Rule 206(4)-3 under the Investment Advisers Act of 1940 (17 CFR 275.206(4)-3)

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
3235-0242 60 Day Notice 2021-27498.pdf	Supplementary Document	Uploaded 2022-01-20	Repair queued
3235-0242.pdf	Supplementary Document	Uploaded 2022-01-20	Repair queued
Rule 206(4)-3 (2022) Supporting Statement.pdf	Supporting Statement A	Uploaded 2021-12-14	Repair queued

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
34677	Rule 206(4)-3		Modified

ICR Details

OMB Control No: 3235-0242	ICR Reference No: 202112-3235-007
Status: Historical Active	Previous ICR Reference No: 201805-3235-010
Agency/Subagency: SEC	Agency Tracking No: IM-270-218
Title: Rule 206(4)-3 under the Investment Advisers Act of 1940 (17 CFR 275.206(4)-3)
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 02/22/2022
Retrieve Notice of Action (NOA)	Date Received in OIRA: 01/20/2022
Terms of Clearance: To prevent ICR expiration while the underlying rule 206(4)-3 is still in effect, the ICR extension is to November 2022 (The Commission rescinded rule 206(4)–3, effective November 2, 2022).

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	11/30/2022	36 Months From Approved	02/28/2022
Responses	42,119	0	48,345
Time Burden (Hours)	26,596	0	30,941
Cost Burden (Dollars)	0	0	0

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Abstract: Rule 206(4)-3 imposes restrictions on cash payments for client solicitations and imposes certain disclosure requirements. The information is necessary to inform advisory clients about the nature of a solicitor's financial interest in a recommendation so clients may consider the solicitor's potential bias prior to engaging the adviser.

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Authorizing Statute(s): US Code: 15 USC 80b-6 Name of Law: Investment Advisers Act of 1940
  

Citations for New Statutory Requirements: None

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

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	86 FR 71934	12/19/2021
30-day Notice:	Federal Register Citation:	Citation Date:
	87 FR 3130	01/20/2022
Did the Agency receive public comments on this ICR? No

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

table that charts list of burden

IC Title	Form No.	Form Name
Rule 206(4)-3

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ICR Summary of Burden

table that charts list of burden

	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	42,119	48,345	0	0	-6,226	0
Annual Time Burden (Hours)	26,596	30,941	0	0	-4,345	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

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 decrease of 6,226 responses and 4,345 hours are due to a decrease in the number of registered investment advisers using rule 206(4)-3.

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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

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Common Form ICR:  No

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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: 01/20/2022

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