Rule 206(3)-2 under the Investment Advisers Act of 1940 -- Agency Cross Transactions for Advisory Clients

Forms and Documents

Document	Type	Status	Availability
30 Day Notice.docx	Supplementary Document	Uploaded 2022-03-03	Repair queued
60 Day Notice.docx	Supplementary Document	Uploaded 2022-03-03	Missing upstream
Supporting Statement - Rule 206(3)-2.pdf	Supporting Statement A	Uploaded 2021-08-16	Missing upstream

IC Document Collections

IC ID	Collection	Type	Status	Form
34680	Rule 206(3)-2 under the Investment Advisers Act of 1940 -- Agency Cross Transactions for Advisory Clients		Modified

ICR Details

OMB Control No: 3235-0243	ICR Reference No: 202108-3235-008
Status: Received in OIRA	Previous ICR Reference No: 201801-3235-009
Agency/Subagency: SEC	Agency Tracking No: IM-270-216
Title: Rule 206(3)-2 under the Investment Advisers Act of 1940 -- Agency Cross Transactions for Advisory Clients
Type of Information Collection: Reinstatement with change of a previously approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 03/03/2022

	Requested	Previously Approved
Expiration Date	36 Months From Approved
Responses	18,900	0
Time Burden (Hours)	9,450	0
Cost Burden (Dollars)	0	0

---

Abstract: Rule 206(3)-2 permits an investment adviser to comply with Section 206(3) of the Investment Advisers Act of 1940 by obtaining a blanket consent from a client to enter into agency cross transactions provided that certain disclosures are made by the adviser to the client.

---

Authorizing Statute(s): US Code: 15 USC 80b-1 Name of Law: Investment Advisers Act of 1940
  

Citations for New Statutory Requirements: None

---

Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

---

Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	86 FR 48779	08/31/2021
30-day Notice:	Federal Register Citation:	Citation Date:
	86 FR 61345	11/05/2021
Did the Agency receive public comments on this ICR? No

---

Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Rule 206(3)-2 under the Investment Advisers Act of 1940 -- Agency Cross Transactions for Advisory Clients

---

ICR Summary of Burden

	Total Request	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	18,900	0	0	0	-2,400	21,300
Annual Time Burden (Hours)	9,450	0	0	0	-1,200	10,650
Annual Cost Burden (Dollars)	0	0	0	0	-1,445,738	1,445,738

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The number of respondents has decreased from approximately 426 investment advisers to 378 investment advisers. In addition, the number of clients for whom the investment adviser engages in agency cross transactions has increased from approximately 16 clients to approximately 22 clients (although the number of responses and hours per response have not changed since the last estimate). Accordingly, the total burden hours for all respondents has decreased from 10,650 hours to 9,450 hours. The decreased burden reflects the net effect of a decrease in the estimated number of investment advisers relying on the rule and an decrease in the estimated number of clients for whom the investment adviser engages in agency cross transactions, since the last extension request.

---

Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     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? No

---

Common Form ICR:  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:

(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: 03/03/2022

---