SEC Form TA-1

What Is Form TA-1?

SEC Form TA-1 is a form used to officially apply for or change registration as a transfer agent.

A transfer agent is a trust company, bank, or comparative financial institution assigned by a corporation for the motivations behind maintaining its shareholders' all's financial records and tracking every investor's stock balance.

Understanding SEC Form TA-1

SEC Form TA-1 is utilized to apply for registration as a transfer agent. Contingent upon the type of organization applying, a SEC form TA-1 is submitted to one of four regulatory agencies. Those agencies include:

1. the Comptroller of the Currency;
2. the Board of Governors of the Federal Reserve System;
3. the Federal Deposit Insurance Corporation (FDIC); or
4. the Securities and Exchange Commission (SEC).

The job of a transfer agent is to keep track of individuals and organizations that own its stocks and bonds. Transfer agents are most frequently banks or trusts, yet here and there companies can act as their own agents. The provisions that manage transfer agents are covered under Section 17A(c) of the Securities Exchange Act of 1934.

The transfer agent's duties incorporate recording transactions, dropping and giving certificates and processing investor mailings and manages other investor issues, like lost or taken certificates. A transfer agent works closely with a registrar to guarantee that investors receive interest payments and dividends when they are due, and to send month to month investment statements to mutual fund shareholders.

Rules and Regulations of Transfer Agents Under Section 17A

Since transfer agents serve both giving companies and security holders, efficient transfer agent operations are critical to the effective completion of secondary trades. Section 17A(c) of the Securities Exchange Act of 1934 expects that transfer agents be registered with the SEC, or on the other hand assuming that the transfer agent is a bank, with a bank regulatory agency.

No self-regulatory organization (SRO) supervises transfer agents, subsequently the SEC has rules and regulations for all registered transfer agents. The SEC rules exist to facilitate accurate clearance and settlement of securities transactions, and guarantee the defending of securities and funds. The SEC rules in regards to transfer agents incorporate least performance standards with respect to the issuance of new certificates and related record-keeping and reporting rules, and the brief and detailed creation of security holder records. The SEC additionally directs normal reviews of transfer agents.

It is unlawful for a transfer agent to perform any transfer agent capabilities without being registered. A transfer agent must apply for registration on SEC Form TA-1 with their suitable regulatory authority (ARA), and the registration must then become active prior to directing any business with securities. Registration of a transfer agent becomes effective 30 days after receipt by the ARA of the application for registration.

Features

• The form is required of transfer agents compliant with Section 17A(c) of the Securities Exchange Act of 1934.
• A transfer agent is a financial firm accused of maintaining records and accounting for a public company's shareholder accounts.
• SEC Form TA-1 is to be utilized to register or correct registration as a transfer agent with the federal financial regulators.