[Federal Register Volume 82, Number 40 (Thursday, March 2, 2017)]
[Notices]
[Page 12389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-04022]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; 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(e), 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(e),\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 Web sites.'' \2\
These advisers generally would not meet the statutory thresholds
currently set out in section 203A of the Advisers Act \3\--they do not
manage $25 million or more in assets and do not advise registered
investment companies, 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.\4\ Eligibility under rule 203A-2(e) 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,\5\ a record demonstrating that the adviser's advisory business has
been conducted through an interactive Web site in accordance with the
rule.\6\
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\1\ 17 CFR 275.203A-2(e).
\2\ Included in rule 203A-2(e) is a limited exception to the
interactive Web site requirement which allows these advisers to
provide investment advice to fewer than 15 clients through other
means on an annual basis. 17 CFR 275.203A-2(e)(1)(i). The rule also
precludes advisers in a control relationship with an SEC-registered
Internet adviser from registering with the Commission under the
common control exemption provided by rule 203A-2(b) (17 CFR
275.203A-2(b)). 17 CFR 275.203A-2(e)(1)(iii).
\3\ 15 U.S.C. 80b-3a(a).
\4\ Id.
\5\ The five-year record retention period is a similar
recordkeeping retention period as imposed on all advisers under rule
204-2 of the Advisers Act. See rule 204-2 (17 CFR 275.204-2).
\6\ 17 CFR 275.203A-2(e)(1)(ii).
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This record maintenance requirement is a ``collection of
information'' for PRA purposes. The Commission believes that
approximately 144 advisers are registered with the Commission under
rule 203A-2(e), which involves a recordkeeping requirement of
approximately four burden hours per year per adviser and results in an
estimated 576 of total burden hours (4 x 144) 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.\7\ Written comments are
invited on: (a) Whether the collection of information is necessary for
the proper performance of the functions of the Commission, including
whether the information has practical utility; (b) The accuracy of the
Commission'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. An agency may
not conduct or sponsor a collection of information unless it displays a
currently valid OMB control number. No person shall be subject to any
penalty for failing to comply with a collection of information subject
to the PRA that does not display a valid OMB control number.
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\7\ 15 U.S.C. 80b-10(a).
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Please direct your written comments to Pamela Dyson, Director/Chief
Information Officer, Securities and Exchange Commission, C/O Remi
Pavlik-Simon, 100 F Street NE., Washington, DC 20549; or send an email
to: [email protected].
Dated: February 23, 2017.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2017-04022 Filed 3-1-17; 8:45 am]
BILLING CODE 8011-01-P