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 "Commission") is amending Form ADV under the Investment Advisers Act of 1940 (the "Advisers Act" or the "Act"), 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 are amending 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 ("exempt reporting advisers"). 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 amending 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 adopting 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.
These amendments to Form ADV affect the annual aggregate burden associated with the collections of information for Form ADV. The collections are 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 239,122 hours per year. This burden represents a decrease of 21,805 hours from the current approved burden. This decrease is attributable primarily to the 3,200 advisers that we expect to withdraw from SEC registration.
Registered investment advisers are also expected to incur an annual cost burden of $10,056,250, resulting in a reduction of $12,719,150. 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, is 7,530 hours.
We estimate that, as a result of the amendments to Form ADV, the total annual time burden for this information collection will decrease by 21,805 hours. The resulting blended average per adviser amortized burden for Form ADV is 20.99 hours, which consists of an average annual amortized burden of 24.52 hours for the estimated 9,750 registered advisers and 3.77 hours for the estimated 2,000 exempt reporting advisers, for a total annual time burden of 246,652 hours.
$0
No
No
No
Yes
No
Uncollected
Melissa Roverts 2025516722
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
Supplementary Document - Adopted Form ADV.pdf
Supporting Statement for Form ADV-PRA (6-24-2011).docx
Form ADV