(a) Filing by Applicant or Service by FINRA
(1) An Applicant for membership shall file an application in the manner prescribed in [Rule 1013], including the timely submission of an application fee pursuant to [Schedule A] to the FINRA By-Laws.
(2) An Applicant seeking approval of a change of ownership, control, or business operations shall file an application in the manner prescribed in [Rule 1017], including the timely submission of an application fee pursuant to [Schedule A] to the FINRA By-Laws.
(3) Except where FINRA has otherwise prescribed an alternative filing process, an Applicant shall file an application or any document or information requested under the [Rule 1000] Series by electronic mail. If the Department and the Applicant agree, the Applicant also may file a requested document or information by another method.
(4) FINRA shall serve a notice or decision issued under the [Rule 1000] Series by electronic mail or first-class mail on the Applicant or its counsel, unless a Rule specifies a different method of service.
(5) For purposes of the
[Rule 1000] Series, service by FINRA or filing by an Applicant shall be deemed complete as follows:
(A) Service or filing by first-class mail shall be deemed complete on the date of postmark;
(B) Service or filing by overnight courier shall be deemed complete on the date of delivery to the overnight courier as specified in the airbill;
(C) Service or filing by hand delivery shall be deemed complete on the date of receipt as evidenced by a date stamp;
(D) Service or filing by facsimile shall be deemed complete on the date specified in the document and on the written confirmation of transmission; and
(E) Filing by an electronic system shall be deemed complete on the date specified on the confirmation page generated by the electronic filing system.
(F) Service or filing by electronic mail shall be deemed complete upon sending a notice, decision or other document.
(b) Lapse of Application
(1) Absent a showing of good cause, an application filed under
[Rule 1013] or
[1017] shall lapse if an Applicant fails to:
(A) respond fully within 60 days after service of an initial written request for information or documents under [Rule 1013], within 30 days after service of an initial written request for information or documents under [Rule 1017], within 30 days after service of a subsequent written request for information or documents under [Rule 1013] or [1017], or within such other time period agreed to by the Department and the Applicant;
(B) appear at or otherwise participate in a scheduled membership interview pursuant to [Rule 1013](b) or [1017](g); or
(C) file an executed membership agreement under [Rule 1014](d) or [Rule 1017](h)(4) within 25 days after service of the agreement, or within such other period agreed to by the Department and the Applicant.
(2) If an Applicant wishes to continue to seek membership or approval of a change in ownership, control, or business operations, then the Applicant shall be required to submit a new application in the manner prescribed in [Rule 1013] or [1017], respectively, including the timely submission of an application fee pursuant to [Schedule A] to the FINRA By-Laws. FINRA shall not refund any fee for a lapsed application.
(c) Ex Parte Communications
(1) The prohibitions against ex parte communications shall become effective when FINRA staff has knowledge that an Applicant intends to file a written request for review by the National Adjudicatory Council under [Rule 1015].
(2) Unless on notice and opportunity for an Applicant and Interested FINRA Staff to participate, or to the extent required for the disposition of ex parte matters as authorized by
FINRA rules:
(A) an Applicant, a counsel or representative of an Applicant, or an Interested FINRA Staff shall not make or knowingly cause to be made an ex parte communication relevant to the merits of a membership proceeding under the [Rule 1000] Series to a Governor, a member of the National Adjudicatory Council or a Subcommittee thereof, or a FINRA employee who is participating or advising in a decision of such a person with respect to that proceeding; and
(B) a Governor, a member of the National Adjudicatory Council or a Subcommittee thereof, or a FINRA employee who is participating or advising in the decision of such a person with respect to a membership proceeding shall not make or knowingly cause to be made to an Applicant, a counsel or representative of the Applicant, or an Interested FINRA Staff an ex parte communication relevant to the merits of that proceeding.
(3) A Governor, a member of the National Adjudicatory Council or a Subcommittee thereof, or a FINRA employee participating or advising in the decision of such a person, who receives, makes, or knowingly causes to be made a communication prohibited by this paragraph shall place in the record of the membership proceeding:
(A) all such written communications;
(B) memoranda stating the substance of all such oral communications; and
(C) all written responses and memoranda stating the substance of all oral responses to all such communications.
(d) Recusal or Disqualification
A Governor or a member of the National Adjudicatory Council or a Subcommittee thereof shall not participate in a matter governed by the [Rule 1000] Series as to which that person has a conflict of interest or bias, or if circumstances otherwise exist where his or her fairness might reasonably be questioned. In such a case, the person shall recuse himself or shall be disqualified as follows:
(1) The Chair of the FINRA Board shall have authority to direct the disqualification of a Governor, and a majority of the Governors of the FINRA Board excluding the Chair shall have authority to direct the disqualification of the Chair of the FINRA Board.
(2) The Chair of the National Adjudicatory Council shall have authority to direct the disqualification of a member of the National Adjudicatory Council or a member of a Subcommittee appointed pursuant to [Rule 1015], and the Vice Chair of the National Adjudicatory Council shall have authority to direct the disqualification of the Chair of the National Adjudicatory Council.
(e) Computation of Time
(1) Calendar Day
In the [Rule 1000] Series, "day" means calendar day.
(2) Formula
In computing a period of time under the [Rule 1000] Series, the day of the act, event, default, or lapse from which the period of time designated begins to run shall not be included. The last day of the period so computed shall be included unless it is a Saturday, Sunday, or Federal holiday, in which event the period runs until the end of the next day that is not a Saturday, Sunday, or Federal holiday. Intermediate Saturdays, Sundays, and Federal holidays shall be excluded from the computation when the period prescribed is 10 days or less.
