INVESTOR CHOICE ADVOCATES NETWORK FILES APPLICATION WITH SEC CHALLENGING FINRA'S 15-MONTH DELAY IN PROCESSING CORPORATE ACTIONS
- Nicolas Morgan
- Apr 8
- 2 min read
FOR IMMEDIATE RELEASE April 8th, 2025
LOS ANGELES — The Investor Choice Advocates Network (ICAN) announced today that it has filed an application with the Securities and Exchange Commission (SEC) on behalf of shareholders of Entrex Carbon Market, Inc. (formerly UHF Logistics Group, Inc.) challenging the Financial Industry Regulatory Authority's (FINRA) 15-month delay in processing critical corporate actions.
The application, submitted on April 8, 2025, asks the SEC to review FINRA's failure to act on Entrex's 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.
"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," said Nicolas Morgan, attorney for ICAN representing the Entrex shareholders. "This case raises serious questions about regulatory accountability and the constitutional boundaries of delegated authority."
According to the application, Entrex has been operating in a regulatory limbo for over 15 months. The company legally changed its name to Entrex Carbon Market, Inc. under Nevada state law in November 2023, yet FINRA's inaction has forced it to continue trading under its former name, creating confusion for investors and business partners.
The application argues that FINRA's failure to process the corporate actions or issue a formal deficiency determination has effectively denied the company and its shareholders any path to administrative remedy, as FINRA's rules only permit appeal of formal determinations.
ICAN 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
The filing also raises constitutional concerns regarding the proper delegation of regulatory authority to private entities like FINRA, particularly when such entities effectively shield their actions from governmental supervision through procedural delays.
"This case represents more than just a procedural complaint," added Tiffany Rowe, co-counsel on the application. "It highlights fundamental questions about predictable, rule-based governance in our capital markets and the proper balance between state corporate law and federal securities regulation."
The application requests oral argument before the Commission and suggests several reforms to improve FINRA's processing of corporate actions, including mandatory timeframes, transparent deficiency notifications, and enhanced reporting requirements.
For more information about ICAN's work, visit www.icanlaw.org or contact: info@icanlaw.org
About ICAN: The Investor Choice Advocates Network (ICAN) is a nonprofit organization dedicated to breaking down barriers to entry to capital markets and pushing back against regulatory overreach. ICAN advocates for fair and transparent regulatory practices, ensuring all individuals have equal access to investment opportunities and due process in the financial markets.
Contact Information: Investor Choice Advocates Network (ICAN) Email: info@icanlaw.org Website: www.icanlaw.org
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