[Federal Register Volume 85, Number 174 (Tuesday, September 8, 2020)]
[Notices]
[Pages 55561-55562]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-19722]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-424 OMB Control No. 3235-0473]


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 17A-3(b)

    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-3(b) (17 CFR 
240.17Ad-3(b)), 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-3(b) requires registered transfer agents to send a copy 
of the written notice required under Rule 17Ad-2(c), (d), and (h) to 
the chief executive officer of each issuer for which the transfer agent 
acts when it has failed to turnaround at least 75% of all routine items 
in accordance with the requirements of Rule 17Ad-2(a), or to process at 
least 75% of all items in accordance with the requirements of Rule 
17Ad-2(b), for two consecutive months. The issuer may use the 
information contained in the notices: (1) As an early warning of the 
transfer agent's non-compliance with the Commission's minimum 
performance standards regarding registered transfer agents; and (2) to 
become aware of certain problems and poor performances with respect to 
the transfer agents that are servicing the issuer's issues. If the 
issuer does not receive notice of a registered transfer agent's failure 
to comply with the Commission's minimum performance standards then the 
issuer will be unable to take remedial action to correct the problem or 
to find another registered transfer agent. Pursuant to Rule 17Ad-3(b), 
a transfer agent that has already filed a Notice of Non-Compliance with 
the Commission pursuant to Rule 17Ad-2 will only be required to send a 
copy of that notice to issuers for which it acts when that transfer 
agent fails to turnaround 75% of all routine items or to process 75% of 
all items for two consecutive months.
    The Commission estimates that only one transfer agent will be 
subject to the third party disclosure requirements of Rule 17Ad-3(b) 
each year. If a transfer agent fails to meet the turnaround and 
processing requirements under 17Ad-3(b), it would simply send its 
issuer-clients a copy of the notice that had already been produced for 
the Commission pursuant to Rule 17Ad-2(c) or (d). The Commission 
estimates the requirement will take the transfer agent approximately 
four hours to complete. The total estimated burden associated with Rule 
17Ad-3(b) is thus approximately 4 hours per year. The Commission 
estimates that the internal compliance cost for the transfer agent to 
comply with this third party disclosure requirement will be 
approximately $1,128 per year (4 hours x $283 per hour = $1,128). The 
total estimated internal cost of compliance associated with Rule 17Ad-
3(b) is thus approximately $1,128 per year. There are no external costs 
associated with sending the notice to issuer-clients.
    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: David Bottom, Director/
Chief Information Officer, Securities and

[[Page 55562]]

Exchange Commission, c/o Cynthia Roscoe, 100 F Street NE, Washington, 
DC 20549, or send an email to: [email protected].

    Dated: September 1, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-19722 Filed 9-4-20; 8:45 am]
BILLING CODE 8011-01-P