Central Registration Depository - Explained
What is the Central Registration Depository?
Written by J. Mance Gordon
Updated at April 23rd, 2024
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What is the Central Registration Depository?
The Central Registration Depository, referred to as CRD, is an information hub for organizations and persons working in the US securities sector. FINRA regulates and manages the functioning of the CRD. It collects data related to securities registered in the market as well as brokerage organizations. Besides, it includes information of individuals who offer consultation services to investors regarding financial and investment matters. Information included in the CRD helps in running a background check for brokers and financial consultants.
Hoe Does the Central Registration Depository Work?
FINRA Broker Check makes use of the information stored in the CRD. It offers background data on brokers and registrants in the stock market. Also, investors can have access to such crucial information from the State Securities Regulatory Agency or by visiting the official website of the Association of Securities Managers of North America, Inc. The information associated with brokerage organizations that BrokerCheck offers to investors includes an insight about the report and organizations overview, the profile of the organizations property, historical background of the company, mergers and acquisitions that the company was involved in, organizational operations, licenses held by the firm, nature of operations accomplished, and governmental action recorded in the official documents of the company. BrokerCheck offers this information related to individual intermediaries:
- Summary document of the brokers analysis
- Qualifications that the intermediary has including his or her records or licenses held, and sector reviews that the intermediary has given approval to.
- Past employment records for the last decade, involving the internal and external aspects of the securities market, provided by the intermediary
- Consumer issues recorded in the file of the mediator
Central Registration Depository is a safe mechanism created for sanctioned users to have access to utilize the official website of the Central Registration Depository.