Submission for OMB Review; Comment Request, 12632 [2020-04352]
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12632
Federal Register / Vol. 85, No. 42 / Tuesday, March 3, 2020 / Notices
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–501, OMB Control No.
3235–0559]
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(e)
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 softwarebased models or applications, termed
under the rule as ‘‘interactive
websites.’’ 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
1 17
CFR 275.203A–2(e).
in rule 203A–2(e) is a limited
exception to the interactive website 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.
lotter on DSKBCFDHB2PROD with NOTICES
2 Included
VerDate Sep<11>2014
17:19 Mar 02, 2020
Jkt 250001
years from the filing of Form ADV,5 a
record demonstrating that the adviser’s
advisory business has been conducted
through an interactive website in
accordance with the rule.6
This record maintenance requirement
is a ‘‘collection of information’’ for PRA
purposes. The Commission believes that
approximately 181 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 724 of total burden hours (4
× 181) 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.
Please direct your written comments
to David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, C/O Cynthia
Roscoe, 100 F Street NE, Washington,
DC 20549; or send an email to: PRA_
Mailbox@sec.gov.
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).
7 15 U.S.C. 80b–10(a).
PO 00000
Frm 00139
Fmt 4703
Sfmt 4703
Dated: February 27, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020–04352 Filed 3–2–20; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–473, OMB Control No.
3235–0530]
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 32a–4
Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 350l et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collections of information
summarized below. The Commission
plans to submit these existing
collections of information to the Office
of Management and Budget (‘‘OMB’’) for
extension and approval.
Section 32(a)(2) of the Investment
Company Act of 1940 (15 U.S.C. 80a
31(a)(2)) (‘‘Act’’) requires that the
selection of a registered management
investment company’s or registered
face-amount certificate company’s
(collectively, ‘‘funds’’) independent
public accountant be submitted to
shareholders for ratification or rejection.
Rule 32a–4 under the Investment
Company Act (17 CFR 270.32a–4)
exempts a fund from this requirement if,
among other things, the fund has an
audit committee consisting entirely of
independent directors. The rule permits
continuing oversight of a fund’s
accounting and auditing processes by an
independent audit committee in place
of a shareholder vote.
Among other things, in order to rely
on rule 32a–4, a fund’s board of
directors must adopt an audit committee
charter and must preserve that charter,
and any modifications to the charter,
permanently in an easily accessible
place. The purpose of these conditions
is to ensure that Commission staff will
be able to monitor the duties and
responsibilities of an audit committee of
a fund relying on the rule.
Commission staff estimates that on
average the board of directors takes 15
minutes to adopt the audit committee
charter. Commission staff has estimated
that with an average of 8 directors on
E:\FR\FM\03MRN1.SGM
03MRN1
Agencies
[Federal Register Volume 85, Number 42 (Tuesday, March 3, 2020)]
[Notices]
[Page 12632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-04352]
[[Page 12632]]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-501, OMB Control No. 3235-0559]
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(e)
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 websites.'' \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 website in accordance with the
rule.\6\
---------------------------------------------------------------------------
\1\ 17 CFR 275.203A-2(e).
\2\ Included in rule 203A-2(e) is a limited exception to the
interactive website 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).
---------------------------------------------------------------------------
This record maintenance requirement is a ``collection of
information'' for PRA purposes. The Commission believes that
approximately 181 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 724 of total burden hours (4 x 181) 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.
---------------------------------------------------------------------------
\7\ 15 U.S.C. 80b-10(a).
---------------------------------------------------------------------------
Please direct your written comments to David Bottom, Director/Chief
Information Officer, Securities and Exchange Commission, C/O Cynthia
Roscoe, 100 F Street NE, Washington, DC 20549; or send an email to:
[email protected].
Dated: February 27, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-04352 Filed 3-2-20; 8:45 am]
BILLING CODE 8011-01-P