CRD FAQ - Relicensing
1. How does a firm determine which Relicensing filing type to select?
Relicense All: Relicense All is for an individual who wishes to register with a new firm within thirty (30) days from the date of termination with the previous firm(s), and intends to be registered solely with the new firm. All other firms with which the applicant was registered must submit a Full Form U5 to terminate his or her employment.
Relicense CRD: Relicense CRD is for an individual who wishes to register as a Broker/Dealer Agent (AG) with a new broker/dealer firm and terminate his or her AG positions with any other firm(s) (i.e., the other firms will submit Form U5 filings for the individual for the CRD registration) but retain any current investment adviser registrations.
Relicense IA: Relicense IA is for an individual who wishes to register as an Investment Adviser Representative (RA) with a new investment adviser firm, but retain any current broker-dealer registrations. The individual's AG registration will not be affected.
2. Since there are three types of Relicense Filings, is there a risk that a firm will select a Relicense Filing type that is not valid for the registration type(s) requested? For example, if the individual is RA-only registered, can the firm select the Relicensing type for CRD-only?
- If the individual is "AG only", a firm should select "CRD" as the Relicensing type.
- If the individual is "RA only", a firm should select "IA" as the Relicensing type.
- If the individual is dual (AG & RA), a firm can select any Relicensing type.
Although your firm may always choose "All" as a Relicensing type, your firm should exercise caution when selecting this Relicensing type because it will imply that the individual is no longer working for the previous firm(s) in any registered capacity (RR and/or RA).
3. An individual is registered as an AG with Firm A. The individual also has a Sole Proprietor IA firm, Firm B, where the individual is registered as an RA. The individual wants to leave Firm A and work as an AG for Firm C, while maintaining RA registration with Firm B. What relicensing type should Firm C choose?
Firm C should choose RELICENSE CRD. With Relicense CRD, the system will expect a Full Form U5 from Firm A. The individual's RA status with Firm B will not be affected by the relicense. The firm should not choose Relicense All, because the system would then require Full Forms U5 to be filed by both firms.