Fee categories under Rule 6490
FINRA Rule 6490 identifies specific fees for processing certain corporate action notifications and related requests. The most common fee category applies to SEA Rule 10b-17 Actions, including dividends, distributions, stock splits, reverse stock splits, and rights or subscription offerings. These actions carry a filing fee when timely and higher fees when late.
The rule also identifies a fee for a voluntary symbol request change and a separate fee for an action determination appeal. By contrast, the current rule text lists no charge for initial symbol setup and no charge for symbol deletion.
SEA Rule 10b-17 actions
A timely SEA Rule 10b-17 notification carries a $200 fee under the current Rule 6490 fee schedule. If the notice is late, the fee increases based on how close the submission is to the corporate action date. The late fee can rise to $5,000 when the notice is submitted on or after the corporate action date.
Issuers should treat dividends, distributions, splits, reverse splits, and rights offerings as fee-sensitive events. Missing the timing rules can create both cost and processing risk.
Symbol changes
A voluntary symbol request change carries a $500 fee. Issuers should distinguish between initial symbol setup, voluntary symbol changes, and symbol deletions because the fee treatment is not identical. A name change, merger, or rebranding can create symbol considerations, and those considerations should be addressed early with counsel and the transfer agent.
Appeals
If FINRA issues a deficiency determination and the Requesting Party elects to appeal, Rule 6490 requires proof of payment of a $4,000 non-refundable appeal fee. The appeal fee is separate from any underlying filing or late fee.
Practical caution
Many corporate actions involve more than one component. A reverse split may be paired with a name change and a symbol change. A merger may involve a new issuer name, new CUSIP, new capitalization, and new symbol. The issuer should not assume that one board resolution or one transaction means one fee. The correct answer depends on the action, the filing category, the timing, and FINRA’s current submission instructions.
Before approving a corporate action calendar, issuers should ask counsel to identify which Rule 6490 fee categories may apply and whether any late fee risk exists.
To speak with a Securities Attorney, please contact Brenda Hamilton at 200 E Palmetto Rd, Suite 103, Boca Raton, Florida, (561) 416-8956, or by email at [email protected].
Hamilton & Associates | Securities Attorneys
Brenda Hamilton, Securities Attorney
200 E Palmetto Rd, Suite 103
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855
www.SecuritiesLawyer101.com