Hi! Thanks for the question.
The SEC or Securities Exchange Commission is the regulating body that
governs stock transfer agents. It is also where you get the
appropriate licenses to set-up your sock transfer business.
According to the SEC you must register to become a stock transfer
agent.
“A transfer agent may be registered by filing with the appropriate
regulatory agency for such transfer agent an application for
registration in such form and containing such information and
documents concerning such transfer agent and any persons associated
with the transfer agent as such appropriate regulatory agency may
prescribe as necessary or appropriate in furtherance of the purposes
of this section. Except as hereinafter provided, such registration
shall become effective 45 days after receipt of such application by
such appropriate regulatory agency or within such shorter period of
time as such appropriate regulatory agency may determine.”
“A registered transfer agent may, upon such terms and conditions as
the appropriate regulatory agency for such transfer agent deems
necessary or appropriate in the public interest, for the protection of
investors, or in furtherance of the purposes of this section, withdraw
from registration by filing a written notice of withdrawal with such
appropriate regulatory agency. If such appropriate regulatory agency
finds that any transfer agent for which it is the appropriate
regulatory agency, is no longer in existence or has ceased to do
business as a transfer agent, such appropriate regulatory agency, by
order, shall cancel or deny the registration."
“Securities Exchange Act of 1934
Section 17A -- National System for Clearance and Settlement of
Securities Transactions”
http://www.sec.gov/divisions/corpfin/34act/sect17a.htm
Since such rules differ per agency and specific states in the US you
must go directly to the regulatory agency specific to your state. The
next link from Stocktranfer.com is a listing of such agencies you
could go to and get a license.
“Securities Regulators”
http://www.stocktransfer.com/index.cfm?action=professionals.directories.StateSecReg&displayMenu=resources&ssl=0
Other rules and regulations you could be interested in are found in
the next links:
Rules Governing Transfer Agents
http://www.stocktransfer.com/index.cfm?action=companies.SEC.TARules&displayMenu=sec&ssl=0
“SEC ADOPTS RULES GOVERNING ELECTRONIC RECORDKEEPING FOR TRANSFER
AGENTS”
http://www.ici.org/issues/sec_transferrecords_final.html
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Stocktransfer.com, which we earlier mentioned, is a very good resource
whenever you have questions about becoming a stock transfer agent or
would like to set-up your own company. The website says that you have
to take into consideration the following:
1. Your cost – identify your operating, conversion and even
termination expenses.
2. Know the Industry – Know the software and other tools you could use
and be active in the following associations:
Corporate Transfer Association
http://www.corpta.org/index_home.html
Corporate Secretaries Association (could not find the website so the
next link, the American Association of Corporate Secretaries would
prove valuable as well.
American Society of Corporate Secretaries
http://www.ascs.org/whatisascs.shtml
Securities Transfer Association
PO Box 5067
Hazlet, NJ 07730
Phone: 732-888-6040
Fax: 732-888-2121
http://www.stai.org/
3. “Select a PC based transfer agent system”- I list here some vendors
I found that could meet your needs.
TRANSTAR
http://www.shareholderaccountingsoftware.com/stocktransfer.htm
MJD Software
http://www.mjdsoftware.com/mjd_stlive.html
Navigator Software 4.1d
http://www.auditsystems.com/products_navigator_41d.html
http://www.auditsystems.com/6%20Navigator%2041d%20Stock%20Transfer.pdf
4. “Arrange for transfer agent liability insurance” – An explanation
of this type of insurance or what is called as “Errors and Omissions
Insurance” is available below. You could also apply here:
E & O Insurance Explained
http://www.insurepro.net/html/errors_and_omissions_explained.htm
Other E & O agents I found are:
One Stop Insurance
http://www.one-stopinsurance.com/html/errors.htm
More lists of Errors and Omissions Insurance Companies
http://www.appraisers.com/service/info/E&O_NW_Ins.html
5. “Arrange for overflow backup”
6. “Learn SEC and state regulations”
I got these tips from the link below:
“In-House or Outsource?”
http://www.stocktransfer.com/index.cfm?action=entrepreneurs.needaTA.inhousevsagent
Search terms used:
"transfer agents" regulations
"transfer agents" +where +to register
"transfer agent" "liability insurance"
Corporate Transfer Association
I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
Thanks for visiting us.
Regards,
Easterangel-ga
Google Answers Researcher |
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