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") is 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 are amending 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
amending 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 adopting 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. These
amendments to Form ADV affect the annual aggregate burden
associated with the collections of information for Form ADV. The
collections are 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 239,122 hours per year. This burden
represents a decrease of 21,805 hours from the current approved
burden. This decrease is attributable primarily to the 3,200
advisers that we expect to withdraw from SEC registration.
Registered investment advisers are also expected to incur an annual
cost burden of $10,056,250, resulting in a reduction of
$12,719,150. 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, is 7,530 hours. We estimate
that, as a result of the amendments to Form ADV, the total annual
time burden for this information collection will decrease by 21,805
hours. The resulting blended average per adviser amortized burden
for Form ADV is 20.99 hours, which consists of an average annual
amortized burden of 24.52 hours for the estimated 9,750 registered
advisers and 3.77 hours for the estimated 2,000 exempt reporting
advisers, for a total annual time burden of 246,652 hours.
$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
Supplementary Document - Adopted Form ADV.pdf
Supporting Statement for Form ADV-PRA (6-24-2011).docx
Form ADV