FINRA, recently, announced a major overhaul of its Central Registration Depository (“CRD”). The first step will be a new WebCRD interface, effective June 30, 2018. More changes will come over time with FINRA claiming all changes will be made sometime in 2021.
The CRD is the central licensing and registration system that the SEC, FINRA, and the states use to monitor securities firms. Securities firms use the CRD system to register, make form filings, and maintain records for associated persons, among other things. It also assists the public as well because it serves as the basis for FINRA’s BrokerCheck. Essentially, the changes to WebCRD will make it easier for firms, when filing various forms, to obtain feedback in nearly real time about issues relating to those filings.
In sum, FINRA is finally updating an overworked and inefficient system. However, hopefully, the changes will actually be worthwhile and of assistance to CRD users.