
[Federal Register: December 16, 2009 (Volume 74, Number 240)]
[Notices]               
[Page 66710-66711]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16de09-107]                         

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SECURITIES AND EXCHANGE COMMISSION

[Release No. IA-2959; File No. S7-29-09]

 
Approval of Investment Adviser Registration Depository Filing 
Fees

AGENCY: Securities and Exchange Commission.

ACTION: Order; request for comment.

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SUMMARY: The Securities and Exchange Commission (``Commission'' or 
``SEC'') is, for one year, reducing Investment Adviser Registration 
Depository annual and initial filing fees that will be charged 
beginning January 1, 2010 through December 31, 2010.

DATES: Effective Date: The order will become effective on January 1, 
2010.
    Comment Due Date: Comments should be received on or before February 
1, 2010.

ADDRESSES: Comments may be submitted by any of the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://
www.sec.gov/rules/other.shtml); or
     Send an e-mail to rule-comments@sec.gov. Please include 
File Number S7-29-09 on the subject line.

Paper Comments

     Send paper comments in triplicate to Elizabeth M. Murphy, 
Secretary, Securities and Exchange Commission, 100 F Street, NE., 
Washington, DC 20549-1090.

All submissions should refer to File Number S7-29-09. This file number 
should be included on the subject line if e-mail is used. To help us 
process and review your comments more efficiently, please use only one 
method. The Commission will post all comments on the Commission's 
Internet Web site (http://www.sec.gov/rules/other.shtml). Comments are 
also available for public inspection and copying in the Commission's 
Public Reference Room, 100 F Street, NE., Washington, DC 20549, on 
official business days between the hours of 10 a.m. and 3 p.m. All 
comments received will be posted without change; we do not edit 
personal identifying information from submissions. You should submit 
only information that you wish to make available publicly.

FOR FURTHER INFORMATION CONTACT: Keith Kanyan, IARD System Manager, at 
202-551-6737, 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, Inc. (``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 NASD.
    \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

[[Page 66711]]

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.\5\ 
The Commission concluded that this was appropriate and waived annual 
fees.\6\ In 2006, 2008, and 2009 FINRA wrote to the staff again, 
recommending a two-year, a nine-month, and a five-month waiver, 
respectively, of all fees to continue to reduce the surplus.\7\ The 
Commission agreed and issued orders waiving all IARD fees.\8\ As a 
result of these four waivers, which waived a total of $18 million in 
filing fees, 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\ NASD letter dated September 9, 2005, available at http://
www.sec.gov/rules/other/nasdlet090905.pdf.
    \6\ Approval of Investment Adviser Registration Depository 
Filing Fees, Investment Advisers Act Release No. 2439 (Oct. 7, 2005) 
[70 FR 59789 (Oct. 13, 2005)].
    \7\ NASD letter dated October 13, 2006 and FINRA letters dated 
October 10, 2008 and July 8, 2009 available at http://www.sec.gov/
rules/other/2006/nasdletter101306-iardfee.pdf, http://www.sec.gov/
rules/other/2008/finraletter101008-iardfees.pdf, and http://
www.sec.gov/rules/other/2009/finraletter070809-iardfees.pdf, 
respectively.
    \8\ Approval of Investment Adviser Registration Depository 
Filing Fees, Investment Advisers Act Release No. 2564 (Oct. 26, 
2006), Investment Advisers Act Release No. 2806 (Oct. 30, 2008) [73 
FR 65900 (Nov. 5. 2008)], and Investment Advisers Act Release No. 
2909 (July 31, 2009) [74 FR 39352 (Aug. 6, 2009)].
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    FINRA has again written to Commission staff, recommending reduced 
annual and initial IARD filing fees for a period of one year commencing 
on January 1, 2010. The recommended annual filing fees due beginning 
January 1, 2010 are $40 for advisers with assets under management under 
$25 million; $150 for advisers with assets under management from $25 
million to $100 million; and $200 for advisers with assets under 
management over $100 million. The recommended initial IARD filing fees 
due beginning January 1, 2010 are $40 for advisers with assets under 
management under $25 million; $150 for advisers with assets under 
management from $25 million to $100 million; and $200 for advisers with 
assets under management over $100 million. Based on projections of 
expected revenues and expenses, the Commission believes these reduced 
fee levels would be reasonable for this year, as the Commission 
projects that they will provide adequate funding to cover IARD system 
expenditures.\9\ This action is expected to reduce aggregate filing 
fees that SEC-registered advisers would incur by approximately $2 
million annually compared to the filing fees that would be collected 
based on the fee levels established in 2000. The revised filing fees 
will apply to all annual updating amendments filed by SEC-registered 
advisers beginning January 1, 2010 and to all initial applications for 
registration filed by advisers applying for SEC registration beginning 
January 1, 2010. The Commission will reassess the fee levels prior to 
the end of the one-year period and welcomes any comments on the fee 
levels, including whether the reduced fee levels in this Order would be 
appropriate as permanent fee levels.
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    \9\ The previous initial filing fees were $150 for advisers with 
assets under management under $25 million; $800 for advisers with 
assets under management from $25 million to $100 million; and $1,100 
for advisers with assets under management over $100 million. The 
previous annual filing fees were $100 for advisers with assets under 
management under $25 million; $400 for advisers with assets under 
management from $25 million to $100 million; and $550 for advisers 
with assets under management over $100 million.
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    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 January 1, 
2010 through December 31, 2010, the filing fee due from SEC-registered 
advisers is $40 for advisers with assets under management under $25 
million; $150 for advisers with assets under management from $25 
million to $100 million; and $200 for advisers with assets under 
management over $100 million.
    For initial applications to register as an investment adviser with 
the SEC filed from January 1, 2010 through December 31, 2010, the 
filing fee due from SEC-registered advisers is $40 for advisers with 
assets under management under $25 million; $150 for advisers with 
assets under management from $25 million to $100 million; and $200 for 
advisers with assets under management over $100 million.

    By the Commission.

    Dated: December 10, 2009.
Elizabeth M. Murphy,
Secretary.
[FR Doc. E9-29840 Filed 12-15-09; 8:45 am]

BILLING CODE 8011-01-P
