SEC Issues No-Action Relief to Canadian Stock Transfer Company Inc.
The SEC issued no-action relief to Canadian Stock Transfer Company Inc. ("CST") and its affiliate, CST Trust Company, from Exchange Act Section 15(a)(1) ("Registration and Regulation of Brokers and Dealers") if CST Trust engages in a limited business as a securities broker. The relief is subject to the same conditions set forth in an exemptive order granted to CIBC Mellon Trust Company on June 18, 2009. The requested relief was intended to allow CST to continue to operate CIBC Mellon Trust Company's former transfer agency business. CST stated that the no-action relief would help CST Stock Plan investors and issuers to avert negative consequences.
Specifically, CST requested that the SEC not take enforcement action against CST or CST Trust: (i) if CST Trust acts as a broker as defined in Exchange Act Section 3(a)(4) in connection with its administration of certain dividend reinvestment and stock purchase plans, employee stock option plans, and odd-lot programs with U.S. resident investors, and (ii) with respect to the reporting and other requirements specifically imposed by the Exchange Act, and the rules and regulations thereunder, on a broker or dealer that is not registered with the SEC to the extent permitted in the CIBC Mellon Order. CST also requested permanent exemption pertaining to these activities.
The SEC stated that to provide the staff with additional time to consider CST's application for permanent exemption, the no-action relief is granted. The relief will expire at the earliest of March 4, 2015, or the date of denial or grant of the permanent exemption or modification or revocation of the no-action relief.