Notice2024-23005
Submission for OMB Review; Comment Request; Extension: Rule 17Ad-13
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 4, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 193 (Friday, October 4, 2024)</title>
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[Federal Register Volume 89, Number 193 (Friday, October 4, 2024)]
[Notices]
[Page 80980]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-23005]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-263, OMB Control No. 3235-0275]
Submission for OMB Review; Comment Request; Extension: Rule 17Ad-
13
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-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 $291, resulting in a total annual external cost burden of
$34,920 for each of the approximately 100 professional independent
transfer agents. The aggregate total annual external cost for the 100
respondents is approximately $3,492,000.
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 by November 4, 2024 to (i) <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a> and (ii) Austin Gerig, Director/Chief Data Officer,
Securities and Exchange Commission, c/o Oluwaseun Ajayi, 100 F Street
NE, Washington, DC 20549, or by sending an email to:
<a href="/cdn-cgi/l/email-protection#ecbcbeadb3a18d85808e8394ac9f898fc28b839a"><span class="__cf_email__" data-cfemail="9cccceddc3d1fdf5f0fef3e4dceff9ffb2fbf3ea">[email protected]</span></a>.
Dated: October 1, 2024.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2024-23005 Filed 10-3-24; 8:45 am]
BILLING CODE 8011-01-P
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