Law Blog Category: Rule 6490
Private Offering Rule Changes Since JOBS Act
December 02, 2014 in JOBS ACT, JOBS ACT and Crowdfunding, Private Offerings, Private Placement, Regulation A, Regulation A+, Rule 156, Rule 506, Rule 6490, Section 4(a)(2), Uncategorized
New FINRA Rules For Corporate Actions
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.