Transfer Agents' Obligation to Search for Lost Securityholders (17 CFR 240.17Ad-17)

ICR 201302-3235-001

OMB: 3235-0469

Federal Form Document

Forms and Documents
Document
Name
Status
Supporting Statement A
2013-02-27
Supplementary Document
2011-11-17
ICR Details
3235-0469 201302-3235-001
Historical Active 201111-3235-023
SEC TM-270-412
Transfer Agents' Obligation to Search for Lost Securityholders (17 CFR 240.17Ad-17)
Revision of a currently approved collection   No
Regular
Approved without change 05/31/2013
Retrieve Notice of Action (NOA) 02/27/2013
  Inventory as of this Action Requested Previously Approved
05/31/2016 36 Months From Approved 05/31/2013
6,819,400 0 2,432
125,379 0 3,040
92,897,760 0 3,297,792

The purpose of Rule 17Ad-17 is to reduce the number of lost securityholders by requiring transfer agents, brokers, dealers, and paying agents (collectively, "covered entities") to conduct two database searches for correct addresses for the lost securityholders. Rule 17Ad-17 requires a mandatory "collection of information" that requires covered entities to maintain records in order to comply with and to demonstrate compliance with the rule, which includes written procedures that describe the transfer agent's, broker's, dealer's, or paying agent's methodology for complying with the rule. Such records must be maintained for a period of not less than three years with the first year in an easily accessible place. The Commission reviews this information to test for compliance. The collection of information is necessary to enable covered entities, as custodians of records that determine the ownership of securities and the entitlement to corporate distributions, to reduce the number of lost and missing securityholders. The Dodd-Frank Act required certain changes to this rule.

PL: Pub.L. 111 - 203 929W Name of Law: Dodd-Frank Wall Street Reform and Consumer Protection Act
  
PL: Pub.L. 111 - 203 929W Name of Law: Dodd-Frank Wall Street Reform and Consumer Protection Act

3235-AL11 Final or interim final rulemaking 78 FR 4768 01/23/2013

Yes

  Total Approved Previously Approved Change Due to New Statute Change Due to Agency Discretion Change Due to Adjustment in Estimate Change Due to Potential Violation of the PRA
Annual Number of Responses 6,819,400 2,432 6,819,400 0 -2,432 0
Annual Time Burden (Hours) 125,379 3,040 125,379 0 -3,040 0
Annual Cost Burden (Dollars) 92,897,760 3,297,792 92,897,760 0 -3,297,792 0
No
No
The estimates provided above have significantly increased the cost and time burden of compliance with Rule 17Ad-17. The primary factor for this is that, as a result of the Dodd-Frank Act, Rule 17Ad-17 now applies to broker-dealers and paying agents, in addition to transfer agents. This means that an additional 7,740 entities are subject to the rule (over 15 times the number of entities previously subjected).

$0
No
No
No
Yes
No
Uncollected
Thomas Etter 202 551-5713

  No

On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
 
 
 
 
 
 
 
    (i) Why the information is being collected;
    (ii) Use of information;
    (iii) Burden estimate;
    (iv) Nature of response (voluntary, required for a benefit, or mandatory);
    (v) Nature and extent of confidentiality; and
    (vi) Need to display currently valid OMB control number;
 
 
 
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
02/26/2013


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