Amendments Regarding Obligation to Search for Lost Securityholders; Paying Agents’ Obligation to Search for Missing Securityholders

SEC Release No. 34-64099

March 18, 2011

The SEC published a proposal to revise Exchange Act Rule 17Ad-17 to (i) extend to brokers and dealers the rule's requirements to search for lost securityholders; (ii) add a requirement that "paying agents" notify missing security holders in writing that the paying agent has sent the missing holder a check that has not yet been negotiated; (iii) add an exclusion for paying agents from notification requirements when the value is less than $25; and (iv) add a provision clarifying that the written notification requirements have no effect on State escheatment laws. The proposal is a result of § 929W of the Dodd-Frank Act, which amended Exchange Act § 17A to direct the SEC to revise Rule 17Ad-17. Comments on this proposal are due to the SEC within 45 days of the proposal's publication in the Federal Register.

Cross References

Dodd-Frank § 929W

Exchange Act § 17A

Exchange Act Rule 17Ad-17