[Federal Register Volume 59, Number 30 (Monday, February 14, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-3318]
[[Page Unknown]]
[Federal Register: February 14, 1994]
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SECURITIES AND EXCHANGE COMMISSION
Forms Under Review by the Office of Management and Budget
Agency Clearance Officer: John J. Lane, (202) 942-8800.
Upon Written Request, Copy Available From: Securities and Exchange
Commission, Office of Filings, Information and Consumer Services, 450
Fifth Street, NW., Washington, DC 20549.
Revisions
Rule 203-1 and Form ADV--File No. 270-39.
Rule 204-1--File No. 270-41.
Rule 204-3--File No. 270-42.
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1980 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission has submitted for OMB approval proposed amendments to rule
203-1 and Form ADV, rule 204-1, and rule 204-3 under the Investment
Advisers Act of 1940 (``Advisers Act''). The amendments pertain to
disclosure by investment advisers that sponsor ``wrap fee programs,''
services under which investment advice and brokerage services are paid
for in a single ``wrap'' fee.
The proposed amendments to rule 203-1 and Form ADV would require
sponsors of wrap fee programs to prepare and file with the Commission
new Schedule H to Form ADV discussing important information about the
wrap fee program. It is estimated that approximately 300 investment
advisers would be required to amend their Form ADVs to include Schedule
H in the first year after the schedule's adoption, and that each
adviser completing Schedule H would incur six burden hours in its
preparation. The increase in burden resulting from this amendment will
be reflected in the burden associated with rule 204-1.
In addition, it is estimated that each year approximately thirty
investment advisers will be required to complete Schedule H as part of
an initial application for registration on Form ADV, and that each
adviser required to complete Schedule H would incur six burden hours in
addition to the time currently necessary to complete Form ADV. This
increase in burden will be reflected in the burden associated with rule
203-1 (Form ADV).
The burden hours associated with rule 204-1 are likely to decline
after the amendments' first year. In future years, each adviser
amending its Form ADV would merely need to make any necessary changes
to its existing wrap fee brochure. The Commission estimates that the
changes will take significantly less than six hours necessary to
prepare the brochure initially.
The amendments to rule 204-3 would require an adviser to deliver
its Schedule H to prospective clients of the wrap fee program, and
offer to deliver it annually to existing clients of the program, in
lieu of the disclosure document required by the rule to be delivered to
the adviser's other clients. Because the amendments to rule 204-3 would
merely require the delivery of a specific wrap fee disclosure document
to certain clients in lieu of the delivery of a more general disclosure
document, the Commission estimates that the amendments to rule 204-3
will not increase the burden on advisers in complying with the rule.
General comments may be directed to Gary Waxman at the address
below. Comments concerning the accuracy of the estimated average burden
hours for compliance with Commission rules and forms should be directed
to John J. Lane, Associate Executive Director, Securities and Exchange
Commission, 450 Fifth Street, NW., Washington, DC 20549, and Gary
Waxman, Clearance Officer, Office of Information and Regulatory
Affairs, Paperwork Reduction Act numbers 3235-0049; 3235-0048, and
3235-0047, Office of Management and Budget, room 3228, New Executive
Office Building, Washington, DC 20543.
Dated: January 24, 1994.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-3318 Filed 2-11-94; 8:45 am]
BILLING CODE 8010-01-M
