National Registration Database (NRD)

What Is the National Registration Database?

The National Registration Database (NRD) is a Canadian database that was sent off in 2003 to supplant the first paper form system. It permits security dealers and investment advisors to file registration forms electronically.

Grasping the National Registration Database (NRD)

The NRD builds the effectiveness of the filing and sharing of information between provincial security regulators. Instances of things that should be filed remember a change for the information of a member firm and the termination of an investment advisor.

An individual or company who exchanges or endorses securities, or gives investment guidance, must register yearly with at least one provincial securities regulators. The goal is to safeguard the investing public by guaranteeing that main qualified and legitimate individuals and firms are licensed. The NRD was started by the Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC). The CSA is made out of securities regulators from every area and domain.

On the CSA website, investors can look for a company or individual to check in the event that they are registered before they invest. The NRD has two websites; the NRD Information Website, which contains information for the public, and the National Registration Database for use by authorized agents.

Why the NRD Was Formed

Securities regulators recognized that the registration interaction could be radically improved by presenting an electronic system that would supplant the existing paper-based system. A national electronic registration system could assist the CSA with accomplishing its drawn out goals of easing the regulatory burden for capital market members and fitting securities regulations across jurisdictions.

A study dispatched by the CSA in 2001 estimated the total economic benefits of NRD to the Canadian financial services industry would be $85 million north of a long term period.

Expected Benefits of the NRD

The study likewise found that a large portion of the gains would be realized because of effectiveness gains. For instance, the registration interaction would give cash benefits to firms, lower labor costs, and save time. Large firms would have liked to gain more than half of the $85 million projected benefits, and small firms expected to benefit on a for each registrant basis to a greater degree than large firms. Small firms expected benefits equivalent to $2,200 per registrant compared to $264 for every large firm registrant.

Registering With the NRD

To register with the NRD, firms must pay a fee when they initially register. Firms and individuals must likewise pay a fee to reactivate registration. The fee is $75 for each Form 33-109F4, which must be submitted for every individual or firm applying for registration and $20.50 for each Form 33-109F4, which must be submitted for every individual applying for registration in each extra jurisdiction.