59766 Federal Register / Vol. 65, No. 195 / Friday, October 6, 2000 / Proposed Rules

1 In a separate release, we have proposed to allow

registered transfer agents to use electronic media

and microfiche for recordkeeping purposes. By

providing more flexibility for the storage of

cancelled certificates, transfer agents could destroy

certificates at the time they are cancelled thereby

FEDERAL TRADE COMMISSION

16 CFR Part 313

Privacy of Customer Financial

Information—Security

AGENCY: Federal Trade Commission.

ACTION: Notice of extension of comment

period.

SUMMARY: The Federal Trade

Commission (‘‘Commission’’ or ‘‘FTC’’)

has extended the time for submitting

comments on developing the

information safeguards rule that the

Commission must issue under section

501(b) of the Gramm-Leach-Bliley Act

(the ‘‘G–L–B Act’’ or ‘‘Act’’).

DATES: Comments must be received on

or before October 24, 2000.

ADDRESSES: Written comments should

be addressed to: Secretary, Federal

Trade Commission, Room H–159, 600

Pennsylvania Avenue, NW.,

Washington, DC 20580. The

Commission requests that commenters

submit the original plus five copies, if

feasible. Comments should also be

submitted, if possible, in electronic

form, on either a 51⁄4 or a 31⁄2 computer

disk, with a disk label stating the name

of the commenter and the name version

of the word processing program used to

create the document. (Programs based

on DOS or Windows are preferred. Files

from other operating systems should be

submitted in ASCII format.)

Alternatively, the Commission will

accept comments submitted to the

following e-mail address:

GLB501Rule@ftc.gov. Those commenters

submitting comments by e-mail are

advised to confirm receipt by consulting

the postings on the Commission’s

website at www.ftc.gov. In addition,

commenters submitting comments by email are requested to indicate whether

they are also providing their comments

in other formats. Individuals needs not

submit multiple copies or comments in

electronic form. All submissions should

be captioned ‘‘G–L–B Act Privacy

Safeguards Rule Comment.’’

FOR FURTHER INFORMATION CONTACT:

Laura Berger, Attorney, Division of

Financial Practices, Federal Trade

Commission, Washington, DC 20580,

202–326–3224.

SUPPLEMENTARY INFORMATION: On

September 7, 2000, the FTC sought

comment on developing the rule that

Section 501(b) of the G–L–B Act

requires it to establish for financial

institutions subject to its jurisdiction.

The Rule will establish standards

pertaining to administrative, technical,

and physical safeguards for nonpublic

customer records and information.

(‘‘Safeguard Rule’’). 65 FR 54186. As

required by the G–L–B Act, the

Safeguards Rule will seek to bolster the

security and confidentiality of customer

records and information, to protect

against any anticipated threats or

hazards to their security or integrity,

and to protect against unauthorized

access to or use of such records or

information which could result in

substantial harm or inconvenience to

any customer. The comment period is

currently scheduled to close on October

10, 2000.

The National Association for

Attorneys General has asked that the

comment period be extended to enable

the Association to consult its members

and complete a comment on the

Safeguards Rule. The Commission is

mindful of the need to develop a

proposed Safeguards Rule

expeditiously. However, the

Commission also is aware that the

issues raised are complex and believes

that the additional comments that may

result justify a short extension of the

comment period.

Accordingly, the Commission has

decided to extend the comment period

to October 24, 2000.

By Direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 00–25660 Filed 10–5–00; 8:45 am]

BILLING CODE 6750–01–M

SECURITIES AND EXCHANGE

COMMISSION

17 CFR Part 240

[Release No. 34–43401; File No. S7–18–00]

RIN 3235–AH94

Processing Requirements for

Cancelled Security Certificates

AGENCY: Securities and Exchange

Commission.

ACTION: Proposed rulemaking.

SUMMARY: The Commission is

publishing for comment proposed rules

to improve the processing of securities

certificates by transfer agents. Proposed

Rule 17Ad–19 under the Securities

Exchange Act of 1934 would require

every transfer agent to establish and

implement written procedures for the

cancellation, storage, transportation,

and destruction of securities certificates.

The rule would also require transfer

agents to: Mark each cancelled

securities certificate with the word

‘‘cancelled’’; maintain a secure storage

area for cancelled certificates; have

specific procedures for the destruction

of cancelled certificates, and maintain

an electronic database of all of its

cancelled certificates. Additionally, the

Commission proposes to codify that

Rules 17f–1 (the lost and stolen

securities rule) and 17Ad–12 (the

transfer agent safekeeping rule) apply to

cancelled certificates.

DATES: Comments should be received on

or before December 5, 2000.

ADDRESSES: Comments should be

submitted in triplicate to Jonathan G.

Katz, Secretary, Securities and Exchange

Commission, 450 Fifth Street, NW.,

Washington, DC 20549–0609. Comment

letters should refer to File No. S7–18–

00. All comment letters received will be

made available for public inspection

and copying in the Commission’s Public

Reference Room, 450 Fifth Street, NW.,

Washington, DC 20549–0102.

Comments also may be submitted

electronically at the following E-mail

address: rule_comments@sec.gov. All

comment letters should refer to File

Number S7–18–00, this file number

should be included on the subject line

if E-mail is used. Comment letters will

be available for inspection and copying

in the public reference room at the same

address. Electronically submitted

comment letters will be posted on the

Commission’s Internet web site (http://

www.sec.gov).

FOR FURTHER INFORMATION CONTACT: Jerry

W. Carpenter, Assistant Director, or

Thomas C. Etter, Jr., Special Counsel, at

(202) 942–4187, Division of Market

Regulation, Securities and Exchange

Commission, 450 Fifth Street, NW.,

Washington, DC 20549–1001.

SUPPLEMENTARY INFORMATION

I. Introduction

In this release, we propose rules to

require transfer agents to establish

written procedures for the cancellation,

storage, transportation, and destruction

of securities certificates. Additionally,

we propose to require the tracking of

securities in transit between reporting

institutions; to set a time frame for

making inquiries about possible lost,

stolen, missing, or counterfeit securities

certificates; and to define related terms

in the transfer agent rules. The

amendments would clarify that

cancelled certificates fall within the

Commission’s Lost and Stolen

Securities Program and that they must

be safeguarded.1