[Federal Register Volume 88, Number 145 (Monday, July 31, 2023)]
[Notices]
[Pages 49521-49522]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-16099]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-424, OMB Control No. 3235-0473]
Proposed Collection; Comment Request; Extension: Rule 17Ad-3(b)
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services,
[[Page 49522]]
100 F Street NE, Washington, DC 20549-2736
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 by
September 29, 2023.
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 Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to:
[email protected].
Dated: July 25, 2023.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2023-16099 Filed 7-28-23; 8:45 am]
BILLING CODE 8011-01-P