[Federal Register Volume 85, Number 98 (Wednesday, May 20, 2020)]
[Notices]
[Page 30761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10876]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-501, OMB Control No. 3235-0559]


Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 
20549-2736

Extension:
    Rule 203A-2(e)

    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 websites.'' \2\ 
These advisers generally would not meet the statutory thresholds 
currently set out in section 203A of the 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 website in accordance with the 
rule.\6\
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    \1\ 17 CFR 275.203A-2(e).
    \2\ Included in rule 203A-2(e) is a limited exception to the 
interactive website 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).
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    This record maintenance requirement is a ``collection of 
information'' for PRA purposes. The Commission believes that 
approximately 181 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 724 of total burden hours (4 x181) 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 control 
number.
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    \7\ 15 U.S.C. 80b-10(b).
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    The public may view background documentation for this information 
collection at the following website: >www.reginfo.gov<. Find this 
particular information collection by selecting ``Currently under 30-day 
Review--Open for Public Comments'' or by using the search function. 
Written comments and recommendations for the proposed information 
collection should be sent within 30 days of publication of this notice 
to (i) >www.reginfo.gov/public/do/PRAMain< and (ii) David Bottom, 
Director/Chief Information Officer, Securities and Exchange Commission, 
c/o Cynthia Roscoe, 100 F Street NE, Washington, DC 20549, or by 
sending an email to: PRA_Mailbox@sec.gov.

    Dated: May 15, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-10876 Filed 5-19-20; 8:45 am]
BILLING CODE 8011-01-P


