Rule 204-2 under the Investment Advisers Act of 1940

Forms and Documents

Document	Type	Status	Availability
Federal Register.pdf	Supplementary Document	Uploaded 2009-11-13	Available
Supporting Statement.doc	Supporting Statement A	Uploaded 2009-11-13	Available

IC Document Collections

IC ID	Collection	Type	Status	Form
34747	Rule 204-2, Books and Records to be maintained by Investment Advisers		Modified

ICR Details

OMB Control No: 3235-0278	ICR Reference No: 200911-3235-014
Status: Historical Inactive	Previous ICR Reference No: 200708-3235-021
Agency/Subagency: SEC	Agency Tracking No: 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: Preapproved	Conclusion Date: 01/10/2010
	Date Received in OIRA: 11/13/2009
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	01/31/2013	36 Months From Approved	03/31/2011
Responses	11,340	0	10,787
Time Burden (Hours)	2,057,813	0	1,954,109
Cost Burden (Dollars)	16,498,959	0	13,551,390

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Abstract: Rule 204-2 sets forth the books and records that SEC-registered investment advisers must maintain and preserve.

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Authorizing Statute(s): US Code: 15 USC 80b-4 Name of Law: Investment Advisers Act of 1940
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3235-AK39	Proposed rulemaking	74 FR 39840	08/07/2009

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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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 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	11,340	10,787	0	0	553	0
Annual Time Burden (Hours)	2,057,813	1,954,109	0	3,528	100,176	0
Annual Cost Burden (Dollars)	16,498,959	13,551,390	0	2,270,000	677,569	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: There are two reasons for the estimated increase in burden hours from the current approved total burden of 1,954,109 to 2,057,813 hours: (1) 100,176 additional hours represents an increased hours burden due to there simply being more registrants subject to the burden since the burden was last approved; (2) 3,528 additional hours represents the new burden hours associated with our proposed rule amendments. The revised weighted average burden per Commission-registered adviser would be 181.46 hours. The currently approved collection of information also includes a non-labor cost estimate of $13,551,390. Just as we estimate the hour burden will increase from 1,954,109 to 2,057,813, we also estimate there would be a proportional increase in the non-labor cost estimate from $13,551,390 to $14,228,959, an increase of $677,589. Additionally, in connection with our proposed rule changes, we expect firms will incur two one-time costs: (1) to establish or enhance current systems, and (2) to revise their compliance policies and procedures. We estimate that approximately 591 investment advisers will incur these additional costs, for a total cost of $2,270,000 among advisers affected by the proposed rule amendments.

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Annual Cost to Federal Government: $0

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

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? Uncollected

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Uncollected

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: 11/13/2009

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