What is a transfer agent for a mutual fund?
A transfer agent is a trust company, bank, or similar institution assigned by a corporation for the purposes of maintaining an investor’s financial records and tracking each investor’s account balance.
What does a transfer agent do?
A transfer agent is a financial services company that manages and keeps track of registered shareholders for companies that issue stock. As a transfer agent, EQ handles the recordkeeping, reporting and communications for hundreds of U.S. corporations and their millions of shareholders around the world.
What is an example of a transfer agent?
Some examples of transfer agents are financial companies, trust companies, banks or individuals. Listed firms often assign the management of their shareholders’ data to a transfer agent. For instance, Amazon’s transfer agent is Computershare.
What is the difference between a transfer agent and a custodian?
Transfer agents handle the direct responsibility for shareholder purchases and sales of mutual fund shares. The custodian then records these transactions without fund manager involvement. Custodians report these transactions to fund managers so they can continue to keep fund assets and fund cash positions healthy.
Do you need a transfer agent?
For private companies, all the basic functions of a transfer agent are needed—maintaining the official record of ownership, issuing stock certificates, cancelling stock certificates, exchanging or converting securities, and managing distributions to stockholders—but it’s not required that they be performed by a …
Does a transfer agent hold shares?
Transfer agents keep records of who owns a company’s stocks and bonds and how those stocks and bonds are held—whether by the owner in certificate form, by the company in book-entry form, or by the investor’s brokerage firm in street name.
How much do transfer agents cost?
Transfer Agent Fees To Issue Registered Stock Certificate
| Company | Symbol | Transfer Agent Fee |
|---|---|---|
| Alibaba Group | BABA | $25 |
| Alphabet | GOOGL | $0 |
| Amazon | AMZN | $25 |
| AMC | AMC | $0 |
Who are the biggest transfer agents?
Computershare holds 56.4% of the market share, followed by Equiniti Trust Co (19.2%), American Stock Transfer & Trust (15.6%), and Broadridge (7%). These four transfer agents account for over 98.2% of the S&P 500 market.
How do I choose a transfer agent?
8 Tips on Selecting a Stock Transfer Agent
- Seek out quality service and professionalism in your transfer agent. …
- Evaluate their experience and reputation. …
- Be vigilant to avoid miscommunication. …
- Ask the right questions. …
- Know that the transfer agent can perform the services that you need.
How do transfer agents make money?
Transfer agents are good at getting paid for their work.
Stock Transfer Agent Revenue – The Other Sources
- Interest earnings on dividends (“float”). …
- Interest earnings on corporate actions, where standard practice is for the transfer agent to request all necessary funds as paying agent “up front.”
Do private companies use transfer agents?
The fact is that the vast majority of private companies don’t need a transfer agent at all. While these SEC-registered service providers are vital for handling the complex tracking and recording needs of public (or going-public) companies, for most private companies, they’re an unnecessary cost.
Is transfer agent a broker?
Transfer agents maintain a record of ownership, including contact information, of an issuer’s registered shareholders. Brokers maintain the records of beneficial shareholders. Transfer agents’ responsibilities also include the transfer, issuance and cancellation of an issuer’s shares.
Are transfer agents regulated?
Transfer agents are regulated by the Securities and Exchange Commission (“SEC”). SEC regulations are designed to ensure that transfer agents act promptly and accurately. Transfer agents for corporations listed on some stock exchanges must meet additional requirements.
What is the difference between a transfer agent and a registrar?
A transfer agent’s principal functions are to issue and cancel certificates to reflect changes in ownership of the securities of an entity and to act as an intermediary for the company. A registrar’s function is to maintain the register of the issuer for each issue of securities.
Is Fidelity a transfer agent?
Fidelity has been registered with the Commission as a transfer agent pursuant to Section 17A of the Exchange Act since 2010.
Who is Fidelity Investments transfer agent?
Fidelity Investments Institutional Operations Co Llc is a transfer agent . This page includes all SEC registration details as well as a list of all documents (S-1, Prospectus, Current Reports, 8-K, 10K, Annual Reports) filed by Fidelity Investments Institutional Operations Co Llc.
Is BNY Mellon a transfer agent?
Shareholder services for The Bank of New York Mellon: Effective June 28, 2017, EQ Shareowner Services (formerly Wells Fargo Shareowner Services) became BNY Mellon’s Transfer Agent, Registrar, Dividend Disbursing Agent and Administrator of the Dividend Reinvestment Plan.