The Securities and Exchange Commission (SEC) is seeking public comments on the renewal of a rule under the Paperwork Reduction Act of 1995. This rule, Rule 17Ad-16, requires registered transfer agents to notify securities depositories when they begin or end services for a company or change their contact information. The SEC estimates that this process involves around 16,412 notices each year, taking about 15 minutes per notice, and costing the industry a total of approximately $1.58 million annually. Comments on whether this information collection is necessary, accurate, or could be improved are requested by May 5, 2025.
Simple Explanation
The SEC wants to know what people think about a rule that helps keep track of who manages company stocks. This rule asks helpers (called transfer agents) to tell big banks when they start or stop helping a company or if they change their contact info, and they want ideas on how to make it better.