Notice2026-02407
Agency Information Collection Activities; 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
February 6, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 25 (Friday, February 6, 2026)</title>
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[Federal Register Volume 91, Number 25 (Friday, February 6, 2026)]
[Notices]
[Pages 5544-5545]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-02407]
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SECURITIES AND EXCHANGE COMMISSION
[OMB Control No. 3235-0273]
Agency Information Collection Activities; 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 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``SEC'' or ``Commission'') is submitting to the Office of
Management and Budget (``OMB'') this request for extension of the
proposed 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.
[[Page 5545]]
There are approximately 319 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 (70 hours
of recordkeeping and 10 hours of third-party disclosure), which
generates an industry-wide annual burden of approximately 25,520 hours
(319 registered transfer agents x 80 hours). At an average staff cost
of $78 per hour, the industry-wide internal labor cost of compliance (a
monetization of the burden hours) is approximately $1,990,560 per year
(25,520 hours x $78 per hour).\1\
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\1\ We expect that performance of this function will most likely
be performed by a general clerk. Based on data from the SIFMA
Management and Professional Earnings Report, modified in 2025 by
Commission staff to account for, among other things, inflation, we
expect that the cost for this position is $78 per hour. 80 hours x
$78 = $6,240 total aggregate monetized cost per transfer agent.
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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.
In addition, we estimate that each transfer agent will incur an
annual external cost burden of approximately $24,660 resulting from the
collection of information--90% of which will be attributable to
recordkeeping and 10% of which will be attributable to third-party
disclosure ($22,194 from recordkeeping ($24,660 x 90%) and $2,466 from
third-party disclosure ($24,660 x 10%)).\2\ Therefore, the total annual
external cost on the entire transfer agent industry is approximately
$7,866,540 ($24,660 x 319 registered transfer agents)--$7,079,886 will
be attributable to recordkeeping ($24,660 x 319 registered transfer
agents) and $786,654 of which will be attributable to third-party
disclosure ($2,466 x 319 registered transfer agents). This cost
primarily reflects ongoing computer operations and maintenance
associated with generating, maintaining, and disclosing or providing
certain information required by the rule.
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\2\ We expect that performance of this function will most likely
be performed by a computer operations department manager. Based on
data from the SIFMA Management and Professional Earnings Report,
modified in 2025 by Commission staff to account for, among other
things, inflation, we expect that the cost for this position is $548
per hour. 45 hours x $548 = approximately $24,660 total aggregate
external cost per transfer agent.
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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.
The public may view and comment on this information collection
request at: <a href="https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202511-3235-008">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202511-3235-008</a> or email comment to
<a href="/cdn-cgi/l/email-protection#501d12087e1f1d127e1f1902117e0315130f3435233b0f3f363639333522103f3d327e353f207e373f26"><span class="__cf_email__" data-cfemail="87cac5dfa9c8cac5a9c8ced5c6a9d4c2c4d8e3e2f4ecd8e8e1e1eee4e2f5c7e8eae5a9e2e8f7a9e0e8f1">[email protected]</span></a> within 30 days of the day
after publication of this notice, by March 9, 2026.
Dated: February 4, 2026.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-02407 Filed 2-5-26; 8:45 am]
BILLING CODE 8011-01-P
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