[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