
[Federal Register: August 6, 2009 (Volume 74, Number 150)]
[Notices]               
[Page 39352-39353]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06au09-96]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. IA-2909]

 
Approval of Investment Adviser Registration Depository Filing 
Fees

AGENCY: Securities and Exchange Commission.

ACTION: Order.

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SUMMARY: The Securities and Exchange Commission (``Commission'' or 
``SEC'') is, for five months, waiving Investment Adviser Registration 
Depository annual and initial filing fees for investment advisers.

DATES: Effective Date: The order will become effective on August 1, 
2009.

FOR FURTHER INFORMATION CONTACT: Keith Kanyan, IARD System Manager, at 
202-551-6737, Daniel S. Kahl, Branch Chief, at 202-551-6730, or 
Iarules@sec.gov, Office of Investment Adviser Regulation, Division of 
Investment Management, Securities and Exchange Commission, 100 F 
Street, NE., Washington, DC 20549-8549.

SUPPLEMENTARY INFORMATION: Section 204(b) of the Investment Advisers 
Act of 1940 (``Advisers Act'') authorizes the Commission to require 
investment advisers to file applications and other documents through an 
entity designated by the Commission, and to pay reasonable costs 
associated with such filings.\1\ In 2000, the Commission designated the 
Financial Industry Regulatory Authority Regulation (``FINRA'') as the 
operator of the Investment Adviser Registration Depository (``IARD'') 
system. At the same time, the Commission approved, as reasonable, 
filing fees.\2\ The Commission later required advisers registered or 
registering with the SEC to file Form ADV through the IARD.\3\ Over 
11,000 advisers now use the IARD to register with the SEC and make 
state notice filings electronically through the Internet.
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    \1\ 15 U.S.C. 80b-4(b).
    \2\ Designation of NASD Regulation, Inc., to Establish and 
Maintain the Investment Adviser Registration Depository; Approval of 
IARD Fees, Investment Advisers Act Release No. 1888 (July 28, 2000) 
[65 FR 47807 (Aug. 3, 2000)]. FINRA was formerly known as the 
National Association of Securities Dealers, Inc.
    \3\ Electronic Filing by Investment Advisers; Amendments to Form 
ADV, Investment Advisers Act Release No. 1897 (Sept. 12, 2000) [65 
FR 57438 (Sept. 22, 2000)].
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    Commission staff, representatives of the North American Securities 
Administrators Association, Inc. (``NASAA''),\4\ and representatives of 
FINRA periodically hold discussions on IARD system finances. In the 
early years of operations, SEC-associated IARD revenues exceeded 
projections while SEC-associated IARD expenses were lower than 
estimated, resulting in a surplus. In 2005, FINRA wrote a letter to SEC 
staff recommending a waiver of annual fees for a one-year period. The 
Commission concluded that this was appropriate and waived the annual 
fees.\5\ In 2006 and 2008, FINRA wrote to the staff again, this time 
recommending a two-year waiver and a nine-month waiver, respectively, 
of all fees to continue to reduce the surplus. The Commission agreed 
and issued another two orders waiving all IARD fees.\6\ As a result of 
these three waivers, the surplus was reduced from $9 million in 2005 to 
approximately $3 million today.
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    \4\ The IARD system is used by both advisers registering or 
registered with the SEC and advisers registered or registering with 
one or more state securities authorities. NASAA represents the state 
securities administrators in setting IARD filing fees for state-
registered advisers.
    \5\ Approval of Investment Adviser Registration Depository 
Filing Fees, Investment Advisers Act Release No. 2439 (Oct. 7, 2005) 
[70 FR 59789 (Oct. 13, 2005)].
    \6\ Approval of Investment Adviser Registration Depository 
Filing Fees, Investment Advisers Act Release Nos. 2564 (Oct. 26, 
2006) and 2806 (Oct. 30, 2008) [73 FR 65900 (Nov. 5, 2008)].
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    FINRA has again written to Commission staff, recommending that the 
waiver of annual IARD fees and the waiver of initial IARD filing fees 
for SEC-registered advisers be extended for an additional five months 
to December 31, 2009. Based on projections of expected SEC-associated 
IARD revenues and SEC-associated IARD expenses for the next five 
months, the Commission believes that the current SEC-associated surplus 
exceeds the amount needed for operations and system enhancements during 
this period, and accordingly believes that an extension of the current 
waiver of both annual and initial filing fees through December 31, 2009 
is appropriate in order to continue reducing the SEC-associated 
surplus. This action is expected to waive approximately $300,000 in 
IARD system fees that SEC-registered advisers would incur, and should 
reduce the SEC-associated surplus to approximately $2 million. The fee 
waiver will apply to all annual updating amendments filed by SEC-
registered advisers from August 1, 2009 through December 31, 2009 and 
to all initial applications for registration filed by advisers applying 
for SEC registration from August 1, 2009 through December 31, 2009.
    It is therefore ordered, pursuant to sections 204(b) and 206(A) of 
the Investment Advisers Act of 1940, that:
    For annual updating amendments to Form ADV filed from August 1, 
2009

[[Page 39353]]

through December 31, 2009, the fee otherwise due from SEC-registered 
advisers is waived, and for initial applications to register as an 
investment adviser with the SEC filed from August 1, 2009 through 
December 31, 2009, the fee otherwise due from the applicant is waived.

    By the Commission.

     Dated: July 31, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-18761 Filed 8-5-09; 8:45 am]
