Question

SEC Rule 17Ad-2 requires that transfer agents perform their functions in a prompt and accurate manner for routine transfers; the processing requirement is ___________.

1) 90% within 3 days
2) 90% within 5 days
3) 90% within 1 days
4) 90% within 10 days

Answer 1

SEC Rule 17Ad-2 states that transfer agents must process at least 90% of routine transfers within 3 business days, ensuring prompt and accurate securities transfers.

Step-by-step explanation:

SEC Rule 17Ad-2 mandates that transfer agents should process routine transfers of securities in a timely and precise manner. The requirement as per this rule is that transfer agents must ensure that at least 90% of these transfers are completed within 3 business days. Transfer agents act as intermediaries in the process of transferring securities from one party to another, and this rule is intended to promote efficiency and reliability in the transfer process.