What Is the National Registration Database?
Let me tell you about the National Registration Database, or NRD. It's a Canadian database that started in 2003 to take over from the old paper form system. You can use it if you're a security dealer or investment advisor to file your registration forms electronically.
Understanding the National Registration Database (NRD)
The NRD makes things more efficient when it comes to filing and sharing information between provincial security regulators. For instance, you have to file things like changes in a member firm's information or the termination of an investment advisor.
If you're an individual or company trading or underwriting securities, or giving investment advice, you need to register annually with one or more provincial securities regulators. This is all about protecting the investing public by making sure only qualified and reputable people and firms get licensed. The NRD came from the Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC). The CSA includes securities regulators from every province and territory.
On the CSA website, you as an investor can search for a company or individual to verify if they're registered before you invest. The NRD has two sites: one is the NRD Information Website with public info, and the other is the National Registration Database for authorized representatives.
Why the NRD Was Formed
Securities regulators saw that the registration process could be much better with an electronic system instead of paper. A national web-based system helps the CSA meet goals like reducing regulatory burdens for capital market participants and harmonizing rules across jurisdictions.
A study the CSA commissioned in 2001 figured the total economic benefits of the NRD to the Canadian financial services industry would hit $85 million over five years.
Expected Benefits of the NRD
That study also showed most gains come from efficiency improvements. For example, the registration process brings cash benefits to firms, cuts labor costs, and saves time. Large firms expected to grab over 50% of the $85 million in benefits, while small firms would benefit more per registrant—about $2,200 each compared to $264 for large firm registrants.
Registering With the NRD
To register with the NRD, firms pay a fee for initial registration. You also pay if registering in an extra jurisdiction or reactivating. It's $75 for each Form 33-109F4 submitted for an individual or firm applying, and $20.50 for each Form 33-109F4 for individuals in each additional jurisdiction.
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