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

ICR 201904-3235-016

OMB: 3235-0469

Federal Form Document

Forms and Documents
Document
Name
Status
Supporting Statement A
2019-07-23
IC Document Collections
IC ID
Document
Title
Status
205937
Modified
205920
Modified
ICR Details
3235-0469 201904-3235-016
Active 201604-3235-011
SEC TM-270-412
Transfer Agents' Obligation to Search for Lost Securityholders (17 CFR 240.17Ad-17)
Extension without change of a currently approved collection   No
Regular
Approved without change 08/26/2019
Retrieve Notice of Action (NOA) 07/23/2019
  Inventory as of this Action Requested Previously Approved
08/31/2022 36 Months From Approved 08/31/2019
2,882,766 0 1,342,563
223,429 0 91,298
6,617,298 0 1,953,189

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

Not associated with rulemaking

  84 FR 19980 05/07/2019
84 FR 34029 07/16/2019
No

2
IC Title Form No. Form Name
Searching Entities Requirements
Paying Agent Requirements

  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 2,882,766 1,342,563 0 0 1,540,203 0
Annual Time Burden (Hours) 223,429 91,298 0 0 132,131 0
Annual Cost Burden (Dollars) 6,617,298 1,953,189 0 0 4,664,109 0
No
No
The time and cost burdens increased because the estimated number of entities conducting searches increased from 301 to 507 even though the estimated number of paying agents decreased slightly from 2,766 to 2,705. The estimated number of searches per searching entity also increased from approximately 2,163 to approximately 4,350.

$0
No
    No
    No
No
Yes
No
Uncollected
Catherine Whiting 202 551-4990

  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.
07/23/2019


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