How to choose a transfer agent: Key considerations for modern businesses

Choosing the right transfer agent can be a critical decision for any public company. A transfer agent provides services for an issuer of securities and acts as a liaison between an issuer and its shareholders. In some cases, the transfer agent facilitates transactions with a broker so investors can sell their securities.

With Fidelity Stock Transfer’s digital-first solutions, like seamless integration with Fidelity's brokerage, stock compensation, and retirement benefits platform, efficient processing on our cloud-based recordkeeping platform, and digital ID verification, companies can choose a modern transfer agent that will support them from day of IPO and beyond.

Why choose a digital-first transfer agent?

The traditional transfer agent model often relies on mainframe technology and manual processes, which can be time-consuming and introduce delays. In contrast, a digital-first transfer agent like Fidelity Stock Transfer℠ leverages cloud-based technology to streamline these processes, offering several key advantages:

Efficiency and accuracy

Digital platforms can automate the issuance and transfer of shares, helping ensure that transactions are recorded and reported in near real-time. This may reduce the likelihood of manual errors and support a more seamless experience for issuers and shareholders.

Continuous platform development

A digital-first platform allows for ongoing development and refinement. Fidelity Stock Transfer regularly evaluates user feedback and market needs to inform updates and feature enhancements, with the goal of improving issuer and shareholder experiences.

Security considerations

Fidelity Stock Transfer incorporates multiple layers of security, including end-to-end encryption and secure access controls, to help protect sensitive shareholder data. The platform also supports digital ID verification, which may serve as a more efficient alternative to traditional medallion signature guarantees.

Integration with Fidelity's platform

Fidelity Stock Transfer is designed to integrate with Fidelity's brokerage, stock compensation, and retirement benefit platform. This may allow shareholders to access a broader range of financial tools—such as stock compensation, retirement, and brokerage accounts—through a unified experience.

For issuers, this integration can help reduce administrative complexity and improve data consistency across platforms. For shareholders, it may simplify account access and improve visibility into their holdings.

Supporting share protection without limiting access

Fidelity Stock Transfer uses multiple digital authentication methods to help guard against unauthorized transfers of securities. Our dedicated team and their use of operational best practices help manage your restricted securities and their associated restricted legends.

Restricted securities are typically acquired in unregistered private sales from the issuer or an affiliate. Fidelity Stock Transfer helps ensure that these securities are marked with a restricted legend, noting that they can't be freely traded or sold without meeting specific requirements under applicable law.

Fidelity Stock Transfer’s processes are designed to help issuers meet applicable U.S. regulatory requirements. Our best practices help limit potential pain points for you and your shareholders by providing:

• Digital authentication where applicable
• Documented operational policies and procedures
• Ongoing training for operations associates
• Modern, simplified workflows for shareholder entitlements and record management
• Integrated Fidelity shareholder data into our platform
• Simple document uploads to minimize paperwork for shareholders
• Access to knowledgeable associates for issuer and counsel inquiries

Shareholder experience and support

At Fidelity Stock Transfer, we design features and experiences to simplify shareholder interactions, reduce confusion, and educate shareholders on their holdings. While these experiences reduce friction for shareholders, a positive shareholder experience can reflect well on the issuer as well. Fidelity Stock Transfer offers:

• Digital ID verification for your shareholders instead of medallion signature guarantees, where applicable
• One login for your US shareholders to manage stocks, transfers, and other assets with Fidelity.com and NetBenefits®
• Transfer securities and request ownership changes without paper forms
• A single dedicated service phone number, offering Fidelity’s highest level of customer service to every one of your shareholders

Final considerations

Selecting a transfer agent is more than a regulatory requirement—it’s a strategic decision that can influence operational efficiency, shareholder satisfaction, and compliance readiness. Companies evaluating transfer agents may wish to consider:

• Whether the platform is digital-first and cloud-based
• The level of integration with other financial services
• Security features, including digital ID verification
• Experience with restricted securities and operational best practices
• Availability of knowledgeable support teams

Fidelity Stock Transfer offers a modern, digital-first approach to transfer agency services, with tools and practices designed to support companies through IPO and beyond. Whether it’s digital-first mentality or seamlessly integrated shareholder experience, we’re excited to show you how Fidelity Stock Transfer can be your transfer agent of the future, today.

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