[Federal Register Volume 61, Number 250 (Friday, December 27, 1996)]
[Rules and Regulations]
[Page 68503]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-32800]



  Federal Register / Vol. 61, No. 250 / Friday, December 27, 1996 / 
Rules and Regulations  

[[Page 68503]]


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SECURITIES AND EXCHANGE COMMISSION

17 CFR Parts 275 and 279

[Release No. IA-1602]
RIN 3235-AH08


Suspension of Form ADV-S

AGENCY: Securities and Exchange Commission.

ACTION: Stay of rules and suspension of form.

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SUMMARY: The Commission is staying a rule and a provision in a rule 
under the Investment Advisers Act of 1940 that require the filing of 
Form ADV-S, the annual report filed by all investment advisers 
registered with the Commission. The Commission is also suspending the 
use of Form ADV-S indefinitely, pending the outcome of a related 
rulemaking.

EFFECTIVE DATE: Effective December 27, 1996 paragraph (c) of 
Sec. 275.204-1 and Sec. 279.3 are stayed, and the use of Form ADV-S is 
suspended.

FOR FURTHER INFORMATION CONTACT: Catherine M. Saadeh, Staff Attorney, 
or Cynthia G. Pugh, Staff Attorney, at (202) 942-0690, Office of 
Regulatory Policy, Division of Investment Management, Mail Stop 10-2, 
450 Fifth Street, N.W., Washington, D.C. 20549.

SUPPLEMENTARY INFORMATION: The Commission is staying paragraph (c) of 
rule 204-1 [17 CFR 275.204-1(c)] and section 279.3 of Part 279 [17 CFR 
279.3] under the Investment Advisers Act of 1940 [15 USC 80b-1 et seq.] 
(the ``Advisers Act''), which require investment advisers registered 
with the Commission to annually file Form ADV-S. The Commission is also 
suspending the use of Form ADV-S.
    In a separate release, the Commission today is proposing new Form 
ADV-T, amendments to Form ADV, and related rules and rule 
amendments.\1\ The proposed rules and form would, among other things, 
require each investment adviser registered with the Commission to: (i) 
File a report with the Commission by April 9, 1997 indicating the 
adviser's continued status under the Advisers Act; \2\ and (ii) provide 
similar information in a new schedule to Form ADV annually thereafter. 
These proposed new requirements would make unnecessary the reporting 
requirements of Form ADV-S. Because the new requirements would either 
duplicate or replace the ADV-S reporting requirements, the Commission 
believes requiring advisers to file Form ADV-S prior to a final 
decision whether to adopt the proposed rules would be unduly 
burdensome. The Commission is therefore staying paragraph (c) of rule 
204-1 and rule 279.3, and is suspending the use of Form ADV-S. If 
proposed new Form ADV-T and the related proposed rules and amendments 
are adopted, the Commission plans to eliminate the reporting 
requirements of Form ADV-S. Persons interested in commenting on the 
proposed elimination of Form ADV-S are encouraged to respond to the 
request for comments in Investment Advisers Act Rel. No. 1601, File No. 
S7-31-96.
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    \1\ See Investment Advisers Act Rel. No. 1601 (Dec. 20, 1996). 
Form ADV [17 CFR 279.1] is the form used by investment advisers to 
apply for registration as an investment adviser with the Commission, 
or amend an existing registration. See Investment Advisers Act Rel. 
No. 1601 at Section II.H.
    \2\ See Investment Advisers Act Rel. No. 1601 at Section II.B.
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Statutory Authority

    The Commission is staying rule 204-1(c) and rule 279.3, and is 
suspending
the use of Form ADV-S pursuant to the authority set forth in sections 
204 and 211(a) of the Investment Advisers Act of 1940 [15 USC 80b-4 and 
80b-11(a)].

Text of Stayed Rules

List of Subjects in 17 CFR Parts 275 and 279

    Reporting and recordkeeping requirements, securities.
    For the reasons set out in the preamble, Title 17, Chapter II of 
the Code of Federal Regulations is amended as follows:

PART 275--RULES AND REGULATIONS, INVESTMENT ADVISERS ACT OF 1940

    1. The authority citation for Part 275 continues to read, in part, 
as follows:

    Authority: 15 U.S.C. 80b-3, 80b-4, 80b-6A, 80b-11, unless 
otherwise noted.

PART 279--FORMS PRESCRIBED UNDER THE INVESTMENT ADVISERS ACT OF 
1940

    2. The authority citation for Part 279 continues to read as 
follows:

    Authority: The Investment Advisers Act of 1940, 15 U.S.C. 80b-1, 
et seq.

    3. Effective December 27, 1996 Sec. 275.204-1(c) and Sec. 279.3 are 
stayed, and the use of Form ADV-S is suspended.

    Note: Form ADV-S does not appear in the Code of Federal 
Regulations.

    Dated: December 20, 1996.

    By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-32800 Filed 12-26-96; 8:45 am]
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