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Please note that the OMB number and expiration date may not have been determined when this Information Collection Request and associated Information Collection forms were submitted to OMB. The approved OMB number and expiration date may be found by clicking on the Notice of Action link below.
View ICR - OIRA Conclusion
OMB Control No:
3235-0278
ICR Reference No:
202311-3235-028
Status:
Historical Inactive
Previous ICR Reference No:
202304-3235-012
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
OIRA Conclusion Action:
Comment filed on proposed rule and continue
Conclusion Date:
12/22/2023
Retrieve Notice of Action (NOA)
Date Received in OIRA:
11/19/2023
Terms of Clearance:
OIRA will review the ICR again upon finalization of the rule.
Inventory as of this Action
Requested
Previously Approved
Expiration Date
05/31/2026
36 Months From Approved
05/31/2026
Responses
15,160
0
15,160
Time Burden (Hours)
2,803,536
0
2,803,536
Cost Burden (Dollars)
0
0
0
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 would require advisers to make and retain the following records for client accounts: all records required to be made and maintained pursuant to proposed rule 275.211(h)(2)-4, including: (i) written documentation of the evaluation conducted pursuant to proposed rule 275.211(h)(2)-4(b)(1), (ii) written documentation of each determination made pursuant to proposed rule 275.211(h)(2)-4(b)(2), including the rationale for such determination; (iii) written documentation of each elimination or neutralization made pursuant to proposed rule 275.211(h)(2)-4(b)(3); (iv) written policies and procedures prepared in accordance with proposed rule 275.211(h)(2)-4(c), including any written description and the date on which the policies and procedures were last reviewed; (v) a record of any disclosures provided to each investor regarding the investment adviser’s use of covered technologies, including, if applicable, the date such disclosure was provided or updated; (vi) a record of each instance in which a covered technology was altered, overridden, or disabled, the reason for such action, and the date thereof, including a record of all instances where an investor requested that a covered technology be altered or restricted in any manner.
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
Associated Rulemaking Information
RIN:
Stage of Rulemaking:
Federal Register Citation:
Date:
3235-AN14
Proposed rulemaking
88 FR 53960
08/09/2023
Federal Register Notices & Comments
Did the Agency receive public comments on this ICR?
No
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
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 has increased from 2,803,536 hours to 3,088,473 hours (an increase of 284,937 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, to correspond to proposed new rule 211(h)(2)-4, requiring advisers to maintain the following records: (i) written documentation of the evaluation conducted pursuant to proposed rule 275.211(h)(2)-4(b)(1), (ii) written documentation of each determination made pursuant to proposed rule 275.211(h)(2)-4(b)(2), including the rationale for such determination; (iii) written documentation of each elimination or neutralization made pursuant to proposed rule 275.211(h)(2)-4(b)(3); (iv) written policies and procedures prepared in accordance with proposed rule 275.211(h)(2)-4(c), including any written description and the date on which the policies and procedures were last reviewed; (v) a record of any disclosures provided to each investor regarding the investment adviser’s use of covered technologies, including, if applicable, the date such disclosure was provided or updated; (vi) a record of each instance in which a covered technology was altered, overridden, or disabled, the reason for such action, and the date thereof, including a record of all instances where an investor requested that a covered technology be altered or restricted in any manner.
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
Agency Contact:
Michael Schrader 202 551-6001
Common Form ICR:
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:
(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:
11/19/2023
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