Recordkeeping Requirements for Transfer Agents

The Securities and Exchange Commission ("Commission") is amending its transfer agent record retention rule, Rule 17Ad-7, under the Securities Exchange Act of 1934 ("Act"). The amendments will allow registered transfer agents to use electronic, microfilm, and microfiche records maintenance systems to preserve records that they are required to retain under Rule 17Ad-6. The new requirements apply only to those registered transfer agents that elect to store their records using these methods. The amendments are designed to increase the flexibility and efficiency of transfer agent recordkeeping. The amendments adopted today are consistent with the requirements of the Electronic Signatures and Global and National Commerce Act of 2000 ("ESIGN").