Securities and Exchange Commission March 25, 2011 – Federal Register Recent Federal Regulation Documents

Order Cancelling Registrations of Certain Transfer Agents
Document Number: 2011-7100
Type: Notice
Date: 2011-03-25
Agency: Securities and Exchange Commission, Agencies and Commissions
Rule 17Ad-17; Transfer Agents', Brokers', and Dealers' Obligation To Search for Lost Securityholders; Paying Agents' Obligation To Search for Missing Securityholders
Document Number: 2011-6940
Type: Proposed Rule
Date: 2011-03-25
Agency: Securities and Exchange Commission, Agencies and Commissions
The Dodd-Frank Wall Street Reform and Consumer Protection Act (``Dodd-Frank Act'') amended the Securities Exchange Act of 1934 (``Exchange Act'') by adding a subsection entitled, ``Due Diligence for the Delivery of Dividends, Interest, and Other Valuable Property Rights.'' The amendment directs the Securities and Exchange Commission (``Commission'') to revise Exchange Act Rule 17Ad-17, ``Transfer Agents' Obligation to Search for Lost Securityholders'' to: extend to brokers and dealers the requirement of Rule 17Ad-17 to search for lost securityholders; add to Rule 17Ad-17 a requirement that ``paying agents'' notify ``missing security holders'' in writing that the paying agent has sent the missing security holder a check that has not yet been negotiated; add to Rule 17Ad-17 an exclusion for paying agents from the notification requirements when the value of the not yet negotiated check is less than $25; and add to Rule 17Ad-17 a provision clarifying that the written notification requirements shall have no effect on State escheatment laws. The amendment also requires the Commission to ``adopt such rules, regulations, and orders necessary to implement this subsection no later than 1 year after the date of enactment of this subsection.'' The Commission is publishing for comment proposed amendments to Rule 17Ad-17 to implement the statutory requirements.