CRD Number

A CRD number is the unique identification number FINRA’s Central Registration Depository assigns to every registered representative and member firm, permanently tracking their registration status, exam history, and any reportable disclosure events, the same number that anchors a rep’s public BrokerCheck record.

CRD is the plumbing behind the exam’s registration questions. FINRA operates the system, firms file into it, the states and other SROs read from it, and BrokerCheck is the free public window onto it under FINRA Rule 8312. When the SIE asks how a person becomes registered, or how a customer checks a representative, the answer runs through CRD.

The record's life cycle

The employing firm, not the individual, files Form U4 through CRD. That filing creates the record, and the number if the person does not already have one. From then on the number is fixed: it does not change when the rep changes firms, does not reset after a gap in employment, and is never reissued to anyone else.

Movement between firms is amendment, not replacement. The departing firm files Form U5 within 30 days of termination and gives the individual a copy in that window; the hiring firm’s new U4 attaches the same record to the new employer.

Disclosure events feed the record for as long as the person is in the business. Felony charges and convictions, certain investment-related misdemeanors, unsatisfied liens, bankruptcies, and reportable customer complaints all belong on the U4, and the amendment is generally due within 30 days of the firm learning of the event.

Example: a representative is charged with a felony on March 1. The firm must amend her U4 by March 31, though there has been no trial. Make it a felony conviction instead and the clock tightens: a conviction is statutorily disqualifying, so the amendment is due within 10 days.

The exam trap

A CRD number is an identifier, not a certification. Having one does not mean a person is currently registered, in good standing, or free of disclosures. Distractors phrase the number itself as proof of clean standing. Status and history live in the record; the number only points at it.

Two related misreadings ride along. First, that disclosures appear only after a matter is proven. They do not: a complaint that meets FINRA’s reporting thresholds goes on the U4 while the representative still disputes it, and a felony charge is reportable before any verdict. Second, that CRD data is private. Settlements, terminations, and disciplinary history are published on BrokerCheck to the public at no cost.

Related distinctions

Keep the forms straight, because the exam swaps them constantly: U4 opens or transfers a registration, U5 closes one, and both write to the same record. Lapse matters too. After termination a representative’s exam qualification lapses unless the person re-registers with a member firm within two years (up to five years through FINRA’s Maintenance of Qualifications Program, which requires annual continuing education), while a passing SIE result stands alone for four years and never depends on firm association. Serious enough disclosures rise to statutory disqualification.

Check yourself

1. A registered representative resigns from one member firm and joins another three weeks later. What happens to her CRD number?

   1. It is retired, and the new firm's Form U4 generates a new number
   2. It stays the same; the U5 and the new U4 update the existing record
   3. It is suspended until the new firm's Form U4 is approved
   4. It changes only if she registers in a different state

   Show answer and explanation

   Answer: B. It stays the same; the U5 and the new U4 update the existing record.

   The trap treats the CRD number as employer-linked, like a payroll ID. It is person-linked and permanent. That is the point of the system: the record, including everything disclosed at prior firms, follows the individual to the next employer and onto BrokerCheck.

2. A customer looks up a representative on BrokerCheck and finds a settled arbitration from two years ago. The representative insists the matter was private. Which statement is accurate?

   1. The disclosure should have been removed once the matter settled
   2. Only FINRA and prospective employers may view CRD disclosure history
   3. The disclosure is publicly available at no charge through BrokerCheck
   4. Disclosures appear only after a formal finding of wrongdoing

   Show answer and explanation

   Answer: C. The disclosure is publicly available at no charge through BrokerCheck.

   The trap is assuming disputed or settled matters stay behind the industry wall. BrokerCheck publishes registration, employment, and disclosure history from CRD to the public for free, and reportable events go on the record without waiting for a finding of wrongdoing.

Practice it: Form U4 and U5 reporting practice questions