Rule 211(h)(2)-4 (17 C.F.R. 275.211(h)(2)-4) under the Investment Advisers Act of 1940

Forms and Documents

Document Name	Status
Rule 211(h)(2)-4_Supporting Statement.pdf Supporting Statement A	2023-12-06

IC Document Collections

IC ID	Document Title	Status
263564	Rule 211(h)(2)-4 (17 C.F.R. 275.211(h)(2)-4) under the Investment Advisers Act of 1940	New

ICR Details

OMB Control No:	ICR Reference No: 202311-3235-030
Status: Received in OIRA	Previous ICR Reference No:
Agency/Subagency: SEC	Agency Tracking No:
Title: Rule 211(h)(2)-4 (17 C.F.R. 275.211(h)(2)-4) under the Investment Advisers Act of 1940
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 12/06/2023

	Requested	Previously Approved
Expiration Date	36 Months From Approved
Responses	15,402	0
Time Burden (Hours)	1,193,655	0
Cost Burden (Dollars)	0	0

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Abstract: Proposed rule 211(h)(2)-4 would require investment advisers to eliminate, or neutralize the effects of, conflicts of interest associated with the use of covered technology in investor interactions. It would also require investment advisers to adopt and maintain policies and procedures consistent with the requirements of the proposed rule.

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Authorizing Statute(s): US Code: 15 USC 80b-11 Name of Law: Investment Advisers Act of 1940
   US Code: 15 USC 80b-4 Name of Law: Investment Advisers Act of 1940
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3235-AN14	Proposed rulemaking	88 FR 53960	08/09/2023

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Federal Register Notices & Comments

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
Rule 211(h)(2)-4 (17 C.F.R. 275.211(h)(2)-4) under the Investment Advisers Act of 1940

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ICR Summary of Burden

	Total Request	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	15,402	0	0	15,402	0	0
Annual Time Burden (Hours)	1,193,655	0	0	1,193,655	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: This is the first request for approval of the collection of information. The estimated annual burden hours associated with proposed rule 211(h)(2)-4 is 1,193,655 aggregate hours. The external cost burden associated with proposed rule 211(h)(2)-4 is estimated to be $0. These annual burden hours are due to the requirements in proposed rule 211(h)(2)-4(c) requiring a firm that has any investor interaction using covered technology to adopt and implement certain written policies and procedures.

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Annual Cost to Federal Government:

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

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

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

Is this ICR related to the Pandemic Response? No

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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: 12/06/2023

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