Issuer ObligationsUnder NewFINRARule 6490 FINRARule 6490 (Processing ofCompany-RelatedActions) codifies the requirements in SEARule 10b-17 for issuers of a class of publicly trading securities to provide timely notice to FINRA of certain corporate actions (e.g., dividend or other distribution of cash or securities, stock split or reverse split,rights or subscription offering).Generally pursuant to SEARule 10b-17, issuers must notify FINRA at least 10 days prior to the record date for such corporate action. Issuers must also notify FINRA of certain other corporate actions (e.g.,the issuance of or change of trading symbols,mergers, bankruptcy) no later than 10 days prior to the effective date of the company action. Issuers must complete the required forms and pay the applicable fees within such time periods or they will be subject to late fees and delayed processing of documents to announce corporate actions. The new rule further permits FINRA to request other documents that may be necessary to verify information issuers provide on the forms. FINRA may, in its discretion, conduct detailed reviews of submissions, on a case-by-case basis.Moreover,the new rule authorizes FINRA to not process a request to announce a corporate action if FINRA determines that the request is deficient and not processing is necessary to protect investors and the public interest and to maintain fair and orderly markets.
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