Notice2022-20020
Proposed Collection; Comment Request; Extension: Rule 17Ad-10
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
September 16, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 179 (Friday, September 16, 2022)</title>
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[Federal Register Volume 87, Number 179 (Friday, September 16, 2022)]
[Notices]
[Pages 56994-56995]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-20020]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-265, OMB Control No. 3235-0273]
Proposed Collection; Comment Request; Extension: Rule 17Ad-10
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 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the existing
collection of information provided for in Rule 17Ad-10, (17 CFR
240.17Ad-10), 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-10 generally requires registered transfer agents to: (1)
create and maintain current and accurate securityholder records; (2)
promptly and accurately record all transfers, purchases, redemptions,
and issuances, and notify their appropriate regulatory agency if they
are unable to do so; (3) exercise diligent and continuous attention in
resolving record inaccuracies; (4) disclose to the issuers for whom
they perform transfer agent functions and to their appropriate
[[Page 56995]]
regulatory agency information regarding record inaccuracies; (5) buy-in
certain record inaccuracies that result in a physical over issuance of
securities; and (6) communicate with other transfer agents related to
the same issuer. These requirements assist in the creation and
maintenance of accurate securityholder records, enhance the ability to
research errors, and ensure the transfer agent is aware of the number
of securities that are properly authorized by the issuer, thereby
avoiding over issuance.
The rule also has specific recordkeeping requirements. It requires
registered transfer agents to retain certificate detail that has been
deleted for six years and keep current an accurate record of the number
of shares or principal dollar amount of debt securities that the issuer
has authorized to be outstanding. These mandatory requirements ensure
accurate securityholder records and 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.
There are approximately 401 registered transfer agents. We estimate
that the average number of hours necessary for each transfer agent to
comply with Rule 17Ad-10 is approximately 80 hours per year, which
generates an industry-wide annual burden of approximately 32,080 hours
(401 times 80 hours). This burden is primarily of a recordkeeping
nature but also includes a small amount of third-party disclosure. At
an average staff cost of $50 per hour, the industry-wide internal labor
cost of compliance (a monetization of the burden hours) is
approximately $1,604,000 per year (32,080 x $50). In addition, we
estimate that each transfer agent will incur an annual external cost
burden of approximately $18,000 resulting from the collection of
information. Therefore, the total annual external cost on the entire
transfer agent industry is approximately $7,218,000 ($18,000 times
401). This cost primarily reflects ongoing computer operations and
maintenance associated with generating, maintaining, and disclosing or
providing certain information required by the rule.
The amount of time any particular transfer agent will devote to
Rule 17Ad-10 compliance will vary according to the size and scope of
the transfer agent's business activity. We note, however, that at least
some of the records, processes, and communications required by Rule
17Ad-10 would likely be maintained, generated, and used for transfer
agent business purposes even without the rule.
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 by
November 15, 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#7b2b293a24361a12171914033b081e18551c140d"><span class="__cf_email__" data-cfemail="d6868497899bb7bfbab4b9ae96a5b3b5f8b1b9a0">[email protected]</span></a>.
Dated: September 12, 2022.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-20020 Filed 9-15-22; 8:45 am]
BILLING CODE 8011-01-P
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