Dear CIGAs,
What you have not done, you may well not be able to do after December 31st 2008. Act immediately.
Respectfully,
Jim
Date: 12-17-2008
Dear Valued Client,
On December 1, 2008, the Securities and Exchange Commission (SEC) approved a rule change that will eliminate the ability of Depository Trust Company (DTC) participants – including **COMPANY NAME** – to request physical certificates for securities positions participating in the Direct Registration System (DRS). This change will take effect on January 1, 2009.
Currently your account is set up to automatically generate a physical certificate each time a trade is settled. This functionality will be disabled on December 31, 2008. All security purchases in your account that settle after the December 31, 2008, will be held in your **COMPANY NAME** account, and a physical certificate will not be automatically generated. Details about the new regulations are listed below.
What you need to know:
-The DTC, the institution in which **COMPANY NAME** holds shares in electronic form, proposed the rule change in an effort to reduce the industry’s dependency on physical certificates and reduce the cost and risks associated with processing physical certificates.
-DRS is a way to electronically transfer shares into book entry form. Shares held in book entry form represent shares held on the books of the company rather than in physical certificate form or in street name with a brokerage firm. This change will only affect securities that are eligible to be transferred via DRS.
-Starting on January 1, 2009, **COMPANY NAME** will be unable to obtain physical stock certificates for securities that are participating in DRS.
-There are a small number of companies that are DRS-eligible but do not allow their shares to be transferred via the DRS system. These companies are considered DRS-eligible but not participating. The initial change effective January 1, 2009, will exclude these securities. However, effective July 1, 2009, **COMPANY NAME** will be unable to obtain physical