Document ID: SEC-2014-0210-0001
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals; Extension: Rule 203A-2(e)
Posted Date: 2014-02-04T05:00Z

[Federal Register Volume 79, Number 23 (Tuesday, February 4, 2014)]
[Notices]
[Pages 6658-6659]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-02245]

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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 
20549-0213.

Extension:
    Rule 203A-2(e), OMB Control No. 3235-0559, SEC File No. 270-501.

    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

[[Page 6659]]

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 74 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 296 
of total burden hours (4 x 74) 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 Thomas Bayer, Chief 
Information Officer, Securities and Exchange Commission, C/O Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549; or send an email 
to: PRA_Mailbox@sec.gov.

    Dated: January 29, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-02245 Filed 2-3-14; 8:45 am]
BILLING CODE 8011-01-P