94-11882. Forms under Review by the Office of Management and Budget

[Federal Register Volume 59, Number 94 (Tuesday, May 17, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11882]


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[Federal Register: May 17, 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, [phone].
    Upon Written Request, Copy Available From: Securities and Exchange 
Commission, Office of Filings and Information 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,

    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 amendments to rule 203-1 and 
Form ADV and rule 204-1 under the Investment Advisers Act of 1940 
(``Advisers Act''). The amendments pertain to disclosure by investment 
advisers that sponsor ``wrap fee programs,'' arrangements under which 
investment advice and brokerage services are paid for in a single 
``wrap'' fee.
    The amendments to rule 203-1 and Form ADV 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 270 investment advisers will 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 will incur six burden hours in its preparation. The change 
in burden resulting from this amendment will be reflected in the burden 
associated with rule 203-1.
    In addition, it is estimated that each year approximately twenty-
seven 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 will incur six burden 
hours in addition to the time currently necessary to complete Form ADV. 
This change in burden will be reflected in the burden associated with 
rule 203-1 (Form ADV).
    The burden hours associated with rule 203-1 are likely to decline 
after the amendments' first year. In future years, advisers will be 
required to update the disclosure required by Schedule H to reflect 
changes in that disclosure. The Commission estimates that this updating 
will take significantly less than the six hours necessary to prepare 
Schedule H initially.
    General comments may be directed to the OMB Clearance Officer for 
the Securities and Exchange Commission 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 to the 
Clearance Officer for the Securities and Exchange Commission, Office of 
Information and Regulatory Affairs, Paperwork Reduction Act numbers 
3235-0049 and 3235-0048, Office of Management and Budget, room 3201, 
New Executive Office Building, Washington, DC 20543.

    Dated: May 2, 1994.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-11882 Filed 5-16-94; 8:45 am]
BILLING CODE 8010-01-M