Over the past two months, StockTrans has received numerous inquiries about the impact of the recent turmoil in the financial services industry on transfer agents. Today, StockTrans issued a statement providing commentary and perspective on the issues that transfer agents face in this new economic reality.
Jonathan Miller, President and CEO of StockTrans, said, “First and foremost, because of financial difficulties faced by bank-owned transfer agents, there is likely to be significant disruption to many public companies due to the forced mergers and acquisitions of, or worse, the exiting from the business by their transfer agents. As these transactions are consummated, there is likely to be considerable disorder for companies that use bank or financial institution transfer agents because of data system mismatches, personnel layoffs and changes, and, perhaps, the acquiring banks terminating the stock transfer business of the acquired banks.”
Miller continued, “In addition, as financial resources are reallocated within banks, there is likely to be diversion of capital spending and customer service resources away from the transfer agent division of their business. This, we believe, will cause further deterioration in customer satisfaction for shareholders of clients of bank-owned transfer agencies.”
Miller concluded, “From our standpoint, the fact that StockTrans is an independent, well-capitalized, privately-owned professional transfer agency leads to stability for our clients and their security holders, and presents a growth opportunity for us in this difficult economic period. We are profitable, debt free, and remain committed, as we have for almost 40 years, to stock transfer as our only business, providing service for over 350 clients’ issues.”
About StockTrans:
StockTrans is an industry leading stock transfer agent and stock benefit plan service provider, helping small and mid-cap companies around the world with their stock transfer and plan administration needs. For more than 37 years, StockTrans has stood out in the stock transfer industry with its unmatched customer service, experienced staff, affordable services and use of the latest technology. For more information, please visit www.stocktrans.com.
Contacts:
Jonathan Miller, 610-649-7300
jmiller@stocktrans.com
