What Is the Central Registration Depository (CRD)?
The Central Registration Depository (CRD) is a database maintained by the Financial Industry Regulatory Authority (FINRA) since 2007 for all firms and individuals involved in the U.S. securities industry. It is used to store and maintain information on registered securities and broker firms, as well as individuals who dispense investing and financial advice.
The data within the Central Registration Depository can be used like a background check on brokers and financial advisers, showing any complaints that may have been filed against them, enforcement actions, education, as well as licensing and professional certifications.
The goal of the CRD is to increase the transparency and availability of data related to firms and individual investors in the financial asset management space, giving people greater access to important information related to their brokers and dealers and encouraging financial professionals to act with honesty and integrity.
Key Takeaways
- The Central Registration Depository (CRD) is a database the Financial Industry Regulatory Authority (FINRA) maintains of all entities in the U.S. securities industry.
- FINRA’s BrokerCheck program uses CRD information to provide background information on more than 6,800 registered broker-dealers and more than 660,000 active registered individuals.
- CRD data can be used like a background check on brokers and financial advisers, showing any complaints, enforcement actions, education, as well as licensing and professional certifications.
- Central Registration Depository data is available on the internet as Web CRD.
Understanding the Central Registration Depository (CRD)
The data found in the Central Registration Depository (CRD) is put in use in FINRA’s BrokerCheck program, which provides background information on more than 6,800 registered broker-dealers and more than 660,000 active registered individuals to potential investors.
Interested parties can also access CRD data by calling BrokerCheck toll-free at (800) 289-9999. Investors can also find such information through their state’s securities regulator or via the North American Securities Administrators Association.
Central Registration Depository (CRD) and BrokerCheck
BrokerCheck offers the following information on brokerage firms:
- A summary report that provides an overview of the firm
- A profile of the firm’s ownership
- A firm history, including any mergers, acquisitions or name changes
- A description of the firm’s operations, listing its active licenses and registrations, the types of businesses it conducts and other details
- Arbitration awards and any regulatory or disciplinary events on the firm’s records
BrokerCheck offers the following information on individual brokers:
- A summary report that provides an overview of the broker and his or her credentials
- A listing of the broker’s qualifications, including current registrations or licenses and industry exams that the broker has passed
- Previous employment data for the past 10 years, both in and outside the securities industry, as reported by the broker
- Any customer disputes or regulatory and disciplinary events on the broker’s record.
Central Registration Depository (CRD) on the Web
FINRA makes the Central Registration Depository available on the web as Web CRD. According to FINRA, “the system contains the registration records of more than 3,700 registered broker-dealers, and the qualification, employment, and disclosure histories of more than 634,000 active registered individuals.”
“Web CRD also facilitates the processing and payment of registration-related fees such as form filings, fingerprint submissions, qualification exams, and continuing education sessions. Web CRD is a secure system for entitled users only. Firms must complete FINRA’s entitlement process noted below to request access to use Web CRD.”