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 adviserâs 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 âMarketing Activities Questionsâ) and changes in the adviser population discussed above. We do not estimate any change to approved external costs to respondents.
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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