Rule 204-2 under the Investment Advisers Act of 1940

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
IA-3060.docx	Supporting Statement A	Uploaded 2010-10-06	Available

IC Document Collections

Information collection document groups

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: 201010-3235-003
Status: Historical Active	Previous ICR Reference No: 201007-3235-032
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 without change	Conclusion Date: 11/26/2010
	Date Received in OIRA: 10/06/2010
Terms of Clearance:

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	11/30/2013	36 Months From Approved	10/31/2013
Responses	11,658	0	11,607
Time Burden (Hours)	2,115,376	0	2,106,046
Cost Burden (Dollars)	34,965,063	0	34,661,509

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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-AI17	Final or interim final rulemaking	75 FR 49234	08/12/2010

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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

table that charts list of burden

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

table that charts list 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	11,658	11,607	0	0	51	0
Annual Time Burden (Hours)	2,115,376	2,106,046	0	9,330	0	0
Annual Cost Burden (Dollars)	34,965,063	34,661,509	0	303,554	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: There are three reasons for the estimated increase in burden hours from the current approved total burden of 2,106,046 to 2,115,376 hours: (1) the amendments to the rule require all advisers to maintain copies of their brochure supplements in addition to maintaining copies of their brochures, as required under the previous rule, (2) advisers are required to maintain a copy of any summary of material changes in their brochure that is separate from the brochure and (3) the amendments require advisers, including small advisers, to maintain certain records if they determine that a disciplinary event that is presumptively material does not have to be disclosed, or if they calculate their managed assets for purpose of their brochures differently than in Part 1A of Form ADV. The revised average burden per Commission-registered adviser however would remain the same at 181.45 hours. The reasons for the estimated increase in cost burden from the current approved total burden results from our anticipation that only a relatively small number of advisers will be subject to the new recordkeeping provisions, and we expect that the cost of maintaining these records will be relatively minimal. As stated above, we estimate that certain investment advisers may incur one-time outside legal fees in connection with preparing a memorandum explaining their basis for not disclosing a legal event listed in Part 2 in their brochures and supplements. We estimate these outside legal fees to be $150,000. Finally, as described above, we estimate that the non-labor cost burden imposed by the rule would increase by $153,554 as a result of the increase in the number of registered advisers since the last burden was approved.

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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]? 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: 10/06/2010

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