuracy and reducing compliance risks.

Top FINRA CAT Reporting Errors
1. Incomplete or Missing Data Fields
Missing required fields often result in immediate rejection of submissions.
2. Inconsistent Customer Information
Discrepancies in customer data across systems can create validation failures.
3. Incorrect Order Event Sequencing
Improper sequencing of order lifecycle events leads to reporting inaccuracies.
4. Timestamp Errors
Incorrect or unsynchronized timestamps can cause major compliance issues.
5. Failure to Address Rejections Promptly
Delays in resolving rejected records can increase regulatory scrutiny.

How to Avoid These Errors
Implement pre-submission validation checks
Standardize data across internal systems
Automate order lifecycle tracking
Regularly audit reporting workflows
Monitor rejection reports daily