The Investor Choice Advocates Network (ICAN) is criticizing FINRA for an unnecessary delay in dealing with an application filed with the Securities and Exchange Commission. FINRA is a non-governmental regulator which has broad oversight over the securities industry.
ICAN states that client Entrex Carbon Market, Inc. (formerly UHF Logistics Group, Inc.) has been impacted by an inability for FINRA to act upon a “properly filed corporate action requests for a name change, stock symbol change, and approval of stock splits, despite the company providing all required documentation since December 2023.”
ICAN Founder and Attorney Nick Morgan states:
“FINRA’s unprecedented delay has created significant market confusion and directly harmed shareholders by preventing the company from conducting business under its legally registered name. This case raises serious questions about regulatory accountability and the constitutional boundaries of delegated authority.”
Some critics of FINRA believe it should be merged with the SEC, as it acts as a regulatory agency without the authority of a federal entity.
Heritage Senior Fellow David Burton says FINRA is of central importance to the US and the functioning of capital markets yet “due process, transparency, and regulatory-review protections normally associated with regulators are not present.” He also believes its arbitration process is flawed.
“Reforms are necessary.”
ICAN says that FINRA’s shortcomings have harmed the company. The group has requested that the SEC:
- Order FINRA to issue a final determination on Entrex’s corporate actions within 30 days
- Find that FINRA’s extended delay constitutes a constructive denial that is arbitrary, capricious, and inconsistent with securities laws
- Implement structural reforms to FINRA’s corporate action processing to prevent similar delays for other issuers
ICAN is a nonprofit that aims to break down barriers to entry to capital markets while challenging regulatory overreach. The group advocates for fair and transparent regulatory practices, and equal access to investment opportunities.
