Yes they can, some info below
Becoming Your Own Transfer Agent
Even though most companies outsource the transfer agent function, a few large cap companies and some small to mid-sized companies handle their own shareholders by keeping all or some of the transfer agent functions in-house. Here are some reasons why:
The company knows its stockholders. For a company who wants to give special service to its investors, an employee who knows the holders is valuable. Typically, many utilities and banks perform the transfer agent function in-house.
Support resources are available. There are companies that provide software, legal, insurance, overflow processing, training, and consulting support to companies that want to become their own transfer agents.
Consolidation of the transfer agent industry. Consolidation has meant fewer choices, higher fees and less personalized service. A major argument for being an in-house agent is the ability to control one's own destiny.
Here’s what you need to consider if you want to become your own transfer agent:
Your costs Before you commit time, money, and other resources, identify all your conversion and operating costs. Don't overlook a probable termination fee in your current transfer agent contract.
Get up to speed Transfer agency work is not rocket science but there is still a lot to learn. Take full advantage of the software, training, consulting, legal, insurance and overflow processing vendors offer. Become active in the Corporate Transfer Association, the Corporate Secretaries Association, the Securities Transfer Association, or a regional transfer association. Subscribe to industry periodicals. Talk to some of the major in-house transfer agents.
Select a PC based transfer agent system There are a handful of quality PC based systems that were written primarily for transfer agent functions.
Arrange for transfer agent liability insurance The insurance your looking for is called Errors and Omissions Insurance.
Arrange for overflow backup It may not be necessary to buy OCR equipment if the only application is proxy processing or mailing machines if the only application is dividend mailings to stockholders, Use qualified vendors experienced in shareholder services for this type of work.
Learn SEC and state regulations. You need to have knowledge of SEC and state regulations covering the securities industry. As an example, you need to know how long you are required to keep transfer and correspondence logs, correspondence, checks, authorizations and IRS forms.