Panel Urges SEC To Get Tough On Microcap Transfer Agents

Law360, New York (October 17, 2011, 6:24 PM EDT) -- With increasing scrutiny on accounting problems at Chinese companies using reverse mergers to go public in the U.S., attorneys and market participants told securities regulators Monday that transfer agents — typically trust companies or banks — should have to provide more client information to protect investors.

At a round-table discussion on microcap securities held by the U.S. Securities and Exchange Commission, a stream of presenters agreed that requiring the transfer agents to collect detailed information about companies issuing microcap securities would provide a buffer against potential...
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