[Federal Register Volume 86, Number 236 (Monday, December 13, 2021)]
[Notices]
[Pages 70878-70879]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26855]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-263, OMB Control No. 3235-0275]


Submission for OMB Review; 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-13

    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'') 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-13 (17 CFR 240.17Ad-13), under the Securities Exchange Act of 1934 
(15 U.S.C. 78a et seq.).
    Rule 17Ad-13 requires certain registered transfer agents to file 
annually with the Commission and the transfer agent's appropriate 
regulatory authority a report prepared by an independent accountant on 
the basis of a study and evaluation of the transfer agent's system of 
internal accounting controls for the transfer of record ownership and 
the safeguarding of related securities and funds. If the independent 
accountant's report specifies any material inadequacy in a transfer 
agent's system, the rule requires the transfer agent to notify the 
Commission and its appropriate regulatory agency in writing, within 
sixty calendar days after the transfer agent receives the independent 
accountant's report, of any corrective action taken or proposed to be 
taken by the transfer agent. In addition, Rule 17Ad-13 requires that 
transfer agents maintain the independent accountant's report and any 
other documents required by the rule for at least three years, the 
first year in an easily accessible place. These recordkeeping 
requirements assist the Commission and other regulatory agencies with 
monitoring transfer agents and ensuring compliance with the rule. Small 
transfer agents and transfer agents that service only their own 
companies' securities are exempt from Rule 17Ad-13.
    Approximately 100 professional independent transfer agents must 
file with the Commission one report prepared by an independent 
accountant pursuant to Rule 17Ad-13 each year. Commission staff 
estimates that, on average, the annual internal time burden for each 
transfer agent to submit the independent accountant's report to the 
Commission is minimal or zero. The time required for an independent 
accountant to conduct the study and evaluation of a transfer agent's 
system of internal accounting controls and complete the report varies 
depending on the size and nature of the transfer agent's operations. 
Commission staff estimates that, on average, each Rule 17Ad-13 report 
can be completed by the independent accountant in 120 hours. In light 
of Commission staff's review of previously filed Rule 17Ad-13 reports 
and Commission staff's conversations with transfer agents and 
accountants, Commission staff estimates that 120 hours are needed to 
perform the study and prepare the report on an annual basis. Commission 
staff estimates that the average hourly rate of an independent 
accountant is $260, resulting in a total annual external cost burden of 
$31,200 for each of the approximately 100 professional independent 
transfer agents. The aggregate total annual external cost for the 100 
respondents is approximately $3,120,000.

[[Page 70879]]

    The retention period for the recordkeeping requirement under Rule 
17Ad-13 is three years following the date of a report prepared pursuant 
to the rule. The recordkeeping requirement under this rule 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.
    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.
    The public may view background documentation for this information 
collection at the following website: www.reginfo.gov. Find this 
particular information collection by selecting ``Currently under 30-day 
Review--Open for Public Comments'' or by using the search function. 
Written comments and recommendations for the proposed information 
collection should be sent within 30 days of publication of this notice 
to (i) www.reginfo.gov/public/do/PRAMain and (ii) David Bottom, 
Director/Chief Information Officer, Securities and Exchange Commission, 
c/o John R. Pezzullo, 100 F Street NE, Washington, DC 20549, or by 
sending an email to: [email protected].

    Dated: December 7, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-26855 Filed 12-10-21; 8:45 am]
BILLING CODE 8011-01-P


