Question

Which of the following statements about the National Registration Database (NRD) is true?

1) The NRD is used exclusively to file registration forms for approval with the TSX.
2) The NRD is a paper-based system used by IAs when applying for approval with the IIROC or the CSA.
3) The NRD allows an IA to make a single electronic submission to satisfy registration requirements.
4) The NRD allows the federal government to track money-laundering activities through the banking system.

Answer 1

The National Registration Database (NRD) is a database used by Investment Advisors (IAs) to electronically submit registration forms. It allows IAs to make a single electronic submission to satisfy registration requirements.

Step-by-step explanation:

The National Registration Database (NRD) is a database used by Investment Advisors (IAs) to submit registration forms electronically and fulfill regulatory requirements. Statement 3 is true, as the NRD allows IAs to make a single electronic submission for registration. The NRD is not exclusively used for filing registration forms with the TSX, so statement 1 is false. The NRD is also not a paper-based system, so statement 2 is false. Furthermore, the NRD does not directly track money-laundering activities through the banking system, so statement 4 is false.