Notice2022-09719
Proposed Collection; Comment Request; Extension: Rule 17Ad-16
Primary source
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Published
May 6, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 88 (Friday, May 6, 2022)</title>
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[Federal Register Volume 87, Number 88 (Friday, May 6, 2022)]
[Notices]
[Page 27197]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-09719]
[[Page 27197]]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-363, OMB Control No. 3235-0413]
Proposed Collection; Comment Request; Extension: Rule 17Ad-16
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and
Exchange Commission (``Commission'') is soliciting comments on the
existing collection of information provided for in Rule 17Ad-16 (17 CFR
240.17Ad-16) under the Securities Exchange Act of 1934 (15 U.S.C. 78a
et seq.). The Commission plans to submit this existing collection of
information to the Office of Management and Budget (``OMB'') for
extension and approval.
Rule 17Ad-16 requires a registered transfer agent to provide
written notice to the appropriate qualified registered securities
depository when assuming or terminating transfer agent services on
behalf of an issuer or when changing its name or address. In addition,
transfer agents that provide such notice shall maintain such notice for
a period of at least two years in an easily accessible place. This rule
addresses the problem of certificate transfer delays caused by transfer
requests that are directed to the wrong transfer agent or the wrong
address.
We estimate that the transfer agent industry submits 15,917 Rule
17Ad-16 notices to appropriate qualified registered securities
depositories. The staff estimates that the average amount of time
necessary to create and submit each notice is approximately 15 minutes
per notice. Accordingly, the estimated total industry burden is
3,979.25 hours per year (15 minutes multiplied by 15,917 notices filed
annually).
Because the information needed by transfer agents to properly
notify the appropriate registered securities depository is readily
available to them and the report is simple and straightforward, the
cost is relatively minimal. The average internal compliance cost to
prepare and send a notice is approximately $86 (15 minutes at $344 per
hour).\1\ This yields an industry-wide internal compliance cost
estimate of $1,368,862 (15,917 notices multiplied by $86 per notice).
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\1\ The estimated hourly wages used in this analysis were
derived from reports prepared by the Securities Industry and
Financial Markets Association. See Securities Industry and Financial
Markets Association, Office Salaries in the Securities Industry--
2022 (2022), modified to account for an 1800-hour work year and
multiplied by 5.35 to account for bonuses, firm size, employee
benefits and overhead.
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Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the Commission, including whether the information
shall have practical utility; (b) the accuracy of the Commission's
estimates of the burden of the proposed collection of information; (c)
ways to enhance the quality, utility, and clarity of the information
collected; and (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology.
Consideration will be given to comments and suggestions submitted in
writing within by July 5, 2022.
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.
Please direct your written comments to: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to:
<a href="/cdn-cgi/l/email-protection#4e1e1c0f11032f27222c21360e3d2b2d60292138"><span class="__cf_email__" data-cfemail="91c1c3d0cedcf0f8fdf3fee9d1e2f4f2bff6fee7">[email protected]</span></a>.
Dated: May 2, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-09719 Filed 5-5-22; 8:45 am]
BILLING CODE 8011-01-P
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