The U.S. Securities and Exchange Commission is moving to overhaul rules governing transfer agents, bringing a decades-old framework in line with electronic records, blockchain technology and faster-moving securities markets.
The September 1 proposal would update rules and reporting forms for registered transfer agents, which maintain records of securities ownership and help ensure transactions are properly processed and settled.
SEC Targets Legacy Framework
The rules have not been substantively updated since the late 1970s and early 1980s, even as transfer agents have expanded the services they provide to companies, investors and other market participants.
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The SEC’s proposal would update the framework to reflect the growing use of electronic records and communications while accounting for blockchain technology in securities offerings and share transfers.
SEC Chairman Paul S. Atkins said the changes would streamline the rules to reflect how transfer agents operate and the technology they use.
Proposal Opens for Public Comment
The proposal would amend existing rules and forms, rescind one rule and introduce new requirements for registered transfer agents.
Jamie Selway, director of the SEC’s Division of Trading and Markets, said regulators need to revisit older rules as technology and markets evolve.
“Good government requires revisiting legacy rules and regulations,” Selway said.
Once published in the Federal Register, the proposal will be open to public comment for 60 days. Investors, companies and other market participants can submit comments during that period.
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