
[Federal Register Volume 78, Number 107 (Tuesday, June 4, 2013)]
[Notices]
[Pages 33452-33453]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-13126]


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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 Investor Education and Advocacy, Washington, DC 
20549-0213.

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.) (``PRA''), the Securities and Exchange 
Commission (``Commission'') has submitted to the Office of Management 
and Budget (``OMB'') a request for approval of extension of the 
previously approved collection of information provided for in Rule 
17Ad-10 (17 CFR 240.17Ad-10), under the Securities Exchange Act of 1934 
(15 U.S.C. 78a et seq.).
    Rule 17Ad-10 generally requires registered transfer agents to: (1) 
Create and maintain current and accurate securityholder records; (2) 
promptly and accurately record all transfers, purchases, redemptions, 
and issuances, and notify their appropriate regulatory agency if they 
are unable to do so; (3) exercise diligent and continuous attention in 
resolving record inaccuracies; (4) disclose to the issuers for whom 
they perform transfer agent functions and to their appropriate 
regulatory agency information regarding record inaccuracies; (5) buy-in 
certain record inaccuracies that result in a physical over issuance of 
securities; and (6) communicate with other transfer agents related to 
the same issuer. These requirements assist in the creation and 
maintenance of accurate securityholder records, enhance 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 over issuance.
    The rule also has specific recordkeeping requirements. It requires 
registered transfer agents to retain certificate detail that has been 
deleted for six years and keep current an accurate record of the number 
of shares or principal dollar amount of debt securities that the issuer 
has authorized

[[Page 33453]]

to be outstanding. These mandatory requirements ensure accurate 
securityholder records and 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.
    There are approximately 464 registered transfer agents. We estimate 
that the average number of hours necessary for each transfer agent to 
comply with Rule 17Ad-10 is approximately 80 hours per year, which 
generates an industry-wide annual burden of 37,120 hours (464 times 80 
hours). This burden is of a recordkeeping nature but also includes a 
small amount of third party disclosure and SEC reporting burdens. At an 
average staff cost of $50 per hour, the industry-wide internal labor 
cost of compliance (a monetization of the burden hours) is 
approximately $1,856,000 per year (37,120 x $50).
    In addition, we estimate that each transfer agent will incur an 
annual external cost burden of $18,000 resulting from the collection of 
information. Therefore, the total annual external cost on the entire 
transfer agent industry is approximately $8,352,000 ($18,000 times 
464). This cost primarily reflects ongoing computer operations and 
maintenance associated with generating, maintaining, and disclosing or 
providing certain information required by the rule.
    The amount of time any particular transfer agent will devote to 
Rule 17Ad-10 compliance will vary according to the size and scope of 
the transfer agent's business activity. We note, however, that at least 
some of the records, processes, and communications required by Rule 
17Ad-10 would likely be maintained, generated, and used for transfer 
agent business purposes even without the rule.
    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 OMB control number.
    The public may view background documentation for this information 
collection at the following Web site, www.reginfo.gov. Comments should 
be directed to: (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 email to: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas Bayer, Director/Chief Information 
Officer, Securities and Exchange Commission, c/o Remi
    Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312 or send 
an email to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB 
within 30 days of this notice.

    Dated: May 29, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-13126 Filed 6-3-13; 8:45 am]
BILLING CODE 8011-01-P


