Rule 204-2 under the Investment Advisers Act of 1940

Forms and Documents

Document Name	Status
Rule 204-2 (Books and Records Rule) - Supporting Statement (T+1) DRAFT.pdf Supporting Statement A	2022-09-01

IC Document Collections

IC ID	Document Title	Status
34747	Rule 204-2, Books and Records to Be Maintained by Investment Advisers	Modified

ICR Details

OMB Control No: 3235-0278	ICR Reference No: 202209-3235-003
Status: Received in OIRA	Previous ICR Reference No: 202108-3235-018
Agency/Subagency: SEC	Agency Tracking No: IM-270-215
Title: Rule 204-2 under the Investment Advisers Act of 1940
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 09/02/2022

	Requested	Previously Approved
Expiration Date	36 Months From Approved	10/31/2024
Responses	13,804	13,724
Time Burden (Hours)	2,786,199	2,764,563
Cost Burden (Dollars)	0	0

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Abstract: Rule 204-2 sets forth mandatory requirements for maintaining and preserving specified books and records. The records that an adviser must keep in accordance with rule 204-2 must generally be retained for not less than five years. The proposed amendments to Rule 204-2 would require registered investment advisers that are parties to contracts under the proposed new rule 15c6-2 under the Securities Exchange Act of 1934 (“rule 15c6-2”) to make and keep records of their allocations, confirmations, and affirmations described in rule 15c6-2.

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Authorizing Statute(s): US Code: 15 USC 80b-11 Name of Law: Investment Advisers Act of 1940
   US Code: 15 USC 80b-4 Name of Law: Investment Advisers Act of 1940
  

Citations for New Statutory Requirements: PL: Pub.L. 111 - 213 410 Name of Law: Dodd-Frank Wall Street Reform and Consumer Protection Act

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3235-AN02	Proposed rulemaking	87 FR 10436	04/21/2022

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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

IC Title	Form No.	Form Name
Rule 204-2, Books and Records to Be Maintained by Investment Advisers

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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	13,804	13,724	0	80	0	0
Annual Time Burden (Hours)	2,786,199	2,764,563	0	21,636	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

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

Burden Reduction Due to:

Short Statement: The estimated annual burden hours associated with rule 204-2 Investment Advisers Act of 1940 (“rule 204-2”) has increased from 2,764,563 hours to 2,786,199 hours (an increase of 21,636 hours). In addition, the external cost burden associated with rule 204-2 ($0) has not changed. The change in annual burden hours is due to our proposed amendments to rule 204-2 requiring registered investment advisers that are parties to contracts under the proposed new rule 15c6-2 under the Securities Exchange Act of 1934 (“rule 15c6-2”) to make and keep records of their allocations, confirmations, and affirmations described in rule 15c6-2, as well as changes to the investment adviser population and the application of the proposed burden to those new advisers.

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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: 09/02/2022

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