[Federal Register Volume 63, Number 111 (Wednesday, June 10, 1998)]
[Notices]
[Pages 31816-31817]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-15420]


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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-6, SEC File No. 270-151, OMB Control No. 3235-0291
    Rule 17Ad-7, SEC File No. 270-152, OMB Control No. 3235-0136

    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-6 Recordkeeping requirements for transfer 
agents.
    Rule 17Ad-6 under the Securities Exchange Act of 1934 (15 U.S.C. 
78b et. seq.) (the ``Act'') requires every registered transfer agent to 
make and keep current records about a variety of information, such as: 
(1) specific operational data regarding the time taken to perform 
transfer agent activities (to ensure compliance with the minimum 
performance standards in Rule 17Ad-2 (17 CFR 240.17Ad-2)); (2) written 
inquires and requests by shareholders and broker-dealers and response 
time thereto; (3) resolutions, contracts or other supporting documents 
concerning the appointment or termination of the transfer agent; (4) 
stop orders or notices of adverse claims to the securities; and (5) all 
canceled registered securities certificates.
    These recordkeeping requirements ensure that all registered 
transfer agents are maintaining the records necessary to monitor and 
keep adequate control over their own performance and to examine 
registered transfer agents on an historical basis for compliance with 
applicable rules.
    It is estimated that approximately 1,248 registered transfer agents 
will spend a total of 599,040 hours per year complying with Rule 17Ad-
6. Based on average cost per hour of $50, the total cost of compliance 
with Rule 17Ad-6 is $29,952,000.
     Rule 17Ad-7 Record retention requirements for transfer 
agents

[[Page 31817]]

    Rule 17Ad-7 under the Act requires each registered transfer agent 
to retain, in an easily accessible place for a period of six months to 
one year, all the records required to be made and kept current under 
the Commission's rules regarding registered transfer agents. Rule 17Ad-
7 also requires such records to be retained for a total of two to six 
years or for one year after termination of the transfer agency, 
depending on the particular record or document.
    These record retention requirements ensure that all registered 
transfer agents are maintaining the records necessary to monitor and 
keep adequate control over their own performance and to examine 
registered transfer agents on an historical basis for compliance with 
applicable rules.
    It is estimated that approximately 1,248 registered transfer agent 
will spend a total of 142,272 hours per year complying with Rule 17Ad-
7. Based on average cost per hour of $50, the total cost of compliance 
with Rule 17Ad-7 is $7,113,600.
    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 shall 
have practical utility; (b) the accuracy of the agency's estimates of 
the burden of the proposed collection of information; (c) ways to 
enhance the quality, utility, and clarity of the information to be 
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 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, 
Associated Executive Director, Office of Information Technology, 
Securities and Exchange Commission, 450 5th Street, NW., Washington, 
D.C. 20549.

    Dated: June 2, 1998.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-15420 Filed 6-9-98; 8:45 am]
BILLING CODE 8010-01-M