17 CFR 240.17Ad-12
§ 240.17Ad-12 Safeguarding of funds and securities.
United States · 17 CFR — Commodity and Securities Exchanges · Status: effective
Cite this
- Citation
- 17 CFR 240.17Ad-12, § 240.17Ad-12 Safeguarding of funds and securities, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/69388
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Full text
(a) Any registered transfer agent that has custody or possession of any funds or securities related to its transfer agent activities shall assure that:
(1) All such securities are held in safekeeping and are handled, in light of all facts and circumstances, in a manner reasonably free from risk of theft, loss or destruction (other than by a transfer agent's certificate destruction procedures pursuant to § 240.17Ad-19); and
(2) All such funds are protected, in light of all facts and circumstances, against misuse. In evaluating which particular safeguards and procedures must be employed, the cost of the various safeguards and procedures as well as the nature and degree of potential financial exposure are two relevant factors.
(b) For purposes of this section, the term securities shall have the same meaning as the term securities certificate as defined in § 240.17f-1(a)(6).
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.