The Securities Information Center, or SIC, is in charge of keeping reports for all lost and stolen securities. SEC Rule 17f-1 outlines the requirements for reporting an inquiry with respect to missing, lost, counterfeit, or stolen securities. When it is believed criminal activity was involved, the theft must be reported within one business day of discovery to the SIC, the registered transfer agent for the issue, and the Federal Bureau of Investi_gations (FBI). When criminal activity is not believed to be involved and securities have been missing or lost for at least two business days, a report must be made within one business day by the end of this period to the SIC and the registered transfer agent for the issue. When securities are found to be counterfeit, a report must be made within one business day of discovery to the SIC, the registered transfer agent for the issue, and the FBI. If securities are discovered to be missing after an internal audit or count, and no criminal activity is suspected, a report must be filed with the SIC within ten business days of discovery or as soon as the securities can be identified by certificate number. When stolen, missing, lost, or counterfeit securities have been recovered, the appropriate authority must be notified within one business day of the recovery.
Applying "The Securities Information Center" to Securities Exams:
Required inquiries must be made by the SIC whenever securities come into the possession of a reporting institution, unless:
The institution compares the securities against bondholder or stockholder lists as part of their business
The securities certificate came directly from the issuer or the issuer’s agent
The securities certificate is received from another reporting institution, and is registered in the name of the customer or was previously sold to the customer and verified through internal records
The transaction did not exceed a face value of $10,000 for bonds or a market value of $10,000 for stocks
The securities certificate is received as part of a normal drop by the reporting institution
The SIC will accept reports on securities not listed above.