Rule 206(4)-2 under the Investment Advisers Act of 1940--Custody of Funds or Securities of Clients by Investment Advisers

ICR 200906-3235-002

OMB: 3235-0241

Federal Form Document

Forms and Documents
Document
Name
Status
Supporting Statement A
2009-09-16
ICR Details
3235-0241 200906-3235-002
Historical Inactive 200703-3235-004
SEC IM-270-217
Rule 206(4)-2 under the Investment Advisers Act of 1940--Custody of Funds or Securities of Clients by Investment Advisers
Revision of a currently approved collection   No
Regular
Preapproved 09/16/2009
Retrieve Notice of Action (NOA) 06/02/2009
Pre-approval contingent upon no substantive changes to this collection after adoption of the final rule. Otherwise this collection should be re-submitted to OMB for review.
  Inventory as of this Action Requested Previously Approved
09/30/2012 36 Months From Approved 12/31/2010
565,215 0 830,605
218,578 0 415,303
170,557,500 0 281,000

Rule 206(4)-2 under the Investment Advisers Act of 1940 requires advisers to protect the assets that their advisory clients have entrusted to their custody.

US Code: 15 USC 80b-6(4) Name of Law: Investment Advisers Act of 1940
   US Code: 15 USC 80b-11(a) Name of Law: null
  
None

3235-AK32 Proposed rulemaking 74 FR 25354 05/27/2009

No

1
IC Title Form No. Form Name
Rule 206(4)-2 under the Investment Advisers Act of 1940--Custody of Funds or Securities of Clients by Investment Advisers

  Total Request 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 565,215 830,605 0 -265,390 0 0
Annual Time Burden (Hours) 218,578 415,303 0 191,265 -387,990 0
Annual Cost Burden (Dollars) 170,557,500 281,000 0 170,276,500 0 0
Yes
Changing Regulations
No
We estimate that the annual hour burden will decrease by 196,725 hours because of 1) an increase of 191,265 hours due to proposed amendments to the custody rule under the Investment Advisers Act, and 2) a decrease of 387,990 hours due to an adjustment in our estimates of annual burden related to investment advisers' distribution of audited financial statements to investors in pooled investment vehicles. We estimate that the cost burden will increase by $170,276,500 due to proposed amendments to the custody rule under Investment Advisers Act. The proposed amendments would, among other things, (1) increase the number of advisers subject to the surprise examination, (2) require certain advisers to obtain an internal control report prepared by an independent public accountant, (3) clarify audit requirements for advisers to pooled investment vehicles relying on the annual audit exception, and (4) require advisers to send a notice to clients urging them to compare account statements from the qualified custodian and the adviser.

$0
No
No
Uncollected
Uncollected
No
Uncollected
Heather Fernandez 2025516708 [email protected]

  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.
06/02/2009


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