Notice2025-03434
Proposed Collection; Comment Request; Extension: Rule 17Ad-16
Primary source
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Published
March 4, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 41 (Tuesday, March 4, 2025)</title>
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[Federal Register Volume 90, Number 41 (Tuesday, March 4, 2025)]
[Notices]
[Page 11198]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-03434]
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SECURITIES AND EXCHANGE COMMISSION
[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 (``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-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 approximately
16,412 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
4,103 hours per year (15 minutes multiplied by 16,412 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 $96 (15 minutes at $385 per
hour).\1\ This yields an industry-wide internal compliance cost
estimate of $1,575,552 (16,412 notices multiplied by $96 per notice).
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\1\ Hourly compliance cost estimates for internal counsel time
are derived from the Securities Industry and Financial Markets
Association's Management & Professional Earnings in the Securities
Industry 2013, modified by SEC staff to account for an 1,800-hour
work-year and multiplied by 5.35 to account for bonuses, firm size,
employee benefits, and overhead.
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An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid OMB Control Number.
Written comments are invited on: (a) whether this collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information will have practical
utility; (b) the accuracy of the agency's estimate of the burden
imposed by the 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 60
days of this publication by May 5, 2025.
Please direct your written comment to Austin Gerig, Director/Chief
Data Officer, Securities and Exchange Commission, c/o Tanya Ruttenberg,
100 F Street NE, Washington, DC 20549 or send an email to:
<a href="/cdn-cgi/l/email-protection#e2b2b0a3bdaf838b8e808d9aa2918781cc858d94"><span class="__cf_email__" data-cfemail="4d1d1f0c12002c24212f22350d3e282e632a223b">[email protected]</span></a>.
Dated: February 26, 2025.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-03434 Filed 3-3-25; 8:45 am]
BILLING CODE 8011-01-P
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