83 FR 53692 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 206 (October 24, 2018)

[Federal Register Volume 83, Number 206 (Wednesday, October 24, 2018)]
[Notices]
[Page 53692]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-23211]


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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 
20549-2736

Extension:
    Rule 17Ad-11, SEC File No. 270-261, OMB Control No. 3235-0274

    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-11 (17 CFR 
240.17Ad-11), 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-11 requires every registered recordkeeping transfer agent 
to report to issuers and its appropriate regulatory agency in the event 
that the aggregate market value of an aged record difference exceeds 
certain thresholds. A record difference occurs when an issuer's records 
do not agree with those of securityholders as indicated, for instance, 
on certificates presented to the transfer agent for purchase, 
redemption or transfer. An aged record difference is a record 
difference that has existed for more than 30 calendar days. In 
addition, the rule requires every recordkeeping transfer agent to 
report to its appropriate regulatory agency in the event of a failure 
to post certificate detail to the master securityholder file within 
five business days of the time required by Rule 17Ad-10 (17 CFR 
240.17Ad-10). Also, a transfer agent must maintain a copy of any report 
required under Rule 17Ad-11 for a period of not less than three years 
following the date of the report, the first year in an easily 
accessible place.
    Because the information required by Rule 17Ad-11 is already 
available to transfer agents, any collection burden for small transfer 
agents is minimal. Based on a review of the number of Rule 17Ad-11 
reports the Commission, the Comptroller of the Currency, the Board of 
Governors of the Federal Reserve System, and the Federal Deposit 
Insurance Corporation received since 2012, the Commission staff 
estimates that 8 respondents will file a total of approximately 10 
reports annually. The Commission staff estimates that, on average, each 
report can be completed in 30 minutes. Therefore, the total annual 
hourly burden to the entire transfer agent industry is approximately 
five hours (30 minutes x 10 reports). Assuming an average hourly rate 
of $25 for a transfer agent staff employee, the average total internal 
cost of the report is $12.50. The total annual internal cost of 
compliance for the approximate 8 respondents is approximately $125.00 
(10 reports x $12.50).
    The retention period for the recordkeeping requirement under Rule 
17Ad-11 is three years following the date of a report prepared pursuant 
to the rule. The recordkeeping requirement under Rule 17Ad-11 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.
    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: Charles Riddle, Acting 
Director/Chief Information Officer, Securities and Exchange Commission, 
c/o Candace Kenner, 100 F Street NE, Washington, DC 20549, or send an 
email to: [email protected].

    Dated: October 19, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-23211 Filed 10-23-18; 8:45 am]
 BILLING CODE 8011-01-P