Active Military Leave Guidance

FINRA By-Laws provide specific relief to FINRA-registered persons engaged in the investment banking and securities business who are called into active military duty. (See IM-1000-2). The following provides information and guidance for firms with registered representatives that have recently either been called to active military duty or voluntarily joined the Armed Forces of the United States.

 

How do firms notify FINRA's Registration & Disclosure Department of a registered representative's military leave?

 

The firm should provide to FINRA, by fax or mail, both of the following documentation:

 

1.  A copy of the individual's orders (official call-up notification) or a copy of the letter of leave request for individuals that voluntarily join. Either document should include the:

 

• individual's start date
• military branch
• location of service duty

 

2.  A letter from the firm (on firm letterhead) to FINRA that includes the:

 

• firm's CRD number
• date that the firm received notification from the individual
• individual's name
• individual's CRD Number

 

Send the documentation to FINRA by fax or mail:

• Fax Number:
  (240) 386-4849

 

• Mail:
  FINRA
  Registration & Disclosure Department
  P.O. Box 9495
  Gaithersburg, MD 20898-9495
  

 

What will FINRA's Registration & Disclosure Department do after receipt of the required documents?

 

Registration and Disclosure will process the notification/orders and will then:

 

• Contact the firm to confirm receipt
• Notify the Continuing Education Department (so that it can note the CE deferral on the individual's CE status)
• Notify SROs and state jurisdictions of the notification of military leave once a year during Renewals

 

What will happen to the individual's registration status?

 

• A registered representative with an approved registration status will remain registered for FINRA purposes. The individual will remain on the Web CRD System and will continue to be associated with the firm in a special "inactive" status. The Continuing Education requirements will be suspended. (Note: Because of current system constraints, the Continuing Education section of the representative's record will reflect a "Foreign Deferral" status during the individual's leave.)

 

• NASD rules allow FINRA to place FINRA-registered individuals who volunteer for or are called into the armed forces in a special "inactive" status. FINRA is unable to place registrations in an "inactive" status for any individual who is not currently registered with a firm and whose registrations are terminated. Member firms should notify FINRA pursuant to the procedures above when one of its associated persons is called-up or volunteers for military service to obtain the relief.
  

 

What should be done once the individual's military service ends and he/she returns to the firm?

 

• The firm should provide to FINRA by fax or mail the following documentation:

 

• Send the documentation to FINRA by fax or mail:

• • Fax Number:
    (240) 386-4849

• • Mail:
    FINRA
    Registration & Disclosure Department
    P.O. Box 9495
    Gaithersburg, MD 20898-9495