View Information Collection Request (ICR) Package

OMB Control No: 3235-0585	ICR Reference No: 202111-3235-008
Status: Historical Active	Previous ICR Reference No: 201902-3235-009
Agency/Subagency: SEC	Agency Tracking No: IM-270-523
Title: Investment Advisers Act rule 206(4)-7, 17 C.F.R. Sec. 275.206(4)- 7, Compliance procedures and practices.
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: 02/24/2022
	Date Received in OIRA: 01/20/2022
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	02/28/2025	36 Months From Approved	08/31/2022
Responses	14,376	0	13,249
Time Burden (Hours)	1,293,840	0	1,152,663
Cost Burden (Dollars)	0	0	0

Abstract: Rule 206(4)-7 requires investment advisers registered with the Commission to adopt and implement compliance policies and procedures, to review those policies and procedures annually, and to designate a chief compliance officer.

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

Citations for New Statutory Requirements: None

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

Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	86 FR 67780	11/29/2021
30-day Notice:	Federal Register Citation:	Citation Date:
	87 FR 3135	01/20/2022
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 206(4)-7 under the Investment Advisers Act of 1940 - Compliance Procedures and Practices

ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to Adjustment in Estimate
Annual Number of Responses	14,376	13,249	1,127
Annual Time Burden (Hours)	1,293,840	1,152,663	141,177
Annual Cost Burden (Dollars)	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: We estimate that the annual aggregate time burden associated with rule 206(4)-7 will increase from 1,152,663 hours to 1,293,840 hours, resulting in an increase of 141,177 hours. We estimate that the annual aggregate monetized cost burden will increase from $276,972,286 to $322,036,776, resulting in an increase in $45,064,490. These increases are attributable to revised analysis and updated data. Rule 206(4)-7 requires, among other things, registered investment advisers to adopt and implement written policies and procedures reasonably designed to prevent violations of the Advisers Act and its rules. We are revising our analysis to account for new and rescinded requirements that advisers would include in their compliance policies and procedures to prevent violations. Also, according to updated data, more advisers are registered with the Commission, therefore more respondents must comply with rule 204(6)-7, resulting in an increase in the number of responses. Additionally, we increased our hourly wage estimates to account for inflation.

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: Alexis Palascak 202 551-6246

View ICR - OIRA Conclusion