SEC
Registered
Transfer Agents

An SEC registered transfer agent is a financial services company that deals with the record-keeping, reporting and communications of a companies shareholders stock. Transfer agents record changes of ownership and maintain the issuer's security holder records. A transfer agent would also be in charge of cancelling and issuing certificates as well as distributing dividends.

When a company announces a stock split or dividend, the transfer agent issues new shares. It is important for transfer agents to keep track of how many bonds or shares that belong to each investor. How the stocks and bonds are held can play a large role in the future of the company. This is why it is so important to have someone dedicated to overseeing these financial matters. Nothing moves in the stock world without a transfer agent being involved.

Due to transfer agents always being involved with the movement of stocks it is important that they are efficient, as any slow down in the stock industry can cause deals to crash. Transfer agents have a vast knowledge of SEC guidelines and rules as there is no SRO(self-regulatory organization) that governs them. They abide by SEC rules and regulations and report directly to them. A transfer agent legally cannot slow or impede the movement of stock in order to change the outcome of a transaction in any way. They are the middle men when it comes to sales or loan against shares in a company but have no part in the actual deal.

When looking for an SEC registered transfer agent one should put high importance on their responsiveness, reliability, and data security. Referrals from other companies is also a good place to get information on a transfer agent before hiring them for the job. Remember, SEC transfer agents are going to be handling ALL movement of shares for your securities holders so this is no place to be cheap or lazy. Though there are times when a company might be its own SEC transfer agent, it is good practice to have a company that has been doing it for years and that specializes in this area of business.