Year 2000 Readiness Reports To Be Made by Transfer Agents

The Securities and Exchange Commission ("Commission') is soliciting comment on proposed temporary Rule 17Ad-18 under the Securities Exchange Act of 1934 ("Exchange Act'). The proposed temporary rule would require all non-bank registered transfer agents to file with the Commission at least one report regarding its Year 2000 readiness. The initial report would be due no later than 45 days after the Commission adopts this rule. The follow-up reports would be due on August 31, 1998, and on August 31, 1999. The follow-up reports would include an attestation by an independent public accountant that would give the Independent Public Accountant's opinion whether there is a reasonable basis for the transfer agent's assertions in the reports. Additionally, the Commission is issuing an advisory notice on its transfer agent record retention and recordkeeping requirements relating to the Year 2000.