The Securities and Exchange Commission (SEC) is proposing to update the rules and forms that apply to registered transfer agents.
Transfer agents are a major part of the national clearance and settlement system. They now perform a more diverse array of functions and services than they have in the past. And these additional functions may not be adequately addressed by the commission’s transfer agent rules, which have not been substantively updated since they were adopted in the late 1970s and early 1980s.
This new proposal would modernize the federal transfer agent rules, while continuing to facilitate the safe and efficient functioning of the U.S. securities markets and the national clearance and settlement system.
“This proposal would streamline and modernize the Commission’s rules to reflect transfer agents’ current processes and operations, including the use of electronic communications and blockchain technology in connection with securities offerings and the transfer of shares,” SEC Chairman Paul Atkins said.
The updates reflect the technological environment in which transfer agents operate. This includes the widespread use of electronic recordkeeping and communications, and the services they provide to issuers, investors, and other market intermediaries.
Further, it would amend existing rules and forms and introduce new rules that apply to registered transfer agents and their activities.
“As technology changes and the competitive marketplace evolves, good government requires revisiting legacy rules and regulations,” Jamie Selway, director of the SEC’s Division of Trading and Markets, said. “This proposal is another important step in Chairman Atkins’ efforts to advance our regulatory framework for the modern era.”
The public comment period for this proposal will remain open for 60 days after the date it is published in the Federal Register.