SEC Orders Firms to Track Down Missing Investors for Free
Published Date: 6/30/2025
Notice
Summary
The SEC wants to keep a rule that makes certain financial companies search for lost investors’ addresses and notify missing payees, all free of charge. About 3,500 companies spend lots of time and money—over 228,000 hours and $6.6 million yearly—doing these searches and keeping records for at least three years. The SEC is asking for public feedback before extending this rule to keep investors connected and protected.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Recordkeeping and Compliance Costs
Covered entities must keep records relating to the searches and notifications for not less than three years and comply with mandatory recordkeeping. The SEC estimates an aggregate annual burden of about 228,694 hours and aggregate annual costs of approximately $6,617,298, primarily payments to third-party database providers.
Free Searches for Lost Investors
The rule requires certain transfer agents and broker-dealers to run two address searches for lost securityholders using an information database at no charge to the lost securityholders. The Commission estimates the rule applies to about 489 broker-dealers and transfer agents and results in 183,813 hours per year for searches.
Paying Agents Must Notify Lost Payees
Paying agents are required to attempt to notify lost payees at least once, which the SEC estimates imposes about 38,913 hours annually for paying-agent notifications. This requires paying agents (including carrying firms, indenture trustees, and custodians) to make at least one notification attempt to missing payees.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-17183, Regulation Crypto Assets
The Securities and Exchange Commission ("Commission") is proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets. The proposed offering regime is intended to facilitate capital formation and accommodate innovation within the crypto asset markets while, at the same time, ensuring that investors are adequately protected and provided with the information they need to make informed investment decisions. The proposed rules would be set forth in a new regulation titled "Regulation Crypto Assets" and would include two exemptions from the registration requirements of section 5 of the Securities Act of 1933. The first exemption would permit offerings of up to $5 million during a four-year period. The second exemption would permit offerings of up to $75 million during each 12-month period. Under both exemptions, issuers would be required to make certain principles-based narrative disclosures available to their investors. In addition, issuers under the second exemption would be required to provide financial statements and would be subject to ongoing reporting requirements. Issuers that rely on these exemptions would remain subject to the antifraud and antimanipulation provisions of the Federal securities laws. The proposed rules also would include a conditional safe harbor from the term "investment contract" in the definitions of "security" in the Securities Act of 1933 and the Securities Exchange Act of 1934. If the conditions of that proposed safe harbor are satisfied, then a crypto asset would be deemed not to be subject to an investment contract for purposes of those definitions of "security."
2026-12163, The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
2026-10373, Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222, Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651, Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-17058, Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Connectivity Schedule and Discontinue a Previously Proposed Offering
Previous / Next Documents
Previous: 2025-12007, Proposed Collection; Comment Request; Extension: Rule 701, Exemption for Offers and Sales of Securities Pursuant To Certain Compensatory Benefit Plans and Contracts Relating to Compensation
The SEC wants to keep Rule 701 going, which helps companies give stock or options to employees without lots of paperwork. About 3,700 companies use this rule, spending time and money to follow it, mostly on outside experts. The SEC is asking for your thoughts on how this rule works and its costs before they decide to extend it.
Next: 2025-12010, National Register of Historic Places; Notification of Pending Nominations and Related Actions
The National Park Service wants your thoughts on cool historic places nominated before June 7, 2025, to be officially recognized. If you care about history or local landmarks, now’s the time to speak up! This process helps protect special spots without costing you a dime.