JB and ZJMY Holding Co (JBZY)

[Stock Farmer]

Agree, however FINRA can take months between comments.

FINRA has no timelines (for themselves), only the rule that if a company doesn't respond to their comments within 90 days, the corporate action will lapse. ZJMY has responded to FINRA's request so we know that the 90 day rule doesn't apply.

FINRA Manual - Rule 6490

(2) Lapsed Requests
Where a Requesting Party does not, in the reasonable determination of the Department, sufficiently respond to any request by the Department for additional information or documentation pursuant to paragraph (b)(3) above within 90 calendar days following such Department request, such party's request shall be deemed "lapsed" and be closed.

FINRA can take months between comments according to this article on Rule 6490.


From a lawyer's blog on FINRA Rule 6490.

Consideration of Due Process During the FINRA Rule 6490 Review Process

Although not addressed by any of the parties discussed in this blog, as a practitioner I advocate a requirement that FINRA establish and publish minimal procedures and timelines for the in-depth review process utilized under Rule 6490 more analogous to an SEC comment process. Currently upon notice from FINRA that a file raises one or more red flags and will be subject to an in-depth review, a company has no reference or reasonable expectation as to the timeline of such review and no ability to converse or communicate with the reviewing parties. FINRA can take several months in between comments, which are all filtered through a single reviewer that is not an attorney and that has no independent authority. It is believed that a panel that is comprised of some number of individuals, including legal counsel, reviews submissions and answers to comments and ultimately makes a decision. The front-line reviewer that communicates with the company is not a part of this panel. Following the last comment, several (3 or more) months can pass without any communication between FINRA and the applicant company.

Although it is certainly understandable that a comment process, like with the SEC, can continue for an extended period of time, I would advocate for a limit on the time period in which FINRA must submit comments or follow up on comments, and in which it must render a decision. I would suggest that no more than thirty (30) days should pass in which FINRA submits comments or additional comments following responses from the company. I would also suggest that a time limit, perhaps sixty (60) days, be set between the last comment and the rendering of a decision.

Moreover, as with the SEC, which allows and facilitates attorney-to-attorney and accountant-to-accountant communication, I would advocate that FINRA do the same and allow and even encourage communication between counsel for a company and counsel to FINRA in this process, which process has a substantial impact on OTC Market companies and their shareholders.