
[Federal Register Volume 78, Number 74 (Wednesday, April 17, 2013)]
[Notices]
[Pages 22922-22923]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-08975]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Investor Education and Advocacy, Washington, DC 
20549-0213.

Extension: Rule 0-4.
    OMB Control No. 3235-0633, SEC File No. 270-569.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (the ``Commission'') is soliciting comments on the 
collection of information summarized below. The Commission plans to 
submit this collection of information to the Office of Management and 
Budget for extension and approval.
    Rule 0-4 (17 CFR 275.0-4) under the Investment Advisers Act of 1940 
(``Act'' or ``Advisers Act'') (15 U.S.C. 80b-1 et seq.) entitled 
``General Requirements of Papers and Applications,'' prescribes general 
instructions for filing an application seeking exemptive relief with 
the Commission. Rule 0-4 currently requires that every application for 
an order for which a form is not specifically prescribed and which is 
executed by a corporation, partnership or other company and filed with 
the Commission contain a statement of the applicable provisions of the 
articles of incorporation, bylaws or similar documents, relating to the 
right of the person signing and filing such application to take such 
action on behalf of the applicant, and a statement that all such 
requirements have been complied with and that the person signing and 
filing the application is fully authorized to do so. If such 
authorization is dependent on resolutions of stockholders, directors, 
or other bodies, such resolutions must be attached as an

[[Page 22923]]

exhibit to or quoted in the application. Any amendment to the 
application must contain a similar statement as to the applicability of 
the original statement of authorization. When any application or 
amendment is signed by an agent or attorney, rule 0-4 requires that the 
power of attorney evidencing his authority to sign shall state the 
basis for the agent's authority and shall be filed with the Commission. 
Every application subject to rule 0-4 must be verified by the person 
executing the application by providing a notarized signature in 
substantially the form specified in the rule. Each application subject 
to rule 0-4 must state the reasons why the applicant is deemed to be 
entitled to the action requested with a reference to the provisions of 
the Act and rules thereunder, the name and address of each applicant, 
and the name and address of any person to whom any questions regarding 
the application should be directed. Rule 0-4 requires that a proposed 
notice of the proceeding initiated by the filing of the application 
accompany each application as an exhibit and, if necessary, be modified 
to reflect any amendment to the application.
    The requirements of rule 0-4 are designed to provide Commission 
staff with the necessary information to assess whether granting the 
orders of exemption are necessary and appropriate in the public 
interest and consistent with the protection of investors and the 
intended purposes of the Act.
    Applicants for orders under the Advisers Act can include registered 
investment advisers, affiliated persons of registered investment 
advisers, and entities seeking to avoid investment adviser status, 
among others. Commission staff estimates that it receives up to 9 
applications per year submitted under rule 0-4 of the Act seeking 
relief from various provisions of the Advisers Act and, in addition, up 
to 7 applications per year submitted under Advisers Act rule 206(4)-5, 
which addresses certain ``pay to play'' practices and also provides the 
Commission the authority to grant applications seeking relief from 
certain of the rule's restrictions. Although each application typically 
is submitted on behalf of multiple applicants, the applicants in the 
vast majority of cases are related entities and are treated as a single 
respondent for purposes of this analysis. Most of the work of preparing 
an application is performed by outside counsel and, therefore, imposes 
no hourly burden on respondents. The cost outside counsel charges 
applicants depends on the complexity of the issues covered by the 
application and the time required. Based on conversations with 
applicants and attorneys, and recent analyses by the Commission,\1\ the 
cost for applications ranges from approximately $12,800 for preparing a 
well-precedented, routine (or otherwise less involved) application to 
approximately $200,000 to prepare a complex or novel application. We 
estimate that the Commission receives 2 of the most time-consuming 
applications annually, 4 applications of medium difficulty, and 10 of 
the least difficult applications subject to rule 0-4.\2\ This 
distribution gives a total estimated annual cost burden to applicants 
of filing all applications of $702,000 [(2x$200,000) + (4x$43,500) + 
(10x$12,800)]. The estimate of annual cost burden is made solely for 
the purposes of the Paperwork Reduction Act, and is not derived from a 
comprehensive or even representative survey or study of the costs of 
Commission rules and forms.
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    \1\ See Family Offices, Investment Advisers Act Release No. 3220 
(June 22, 2011), at section IV.A (``We estimate that a typical 
family office will incur legal fees of $200,000 on average to engage 
in the exemptive order application process, including preparation 
and revision of an application and consultations with Commission 
staff.'') Although the Commission may receive fewer exemptive 
applications from family offices in light of rule 202(a)(11)(G)-1, 
which defines family offices that are now excluded from regulation 
under the Advisers Act, the costs to prepare family office 
applications may be representative of the costs required to prepare 
other more complex and novel applications. See also Political 
Contributions by Certain Investment Advisers, Investment Advisers 
Act Release No. 3043 (July 1, 2010), at section V.D. (estimating 
that applications filed under Advisers Act rule 206(4)-5 ``will cost 
approximately $12,800'').
    \2\ The estimated 10 least difficult applications include the 
estimated 7 applications per year submitted under Advisers Act rule 
206(4)-5. The Commission previously estimated that these 
applications will cost approximately $12,800 each. Id.
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    The requirements of this collection of information are required to 
obtain or retain benefits. Responses will not be kept confidential. An 
agency may not conduct or sponsor, and a person is not required to 
respond to a collection of information unless it displays a currently 
valid control number.
    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information will 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the collection of information; (c) ways to enhance the 
quality, utility, and clarity of the information collected; and (d) 
ways to minimize the burden of the collection of information on 
respondents, including through the use of automated collection 
techniques or other forms of information technology. Consideration will 
be given to comments and suggestions submitted in writing within 60 
days of this publication.
    Please direct your written comments to Thomas Bayer, Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, VA 22312; or send an 
email to: PRA_Mailbox@sec.gov.

    Dated: April 11, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-08975 Filed 4-16-13; 8:45 am]
BILLING CODE 8011-01-P


