Justia Regulation Tracker

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[Federal Register: July 2, 2008 (Volume 73, Number 128)]
[Notices]               
[Page 37998]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02jy08-115]                         

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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.

Extension: Rule 203A-2; 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 
collection of information summarized below. The Commission plans to 
submit the 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 Web sites.'' These 
advisers generally would not meet the statutory thresholds set out in 
section 203A of the Advisers Act \2\--they do not manage $25 million or 
more in assets and do not advise registered investment companies. 
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,\3\ a 
record demonstrating that the adviser's advisory business has been 
conducted through an interactive Web site in accordance with the 
rule.\4\
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    \1\ 17 CFR 275.203A-2(f). Included in rule 203A-2(f) is a 
limited exception to the interactive Web site 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\ The five-year record retention period is the same 
recordkeeping retention period for all advisers imposed under rule 
204-2 of the Adviser Act. See rule 204-2 (17 CFR 275.204-2).
    \4\ 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 39 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 156 of total burden hours (4 x 39) 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.\5\ 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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    \5\ 15 U.S.C. 80b-10(b).
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    Please direct your written comments to R. Corey Booth, Director/
Chief Information Officer, Securities and Exchange Commission, C/O 
Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312; or 
send an e-mail to: PRA_Mailbox@sec.gov.

    Dated: June 25, 2008.
Florence E. Harmon,
Acting Secretary.
 [FR Doc. E8-14982 Filed 7-1-08; 8:45 am]

BILLING CODE 8010-01-P

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