[Federal Register Volume 62, Number 196 (Thursday, October 9, 1997)]
[Notices]
[Pages 52797-52798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-26725]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

    Upon Written Request, Copies Available From: Securities and 
Exchange Commission, Office of Filings and Information Services, 
Washington, DC 20549.

Extension:

Rule 17Ad-2 (c), (d), and (h) SEC File No. 270-149 OMB Control No. 
3235-0130
Rule 17Ad-10 SEC File No. 270-265 OMB Control No. 3235-0273

    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 
(``Commission'') is soliciting comments on the collections of 
information summarized below. The Commission plans to submit these 
existing collections of information to the Office of Management and 
Budget for extension and approval.

 Rule 17Ad-2(c), (d) and (h) Transfer Agent Turnaround, 
Processing and Forwarding Requirements

    Rule 17Ad-2(c), (d), and (h), under the Securities Exchange Act of 
1934, enumerate the requirements with which transfer agents must comply 
to inform the Commission or the appropriate regulator of a transfer 
agent's failure to meet the minimum performance standards set by the 
Commission rule by filing a notice.
    While it is estimated there are 1,326 transfer agents, 
approximately ten notices pursuant to 17Ad-2(c), (d), and (h) are filed 
annually. In view of: (a) the readily available nature of most of the 
information required to be included in the notice (since that 
information must be compiled and retained pursuant to other Commission 
rules); (b) the summary fashion that such information must be presented 
in the notice (most notices are one page or less in length); and (c) 
the experience of the staff regarding the notices, the Commission staff 
estimates that, on the average, most Notices require approximately one-
half hour to prepare. The Commission staff estimates a cost of 
approximately $30.00 for each half hour spent preparing the notices per 
year, transfer agents spend an average of five hours per year complying 
with the rule at a cost of $300.

 Rule 17Ad-10 Prompt Posting of Certificate Detail to 
Master Securityholder Files; Maintenance of Accurate Securityholder 
Files and Control Book; and Retention of Certificate Detail

    Rule 17Ad-10, under the Securities Exchange Act of 1934, requires 
approximately 1,326 registered transfer agents 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 redemptions of securities. In addition, the 
rule also requires transfer agents that maintain securityholder records 
to keep certificate detail that has been cancelled from those records 
for a minimum of six years and to maintain 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 (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.
    The staff estimates that the average number of hours necessary for 
each transfer agent to comply with Rule 17Ad-10 is approximately 20 
hours per year, totalling 26,520 hours industry-wide. The average cost 
is approximately $20 hour, with the industry-wide cost estimated at 
approximately $530,400. However, the information required by Rule 17Ad-
10 generally already is maintained by registered transfer agents. The 
amount of time devoted to compliance with Rule 17Ad-10 varies according 
to differences in business activity.
    Written comments are invited on: (a) whether the proposed 
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 of 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

[[Page 52798]]

technology. Consideration will be given to comments and suggestions 
submitted in writing within 60 days of this publication.
    Please direct your written comments to Michael E. Bartell, 
Associate Executive Director, Office of Information Technology, 
Securities and Exchange Commission, 450 5th Street, N.W., Washington, 
DC 20549.

    Dated: September 30, 1997.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-26725 Filed 10-8-97; 8:45 am]
BILLING CODE 8010-01-M