Notice2023-22187
Submission for OMB Review; Comment Request; Extension: Rule 17Ad-3(b)
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
October 5, 2023
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 88 Issue 192 (Thursday, October 5, 2023)</title>
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[Federal Register Volume 88, Number 192 (Thursday, October 5, 2023)]
[Notices]
[Pages 69241-69242]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-22187]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-424, OMB Control No. 3235-0473]
Submission for OMB Review; Comment Request; Extension: Rule 17Ad-
3(b)
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-3(b) (17 CFR 240.17Ad-3(b)), under the Securities Exchange Act of
1934 (15 U.S.C. 78a et seq.).
Rule 17Ad-3(b) requires registered transfer agents to send a copy
of the written notice required under Rules 17Ad-2(c), (d), and (h) to
the chief executive officer of each issuer for which the transfer agent
acts when it has failed to turnaround at least 75% of all routine items
in accordance with the requirements of Rule 17Ad-2(a), or to process at
least 75% of all items in accordance with the requirements of Rule
17Ad-2(b), for two consecutive months. The issuer may use the
information contained in the notices: (1) as an early warning of the
transfer agent's non-compliance with the Commission's minimum
performance standards regarding registered transfer agents; and (2) to
become aware of certain problems and poor performances with respect to
the transfer agents that are servicing the issuer's issues. If the
issuer does not receive notice of a registered transfer agent's failure
to comply with the Commission's minimum performance standards, then the
issuer will be unable to take remedial action to correct the problem or
to find another registered transfer agent. Pursuant to Rule 17Ad-3(b),
a transfer agent that has already filed a Notice of Non-Compliance with
the Commission pursuant to Rule 17Ad-2 will only be required to send a
copy of that notice to issuers for which it acts when that transfer
agent fails to turnaround 75% of all routine items or to process 75% of
all items for two consecutive months.
The Commission estimates that only one transfer agent will be
subject to the third-party disclosure requirements of
[[Page 69242]]
Rule 17Ad-3(b) each year. If a transfer agent fails to meet the
turnaround and processing requirements under 17Ad-3(b), it would simply
send its issuer-clients a copy of the notice that had already been
produced for the Commission pursuant to Rule 17Ad-2(c) or (d). The
Commission estimates the requirement will take the transfer agent
approximately four hours to complete. The total estimated burden
associated with Rule 17Ad-3(b) is thus approximately 4 hours per year.
The Commission estimates that the internal compliance cost for the
transfer agent to comply with this third-party disclosure requirement
will be approximately $1,128 per year (4 hours x $283 per hour =
$1,128). The total estimated internal cost of compliance associated
with Rule 17Ad-3(b) is thus approximately $1,128 per year. There are no
external costs associated with sending the notice to issuer-clients.
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 November 6, 2023 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#3a6a687b65775b53565855427a495f59145d554c"><span class="__cf_email__" data-cfemail="93c3c1d2ccdef2fafff1fcebd3e0f6f0bdf4fce5">[email protected]</span></a>.
Dated: October 2, 2023.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2023-22187 Filed 10-4-23; 8:45 am]
BILLING CODE 8011-01-P
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