Investment Advisers Act rule 206(4)-7, 17 C.F.R. Sec. 275.206(4)- 7, Compliance procedures and practices.

Forms and Documents

Document Name	Status
Supporting Statement 7-28-2010.doc Supporting Statement A	2010-08-05

IC Document Collections

IC ID	Document Title	Status
35443	Rule 206(4)-7 under the Investment Advisers Act of 1940 - Compliance Procedures and Practices	Modified

ICR Details

OMB Control No: 3235-0585	ICR Reference No: 201008-3235-007
Status: Historical Active	Previous ICR Reference No: 200708-3235-027
Agency/Subagency: SEC	Agency Tracking No: 270-523
Title: Investment Advisers Act rule 206(4)-7, 17 C.F.R. Sec. 275.206(4)- 7, Compliance procedures and practices.
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 10/05/2010
	Date Received in OIRA: 08/05/2010
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	10/31/2013	36 Months From Approved	03/31/2011
Responses	11,607	0	10,817
Time Burden (Hours)	1,007,228	0	865,360
Cost Burden (Dollars)	3,462,400	0	0

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Abstract: Rule 206(4)-7 requires investment advisers registered with the Commission to adopt and implement compliance policies and procedures, to review those policies and procedures annually, and to designate a chief compliance officer.

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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: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3235-AK39	Final or interim final rulemaking	75 FR 41081	07/14/2010

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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 206(4)-7 under the Investment Advisers Act of 1940 - Compliance Procedures and Practices

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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	11,607	10,817	0	0	790	0
Annual Time Burden (Hours)	1,007,228	865,360	0	78,668	63,200	0
Annual Cost Burden (Dollars)	3,462,400	0	0	3,462,400	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 have increased the estimated annual aggregate burden from 865,360 to 1,007,228 hours based on (1) an increase in the number of SEC-registered investment advisers and (2) the burden associated with developing policies and procedures to comply with new rule 206(4)-5 and related amendments to rules 204-2 and 206(4)-3. We also estimate that certain investment advisers will incur additional one-time costs of $3,462,400 to engage outside legal services to assist in drafting policies and procedures to comply with the new rule and 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]? No

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: 08/05/2010

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