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.
$0
No
No
No
No
No
Uncollected
Don Evans 202 551-6787
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.