In the ever-evolving world of asset management, connected data across systems is essential for long-term success. FINRA’s Central Registration Depository (CRD) provides a centralized, reliable source of information on financial professionals and their firms—making it an invaluable resource for asset managers looking to maintain clean, consistent data across the organization.
In this article, we’ll cover the challenges most asset managers face integrating third-party data into their CRM, and how integrating CRD data into your processes can significantly enhance data integrity and operational efficiency.
What is FINRA’s Central Registration Depository (CRD)?
FINRA’s CRD is a comprehensive database that houses detailed records of investment professionals, including brokers, financial advisors, and their associated firms. The CRD tracks licensing information, registration histories, disciplinary actions, and more. CRDs provide asset managers with an authoritative source to verify credentials and assess compliance.
In 2023, FINRA’s CRD system-maintained records for 628,392 registered representatives and 3,298 securities firms.
Why are CRDs Important for Asset Managers?
CRDs can serve as unique identifiers within an asset manager’s CRM system, such as Salesforce, enabling more accurate and consistent data management across Leads, Contacts, and Account objects.
Rep CRDs
Each registered representative is assigned a unique CRD number that follows them throughout their entire career. This unchanging identifier is invaluable for asset managers for several key reasons:
- Reliable prospect & contact tracking: The financial industry is characterized by frequent movement of registered representatives. This includes changing firms, relocating offices, holding dual registrations, or retiring. Relying solely on names of firm affiliations makes accurate tracking nearly impossible.
- Ensuring data integrity: A CRD number acts as a universal key. Since employers are legally required to file U4s with FINRA when a representative’s information changes, the CRD data remains current and publicly accessible via FINRA’s BrokerCheck tool (searchable by name or CRD number). This ensures your CRM contact data is always aligned with the official source.
- Streamlined data integration: An individual CRD allows you to confidently integrate data from various external sources. Whether it’s asset flow data, updated rep rosters, or industry news, the CRD number provides a consistent anchor. This prevents data duplication and inaccurate merging, ensuring all information links correctly to the right professional.
Firm CRDs
Similar to individuals, firms are assigned a unique CRD that also remains the same. This identifier is critical for asset managers to accurately map and manage their institutional relationships for a few key reasons:
- Accurate Account hierarchy in CRM: A key distinction to remember with Firm CRDs is that separate legal entities of the same larger firm will have different CRD numbers. For asset managers using CRM systems such as Salesforce, this necessitates a carefully structured Account object hierarchy. Using multiple Record Types within the same Account object is best practice for reflecting complex multi-level hierarchies. This ensures that you can match and manage offices across the country under their respective, unique firm entities.
- Monitoring firm evolution: While the Firm CRD itself never changes; the information associated with it can evolve. This includes changes in name, address, ownership, or other significant business events. For instance, if a firm undergoes a merger or acquisition, the acquiring firm is required to update the CRD with the new entity details.
- Universal identifiers for firm-level data: Firm CRDs act as stable anchors when bringing in external data sources that are firm-centric, such as financial filings, industry reports, or compliance updates. This ensures consistent and accurate matching over time.
In summary, leveraging a reliable unique identifier for the firm and rep in your CRM allows asset managers to keep track of data more concisely over time. Thus enabling organizations to bring in data from various sources accurately through the use of a reliable universal identifier.
Ongoing CRD Data Maintenance
As is the case with data management in general, regular audits and updates are necessary to ensure that CRD data remains current, accurate, and reflective of any changes. This enables Sales users to focus on selling instead of wasting time verifying outdated information.
Industry challenges using Data Aggregators and Salesforce Managed Packages
As Salesforce consultants in the Asset Management space, we have come across multiple instances of the same issue. Overreliance on Managed Packages that are great for syncing data into your Salesforce CRM, but can prove rigid or not compatible with your unique requirements.
This is because every Salesforce instance is custom-built for the unique requirements of each business. Although you may be following certain best practices and general structural norms, a one-size-fits-all solution generally doesn’t work.
Surprisingly, many tools fail to follow basic data governance best practices, such as enforcing proper firm and office hierarchies, matching records using unique identifiers, or deduplicating based on CRD numbers. In some cases, we’ve even seen representatives with unique CRDs incorrectly merged simply because they share the same name.
Conclusion
FINRA’s Central Registration Depository (CRD) is more than just a regulatory tool—it’s a strategic asset for asset managers. By integrating CRD data as unique identifiers within your CRM system, you’re not just reinforcing a mechanism to maintain cleaner data. You’re also streamlining your operations. Allowing you to bring in data from various sources, such as Broadridge asset flow data, rep data from Discovery Data, Dakota, and more.
In a highly regulated industry where accuracy and trust are paramount, leveraging a trustworthy unique identifier can make all the difference.
Tips you should know
- Rep CRDs contain address information, allowing you to match verified professionals to specified offices.
- Registered representatives on FINRA’s BrokerCheck website are listed under Firms with their corresponding Firm CRD Number.
- Dually registered representatives can be associated with both a Broker Dealer and an Independent Advisory firm simultaneously.
- ADV filings can be found on the BrokerCheck site, which contains valuable information about the firm, holdings, and investment strategies.
- CRD numbers are now included in Firm 13F filings.
About HomeTree Digital
HomeTree Digital is a full-service digital marketing agency for financial services. We incorporate design & creative elements to our work and specialize in email marketing, social media marketing, paid advertising, videography, web development, custom integrations, and automations. As a Salesforce Certified Partner, we can assist with the architecture, administration, or development of your CRM. If you are facing challenges in any of these areas, please reach out to us for assistance. Personalize your subscription to receive regular updates.
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