

[Federal Register: March 19, 2007 (Volume 72, Number 52)]
[Notices]               
[Page 12850]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19mr07-107]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Submission for OMB Review; Comment Request

Upon written request copies available from: Securities and Exchange 
Commission, Office of Filing and Information Services, Washington, DC 
20549.

Extension: Rule 17Ad-10, SEC File No. 270-265, OMB Control No. 3235-
0273.

    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'') has submitted to the Office of Management 
and Budget a request for extension of the previously approved 
collection of information discussed below.

 Rule 17Ad-10: Prompt posting of certificate detail to master 
securityholder files, maintenance of accurate securityholder files, 
communications between co-transfer agents and recordkeeping transfer 
agents, maintenance of current control book, retention of certificate 
detail and ``buy-in'' of physical over-issuance

    Rule 17Ad-10 (17 CFR 240.17Ad-10), under the Securities Exchange 
Act of 1934 (15 U.S.C. 78a et seq.), requires a registered transfer 
agent to create and maintain minimum information on securityholders' 
ownership of an issue of securities for which it performs transfer 
agent functions, including the purchase, transfer and redemptions of 
securities. In addition, the rule also requires transfer agents that 
maintain securityholder records to keep certificate detail that has 
been cancelled from those records for a minimum of six years and to 
maintain and keep current an accurate record of the number of shares or 
principle dollar amount of debt securities that the issuer has 
authorized to be outstanding (a ``control book''). These recordkeeping 
requirements assist in the creation and maintenance of accurate 
securityholder records, the ability to research errors, and ensure the 
transfer agent is aware of the number of securities that are properly 
authorized by the issuer, thereby avoiding overissuance.
    There are approximately 760 registered transfer agents. The staff 
estimates that the average number of hours necessary for each transfer 
agent to comply with Rule 17Ad-10 is approximately 20 hours per year, 
totalling 15,200 hours industry-wide. The average cost is approximately 
$50 per hour, with the industry-wide cost estimated at approximately 
$760,000. However, the information required by Rule 17Ad-10 generally 
already is maintained by registered transfer agents. The amount of time 
devoted to compliance with Rule 17Ad-10 varies according to differences 
in business activity.
    The retention period for the recordkeeping requirements under Rule 
17Ad-10 is six years for certificate detail that has been cancelled and 
to maintain and keep current an accurate record of the number of shares 
or principle dollar amount of debt securities that the issuer has 
authorized to be outstanding. The recordkeeping requirement under Rule 
17Ad-10 is mandatory to ensure accurate securityholder records and 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. Persons should 
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.
    General comments regarding the estimated burden hours should be 
directed to the following persons: (i) Desk Officer for the Securities 
and Exchange Commission, Office of Information and Regulatory Affairs, 
Office of Management and Budget, Room 10102, New Executive Office 
Building, Washington, DC 20503 or by sending an e-mail to: 
David_Rostker@omb.eop.gov; and (ii) R. Corey Booth, Director/Chief 

Information Officer, Securities and Exchange Commission, C/O Shirley 
Martinson, 6432 General Green Way, Alexandria, VA 22312 or by sending 
an e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB 
within 30 days of this notice.

    Dated: March 7, 2007.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E7-4897 Filed 3-16-07; 8:45 am]

BILLING CODE 8010-01-P
