Notice2022-25346
Submission for OMB Review; 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
November 22, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 224 (Tuesday, November 22, 2022)</title>
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[Federal Register Volume 87, Number 224 (Tuesday, November 22, 2022)]
[Notices]
[Pages 71384-71385]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-25346]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-265, OMB Control No. 3235-0273]
Submission for OMB Review; 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'') 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-10 (17 CFR 240.17Ad-10), under the Securities Exchange Act of 1934
(15 U.S.C. 78a et seq.).
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
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
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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.
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 by December 22, 2022 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 Pezzullo, 100 F
Street NE, Washington, DC 20549, or by sending an email to:
<a href="/cdn-cgi/l/email-protection#8ddddfccd2c0ece4e1efe2f5cdfee8eea3eae2fb"><span class="__cf_email__" data-cfemail="e0b0b2a1bfad81898c828f98a0938583ce878f96">[email protected]</span></a>.
Dated: November 16, 2022.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2022-25346 Filed 11-21-22; 8:45 am]
BILLING CODE 8011-01-P
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