issuer

Exam Alert: SEC requires broker-dealers to search for lost holders of securities

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. 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. Continue reading

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.

Exam Alert: SEC requires issuer disclosure regarding source of certain minerals

The SEC will require issuers that use “conflict minerals” in their manufacturing to disclose details about their origin. Continue reading

The SEC will require issuers that use “conflict minerals” in their manufacturing to disclose details about their origin. The “conflict minerals” the new rule will apply to are gold, tantalum, tin, and tungsten. Issuers must disclose whether the materials are from the Democratic Republic of Congo or an adjoining country. If the materials are from one of those countries, the issuer must attempt to determine whether the purchase of the minerals benefits armed groups and disclose its findings.

The disclosure must be made both with the SEC, through Form SD, and publicly, via a website. The first disclosure must be made on May 31, 2014 (for the 2013 calendar year) and then annually on May 31 in subsequent years.

Source: SEC Adopts Rule for Disclosing Use of Conflict Minerals (SEC Release 2012-163)

This alert applies to the Series 82, Series 62, and Series 79.