Rule 204-2 under the
Investment Advisers Act of 1940
Revision of a currently approved collection
No
Regular
08/23/2021
Requested
Previously Approved
36 Months From Approved
10/31/2022
13,724
13,299
2,764,563
2,435,364
0
0
Under the amended books and records
rule, registered investment advisers are required to retain copies
of: all advertisements (with certain provisions specifically for
the retention of oral advertisements); certain records related to
performance information in advertisements; certain records related
to third-party ratings used in advertisements; and documents
related to an adviser's use of testimonials and endorsements in
advertisements. The purpose of the information collection is to
assist the SEC's examination and oversight program in determining
compliance with the Advisers Act.
US Code:
15
USC 80b Name of Law: Investment Advisers Act of 1940
PL: Pub.L. 111 - 213 410 Name of Law:
Dodd-Frank Wall Street Reform and Consumer Protection Act
As noted above, the approved
annual aggregate burden for rule 204-2 is currently 2,435,364
hours, based on an estimate of 13,299 registered advisers, or 183
hours per registered adviser, with a total monetized costs of
$154,304,664. We therefore estimate that the amendments to the
recordkeeping rule will result in an aggregate increase in the
collection of information burden estimate by 18.44 hours for each
of the estimated 13,724 registered advisers, resulting in a total
of 201.44 hours per adviser. This would yield an annual estimated
aggregate burden of 2,764,563 hours under amended rule 204-2 for
all registered advisers, for a monetized cost of $175,980,426. This
represents an increase of 329,199 annual aggregate hours in the
hour burden and an annual increase of $21,675,762 from the
currently approved total aggregate monetized cost for rule 204-2.
These increases are attributable to a larger registered investment
adviser population since the most recent approval and adjustments
for inflation, as well as the rule 204-2 amendments relating to the
new marketing rule. The changes in burden therefore reflect the
Commission’s revision and update of burden estimates for all
information collections under this OMB control number (whether or
not associated with rulemaking changes), and the Commission
requested public comment on all those information collection burden
estimates for this OMB control number.
$0
No
No
No
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.