Pursuant to 5 CFR 1320.11(c), OMB files this comment on this information collection request (ICR). In accordance with 5 CFR 1320, OMB is withholding approval at this time. The agency shall examine public comment in response to the NPRM and will include in the supporting statement of the next ICR--to be submitted to OMB at the final rule stage--a description of how the agency has responded to any public comments on the ICR, including comments on maximizing the practical utility of the collection and minimizing the burden.
table that charts list comparision
Inventory as of this Action
Requested
Previously Approved
10/31/2013
36 Months From Approved
10/31/2013
25,316
0
25,316
268,457
0
268,457
22,775,400
0
22,775,400
Form ADV under the Investment Advisers Act of 1940 is filed upon initial registration as an investment adviser, is updated on an annual basis by all advisers, and may be more frequently updated to correct certain material information. It is also being proposed to apply to certain advisers exempt from registration, but subject to reporting requirements. The portions of the form that would be completed by these exempt advisers would be subject to the same updating requirements that apply to registered advisers.
PL:
Pub.L. 111 - 203 410
Name of Law: Dodd-Frank Wall Street Reform and Consumer Protection Act
US Code:
15 USC 80b-1
Name of Law: Investment Advisers Act of 1940
The Securities and Exchange Commission (the ÂCommissionÂ) proposed amending Form ADV under the Investment Advisers Act of 1940 (the ÂAdvisers Act or the ÂActÂ), to implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Form ADV is the two-part investment adviser registration form. Part 1 of Form ADV contains information used primarily by Commission staff, and Part 2 is the client brochure.
In order to give effect to provisions in Title IV of the Dodd-Frank Act, we proposed amendments to Part 1A of Form ADV to reflect the new statutory threshold for registration with the Commission and to restructure it to accommodate filings by certain advisers that are exempt from registration (Âexempt reporting advisersÂ). Additionally, to enhance our ability to oversee investment advisers, including those private fund advisers that will be required to register as a result of the Dodd-Frank Act, we are proposing amendments to Part 1A of Form ADV to require advisers to provide us additional information regarding: (i) private funds they advise; (ii) their advisory business and business practices that may present significant conflicts of interest; and (iii) advisers non-advisory activities and their financial industry affiliations. We also proposed certain additional changes intended to improve our ability to assess compliance risks and to enable us to identify the advisers that are covered by section 956 of the Dodd-Frank Act addressing certain incentive-based compensation arrangements.
If the proposed amendments to Form ADV were adopted, the annual aggregate burden associated with the collections of information for Form ADV would, therefore, be affected. The collections would be necessary to provide advisory clients, prospective clients, and the Commission with information about the adviser, its business, conflicts of interest and its advisory personnel.
The revised total annual collection of information burden for registered advisers to file and complete the revised Form ADV (Parts 1 and 2), including the initial burden for both existing and anticipated new registrants, including private fund advisers, plus the burden associated with amendments to the form, preparing brochure supplements and delivering codes of ethics to clients is estimated to be approximately 217,477 hours per year. This burden represents a decrease of 50,980 hours from the current approved burden. This decrease is attributable primarily to the 4,100 advisers that we expect to withdraw from SEC registration.
Registered investment advisers are also expected to incur an annual cost burden of $2,702,000, a reduction from the current approved cost burden of $22,775,400. The decrease in annual cost burden is attributed to the nature of the costs, which are one-time initial costs to draft the narrative brochure. As the transition to the narrative brochure will have substantially been completed, the on-going costs arise from new registrants.
The total annual collection of information burden for exempt reporting advisers to file and complete the required Items of Part 1A of Form ADV, including the burden associated with amendments to the form, would be 6,867 hours.
We estimate that, if the amendments to Form ADV are adopted, the total annual hour burden for the form would decrease by 44,113 hours to 224,344. The resulting blended average per adviser amortized burden for Form ADV would be 20.12 hours, which would consist of an average annual amortized burden of 23.77 hours for the estimated 9,150 registered advisers and 3.43 hours for the estimated 2,000 exempt reporting advisers.
$0
No
No
No
Yes
No
Uncollected
Melissa Roverts 2025516722
Reginfo record details
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.
Form SEC-1707 Form ADV-readable
Supporting Statement for Form ADV-PRA (12-14-2010).docx
Form ADV