Brokers Have to Look|for ‘Lost’ Shareholders

     WASHINGTON (CN) – Securities brokers and dealers will have to look for “lost” clients so that the clients can receive shareholder communications, dividend checks and other important information about securities they own, under new rules proposed by the Securities and Exchange Commission.
The rules are to comply with Dodd-Frank Wall Street Reform and Consumer Protection Act.
     Under the proposed rules, brokers and dealers will have to conform to the same search requirements as recordkeeping transfer agents and paying agents to try to find the owners of assets held by the agent after the agent has tried to contact the owner through the U.S. Mail and had their mail returned as undeliverable.
     Currently the agents are only required to conduct basic computer database searches to try and find the correct addresses of “lost securityholders.”
     Click the document icon for this regulation and others.

%d bloggers like this: