Notice2021-26855
Submission for OMB Review; Comment Request
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 13, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 236 (Monday, December 13, 2021)</title>
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[Federal Register Volume 86, Number 236 (Monday, December 13, 2021)]
[Notices]
[Pages 70878-70879]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-26855]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-263, OMB Control No. 3235-0275]
Submission for OMB Review; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
Extension:
Rule 17Ad-13
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') has submitted to the Office of Management
and Budget (``OMB'') a request for approval of extension of the
previously approved collection of information provided for in Rule
17Ad-13 (17 CFR 240.17Ad-13), under the Securities Exchange Act of 1934
(15 U.S.C. 78a et seq.).
Rule 17Ad-13 requires certain registered transfer agents to file
annually with the Commission and the transfer agent's appropriate
regulatory authority a report prepared by an independent accountant on
the basis of a study and evaluation of the transfer agent's system of
internal accounting controls for the transfer of record ownership and
the safeguarding of related securities and funds. If the independent
accountant's report specifies any material inadequacy in a transfer
agent's system, the rule requires the transfer agent to notify the
Commission and its appropriate regulatory agency in writing, within
sixty calendar days after the transfer agent receives the independent
accountant's report, of any corrective action taken or proposed to be
taken by the transfer agent. In addition, Rule 17Ad-13 requires that
transfer agents maintain the independent accountant's report and any
other documents required by the rule for at least three years, the
first year in an easily accessible place. These recordkeeping
requirements assist the Commission and other regulatory agencies with
monitoring transfer agents and ensuring compliance with the rule. Small
transfer agents and transfer agents that service only their own
companies' securities are exempt from Rule 17Ad-13.
Approximately 100 professional independent transfer agents must
file with the Commission one report prepared by an independent
accountant pursuant to Rule 17Ad-13 each year. Commission staff
estimates that, on average, the annual internal time burden for each
transfer agent to submit the independent accountant's report to the
Commission is minimal or zero. The time required for an independent
accountant to conduct the study and evaluation of a transfer agent's
system of internal accounting controls and complete the report varies
depending on the size and nature of the transfer agent's operations.
Commission staff estimates that, on average, each Rule 17Ad-13 report
can be completed by the independent accountant in 120 hours. In light
of Commission staff's review of previously filed Rule 17Ad-13 reports
and Commission staff's conversations with transfer agents and
accountants, Commission staff estimates that 120 hours are needed to
perform the study and prepare the report on an annual basis. Commission
staff estimates that the average hourly rate of an independent
accountant is $260, resulting in a total annual external cost burden of
$31,200 for each of the approximately 100 professional independent
transfer agents. The aggregate total annual external cost for the 100
respondents is approximately $3,120,000.
[[Page 70879]]
The retention period for the recordkeeping requirement under Rule
17Ad-13 is three years following the date of a report prepared pursuant
to the rule. The recordkeeping requirement under this rule is mandatory
to assist the Commission and other regulatory agencies with monitoring
transfer agents and ensuring compliance with the rule. This rule does
not involve the collection of confidential information.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information under the PRA unless it
displays a currently valid OMB control number.
The public may view background documentation for this information
collection at the following website: <a href="http://www.reginfo.gov">www.reginfo.gov</a>. Find this
particular information collection by selecting ``Currently under 30-day
Review--Open for Public Comments'' or by using the search function.
Written comments and recommendations for the proposed information
collection should be sent within 30 days of publication of this notice
to (i) <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a> and (ii) David Bottom,
Director/Chief Information Officer, Securities and Exchange Commission,
c/o John R. Pezzullo, 100 F Street NE, Washington, DC 20549, or by
sending an email to: <a href="/cdn-cgi/l/email-protection#acfcfeedf3e1cdc5c0cec3d4ecdfc9cf82cbc3da"><span class="__cf_email__" data-cfemail="28787a6977654941444a4750685b4d4b064f475e">[email protected]</span></a>.
Dated: December 7, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-26855 Filed 12-10-21; 8:45 am]
BILLING CODE 8011-01-P
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