Active Military Leave Guidance

FINRA provides registration and licensing relief to FINRA registered persons and certain formerly registered persons who volunteer or are called into active military duty. (See IM-1000-2 for further information regarding the relief provided for active military service.) The following provides information and guidance regarding such relief.

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

The firm should provide to FINRA 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 following information:

 

  • 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 following information:

 

  • the firm's CRD number
  • the date that the individual started active military service
  • the individual's name
  • the individual's CRD Number

 

When the individual's military service ends and he or she returns to the firm or begins working at a new firm, the firm should provide to FINRA the following documentation: 

 

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

 

  • the firm's CRD number
  • the individual's name
  • the individual's CRD number
  • the date the individual returned to the original firm or began working at the new firm, as appropriate

 

2. A copy of the individual's discharge papers that indicate the start and end dates of service 

 

How does an individual who was previously registered with a FINRA member firm but is no longer so registered notify FINRA's Registration and Disclosure Department of his or her active military service?

An individual who was previously registered with a member firm and commences active military duty within two years after ceasing to be registered with the member firm must notify FINRA of his or her active service within 90 days following the completion of active service or re-registration with a member firm, whichever occurs first. If the individual re-registers with a member firm first, the individual's firm, after submitting a Form U4, must provide to FINRA the following documentation: 

 

1. A letter from the firm (on firm letterhead) to FINRA notifying FINRA that the individual was on active duty. The letter should also include the following:

 

  • the firm's CRD number
  • the individual's name
  • the individual's CRD number
  • the date that the firm submitted the Form U4
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2. A copy of the individual's discharge papers that indicate the start and end dates of active military service.

If the individual does not re-register with a member firm within the 90-day timeframe, he or she must, no later than the 90th day following completion of active service, provide to FINRA the following documentation:

1. A letter to FINRA notifying FINRA that he or she was on active duty. The letter should also include the following:

 

  • the individual's name
  • the individual's CRD number
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2. A copy of the individual's discharge papers that indicate the start and end dates of active military service.

 

An individual who is placed upon "inactive" status pursuant to IM-1000-2 and ceases to be registered with a member firm while serving in the Armed Forces of the United States must notify FINRA of the period of active service within two years following completion of active service or upon re-registration with a member firm, whichever occurs first. A firm or individual may notify FINRA of the period of active military service in the same manner as described above.

 

How does a firm or individual submit the required documentation to FINRA's Registration and Disclosure Department?

 

The documentation required by IM-1000-2 can be submitted to FINRA by facsimile or mail as follows:

 

  • Fax Number: (301) 216-3716
  • Mail:   

FINRA

Registration & Disclosure Department
P.O. Box 9495
Gaithersburg, MD 20898-9495

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

 

Once the necessary documentation is received, the Registration and Disclosure Department will:

 

  • Contact the firm or individual (if he or she is not registered with a firm) to confirm receipt
  • Notify the Continuing Education (CE) Department (so that it can note the CE deferral on the individual's CE status)
  • Notify self-regulatory organizations 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 individual 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.)
  • For those registered individuals who cease to be registered with a member firm while serving in the Armed Forces of the United States or who begin serving within two years after ceasing to be registered with a member firm, the "two-year licensing expiration provisions" will be tolled. The tolling period will terminate 90 days following the completion of active service.

 

Last Updated: 12/12/2008