[Federal Register Volume 83, Number 206 (Wednesday, October 24, 2018)]
[Notices]
[Page 53692]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-23211]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
Extension:
Rule 17Ad-11, SEC File No. 270-261, OMB Control No. 3235-0274
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the existing
collection of information provided for in Rule 17Ad-11 (17 CFR
240.17Ad-11), under the Securities Exchange Act of 1934 (15 U.S.C. 78a
et seq.). The Commission plans to submit this existing collection of
information to the Office of Management and Budget (``OMB'') for
extension and approval.
Rule 17Ad-11 requires every registered recordkeeping transfer agent
to report to issuers and its appropriate regulatory agency in the event
that the aggregate market value of an aged record difference exceeds
certain thresholds. A record difference occurs when an issuer's records
do not agree with those of securityholders as indicated, for instance,
on certificates presented to the transfer agent for purchase,
redemption or transfer. An aged record difference is a record
difference that has existed for more than 30 calendar days. In
addition, the rule requires every recordkeeping transfer agent to
report to its appropriate regulatory agency in the event of a failure
to post certificate detail to the master securityholder file within
five business days of the time required by Rule 17Ad-10 (17 CFR
240.17Ad-10). Also, a transfer agent must maintain a copy of any report
required under Rule 17Ad-11 for a period of not less than three years
following the date of the report, the first year in an easily
accessible place.
Because the information required by Rule 17Ad-11 is already
available to transfer agents, any collection burden for small transfer
agents is minimal. Based on a review of the number of Rule 17Ad-11
reports the Commission, the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, and the Federal Deposit
Insurance Corporation received since 2012, the Commission staff
estimates that 8 respondents will file a total of approximately 10
reports annually. The Commission staff estimates that, on average, each
report can be completed in 30 minutes. Therefore, the total annual
hourly burden to the entire transfer agent industry is approximately
five hours (30 minutes x 10 reports). Assuming an average hourly rate
of $25 for a transfer agent staff employee, the average total internal
cost of the report is $12.50. The total annual internal cost of
compliance for the approximate 8 respondents is approximately $125.00
(10 reports x $12.50).
The retention period for the recordkeeping requirement under Rule
17Ad-11 is three years following the date of a report prepared pursuant
to the rule. The recordkeeping requirement under Rule 17Ad-11 is
mandatory to assist the Commission and other regulatory agencies with
monitoring transfer agents and ensuring compliance with the rule. This
rule does not involve the collection of confidential information.
Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the Commission, including whether the information
shall have practical utility; (b) the accuracy of the Commission's
estimates of the burden of the proposed 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.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information under the PRA unless it
displays a currently valid OMB control number.
Please direct your written comments to: Charles Riddle, Acting
Director/Chief Information Officer, Securities and Exchange Commission,
c/o Candace Kenner, 100 F Street NE, Washington, DC 20549, or send an
email to: [email protected].
Dated: October 19, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-23211 Filed 10-23-18; 8:45 am]
BILLING CODE 8011-01-P