The SEC Adopts Lost Securities Holder Rules
On Friday, December 21, 2012, the Securities and Exchange Commission (the "SEC") adopted amendments to Exchange Act Rule 17Ad-17 to implement the requirements of Section 929W of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 929W directed the SEC to revise existing regulations to (a) extend the requirements of Rule 17Ad-17 to search for lost security holders from only recordkeeping transfer agents to broker-dealers as well; (b) add a requirement that paying agents notify unresponsive payees that a paying agent has sent a security holder a check that has not yet been cashed; and (c) add certain other provisions. The SEC also adopted new Rule 15b1-6, a technical rule to help ensure that brokers-dealers have notice of their new obligations with respect to lost security holders and unresponsive payees.
Read the SEC press release