The U.S. Financial Industry Regulatory Authority (FINRA) is launching an effort to overhaul its registration systems, the U.S. brokerage firm regulator announced on Thursday.
The multi-phase effort will overhaul FINRA’s registration and disclosure programs, including the Central Registration Depository (CRD).
The project, which is expected to be completed in 2021, aims to increase the utility and efficiency of the registration and disclosure process for firms, investors and regulators, the self-regulatory organization says, while also reducing compliance costs.
“This important initiative will strengthen an essential function of the securities industry,” says Robert Cook, president and CEO of FINRA, in a statement. “The transformation will allow FINRA to develop systems that help firms effectively maintain compliance programs and reduce compliance costs, while continuing to operate and enhance BrokerCheck as an essential tool for investors.”
The first phase of the project will take effect on June 30, with the introduction of a new online interface for the CRD system.
Future phases will include revamping the submission process, introducing e-signatures, enabling bulk transactions, and allowing customized reporting. These measures will aim to “facilitate more efficient interaction for users and leverage information from other FINRA regulatory programs, resulting in a more accurate and complete set of information about registered individuals, branches and firms—enhancing firm compliance programs and reducing compliance costs.”
“The CRD is an important tool for the financial services industry, regulators, and investors. We applaud FINRA for undertaking this initiative to upgrade the system’s operations,” said Joseph Borg, president of the North American Securities Administrators Association.