[Federal Register Volume 62, Number 242 (Wednesday, December 17, 1997)]
[Notices]
[Pages 66151-66152]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-32826]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange

[[Page 66152]]

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'') has submitted to the Office of Management and Budget 
requests for extension of the previously approved collections of 
information discussed below.

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 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 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 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.
    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 per 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.
    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 control number.
    Written comments regarding the above information should be directed 
to the following persons: (i) Desk Officer for the Securities and 
Exchange Commission, Office of Information and Regulatory Affairs, 
Office of Management and Budget, Room 3208, New Executive Office 
Building, Washington, DC 20503; and (ii) Michael E. Bartell, Associate 
Executive Director, Office of Information Technology, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549. 
Comments must be submitted to OMB within 30 days of this notice.

    Dated: December 8, 1997.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-32826 Filed 12-16-97; 8:45 am]
BILLING CODE 8010-01-M