Pursuant to 5
CFR 1320.11(c), OMB files this comment on this information
collection request (ICR). In accordance with 5 CFR 1320, OMB is
withholding approval at this time. The agency shall examine public
comment in response to the NPRM and will include in the supporting
statement of the next ICR--to be submitted to OMB at the final rule
stage--a description of how the agency has responded to any public
comments on the ICR, including comments on maximizing the practical
utility of the collection and minimizing the burden.
Inventory as of this Action
Requested
Previously Approved
10/31/2013
36 Months From Approved
10/31/2013
25,316
0
25,316
268,457
0
268,457
22,775,400
0
22,775,400
Form ADV under the Investment Advisers
Act of 1940 is filed upon initial registration as an investment
adviser, is updated on an annual basis by all advisers, and may be
more frequently updated to correct certain material information. It
is also being proposed to apply to certain advisers exempt from
registration, but subject to reporting requirements. The portions
of the form that would be completed by these exempt advisers would
be subject to the same updating requirements that apply to
registered advisers.
PL:
Pub.L. 111 - 203 410 Name of Law: Dodd-Frank Wall Street Reform
and Consumer Protection Act
US Code: 15
USC 80b-1 Name of Law: Investment Advisers Act of 1940
The Securities and Exchange
Commission (the Commission) proposed amending Form ADV under the
Investment Advisers Act of 1940 (the Advisers Act or the Act),
to implement provisions of the Dodd-Frank Wall Street Reform and
Consumer Protection Act. Form ADV is the two-part investment
adviser registration form. Part 1 of Form ADV contains information
used primarily by Commission staff, and Part 2 is the client
brochure. In order to give effect to provisions in Title IV of the
Dodd-Frank Act, we proposed amendments to Part 1A of Form ADV to
reflect the new statutory threshold for registration with the
Commission and to restructure it to accommodate filings by certain
advisers that are exempt from registration (exempt reporting
advisers). Additionally, to enhance our ability to oversee
investment advisers, including those private fund advisers that
will be required to register as a result of the Dodd-Frank Act, we
are proposing amendments to Part 1A of Form ADV to require advisers
to provide us additional information regarding: (i) private funds
they advise; (ii) their advisory business and business practices
that may present significant conflicts of interest; and (iii)
advisers non-advisory activities and their financial industry
affiliations. We also proposed certain additional changes intended
to improve our ability to assess compliance risks and to enable us
to identify the advisers that are covered by section 956 of the
Dodd-Frank Act addressing certain incentive-based compensation
arrangements. If the proposed amendments to Form ADV were adopted,
the annual aggregate burden associated with the collections of
information for Form ADV would, therefore, be affected. The
collections would be necessary to provide advisory clients,
prospective clients, and the Commission with information about the
adviser, its business, conflicts of interest and its advisory
personnel. The revised total annual collection of information
burden for registered advisers to file and complete the revised
Form ADV (Parts 1 and 2), including the initial burden for both
existing and anticipated new registrants, including private fund
advisers, plus the burden associated with amendments to the form,
preparing brochure supplements and delivering codes of ethics to
clients is estimated to be approximately 217,477 hours per year.
This burden represents a decrease of 50,980 hours from the current
approved burden. This decrease is attributable primarily to the
4,100 advisers that we expect to withdraw from SEC registration.
Registered investment advisers are also expected to incur an annual
cost burden of $2,702,000, a reduction from the current approved
cost burden of $22,775,400. The decrease in annual cost burden is
attributed to the nature of the costs, which are one-time initial
costs to draft the narrative brochure. As the transition to the
narrative brochure will have substantially been completed, the
on-going costs arise from new registrants. The total annual
collection of information burden for exempt reporting advisers to
file and complete the required Items of Part 1A of Form ADV,
including the burden associated with amendments to the form, would
be 6,867 hours. We estimate that, if the amendments to Form ADV are
adopted, the total annual hour burden for the form would decrease
by 44,113 hours to 224,344. The resulting blended average per
adviser amortized burden for Form ADV would be 20.12 hours, which
would consist of an average annual amortized burden of 23.77 hours
for the estimated 9,150 registered advisers and 3.43 hours for the
estimated 2,000 exempt reporting advisers.
$0
No
No
No
Yes
No
Uncollected
Melissa Roverts
2025516722
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
Form SEC-1707 Form ADV
Supporting Statement for Form ADV-PRA (12-14-2010).docx
Form ADV