Rule 223-1 under the Investment Advisers Act of 1940--Custody of Funds or Securities of Clients by Investment Advisers

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
Supporting Statement_Rule 223-1.pdf	Supporting Statement A	Uploaded 2026-10-16	Available

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
34671	Rule 206(4)-2, Custody of Funds or Securities of Clients by Investment Advisers		Modified

ICR Details

OMB Control No: 3235-0241	ICR Reference No: 202610-3235-019
Status: Received in OIRA	Previous ICR Reference No: 202504-3235-016
Agency/Subagency: SEC	Agency Tracking No: IM
Title: Rule 223-1 under the Investment Advisers Act of 1940--Custody of Funds or Securities of Clients by Investment Advisers
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 10/19/2026

table that charts list comparision

	Requested	Previously Approved
Expiration Date	36 Months From Approved	09/30/2028
Responses	33,547,435	33,514,391
Time Burden (Hours)	573,542	315,925
Cost Burden (Dollars)	486,025,000	176,577,000

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Abstract: The Commission is proposing to redesignate Rule 206(4)-2 under the Investment Advisers Act of 1940 (the "custody rule" or the “current rule”) (17 CFR 275.206(4)-2) as Rule 223-1 under the Investment Advisers Act of 1940 (17 CFR 275.223-1) (“rule 223-1” or the "proposed rule") and a number of amendments to the custody rule (the “proposal”). The current title for the collection of information is “Rule 206(4)-2 under the Investment Advisers Act of 1940 – Custody of Funds or Securities of Clients by Investment Advisers.” The proposed revised title for the collection of information is “Rule 223-1 under the Investment Advisers Act of 1940 – Custody of Funds or Securities of Clients by Investment Advisers.” The collection of information is currently approved under Office of Management and Budget (“OMB”) control number 3235-0241 (expiring September 30, 2028).

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Authorizing Statute(s): US Code: 15 USC 80b-11(a) Name of Law: Investment Advisers Act of 1940
   US Code: 15 USC 80b-6(4) 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:
3235-AN46	Proposed rulemaking	91 FR 63870	10/06/2026

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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

table that charts list of burden

IC Title	Form No.	Form Name
Rule 206(4)-2, Custody of Funds or Securities of Clients by Investment Advisers

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ICR Summary of Burden

table that charts list 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	33,547,435	33,514,391	0	33,044	0	0
Annual Time Burden (Hours)	573,542	315,925	0	257,617	0	0
Annual Cost Burden (Dollars)	486,025,000	176,577,000	0	309,448,000	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 approved annual aggregate burden for rule 206(4)-2 is currently 315,925 burden hours, with total internal monetized costs of $28,525,065. We are revising our total burden estimates to reflect the proposed amendments and updated data including the increase in our estimate of the number of respondents subject to the rule. We estimate that the increase in our estimate will result in an aggregate increase in the collection of information burden estimate by 257,617 hours. This would yield an annual estimated aggregate burden of 573,542 hours under proposed rule 223-1 for all registered advisers, with total monetized costs of $168,683,667.

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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: 10/19/2026

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