SEC Extends Stock Transfer Agents’ Two-Month Performance Warning Paperwork Rule
Published Date: 10/23/2026
Notice
Summary
The SEC is asking to extend the paperwork rules for transfer agents who handle stock records. These agents must keep issuers informed if they don’t meet performance standards for two months in a row. This keeps investors safe without adding new costs or deadlines.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Estimated annual time and cost for transfer agents
The Commission estimates that each year approximately one registered transfer agent will send one notice to issuer-clients under Rule 17Ad-3(b), requiring about 4 hours of staff time and an estimated internal labor cost of approximately $1,320 per year (4 hours × $330 per hour for Accountants and Auditors).
Transfer agents must notify issuers after two poor months
If a registered transfer agent fails to turnaround at least 75% of routine items under Rule 17Ad-2(a) or to process at least 75% of all items under Rule 17Ad-2(b) for two consecutive months, the transfer agent must send a copy of the required written notice to the chief executive officer of each issuer it services within twenty business days after the close of the second month.
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