[Federal Register Volume 77, Number 202 (Thursday, October 18, 2012)]
[Notices]
[Pages 64150-64151]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-25602]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.
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'') 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 (``OMB'') for extension and approval.
Rule 17Ad-13 (17 CFR 240.17Ad-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
150 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.
[[Page 64151]]
Approximately 150 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 18,000 external hours annually (120 hours x 150 reports). The
burden was estimated using Commission review of filed Rule 17Ad-13
reports and Commission conversations with transfer agents and
accountants. 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 150
respondents is approximately $1,080,000.
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.
Written comments are invited on: (a) Whether this proposed
collection of information is necessary for the performance of the
functions of the agency, including whether the information will have
any practical utility; (b) the accuracy of the agency's estimate of the
burden imposed by the 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.
The Commission may not conduct or sponsor a collection of
information unless it displays a currently valid OMB control number. No
person shall be subject to any penalty for failing to comply with a
collection of information subject to the PRA that does not display a
valid OMB control number.
Please direct your written comments to Thomas Bayer, Director/Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 6432 General Green Way, Alexandria, Virginia 22312; or
send an email to: PRA Mail [email protected].
Dated: October 12, 2012.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-25602 Filed 10-17-12; 8:45 am]
BILLING CODE 8011-01-P