83 FR 57762 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 222 (November 16, 2018)

[Federal Register Volume 83, Number 222 (Friday, November 16, 2018)]
[Notices]
[Page 57762]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-25048]


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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 FOIA Services, 100 F Street NE, Washington, DC 
20549-2736

Extension:
    Rule 17Ad-13 SEC File No. 270-263; OMB Control No. 3235-0275

    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-13 (17 CFR 240.17Ad-13), under the Securities Exchange Act of 1934 
(15 U.S.C. 78a et seq.).
    Rule 17Ad-13 requires an annual study and evaluation of internal 
accounting controls under the Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.). It requires approximately 100 registered transfer 
agents to obtain an annual report on the adequacy of their internal 
accounting controls from an independent accountant. In addition, 
transfer agents must maintain copies of any reports prepared pursuant 
to Rule 17Ad-13 plus any documents prepared to notify the Commission 
and appropriate regulatory agencies in the event that the transfer 
agent is required to take any corrective action. These recordkeeping 
requirements assist the Commission and other regulatory agencies with 
monitoring transfer agents and ensuring compliance with the rule. Small 
transfer agents are exempt from Rule 17Ad-13 as are transfer agents 
that service only their own companies' securities.
    Approximately 100 independent, professional transfer agents must 
file the independent accountant's report annually. We estimate that the 
annual internal time burden for each transfer agent to comply with Rule 
17Ad-13 by submitting the report prepared by the independent accountant 
to the Commission is minimal. The time required for the independent 
accountant to prepare the accountant's report varies with each transfer 
agent depending on the size and nature of the transfer agent's 
operations. The Commission estimates that, on average, each report can 
be completed by the independent accountant in 120 hours, resulting in a 
total of 12,000 external hours annually (120 hours x 100 reports). The 
burden was estimated using Commission review of filed Rule 17Ad-13 
reports. The Commission estimates that, on average, 120 hours are 
needed to perform the study, prepare the report, and retain the 
required records on an annual basis. Assuming an average hourly rate of 
an independent accountant of $60, the average total annual cost of the 
report is $7,200. The total annual cost for the approximate 100 
respondents is approximately $720,000.
    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 Rule 17Ad-13 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. 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: 
[email protected]; and (ii) Charles Riddle, Acting Director/
Chief Information Officer, Securities and Exchange Commission, c/o 
Candace Kenner, 100 F Street NE, Washington, DC 20549, or by sending an 
email to [email protected]. Comments must be submitted to OMB within 
30 days of this notice.

    Dated: November 13, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-25048 Filed 11-15-18; 8:45 am]
 BILLING CODE 8011-01-P