Law Blog Category: Rule 6490

SEC Supports FINRA’s Rule 6490 Authority Over Corporate Actions

Private Offering Rule Changes Since JOBS Act

New FINRA Rules For Corporate Actions

December 13, 2010 in FINRA, OTCBB, Rule 6490

Effective September 27, 2010, the SEC has approved new FINRA Rule 6490 (Processing of Company Related Actions). Rule 6490 requires that corporations whose securities are trading on the over the counter market (OTCQX, OTCQB, OTCBB or PinkSheets) timely notify FINRA of certain corporate actions, such as dividends, forward or reverse splits, rights or subscription offerings, and name changes. The Rule grants FINRA discretionary power when processing documents related to the announcements, and implements fees for these services.