Regulation AC

Forms and Documents

Document Name	Status
Reg AC Supporting Statement FY 2008.doc Supporting Statement A	2009-05-14

IC Document Collections

IC ID	Document Title	Status
35425	Regulation AC	Modified

ICR Details

OMB Control No: 3235-0575	ICR Reference No: 200812-3235-009
Status: Historical Active	Previous ICR Reference No: 200603-3235-001
Agency/Subagency: SEC	Agency Tracking No: TM-270-517
Title: Regulation AC
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 05/14/2009
	Date Received in OIRA: 02/25/2009
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	05/31/2012	36 Months From Approved	05/31/2009
Responses	1,390,470	0	659,211
Time Burden (Hours)	28,538	0	11,296
Cost Burden (Dollars)	0	0	0

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Abstract: Regulation AC requires that any research report disseminated by a broker or dealer include certifications by the research report accurately reflect the analyst's personal views, and whether the analyst received compensation or other payments in connection with his or her specific recommendations or views. Broker-dealers would also be required to obtain analyst certifications and disclosures in connection with public appearances.

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Authorizing Statute(s): US Code: 15 USC 78c, 78o, 78q, and 78w Name of Law: Sections 3, 15, 17, and 23 of the Securities Exchange Act of 1934
   US Code: 15 USC 77q and 77s Name of Law: and Sections 17 and 19 of the Securities Act of 1933
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	73 FR 77082	12/18/2008
30-day Notice:	Federal Register Citation:	Citation Date:
	74 FR 8590	02/25/2009
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Regulation AC

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	1,390,470	659,211	0	731,259	0	0
Annual Time Burden (Hours)	28,538	11,296	0	17,242	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: Adjustment in agency estimate of annual number of responses and time per response. The changes in burden reflect the incorporation of two requirements imposed by Regulation AC which were not included in the FY 2005 recertification. First, Rule 501 imposes requirements on certain entities if they are associated with a broker-dealer and meet the definition of “covered person.” The Commission estimates that the total annual burden in hours for the approximately 2,914 registered investment advisers which are associated with a broker-dealer to comply with this requirement is approximately 12,142 hours. No such estimate was included in the FY 2005 recertification. Second, Rule 504 requires a broker-dealer to notify its associated persons that issue research reports as to whether associated persons would meet the definition of “covered persons” under Regulation AC, and therefore, be subject to the rule. The Commission estimates that the annual burden for broker-dealers to comply with this notification requirement is approximately 5,100 hours. No such estimate was included in the FY 2005 recertification. While there has not been an increase in the number of respondents, the Commission estimates that respondents generally have increased activities that trigger collection of information requirements under Regulation AC, thereby increasing the estimated number of responses per year

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? Uncollected

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Uncollected

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 02/25/2009

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