SEC proposes updates to transfer agent rules and forms
The SEC said the proposal would modernize transfer agent rules that have not been substantially updated for decades and would keep pace with electronic recordkeeping, communications and blockchain-related uses.
The Securities and Exchange Commission said on Sept. 1 that it proposed updates to the rules and forms governing registered transfer agents.
The agency said the changes are intended to reflect current technology and market practices. It said transfer agents remain a key part of the national clearance and settlement system, but now perform a broader range of functions than the current rules address.
The SEC said its transfer agent rules have not been substantively updated since the late 1970s and early 1980s.
SEC Chairman Paul S. Atkins said the proposal would streamline and modernize the commission’s rules to reflect current processes and operations, including electronic communications and blockchain technology in connection with securities offerings and the transfer of shares.
Jamie Selway, director of the SEC’s Division of Trading and Markets, said changing technology and competition require regulators to revisit legacy rules. He said the proposal is another step in Atkins’ efforts to advance the regulatory framework for the modern era.
The SEC said the draft reflects the widespread use of electronic recordkeeping and communications, as well as services transfer agents provide to issuers, investors and other market intermediaries. It would amend existing rules and forms, rescind one rule and introduce new rules for registered transfer agents and their activities.
The proposing release is posted on SEC.gov and will also be published in the Federal Register. The public comment period will remain open for 60 days after Federal Register publication.
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