The US Securities and Exchange Commission has proposed updating the rules and forms governing registered transfer agents to reflect advancements in technology and operational processes.
Updating Legacy Rules for U.S. Securities Infrastructure
Transfer agents perform key functions within the U.S. national clearance and settlement system. The regulatory framework governing these entities has not received substantive updates since the initial rules were adopted in the late 1970s and early 1980s.
The proposed updates aim to address changes in the marketplace, including the widespread adoption of electronic recordkeeping, electronic communications, and blockchain technology in connection with share transfers and securities offerings.
Under the SEC proposal, existing rules and forms would be amended, one rule would be rescinded, and new regulatory requirements would be introduced for registered transfer agents and their activities.
Public Comment and Publication
The SEC published the proposing release on its official website, with publication in the Federal Register to follow. Members of the public and market participants will have 60 days to submit feedback once the proposal is published in the Federal Register.
Frequently Asked Questions
What is the scope of the SEC proposal for transfer agents?
The SEC proposal updates existing rules and forms, rescinds one rule, and introduces new regulations to cover current operations, including electronic communications, electronic recordkeeping, and blockchain technology.
How long is the public comment period for the SEC transfer agent proposal?
The public comment period remains open for 60 days following the publication of the proposal in the Federal Register.
