What Is Form TA-1?
SEC Form TA-1 is a type used to officially apply for or amend registration as a transfer agent.
A transfer agent is a consider company, monetary establishment, or similar financial status quo assigned by way of a company for the desires of maintaining all of its shareholders’ financial data and tracking each investor’s stock balance.
Key Takeaways
- SEC Form TA-1 is to be used to test in or amend registration as a transfer agent with the federal financial regulators.
- The form is wanted of transfer agents pursuant to Phase 17A(c) of the Securities Business Act of 1934.
- A transfer agent is a financial corporate charged with maintaining data and accounting for a public company’s shareholder accounts.
Understanding SEC Form TA-1
SEC Form TA-1 is used to apply for registration as a transfer agent. Depending on the type of staff applying, a SEC form TA-1 is submitted to thought to be one among 4 regulatory firms. Those firms include:
- the Comptroller of the Overseas cash;
- the Board of Governors of the Federal Reserve Instrument;
- the Federal Deposit Insurance plans Corporate (FDIC); or
- the Securities and Business Rate (SEC).
The serve as of a transfer agent is to stick apply of the oldsters and organizations that non-public its stocks and bonds. Transfer agents are most frequently banks or trusts, then again once in a while companies can serve as their own agents. The provisions that keep watch over transfer agents are coated under Phase 17A(c) of the Securities Business Act of 1934.
The transfer agent’s duties include recording transactions, canceling and issuing certificates and processing investor mailings and gives with other investor problems, comparable to out of place or stolen certificates. A transfer agent works carefully with a registrar to make certain that investors download interest expenses and dividends when they are due, and to send per thirty days investment statements to mutual fund shareholders.
Rules and Rules of Transfer Agents Underneath Phase 17A
Because of transfer agents serve each and every issuing companies and protection holders, setting pleasant transfer agent operations are essential to the a luck crowning glory of secondary trades. Phase 17A(c) of the Securities Business Act of 1934 requires that transfer agents be registered with the SEC, or if the transfer agent is a monetary establishment, with a monetary establishment regulatory corporate.
No self-regulatory staff (SRO) oversees transfer agents, due to this fact the SEC has rules and laws for all registered transfer agents. The SEC rules exist to facilitate right kind clearance and settlement of securities transactions, and ensure the safeguarding of securities and value vary. The SEC rules referring to change agents include minimum potency necessities regarding the issuance of new certificates and equivalent record-keeping and reporting rules, and the prompt and detailed introduction of protection holder data. The SEC moreover conducts commonplace inspections of transfer agents.
It is illegal for a transfer agent to perform any transfer agent functions without being registered. A transfer agent must apply for registration on SEC Form TA-1 with their appropriate regulatory authority (ARA), and the registration must then become vigorous prior to wearing out any trade with securities. Registration of a transfer agent becomes environment friendly 30 days after receipt by way of the ARA of the applying for registration.
