Financial Services Bulletin: Action At The SEC

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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