SEC Grants Conditional Regulatory Relief for Transfer Agents

The SEC granted conditional regulatory relief for registered transfer agents as a result of compliance challenges posed by COVID-19.

In its Order, the SEC provided relief in the form of a temporary exemption, subject to certain conditions, for registered transfer agents and other persons, from provisions of the Securities Exchange Act of 1934 concerning: (i) the clearance and settlement of securities transactions; and (ii) the safeguarding of securities and funds. The SEC noted that transfer agents who choose to use the relief must provide a notice to the SEC detailing: (i) which regulatory exemptions they are unable to comply with; and (ii) why they cannot meet the said requirements.

The Order is valid through May 30, 2020.