81 FR 26298 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 84 (May 2, 2016)

Page Range		26298-26298
FR Document		2016-10108
Federal Register, Volume 81 Issue 84 (Monday, May 2, 2016)
[Federal Register Volume 81, Number 84 (Monday, May 2, 2016)]
[Notices]
[Page 26298]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-10108]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 
20549-0213

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 (``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-10, (17 CFR 
240.17Ad-10), 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-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 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 413 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 33,040 hours (413 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 $1,652,000 per year (33,040 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 $7,434,000 ($18,000 times 413). 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.
    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: Pamela Dyson, Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or send an email 
to: [email protected].

    Dated: April 26, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-10108 Filed 4-29-16; 8:45 am]
 BILLING CODE 8011-01-P
26298 Federal Register / Vol. 81, No. 84 / Monday, May 2, 2016 / Notices

Number SR–Phlx–2016–53 on the Extension: Rule 17Ad-10 and SEC reporting burdens. At an
subject line. SEC File No. 270–265, OMB Control No. average staff cost of $50 per hour, the
3235–0273 industry-wide internal labor cost of
Paper Comments
Notice is hereby given that pursuant compliance (a monetization of the
• Send paper comments in triplicate to the Paperwork Reduction Act of 1995 burden hours) is approximately
to Secretary, Securities and Exchange (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the $1,652,000 per year (33,040 × $50). In
Commission, 100 F Street NE., Securities and Exchange Commission addition, we estimate that each transfer
Washington, DC 20549–1090. (‘‘Commission’’) is soliciting comments agent will incur an annual external cost
All submissions should refer to File on the existing collection of information burden of $18,000 resulting from the
Number SR–Phlx–2016–53. This file provided for in Rule 17Ad–10, (17 CFR collection of information. Therefore, the
number should be included on the 240.17Ad–10), under the Securities total annual external cost on the entire
subject line if email is used. To help the Exchange Act of 1934 (15 U.S.C. 78a et transfer agent industry is approximately
Commission process and review your seq.). The Commission plans to submit $7,434,000 ($18,000 times 413). This
comments more efficiently, please use this existing collection of information to cost primarily reflects ongoing computer
only one method. The Commission will the Office of Management and Budget operations and maintenance associated
post all comments on the Commission’s (‘‘OMB’’) for extension and approval. with generating, maintaining, and
Internet Web site (http://www.sec.gov/ Rule 17Ad–10 generally requires disclosing or providing certain
rules/sro.shtml). Copies of the registered transfer agents to: (1) Create information required by the rule.
submission, all subsequent and maintain current and accurate
securityholder records; (2) promptly and The amount of time any particular
amendments, all written statements
with respect to the proposed rule accurately record all transfers, transfer agent will devote to Rule 17Ad–
change that are filed with the purchases, redemptions, and issuances, 10 compliance will vary according to
Commission, and all written and notify their appropriate regulatory the size and scope of the transfer agent’s
communications relating to the agency if they are unable to do so; (3) business activity. We note, however,
proposed rule change between the exercise diligent and continuous that at least some of the records,
Commission and any person, other than attention in resolving record processes, and communications
those that may be withheld from the inaccuracies; (4) disclose to the issuers required by Rule 17Ad–10 would likely
public in accordance with the for whom they perform transfer agent be maintained, generated, and used for
provisions of 5 U.S.C. 552, will be functions and to their appropriate transfer agent business purposes even
available for Web site viewing and regulatory agency information regarding without the rule.
printing in the Commission’s Public record inaccuracies; (5) buy-in certain Written comments are invited on: (a)
Reference Room, 100 F Street NE., record inaccuracies that result in a Whether the proposed collection of
Washington, DC 20549, on official physical over issuance of securities; and information is necessary for the proper
business days between the hours of (6) communicate with other transfer performance of the functions of the
10:00 a.m. and 3:00 p.m. Copies of the agents related to the same issuer. These Commission, including whether the
filing also will be available for requirements assist in the creation and information shall have practical utility;
inspection and copying at the principal maintenance of accurate securityholder (b) the accuracy of the Commission’s
office of the Exchange. All comments records, enhance the ability to research estimates of the burden of the proposed
received will be posted without change; errors, and ensure the transfer agent is collection of information; (c) ways to
the Commission does not edit personal aware of the number of securities that enhance the quality, utility, and clarity
identifying information from are properly authorized by the issuer, of the information collected; and (d)
submissions. You should submit only thereby avoiding over issuance. ways to minimize the burden of the
information that you wish to make The rule also has specific collection of information on
available publicly. All submissions recordkeeping requirements. It requires respondents, including through the use
should refer to File Number SR–Phlx– registered transfer agents to retain of automated collection techniques or
2016–53 and should be submitted on or certificate detail that has been deleted other forms of information technology.
before May 23, 2016. for six years and keep current an Consideration will be given to
accurate record of the number of shares comments and suggestions submitted in
For the Commission, by the Division of or principal dollar amount of debt
Trading and Markets, pursuant to delegated writing within 60 days of this
authority.7
securities that the issuer has authorized publication.
to be outstanding. These mandatory
Robert W. Errett, An agency may not conduct or
requirements ensure accurate
Deputy Secretary. securityholder records and assist the sponsor, and a person is not required to
[FR Doc. 2016–10148 Filed 4–29–16; 8:45 am] Commission and other regulatory respond to, a collection of information
BILLING CODE 8011–01–P agencies with monitoring transfer agents under the PRA unless it displays a
and ensuring compliance with the rule. currently valid OMB control number.
This rule does not involve the collection Please direct your written comments
SECURITIES AND EXCHANGE of confidential information. to: Pamela Dyson, Director/Chief
COMMISSION There are approximately 413 Information Officer, Securities and
registered transfer agents. We estimate Exchange Commission, c/o Remi Pavlik-
Proposed Collection; Comment
that the average number of hours Simon, 100 F Street NE., Washington,
Request
necessary for each transfer agent to DC 20549, or send an email to: PRA_
srobinson on DSK5SPTVN1PROD with NOTICES

Upon Written Request, Copies Available comply with Rule 17Ad–10 is Mailbox@sec.gov.
From: Securities and Exchange approximately 80 hours per year, which Dated: April 26, 2016.
Commission, Office of FOIA Services, generates an industry-wide annual
burden of 33,040 hours (413 times 80 Robert W. Errett,
100 F Street NE., Washington, DC
20549–0213 hours). This burden is of a Deputy Secretary.
recordkeeping nature but also includes [FR Doc. 2016–10108 Filed 4–29–16; 8:45 am]
7 17 CFR 200.30–3(a)(12). a small amount of third party disclosure BILLING CODE 8011–01–P

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Document Created: 2016-04-30 13:35:42
Document Modified: 2016-04-30 13:35:42
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		81 FR 26298