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Brokers can't ignore undelivered correspondence and uncashed checks, SEC says

Jan 18 2013 Compliance Complete news team

The Securities and Exchange Commission next year will require broker-dealers to search for lost securityholders and require "paying agents" to notify "unresponsive payees" that the agent has sent the holder a check that has not been negotiated. Firms must comply with the amendments to Rule 17Ad-17 and a new rule, 15b1-6, under the Securities Exchange Act of 1934, one year after an SEC notice of the changes is published in the Federal Register, which is expected shortly. The amendments, adopted pursuant to Section 929W of the Dodd-Frank Act, extend the "search" requirement from only recordkeeping transfer agents. The new rule is of a technical nature to help ensure that brokers and dealers have notice of their new obligations.

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