[Federal Register Volume 76, Number 148 (Tuesday, August 2, 2011)]
[Notices]
[Page 46336]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-19531]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: U.S. Securities and 
Exchange Commission, Office of Investor Education and Advocacy, 
Washington, DC 20549-0213.

Extension:
    Rule 17Ad-17; OMB Control No. 3235-0469; SEC File No. 270-412.

    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 collection of 
information summarized below. The Commission plans to submit this 
existing collection of information to the Office of Management and 
Budget for extension and approval.
     Rule 17Ad-17 Transfer Agents' Obligation to Search for 
Lost Securityholders.
     Rule 17Ad-17 Brokers and Dealers' Obligation to Search for 
Lost Securityholders.
     Rule 17Ad-17 Paying Agents' Obligation to Notify Missing 
Securityholders.
    Rule 17Ad-17 (17 CFR 240.17Ad-17) requires approximately 508 
registered transfer agents and approximately 5,063 broker-dealers to 
conduct searches using third party database vendors to attempt to 
locate lost securityholders. These recordkeeping requirements assist 
the Commission and other regulatory agencies with monitoring transfer 
agents and ensuring compliance with the rule.
    The staff estimates that the average number of hours necessary for 
each transfer agent to comply with Rule 17Ad-17 is ten hours annually. 
The total burden is approximately 5,080 hours annually for all transfer 
agents (508 transfer agents times 10 hours). The cost of compliance for 
each individual transfer agent depends on the number of lost 
securityholder accounts for which it is responsible. Based on 
information received from transfer agents, we estimate that the annual 
cost industry-wide for transfer agents is $5.08 million (5,080 hours 
times $100). The staff estimates that the average number of hours 
necessary for each broker and dealer to comply with Rule 17Ad-17 is 
98.8 hours annually (500,000 searches divided by 5,063 brokers and 
dealers). The cost of compliance for each broker and dealer will depend 
on the number of lost securityholder accounts for which it is 
responsible. The staff estimates that the annual cost industry-wide for 
brokers and dealers is $9.88 million (98.8 hours times $100).
    The staff estimates that the average number of hours necessary for 
each paying agent to comply with Rule 17Ad-17 is 50 hours annually. The 
total burden is approximately 5,000 hours annually for all paying 
agents (1,000 paying agents times 50 hours). The cost of compliance for 
each individual paying agent depends on the number of missing 
securityholder accounts for which it is responsible. The staff 
estimates that the annual cost industry-wide for paying agents is 
$500,000 (5,000 hours times $100).
    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.
    Comments should be directed to: Thomas Bayer, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, Virginia 22312 or 
send an e-mail to: [email protected].

    Dated: July 28, 2011.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-19531 Filed 8-1-11; 8:45 am]
BILLING CODE 8011-01-P