Section 17a Securities Act

October 19 2020 comments received are available for this proposal.

Section 17a securities act. Section 17a c of the 1934 act requires that transfer agents be registered with the sec or if the transfer agent is a bank with a bank regulatory agency. C new data processing and communications techniques create the opportunity for more efficient effective and safe procedures for clearance and settlement. The sec therefore has promulgated rules and regulations for all registered transfer agents intended to facilitate the prompt and accurate clearance and settlement of securities transactions and.

17a securities exchange act of 1934 272. Congress passed the 1933 securities act in the wake of the market crash of 1929 to provide investors with full disclosure of material information concerning public offerings of securities in commerce to protect investors against fraud and through the imposition of specified civil liabilities to promote ethical standards of honesty and fair dealing 1 as the key enforcement provision of the 1933 act section 17 a prohibits fraud and misrepresentations in the offer or sale of. Section 8a also allows the sec to issue orders to issuers to cease and desist from certain activities and bar officers and directors who have violated the securities act s anti fraud provisions.

This is what section 17 b says. Section 17 of the 33 act is an anti fraud provision applicable to the initial sale or issuance of securities. G if a person who has been subject to 240 17a 3 ceases to transact a business in securities directly with others than members of a national securities exchange or ceases to transact a business in securities through the medium of a member of a national securities exchange or ceases to be registered pursuant to section 15 of the act 15 u s c.

Administration of the electronic data gathering analysis and retrieval system file no. There is no sro that governs transfer agents. Securities and exchange commission pursuant to its regulatory authority under the us securities exchange act of 1934 known simply as the exchange act which outlines requirements for data retention indexing and accessibility for companies which deal in the trade or brokering of financial securities such as stocks bonds and futures.

D the linking of all clearance and settlement facilities and the development of uniform standards and procedures for clearance and settlement will reduce unnecessary costs and in crease the protection of investors and persons facilitating transactions by and acting on behalf of investors. Additionally the sec can seek civil penalties under section 20 d if a party violated the securities act an sec rule or a cease and desist order. Sec rule 17a 4 17a 3 records to be made by and preserved by certain exchange members brokers and dealers.

It makes it illegal to employ any device scheme or artifice to defraud obtain money or property engage in any transaction practice or course of business which operates or would operated as a fraud or deceit upon the purchaser. Press release 2020 227 33 10821. Letters of notification and representation filing requirement.