Rule 204-2 under the Investment Advisers Act of 1940

Forms and Documents

Document Name	Status
Rule 204-2 Supporting Statement 7-15-19.pdf Supporting Statement A	2019-07-29

IC Document Collections

IC ID	Document Title	Status
34747	Rule 204-2, Books and Records to Be Maintained by Investment Advisers	Modified

ICR Details

OMB Control No: 3235-0278	ICR Reference No: 201907-3235-028
Status: Active	Previous ICR Reference No: 201611-3235-019
Agency/Subagency: SEC	Agency Tracking No: IM-270-215
Title: Rule 204-2 under the Investment Advisers Act of 1940
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved with change	Conclusion Date: 10/04/2019
	Date Received in OIRA: 08/07/2019
Terms of Clearance: OMB intends to have a broader discussion with SEC regarding the lack of robust analysis and explanation in several answers (including Sections 2, 3, 5, and 6). Future extensions or revisions of this collection should include citations to goals and requirements of the rule, when used as explanation in the Supporting Statement (i.e., "Less frequent information collection will be incompatible with the objectives of the rule") and conclusory statements should be avoided (i.e., "it would defeat the purpose of the rule to exempt small entities from these requirements"). Additionally, it appears SEC did receive comments on the burden associated with this information collection, which would necessitate a "yes" response to "Did the Agency receive public comments on this ICR?" in ROCIS.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	10/31/2022	36 Months From Approved	03/31/2020
Responses	13,299	0	12,024
Time Burden (Hours)	2,435,364	0	2,199,791
Cost Burden (Dollars)	0	0	0

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Abstract: Registered advisers are required to retain copies of each relationship summary, maintain each amendment to the relationship summary as well as to make and preserve a record of dates that each relationship summary and each amendment was delivered to any client or to any prospective client who subsequently becomes a client. The purpose of the information collection is to assist the Commission’s examination and oversight program in determining compliance with the Advisers Act.

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Authorizing Statute(s): US Code: 15 USC 80b Name of Law: Investment Advisers Act of 1940
  

Citations for New Statutory Requirements: PL: Pub.L. 111 - 213 410 Name of Law: Dodd-Frank Wall Street Reform and Consumer Protection Act

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3235-AL27	Final or interim final rulemaking	84 FR 33492	07/12/2019

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? Yes

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Rule 204-2, Books and Records to Be Maintained by Investment Advisers

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	13,299	12,024	0	1,275	0	0
Annual Time Burden (Hours)	2,435,364	2,199,791	0	235,573	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: We estimate that the total burden hour associated with rule 204-2 will increase from 2,199,791 hours per year to 2,435,364 hours per year. These increases are attributable to a larger registered investment adviser population since the most recent approval and adjustments for inflation, as well as the proposed rule 204-2 amendments relating to the relationship summary.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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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:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(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;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

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.

Certification Date: 08/07/2019

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