[Federal Register Volume 65, Number 150 (Thursday, August 3, 2000)]
[Notices]
[Pages 47807-47808]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-19673]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. IA-1888]


Designation of NASD Regulation, Inc. To Establish and Maintain 
the Investment Adviser Registration Depository; Approval of IARD Fees

July 28, 2000.
AGENCY: Securities and Exchange Commission.

ACTION: Notice and order.

-----------------------------------------------------------------------

SUMMARY: The Commission is designating NASD Regulation, Inc. (NASDR) to 
establish and maintain a new electronic filing and disclosure system 
for investment advisers. The new system is called the Investment 
Adviser Registration Depository (IARD). The Commission is also 
approving IARD filing fees.

EFFECTIVE DATE: July 28, 2000.

FOR FURTHER INFORMATION CONTACT: Lori H. Price, Senior Counsel, or 
Karen L. Goldstein, Attorney, 202-942-0716, Task Force on Investment 
Adviser Regulation, Division of Investment Management, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549-0506.

Discussion

    In 1996, Congress gave us authority to participate in an electronic 
system for the registration of investment advisers. Section 203A(d) of 
the Investment Advisers Act of 1940 (Advisers Act) allows us to require 
investment advisers to file forms ``through any entity designated [by 
us] for that purpose,'' and to ``pay the reasonable costs associated 
with [these] filings.'' \1\ The NASDR is building the IARD for us and 
the North American Securities Administrators Association. The IARD will 
permit advisers to file with us and the states electronically through 
the Internet.\2\
---------------------------------------------------------------------------

    \1\ 15 USC 80b-3a(d).
    \2\ The IARD will permit advisers to satisfy filing obligations 
under state and federal laws by making a single electronic filing. 
Information contained in the filings made through the IARD will be 
stored in a database that will be publicly accessible through the 
Internet. We have proposed new rules under the Advisers Act, and 
amendments to current rules, that would require advisers to submit 
their filings through the IARD. The release proposing these rules 
provides further details on how the IARD will work. See Electronic 
Filing by Investment Advisers; Proposed Amendments to Form ADV, 
Investment Advisers Act Release No. 1862 (April 5, 2000) [65 FR 
20524 (April 17, 2000)].
---------------------------------------------------------------------------

    Today, pursuant to our authority under the Advisers Act, we are 
designating NASDR as operator of the IARD. NASDR has extensive 
experience administering the Central Registration Depository (CRD) 
through which broker-dealers make electronic filings with NASDR, the 
state securities authorities, and us. NASDR is the self-regulatory 
organization for broker-dealers.\3\ In operating the IARD, NASDR will 
perform certain administrative tasks related to the IARD, but will not 
act as a self-regulatory organization for advisers.
---------------------------------------------------------------------------

    \3\ NASDR was established in 1996 as a wholly owned subsidiary 
of the National Association of Securities Dealers (NASD).
---------------------------------------------------------------------------

    NASDR has submitted to us a schedule of filing fees that it 
proposes to charge advisers to initially register through the IARD and 
to file updating annual amendments. Today we are approving these fees. 
The fees will be used to pay for the operation and maintenance of the 
IARD. Because larger advisers will make greater use of the system and 
derive greater benefits, NASDR has proposed that they pay higher fees 
than smaller advisers. Thus, the filing fee requirements are set in 
three tiers, based on the amount of an adviser's assets under 
management. We approve these fees, which follow, as

[[Page 47808]]

payment by advisers for the reasonable costs associated with using the 
IARD:

------------------------------------------------------------------------
                                                         Annual updating
       Assets under management           Initial fee           fee
------------------------------------------------------------------------
More than $100 million..............            $1,100              $550
$25 million to $100 million.........               800               400
Less than $25 million...............               150               100
------------------------------------------------------------------------

    It Is Therefore Ordered, pursuant to section 203A(d) of the 
Investment Advisers Act of 1940, that:
    (1) NASD Regulation, Inc. is designated as the entity to accept 
electronic and such other filings that our rules require to be filed 
through the Investment Adviser Registration Depository; and
    (2) The proposed filing fees described above are approved.

    Dated: July 28, 2000.

    By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-19673 Filed 8-2-00; 8:45 am]
BILLING CODE 8010-01-P