ADRs are registered on the books of which entity responsible for them?

• A. The U.S. banks responsible for ADRs
• B. The foreign issuer's registrar
• C. The SEC
• D. The broker-dealer that issues ADRs

Answer: (A)

ADRs are registered on the books of the U.S. depositary bank that issues them and holds the underlying foreign shares. A foreign company’s shares are deposited with this U.S. bank, which then creates the ADR certificates and maintains the register of ADR holders on its own books. The foreign issuer’s registrar handles the underlying foreign shares, not the ADRs in the U.S. The SEC regulates and approves securities generally but does not maintain the ADR register, and broker-dealers may trade or facilitate ADRs but do not issue or register them themselves.