[Federal Register Volume 78, Number 74 (Wednesday, April 17, 2013)]
[Notices]
[Pages 22922-22923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-08975]
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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 Investor Education and Advocacy, Washington, DC
20549-0213.
Extension: Rule 0-4.
OMB Control No. 3235-0633, SEC File No. 270-569.
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 (the ``Commission'') is soliciting comments on the
collection of information summarized below. The Commission plans to
submit this collection of information to the Office of Management and
Budget for extension and approval.
Rule 0-4 (17 CFR 275.0-4) under the Investment Advisers Act of 1940
(``Act'' or ``Advisers Act'') (15 U.S.C. 80b-1 et seq.) entitled
``General Requirements of Papers and Applications,'' prescribes general
instructions for filing an application seeking exemptive relief with
the Commission. Rule 0-4 currently requires that every application for
an order for which a form is not specifically prescribed and which is
executed by a corporation, partnership or other company and filed with
the Commission contain a statement of the applicable provisions of the
articles of incorporation, bylaws or similar documents, relating to the
right of the person signing and filing such application to take such
action on behalf of the applicant, and a statement that all such
requirements have been complied with and that the person signing and
filing the application is fully authorized to do so. If such
authorization is dependent on resolutions of stockholders, directors,
or other bodies, such resolutions must be attached as an
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exhibit to or quoted in the application. Any amendment to the
application must contain a similar statement as to the applicability of
the original statement of authorization. When any application or
amendment is signed by an agent or attorney, rule 0-4 requires that the
power of attorney evidencing his authority to sign shall state the
basis for the agent's authority and shall be filed with the Commission.
Every application subject to rule 0-4 must be verified by the person
executing the application by providing a notarized signature in
substantially the form specified in the rule. Each application subject
to rule 0-4 must state the reasons why the applicant is deemed to be
entitled to the action requested with a reference to the provisions of
the Act and rules thereunder, the name and address of each applicant,
and the name and address of any person to whom any questions regarding
the application should be directed. Rule 0-4 requires that a proposed
notice of the proceeding initiated by the filing of the application
accompany each application as an exhibit and, if necessary, be modified
to reflect any amendment to the application.
The requirements of rule 0-4 are designed to provide Commission
staff with the necessary information to assess whether granting the
orders of exemption are necessary and appropriate in the public
interest and consistent with the protection of investors and the
intended purposes of the Act.
Applicants for orders under the Advisers Act can include registered
investment advisers, affiliated persons of registered investment
advisers, and entities seeking to avoid investment adviser status,
among others. Commission staff estimates that it receives up to 9
applications per year submitted under rule 0-4 of the Act seeking
relief from various provisions of the Advisers Act and, in addition, up
to 7 applications per year submitted under Advisers Act rule 206(4)-5,
which addresses certain ``pay to play'' practices and also provides the
Commission the authority to grant applications seeking relief from
certain of the rule's restrictions. Although each application typically
is submitted on behalf of multiple applicants, the applicants in the
vast majority of cases are related entities and are treated as a single
respondent for purposes of this analysis. Most of the work of preparing
an application is performed by outside counsel and, therefore, imposes
no hourly burden on respondents. The cost outside counsel charges
applicants depends on the complexity of the issues covered by the
application and the time required. Based on conversations with
applicants and attorneys, and recent analyses by the Commission,\1\ the
cost for applications ranges from approximately $12,800 for preparing a
well-precedented, routine (or otherwise less involved) application to
approximately $200,000 to prepare a complex or novel application. We
estimate that the Commission receives 2 of the most time-consuming
applications annually, 4 applications of medium difficulty, and 10 of
the least difficult applications subject to rule 0-4.\2\ This
distribution gives a total estimated annual cost burden to applicants
of filing all applications of $702,000 [(2x$200,000) + (4x$43,500) +
(10x$12,800)]. The estimate of annual cost burden is made solely for
the purposes of the Paperwork Reduction Act, and is not derived from a
comprehensive or even representative survey or study of the costs of
Commission rules and forms.
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\1\ See Family Offices, Investment Advisers Act Release No. 3220
(June 22, 2011), at section IV.A (``We estimate that a typical
family office will incur legal fees of $200,000 on average to engage
in the exemptive order application process, including preparation
and revision of an application and consultations with Commission
staff.'') Although the Commission may receive fewer exemptive
applications from family offices in light of rule 202(a)(11)(G)-1,
which defines family offices that are now excluded from regulation
under the Advisers Act, the costs to prepare family office
applications may be representative of the costs required to prepare
other more complex and novel applications. See also Political
Contributions by Certain Investment Advisers, Investment Advisers
Act Release No. 3043 (July 1, 2010), at section V.D. (estimating
that applications filed under Advisers Act rule 206(4)-5 ``will cost
approximately $12,800'').
\2\ The estimated 10 least difficult applications include the
estimated 7 applications per year submitted under Advisers Act rule
206(4)-5. The Commission previously estimated that these
applications will cost approximately $12,800 each. Id.
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The requirements of this collection of information are required to
obtain or retain benefits. Responses will not be kept confidential. 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.
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.
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
email to: [email protected].
Dated: April 11, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-08975 Filed 4-16-13; 8:45 am]
BILLING CODE 8011-01-P