SEC Proposes Updated Rules for Registered Transfer Agents

The Securities and Exchange Commission today issued a proposal to modernize the rules and forms that apply to registered transfer agents. The agency notes that the existing transfer agent rules have not been substantively updated since the first rules were adopted in the late 1970s and early 1980s, despite the expanded functions these agents now perform.

The proposed rulemaking would amend existing rules and forms, rescind a rule, and introduce new rules that reflect the technological environment in which transfer agents operate. Specifically, the proposal addresses the widespread use of electronic recordkeeping and communications, as well as emerging applications of blockchain technology in securities offerings and share transfers.

"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," said SEC Chairman Paul S. Atkins. "As technology changes and the competitive marketplace evolves, good government requires revisiting legacy rules and regulations," added Jamie Selway, Director of the SEC's Division of Trading and Markets.

The proposing release is available on SEC.gov and will be published in the Federal Register. The public comment period will remain open for 60 days after the date of publication in the Federal Register, allowing market participants and other stakeholders to provide input on the modernization effort.

The SEC emphasizes that the updated framework is intended to continue facilitating the safe and efficient functioning of the U.S. securities markets and the national clearance and settlement system while accommodating contemporary technological practices.