[Federal Register Volume 62, Number 153 (Friday, August 8, 1997)]
[Notices]
[Page 42846]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-20912]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Filings and Information Services, Washington, DC 
20549

Extension:
    Rule 17Ad-11, SEC File No. 270-261, OMB Control No. 3235-0274
    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.), the Securities and Exchange 
Commission (``Commission'') is soliciting comments on the collection of 
information summarized below. The Commission plans to submit this 
existing collection of information to the Office of Management and 
Budget for extension and approval.
    Rule 17Ad-11 requires transfer agents to report to issuers and the 
appropriate regulatory agency in the event that aged record differences 
exceed certain dollar value thresholds. An aged record difference 
occurs when an issuer's records do not agree with those of 
securityowners as indicated, for instance, on certificates presented to 
the transfer agent for purchase, redemption or transfer. In addition, 
the rule requires transfer agents to report to the appropriate 
regulatory agency in the event of a failure to post certificate detail 
to the master securityholder file within 5 business days of the time 
required by Rule 17Ad-10. Also, transfer agents must maintain a copy of 
each report prepared under Rule 17Ad-11 for a period of three years 
following the date of the report. These recordkeeping requirements 
assist the Commission and other regulatory agencies with monitoring 
transfer agents and ensuring compliance with the rule.
    Because the information required by Rule 17Ad-11 is already 
available to transfer agents, any collection burden for small transfer 
agents is minimal. The staff estimates 150 registered transfer agents 
take approximately one hour annually to comply with Rule 17Ad-11. 
Therefore, the total burden is 150 hours annually for transfer agents, 
based upon past submissions. The average cost per hour is approximately 
$30. Therefore, the total cost of compliance for transfer agents is 
$4,500.
    Rule 17Ad-13 requires approximately 200 registered transfer agents 
to obtain an annual report on the adequacy of internal accounting 
controls. 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.
    The staff estimates 200 registered transfer agents take 
approximately 175 hours annually to comply with Rule 17Ad-13. 
Therefore, the total annual burden is 35,000 hours for transfer agents, 
based upon past submissions. The average cost per hour is approximately 
$60. Therefore, the total cost of compliance for transfer agents is 
$1,300,000.
    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; (b) the accuracy of the agency's estimates of 
the burden of the proposed collection of information; (c) ways to 
enhance the quality, utility, and clarity of the information to be 
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.
    Please direct your written comments to Michael E. Bartell, 
Associate Executive Director, Office of Information Technology, 
Securities and Exchange Commission, 450 5th Street, N.W., Washington, 
DC 20549.

    Dated: August 1, 1997.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-20912 Filed 8-7-97; 8:45 am]
BILLING CODE 8010-01-M