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Lost Securityholders and Unresponsive Payees

SEC · final-rule · Published 2013-01-23 · Effective 2013-03-25 · 78 FR 4768

Document

Document number
2013-01269
Federal Register citation
78 FR 4768
CFR reference
17 CFR 240
Type
Rule
Action
Final rule.
Category
final-rule
Agency
US Securities and Exchange Commission
Publication date
2013-01-23
Effective date
2013-03-25
Docket
Release No. 34-68668

Abstract

The Securities and Exchange Commission ("Commission") is adopting amendments to Rule 17Ad-17 to implement the requirements of Section 929W of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act"). That Section added to Section 17A of the Securities Exchange Act of 1934 ("Exchange Act") subsection (g), "Due Diligence for the Delivery of Dividends, Interest, and Other Valuable Property Rights," which directs the Commission to revise Exchange Act Rule 17Ad-17, "Transfer Agents' Obligation to Search for Lost Securityholders" to: extend the requirements of Rule 17Ad-17 to search for lost securityholders from only recordkeeping transfer agents to brokers and dealers as well; add a requirement that "paying agents" notify "unresponsive payees" that a paying agent has sent a securityholder a check that has not yet been negotiated; and add certain other provisions. The Commission also is adopting a proposed conforming amendment to Rule 17Ad-7(i) and new Rule 15b1-6, a technical rule to help ensure that brokers and dealers have notice of their new obligations with respect to lost securityholders and unresponsive payees.

Source

Authoritative
Federal Register document
Machine
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