
[Federal Register Volume 79, Number 69 (Thursday, April 10, 2014)]
[Notices]
[Pages 19935-19936]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-07999]


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

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 203A-2(e).
    OMB Control No. 3235-0559, SEC File No. 270-501.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and 
Exchange Commission (``Commission'') has submitted to the Office of 
Management and Budget (``OMB'') a request for extension and approval of 
the previously approved collection of information discussed below.
    Rule 203A-2(e),\1\ which is entitled ``Internet Investment 
Advisers,'' exempts from the prohibition on Commission registration an 
Internet investment adviser who provides investment advice to all of 
its clients exclusively through computer software-based models or 
applications termed under the rule as ``interactive Web sites.'' \2\ 
These advisers generally would not meet the statutory thresholds 
currently set out in section 203A of the

[[Page 19936]]

Advisers Act \3\--they do not manage $25 million or more in assets and 
do not advise registered investment companies, or they manage between 
$25 million and $100 million in assets, do not advise registered 
investment companies or business development companies, and are 
required to be registered as investment advisers with the states in 
which they maintain their principal offices and places of business and 
are subject to examination as an adviser by such states.\4\ Eligibility 
under rule 203A-2(e) is conditioned on an adviser maintaining in an 
easily accessible place, for a period of not less than five years from 
the filing of Form ADV,\5\ a record demonstrating that the adviser's 
advisory business has been conducted through an interactive Web site in 
accordance with the rule.\6\
---------------------------------------------------------------------------

    \1\ 17 CFR 275.203A-2(e).
    \2\ Included in rule 203A-2(e) is a limited exception to the 
interactive Web site requirement which allows these advisers to 
provide investment advice to fewer than 15 clients through other 
means on an annual basis. 17 CFR 275.203A-2(e)(1)(i). The rule also 
precludes advisers in a control relationship with an SEC-registered 
Internet adviser from registering with the Commission under the 
common control exemption provided by rule 203A-2(b) (17 CFR 
275.203A-2(b)). 17 CFR 275.203A-2(e)(1)(iii).
    \3\ 15 U.S.C. 80b-3a(a).
    \4\ Id.
    \5\ The five-year record retention period is a similar 
recordkeeping retention period as imposed on all advisers under rule 
204-2 of the Advisers Act. See rule 204-2 (17 CFR 275.204-2).
    \6\ 17 CFR 275.203A-2(e)(1)(ii).
---------------------------------------------------------------------------

    This record maintenance requirement is a ``collection of 
information'' for PRA purposes. The Commission believes that 
approximately 74 advisers are registered with the Commission under rule 
203A-2(e), which involves a recordkeeping requirement of approximately 
four burden hours per year per adviser and results in an estimated 296 
of total burden hours (4 x 74) for all advisers.
    This collection of information is mandatory, as it is used by 
Commission staff in its examination and oversight program in order to 
determine continued Commission registration eligibility of advisers 
registered under this rule. Responses generally are kept confidential 
pursuant to section 210(b) of the Advisers Act.\7\ 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 OMB 
control number.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 80b-10(b).
---------------------------------------------------------------------------

    The public may view the background documentation for this 
information collection at the following Web site, www.reginfo.gov. 
Comments should be directed to: (i) Desk Officer for the Securities and 
Exchange Commission, Office of Information and Regulatory Affairs, 
Office of Management and Budget, Room 10102, New Executive Office 
Building, Washington, DC 20503, or by sending an email to: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas Bayer, Chief Information Officer, 
Securities and Exchange Commission, c/o Remi Pavlik-Simon, 100 F Street 
NE., Washington, DC 20549 or send an email to: PRA_Mailbox@sec.gov. 
Comments must be submitted to OMB within 30 days of this notice.

    Dated: April 4, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-07999 Filed 4-9-14; 8:45 am]
BILLING CODE 8011-01-P


