[Federal Register Volume 85, Number 139 (Monday, July 20, 2020)]
[Notices]
[Pages 43904-43905]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15435]
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SECURITIES AND EXCHANGE COMMISSION
Submission for OMB Review; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
Extension:
Rule 203A-2(d); SEC File No. 270-630, OMB Control No. 3235-0689
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.) the Securities and Exchange Commission
(``Commission'') has submitted to the Office of Management and Budget
(``OMB'') a request for extension of the previously approved collection
of information discussed below.
The title of the collection of information is: ``Exemption for
Certain Multi-State Investment Advisers (Rule 203A-2(d)).'' Its
currently approved OMB control number is 3235-0689. An agency may not
conduct or sponsor, and a person is not required to respond to a
collection of information unless it displays a currently valid control
number.
Pursuant to section 203A of the Investment Advisers Act of 1940
(the ``Act'') (15 U.S.C. 80b-3a), an investment adviser that is
regulated or required to be regulated as an investment adviser in the
state in which it maintains its principal office and place of business
is prohibited from registering with the Commission unless that adviser
has at least $25 million in assets under management or advises a
Commission-registered investment company. Section 203A also prohibits
from Commission registration an adviser that: (i) Has assets under
management between $25 million and $100 million; (ii) is required to be
registered as an investment adviser with the state in which it
maintains its principal office and place of business; and (iii) if
registered, would be subject to examination as an adviser by that state
(a ``mid-sized adviser''). A mid-sized adviser that otherwise would be
prohibited may register with the Commission if it would be required to
register with 15 or more states. Similarly, Rule 203A-2(d) under the
Act (17 CFR 275.203a-2(d)) provides that the prohibition on
registration with the Commission does not apply to an investment
adviser that is required to register in 15 or more states. An
investment adviser relying on this exemption also must: (i) Include a
representation on Schedule D of Form ADV that the investment adviser
has concluded that it must register as an investment adviser with the
required number of states; (ii) undertake to withdraw from registration
with the Commission if the adviser indicates on an annual updating
amendment to Form ADV that it would be required by the laws of fewer
than 15 states to register as an investment adviser with the state; and
(iii) maintain in an easily accessible place a record of the states in
which the investment adviser has determined it would, but for the
exemption, be required to register for a period of not less than five
years from the filing of a Form ADV relying on the rule.
Respondents to this collection of information are investment
advisers required to register in 15 or more states absent the exemption
that rely on rule 203A-2(d) to register with the Commission. The
information collected under rule 203A-2(d) permits the Commission's
examination staff to determine an adviser's eligibility for
registration with the Commission under this exemptive rule and is also
necessary for the Commission staff to use in its examination and
oversight program. This collection of information is codified at 17 CFR
275.203a-2(d) and is mandatory to qualify for and maintain Commission
registration eligibility under rule 203A-2(d). Responses to the
recordkeeping requirements under rule 203A-2(d) in the context of the
Commission's examination and oversight program are generally kept
confidential.
The estimated number of investment advisers subject to the
collection of information requirements under the rule is 106. These
advisers will incur an average one-time initial burden of approximately
8 hours, and an average ongoing burden of approximately 8 hours per
year, to keep records sufficient to demonstrate that they meet the 15-
state threshold. These estimates are based on an estimate that each
year an investment adviser will spend approximately 0.5 hours creating
a record of its determination whether it must register as an investment
adviser with each of the 15 states required to rely on the exemption,
and approximately 0.5 hours to maintain these records. Accordingly, we
estimate that rule 203A-2(d) results in an annual aggregate burden of
collection for SEC-registered investment advisers of a total of 848
hours. Estimates of average burden hours are made solely for the
purposes of the Paperwork Reduction Act, and are not derived from a
comprehensive or even a representative survey or study of the costs of
Commission rules and forms.
The public may view background documentation for this information
collection at the following website: www.reginfo.gov. Find this
particular information collection by selecting ``Currently under 30-day
Review--Open for Public Comments'' or by using the search function.
Written comments and recommendations for the proposed information
collection should be sent within 30 days of publication of this notice
to (i) www.reginfo.gov/public/do/PRAMain and (ii) David Bottom,
Director/Chief Information Officer, Securities and Exchange Commission,
c/o Cynthia Roscoe, 100 F Street NE, Washington, DC 20549, or by
sending an email to: [email protected].
[[Page 43905]]
Dated: July 13, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-15435 Filed 7-17-20; 8:45 am]
BILLING CODE 8011-01-P