Central Registration Depository – Definition

Cite this article as:"Central Registration Depository – Definition," in The Business Professor, updated December 20, 2018, last accessed October 21, 2020, https://thebusinessprofessor.com/lesson/central-registration-depository-defined/.

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Central Registration Depository Defined

The CRD (Central Registration Depository) is a database operated by FINRA for all companies and individuals working in the US securities industry. It is used to store information about registered securities and brokerage firms as well as individuals who provide financial and investment advice. Data in the central register can be used as a background check for intermediaries and financial advisors.

A Little More on the Central Registration Depository (CRD)

CRD data is used in the FINRA BrokerCheck, which provides background information on registered intermediaries and active registrants. Investors can also obtain this information through the State Securities Regulatory Agency or the website of the Association of Securities Managers of North America, Inc.

BrokerCheck provides the following information about brokerage firms:

  • A brief report gives and overview of the company
  • Company Property Profile
  • Company history, including mergers, acquisitions or renaming
  • Description of the company’s activities, a list of licenses and active records, type of activities completed and other details
  • Arbitral awards and any regulatory or disciplinary action in the company’s documents

Broker Check provides the following information about individual brokers:

  • Summary report of the mediator’s review and evidence
  • List of broker qualifications, including current records or licenses, and industry reviews approved by the broker
  • Previous employment data for the past 10 years, both inside and outside the securities sector, sent by the broker
  • All customer disputes or regulatory and disciplinary events in the intermediary file.

CRD is a secure system only for authorized users to request access to use the CRD Web.

References for the Central Registration Depository

http://www.businessdictionary.com/definition/Central-Registration-Depository-CRD.html
https://www.investopedia.com/terms/c/crd.asp

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