CRD & IARD Resources
Securities markets may operate on Wall Street, but stocks, bonds and other securities are sold on Main Street, in our neighborhoods and even over our kitchen tables from branch offices throughout the United States. Today roughly half of all U.S. households rely on the securities markets to plan and prepare for their financial futures. And the number of firms and individuals holding themselves out as investment professionals has grown significantly in the past two decades.
NASAA members believe it is critical that information about these individuals and firms be readily accessible to the investing public, industry, and regulators. Two of the more notable success stories in accomplishing this accessibility have been the Central Registration Depository (CRD) and the Investment Adviser Registration Depository (IARD) systems.
CRD at a Glance
Developed by NASAA and NASD (now FINRA) and implemented in 1981, CRD consolidated a multiple paper-based state licensing and regulatory process into a single, nationwide computer system. Today, the CRD is arguably the best licensing system in existence. Its computerized database contains the licensing and disciplinary histories on more than 630,000 securities professionals and 3,800 securities firms.
IARD at a Glance
The IARD, developed jointly by NASAA and the SEC, and built and operated by the Financial Industry Regulatory Authority (FINRA), is to investment advisers what the CRD is to broker-dealers. Its database helps promote uniformity, through use of common forms, and efficiency through a paperless environment. It helps investors research the employment and disciplinary histories of nearly 31,000 investment adviser firms and more than 350,000 individual investment adviser representatives.
Answers to common questions about the IARD system.
Informal Guidelines for Securities Industry Registration
The following information was compiled in an effort to develop informal guidelines that should be considered when completing the Forms BD, U4, U5, and ADV.
This is not an exhaustive list of items and is not meant to supplant any formal guidance that has been promulgated by regulators. Rather, the purpose of this material is simply to alert you to some of the common issues that arise when completing and submitting registration forms. More Information
Payroll Protection Program and Form U4
On April 13, 2020, FINRA issued guidance (found here) stating that a registered person who obtains a loan under the Paycheck Protection Program (PPP) will not have to disclose a “compromise with a creditor” in response to Question 14K on Form U4 if the loan is wholly or partially forgiven under the terms of the PPP. The NASAA CRD/IARD Steering Committee consulted with FINRA regarding this guidance. We concur with it and further advise that the same
State Regulatory Update: NASAA 2020 ARM Presentation
On September 29, 2020, members of NASAA’s CRD/IARD Steering Committee provided an update on state regulatory activity during the 2020 Virtual Education Conference of the Association of Registration Management Conference. The presentation is available below.