A Transfer Agent’s main role is to act as an intermediary between a Corporation and its shareholders with the purpose of maintaining the share register, processing of transfer and/or sale requests as well as assisting with share related transactions and queries and distributing dividends. Transfer Agents are required to register with the SEC, an abbreviation of the U.S Securities and Exchange Commission.
Can I choose any Transfer Agent to Manage my Stock?
Each Publicly listed company on the US Stock Exchanges will already have its own Transfer Agent to look after its shareholders, therefore, when investing in a specific company you would not be able to pick your own. If you would prefer to have your financial portfolio managed by your own stockbroker, your shares can be transferred to the brokerage firm to manage and maintain, however the Transfer Agent for that company would remain in place would not change.
How does a UK Share Registrar differ to a US Transfer Agent?
A ‘Share Registrar’ is the term used in the UK to refer to a Transfer Agent. A Share Registrar would look after the shareholders of publicly listed companies and maintain the share register, just like a Transfer Agent would do in the US. It’s important to remember that a Transfer Agent/Share Registrar plays a vital role in acting as a liaison between a company and its investors. They keep records of all registered shareholders and ensure that dividends are paid correctly. Despite owning shares in a specific company, it is the Transfer Agent that will assist you with any queries, issues and transactions.
Commonly known Transfer Agents
If the world of investments is completely alien to you, you may not be familiar with Computershare Investor Services, however with branches in over 20 countries and only entering the US market in 2000, they are one of the most recognised Transfer Agents in the US, alongside EQ Shareowner Services (formally Wells Fargo but taken over by EQ in 2018), American Stock Transfer & Trust Company (AST) and Broadridge.
