Internal Control Questionnaires and Verification Procedures

Compliance with the reporting and inquiry requirements of the lost and stolen securities provisions of 17 CFR 240.17f-1.

  1. Has the bank registered with the Securities Information Center, Inc.?

  2. Are reports submitted within 1 business day of discovery when:

    1. Theft or loss of a security is believed to have occurred through criminal activity?

    2. A security has been missing or lost for a period of 2 business days?

    3. A security is counterfeit?

  3. Are reports submitted by the bank, as a delivering institution, within 2 business days of notification of non- receipt when:

    1. Delivery is over the window, and the bank maintains no receipt?

    2. Delivery of securities is made by mail or via draft, and payment is not received within 10 business days and confirmation of non-delivery has been made by the receiving institution?

    3. Securities are lost in transit, and the certificate number(s) can be determined?

  4. Are reports submitted by the bank, as a receiving institution, within 1 business day of discovery and notification of the certificate number(s) when:

    1. Securities are delivered through a clearing agency, and the delivering institution has supplied the certificate numbers within the required 2 business days after request?

    2. Securities are delivered over the window, and the delivering institution has a receipt and supplies the certificate number(s) within the required 2 business days after request?

  5. Are securities that are considered to be lost or missing as a result of counts or verifications, reported no later than 10 business days after discovery or as soon after as the certificate number(s) can be ascertained?

  6. Does the bank which functions as a transfer agent make the required reports if it receives notification of loss, theft, or counterfeiting from a non-reporting institution, or if it receives notification other than on Form X-17F-1A, or if the certificate was in its possession at the time of loss?

  7. Are copies of those reports submitted to the registered transfer agent for the issue and, in the case of suspected criminal activity, the Federal Bureau of Investigation?

  8. Are all recoveries of securities reported to the S.I.C., the transfer agent, or the FBI (as appropriate) within one business day of recovery or finding? (Note: Only the institution that initially reported the security as missing can make a recovery report.)

  9. Are inquiries made when the bank takes in any security which is not:

    1. Received directly from the issuer or issuing agent at issuance?

    2. Received from another reporting institution or Federal Reserve Bank in its capacity as fiscal agent?

    3. Received from a bank customer and registered in the name of the customer or nominee, or previously sold to the customer as verified by internal records?

  10. Are all reports made on Form X-17F-1A or facsimile?

  11. Are copies of Form X-17F-1A and subsequent confirmations and other information received maintained for three years in an easily accessible location?

Previous: Internal Control Questionnaire Next: Retail Nondeposit Investment Sales