In connection with the final amended
marketing rule, the Commission adopted amendments to Form ADV to
add a subsection L to Item 5 of Part 1A to require information
about an adviser’s use in its advertisements of testimonials,
endorsements, third-party ratings, and previous investment advice.
Specifically, we will require an adviser to state whether any of
its advertisements include performance results, hypothetical
performance, or predecessor performance. We will also require an
adviser to state whether any of its advertisements includes
testimonials, endorsements, or a third-party rating, and if so,
whether the adviser pays or otherwise provides cash or non-cash
compensation, directly or indirectly, in connection with their use.
Finally, we will require an adviser to state whether any of its
advertisements includes a reference to specific investment advice
provided by the adviser. We did not adopt amendments to Form ADV
Parts 2 or 3. The Commission uses the information on Form ADV to
determine eligibility for registration and to manage regulatory and
examination programs. Clients use the information required in Form
ADV to determine whether to hire or retain an investment
adviser.
US Code:
15
USC 80b-1 Name of Law: Investment Advisers Act of 1940
We estimate that amendments to
Form ADV, will result in a revised annual aggregate burden hours
for Form ADV (Parts 1, 2 and 3) for all registered advisers and
exempt reporting advisers would be 433,004.44 hours per year, with
a monetized value of $118,210,212.1. This would be an aggregate
increase of 49,352 hours, or $12,753,086.12 in the monetized value
of the hour burden, form the currently approved annual aggregate
burden estimates. These increases are the result of the addition of
the adopted subsection L to Item 5 regarding Marketing Activities
(the “Marketing Activities Questions”) and changes in the adviser
population discussed above. We do not estimate any change to
approved external costs to respondents.
$0
No
Yes
Yes
No
No
No
No
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.
Form SEC 1707 Form ADV
Form ADV Supporting Statement Adoption.pdf
Form ADV