[Federal Register Volume 65, Number 93 (Friday, May 12, 2000)]
[Notices]
[Pages 30645-30646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-11918]


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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-4(b) & (c), SEC File No. 270-264, OMB Control 
No. 3235-0341, Rule 17Ad-15, SEC File No. 270-360, OMB Control No. 
3235-0409.

    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-4(b) & (c)  Notices Regarding Exempt Transfer Agent 
Status

    Rule 17Ad-4(b) & (c) is used to document when transfer agents are 
exempt, or no longer exempt, from the minimum performance standards and 
certain recordkeeping provisions of the Commission's transfer agent 
rules. Rule 17Ad-4(c) sets forth the conditions under which a 
registered transfer agent loses its exempt status. Once the conditions 
for exemption no longer exist, the transfer agent, to keep the 
appropriate regulatory authority (``ARA'') apprised of its current 
status, must prepare, and file if the ARA for the transfer agent is the 
Board of Governors of the Federal Reserve System (``BGFRS'') or the 
Federal Deposit Insurance Corporation (``FDIC''), a notice of loss of 
exempt status under paragraph (c). The transfer agent then cannot claim 
exempt status under Rule 17Ad-4(b) again until it remains subject to 
the minimum performance standards for non-exempt transfer agents for 
six consecutive months. The ARAs use the information contained in the 
notice to determine whether a registered transfer agent qualifies for 
the exemption, to determine when a registered transfer agent no longer 
qualifies for the exemption, and to determine the extent to which that 
transfer agent is subject to regulation.
    The BGFRS receives approximately twelve notices of exempt status 
and six notices of loss of exempt status annually. The FDIC receives 
approximately eighteen notices of exempt status and three notices of 
loss of exempt status annually. The Commission and the Office of the 
Comptroller of the Currency (``OCC'') do not require transfer agents to 
file notice of exempt status or loss of exempt status. Instead, 
transfer agents whose ARA is the Commission or OCC need only to prepare 
and maintain these notices. The Commission estimates that approximately 
sixteen notices of exempt status and loss of exempt status are prepared 
annually by transfer agents whose ARA is the Commission. Similarly, the 
OCC estimates that the transfer agents for which it is the ARA, prepare 
and maintain approximately fifteen notices of exempt status and loss of 
exempt status annually. Thus, a total of approximately seventy notices 
of exempt status and loss of exempt status are prepared and maintained 
by transfer agents annually. Of these seventy notices, approximately 
forty are filed with an ARA. Any additional costs associated with 
filing such notices would be limited primarily to postage, which would 
be minimal. Since the Commission estimates that no more than one-half 
hour is required to prepare each notice, the total annual burden to 
transfer agents is approximately thirty-five hours. The average cost 
per hours is approximately $30. Therefore, the total cost of compliance 
to the transfer agent community is $1,050.
    Transfer agents should prepare and maintain in its possession or 
file with its ARA notice of exempt status or loss of exempt status for 
the period of the exemption or loss of exemption. When the transfer 
agent's status changes, the transfer agent should file a notice of 
exempt status or loss of exempt status reflecting that change. The 
notice requirement is mandatory to determine when a registered transfer 
agent no longer qualifies for the exemption, and to determine the 
extent to which that transfer agent is subject to regulation. Notices 
submitted according to Rule 17Ad-4(b) & (c) will not be kept 
confidential.

Rule 17Ad-15  Signature Guarantees

    Rule 17Ad-15 requires approximately 1,093 transfer agents to 
establish written standards for the acceptance or rejection of 
guarantees of securities transfers from eligible guarantor 
institutions. Transfer agents are required to establish procedures to 
ensure that those standards are used by the transfer agent to determine 
whether to accept or reject guarantees from eligible guarantor 
institutions. Transfer agents must maintain, for a period of three 
years following the date of a rejection of transfer, a record of all 
transfers rejected, along with the reason for the

[[Page 30646]]

rejection, identification of the guarantor, and whether the guarantor 
failed to meet the transfer agent's guarantee standard. These 
recordkeeping requirements assist the Commission and other regulatory 
agencies with monitoring transfer agents and ensuring compliance with 
the rule.
    There are approximately 1,093 registered transfer agents. Of the 
1,093 registered transfer agents, proximately 120 will receive fewer 
than 100 items for transfer. The staff expects that most small transfer 
agents will have few, if any, rejections. The staff estimates that 
every transfer agent will spend about 40 hours annually to comply with 
Rule 17Ad-15. The total annual burden for all transfer agents is 43,720 
hours. The average cost per hour is approximately $30. Therefore, the 
total cost of compliance for all transfer agents is $1,311,600.
    Please note that 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 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 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, NW, Washington, DC 
20549.

    Dated: May 1, 2000.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-11918 Filed 5-11-00; 8:45 am]
BILLING CODE 8010-01-M