Rule 204-5 under the Investment Advisers Act of 1940

ICR 201909-3235-018

OMB: 3235-0767

Federal Form Document

Forms and Documents
Document
Name
Status
Supporting Statement A
2020-01-30
IC Document Collections
IC ID
Document
Title
Status
231419
Modified
ICR Details
3235-0767 201909-3235-018
Active 201805-3235-017
SEC IM-270-811
Rule 204-5 under the Investment Advisers Act of 1940
New collection (Request for a new OMB Control Number)   No
Regular
Approved with change 01/30/2020
Retrieve Notice of Action (NOA) 10/29/2019
Comments: Supporting statement was updated to clarify OMB approval status, public comments uploaded to ROCIS, and ROCIS monetary burden updated.
  Inventory as of this Action Requested Previously Approved
01/31/2023 36 Months From Approved
65,662,318 0 0
983,945 0 0
61,003,406 0 0

On April 18, 2018, the Securities and Exchange Commission (the “Commission” or “SEC”) issued a release proposing, among other things, new rule 204-5 and amendments to Form ADV under the Investment Advisers Act of 1940. The proposal would require registered broker-dealers and registered investment advisers to provide a brief relationship summary to retail investors to inform them about certain aspects of the relationships and services the firm offers (the “relationship summary”). Proposed rule 204-5 would require that an investment adviser: (i) deliver the relationship summary to each retail investor before or at the time the adviser enters into an investment advisory agreement as well as to existing clients one time within a specified time period after the effective date of the proposed amendments; (ii) deliver the relationship summary to existing clients before or at the time (a) a new account is opened that is different from the retail investor’s existing account(s), or (b) changes are made to the retail investor’s existing account(s) that would materially change the nature and scope of the adviser’s relationship with the retail investor; (iii) post a current version of their relationship summary prominently on their public website (if they have one); and (iv) communicate any changes in an updated relationship summary to retail investors who are existing clients or customers of the firm within 30 days after the updates are required to be made and without charge. A firm would be permitted to deliver the relationship summary (including updates) electronically, consistent with the Commission’s guidance regarding electronic delivery.

US Code: 15 USC 80b-11(a) Name of Law: Investment Advisers Act of 1940
   US Code: 15 USC 80b-11(h) Name of Law: Investment Advisers Act of 1940
   US Code: 15 USC 80b-4 Name of Law: Investment Advisers Act of 1940
   PL: Pub.L. 111 - 203 913 Name of Law: Dodd-Frank Wall Street Reform and Consumer Protection Act
  
US Code: 15 USC 80b Name of Law: Investment Advisers Act of 1940

3235-AL27 Final or interim final rulemaking 84 FR 33492 07/12/2019

Yes

1
IC Title Form No. Form Name
Rule 204-5 under the Investment Advisers Act of 1940

  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 65,662,318 0 0 65,662,318 0 0
Annual Time Burden (Hours) 983,945 0 0 983,945 0 0
Annual Cost Burden (Dollars) 61,003,406 0 0 61,003,406 0 0
Yes
Changing Regulations
No
This is the first request for approval of the collection of information for this rule.

No
    No
    No
No
No
No
Uncollected
Emily Rowland 202 551-8645

  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.
10/29/2019


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