On December 21, 2012, the SEC approved new rules that require broker-dealers to conduct searches for holders of securities with whom they have lost contact. Currently, transfer agents are required to conduct such searches – the rule will expand the requirement to broker-dealers.
The new rules also requires “paying agents” (certain issuers, broker-dealers, transfer agents, and other entities) to notify certain persons in writing when the paying agent has sent the person a check that has not been negotiated. This notification is not required if the value of the check is less than $25.
The new rules will become effective 60 days after the date of publication of the release in the Federal Register.
Source: SEC Release 2012-277: SEC Approves New Rules Regarding Lost Holders of Securities
This alert applies to the Series 6, Series 7, Series 24, Series 26, Series 62, and Series 99.