[Federal Register Volume 76, Number 53 (Friday, March 18, 2011)]
[Notices]
[Page 15004]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-6367]
[[Page 15004]]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.
Revision and Extension:
Rule 203A-2(f); SEC File No. 270-501; OMB Control No. 3235-0559.
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and
Exchange Commission (``Commission'') is soliciting comments on the
collections of information summarized below. The Commission plans to
submit this existing collection of information to the Office of
Management and Budget for extension and approval.
Rule 203A-2(f),\1\ which is entitled ``Internet Investment
Advisers,'' exempts from the prohibition on Commission registration an
Internet investment adviser who provides investment advice to all of
its clients exclusively through computer software-based models or
applications, termed under the rule as ``interactive websites.'' These
advisers generally would not meet the statutory thresholds currently
set out in section 203A of the Advisers Act \2\ or the thresholds set
out in section 203A as amended by the Dodd-Frank Wall Street Reform and
Consumer Protection Act (``Dodd-Frank Act'') beginning on July 21,
2011\3\--they do not manage $25 million or more in assets and do not
advise registered investment companies,\4\ or they manage between $25
million and $100 million in assets, do not advise registered investment
companies or business development companies, and are required to be
registered as investment advisers with the states in which they
maintain their principal offices and places of business and are subject
to examination as an adviser by such states.\5\ Eligibility under rule
203A-2(f) is conditioned on an adviser maintaining in an easily
accessible place, for a period of not less than five years from the
filing of Form ADV relying on the rule,\6\ a record demonstrating that
the adviser's advisory business has been conducted through an
interactive website in accordance with the rule.\7\
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\1\ 17 CFR 275.203A-2(f). Included in rule 203A-2(f) is a
limited exception to the interactive website requirement which
allows these advisers to provide investment advice to no more than
14 clients through other means on an annual basis. 17 CFR 275.203A-
2(f)(1)(i). The rule also precludes advisers in a control
relationship with the SEC-registered Internet adviser from
registering with the Commission under the common control exemption
provided by rule 203A-2(c) (17 CFR 275.203A-2(c)). 17 CFR 275.203A-
2(f)(1)(iii).
\2\ 15 U.S.C. 80b-3a(a).
\3\ Public Law 111-203, 124 Stat. 1376 (2010).
\4\ 15 U.S.C. 80b-3a(a).
\5\ See section 410 of the Dodd-Frank Act. A mid-sized adviser
managing between $25 million and $100 million also will be permitted
to register with the Commission if it would be required to register
with 15 or more states. These amendments are effective on July 21,
2011.
\6\ The five-year record retention period is a similar
recordkeeping retention period as imposed on all advisers under rule
204-2 of the Adviser Act. See rule 204-2 (17 CFR 275.204-2).
\7\ 17 CFR 275.203A-2(f)(1)(ii).
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This record maintenance requirement is a ``collection of
information'' for PRA purposes. The Commission believes that
approximately 58 advisers are registered with the Commission under rule
203-2A(f), which involves a recordkeeping requirement manifesting in
approximately four burden hours per year per adviser and results in an
estimated 232 of total burden hours (4 x 58) for all advisers.
This collection of information is mandatory, as it is used by
Commission staff in its examination and oversight program in order to
determine continued Commission registration eligibility for advisers
registered under this rule. Responses generally are kept confidential
pursuant to section 210(b) of the Advisers Act.\8\ Written comments are
invited on: (a) Whether the proposed collection of information is
necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility; (b) The
accuracy of the agency's estimate of the burden of the collection of
information; (c) Ways to enhance the quality, utility, and clarity of
the information collected; and (d) Ways to minimize the burden of the
collection of information on respondents, including through the use of
automated collection techniques or other forms of information
technology. Consideration will be given to comments and suggestions
submitted in writing within 60 days of this publication.
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\8\ 15 U.S.C. 80b-10(b).
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Please direct your written comments to Thomas Bayer, Chief
Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312; or send an
e-mail to: [email protected].
Dated: March 15, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-6367 Filed 3-17-11; 8:45 am]
BILLING CODE 8011-01-P