Rule 17Ad-10: Accurate Creation and Maintenance of Securityholder Files (17 CFR 240.17Ad-10)

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
2013 Rule 17Ad-10 Supporting Statement (Revised by ARB).pdf	Supporting Statement A	Uploaded 2013-09-25	Available

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
34727	Rule 17Ad-10: Accurate Creation and Maintenance of Securityholder Files (17 CFR 240.17Ad-10)		Modified

ICR Details

OMB Control No: 3235-0273	ICR Reference No: 201303-3235-002
Status: Historical Active	Previous ICR Reference No: 201001-3235-011
Agency/Subagency: SEC	Agency Tracking No: TM-270-265
Title: Rule 17Ad-10: Accurate Creation and Maintenance of Securityholder Files (17 CFR 240.17Ad-10)
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved with change	Conclusion Date: 09/30/2013
	Date Received in OIRA: 06/04/2013
Terms of Clearance:

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	09/30/2016	36 Months From Approved	09/30/2013
Responses	464	0	565
Time Burden (Hours)	37,120	0	11,300
Cost Burden (Dollars)	8,352,000	0	565,000

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Abstract: Rule 17Ad-10, 17 CFR 240.17Ad-10, under the Securities Exchange Act of 1934, requires a registered transfer agent to create and maintain minimum information on securityholders’ ownership of an issue of securities for which it performs transfer agent functions, including the purchase, transfer and redemption of securities. In addition, the rule also requires transfer agents that maintain securityholder records to keep certificate detail that has been deleted from those records for a minimum of six years and to maintain and keep current an accurate record of the number of shares or principle dollar amount of debt securities that the issuer has authorized to be outstanding (a “control book”). These recordkeeping requirements assist in the creation and maintenance of accurate securityholder records, 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 overissuance. Transfer agents are required to establish written standards for the acceptance or rejection of guarantees of securities transfers from eligible guarantor institutions. Transfer agents are also required to establish procedures, including written guidelines where appropriate, to ensure that those standards are used in determining whether to accept or reject guarantees from eligible guarantor institutions.

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Authorizing Statute(s): US Code: 15 USC 78q-1(d) Name of Law: Securities Exchange Act of 1934
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	78 FR 19334	03/29/2013
30-day Notice:	Federal Register Citation:	Citation Date:
	78 FR 33452	06/04/2013
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

table that charts list of burden

IC Title	Form No.	Form Name
Rule 17Ad-10: Accurate Creation and Maintenance of Securityholder Files (17 CFR 240.17Ad-10)

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ICR Summary of Burden

table that charts list of burden

	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	464	565	0	0	-101	0
Annual Time Burden (Hours)	37,120	11,300	0	0	25,820	0
Annual Cost Burden (Dollars)	8,352,000	565,000	0	0	7,787,000	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The increase in the burden hours from 11,300 total annual industry hours in 2010 to the current 37,120 total annual industry hours (an increase of 25,820 hours) reflects updated burden estimates based on an informal, voluntary, and small sample size transfer agent survey. In addition, the cost burden increase from $565,000 in 2010 to the current $8,352,000 (an increase of $7,787,000) is due to two factors. First, the prior Paperwork Reduction Act extension erroneously treated the monetization of internal labor costs of compliance (estimated to be $565,000 in 2010) as a separate cost burden. Second, respondents have since implemented new or upgraded versions of automated systems for generating, maintaining, and disclosing or providing certain information required by the rule. Accordingly, the computer operations and maintenance associated with these new or upgraded systems now accounts for the entire $8,352,000 cost burden.

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Annual Cost to Federal Government: $5,400

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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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:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(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;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

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.

Certification Date: 06/04/2013

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