[Federal Register Volume 65, Number 249 (Wednesday, December 27, 2000)]
[Rules and Regulations]
[Pages 81737-81739]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32942]
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SECURITIES AND EXCHANGE COMMISSION
17 CFR Parts 275 and 279
[Release No. IA-1916; 34-43758; File No. S7-10-00]
RIN 3235-AI04
Electronic Filing by Investment Advisers; Amendments to Form ADV;
Technical Amendments
AGENCY: Securities and Exchange Commission.
ACTION: Technical amendments to final regulations.
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SUMMARY: The Commission is making technical revisions to Forms ADV,
ADV-W, ADV-H ADV-NR and related rules under the Investment Advisers Act
of 1940 (``Advisers Act''). These revisions are administrative
corrections to amendments adopted by the Commission in Electronic
Filing by Investment Advisers; Amendments to Form ADV, Investment
Advisers Act Release No. 1897 (Sept. 12, 2000) [65 FR 57438 (Sept. 22,
2000)].
EFFECTIVE DATE: The rule and form corrections will become effective on
January 1, 2001.
FOR FURTHER INFORMATION CONTACT: Jennifer B. McHugh, Special Counsel,
at (202) 942-0691, Office of Investment Adviser Regulation, Division of
Investment Management, Securities and Exchange Commission, 450 Fifth
Street, NW, Washington, DC 20549-0506.
I. Supplementary Information
We recently adopted new rules and rule amendments under the
Advisers Act to require that investment advisers make filings
electronically through the Investment Adviser Registration Depository
(IARD).\1\ We also amended Forms ADV and ADV-W to prepare them for
electronic filing. At the same time, we adopted Form ADV-H, an
application for a hardship exemption from electronic filing, and Form
ADV-NR, an appointment of agent for service of process by non-resident
general partners and managing agents of investment advisers.
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\1\ Electronic Filing by Investment Advisers; Amendments to Form
ADV, Investment Advisers Act Release No. 1897 (Sept. 12, 2000)[65 FR
57438 (Sept. 22, 2000)]. The IARD is an Internet-based system for
investment adviser registration.
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Following adoption of the amendments, we conducted an IARD Pilot
Program to test the operation of the new filing system prior to the
January 1, 2001 transition to electronic filing. The Pilot Program ran
from October 17, 2000 through November 9, 2000. Approximately 100 SEC-
registered advisers participated in the Pilot Program.
During the Pilot Program, the Commission staff held weekly
conference calls with Pilot filers and operated a telephone hotline to
answer Pilot filers' questions. The Pilot filers' feedback raised
certain administrative issues regarding our new investment adviser
rules and forms. We therefore are making minor technical amendments to
the rules and forms to address these administrative issues. The
technical amendments, which are outlined in detail below, generally (i)
clarify filing instructions in the rules and forms, (ii) provide notice
to filers of administrative law requirements, and (iii) eliminate minor
internal inconsistencies within these forms.
II. Certain Findings Under The Administrative Procedure Act
Under the Administrative Procedure Act (``APA''), notice of
proposed rulemaking is not required when an agency for good cause finds
``that notice and public procedure thereon are impracticable,
unnecessary, or contrary to the public interest.'' \2\ Because the
amendments adopted today only clarify instructions, provide additional
notices to filers and eliminate administrative inconsistencies in the
forms, the Commission believes they are the sort of minor rule
amendments about which the public is not particularly interested.
Consequently, the Commission finds that publishing these amendments for
comment is unnecessary.
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\2\ 5 U.S.C. 553(b)
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The effective date for the technical amendments is January 1, 2001.
Under the APA, we may establish an effective date less than 30 days
after the publication of the amendments if we find good cause to do
so.\3\ We have required that advisers begin using revised forms on
January 1, 2001. On that date, advisers will begin transitioning to
electronic filing through IARD. We believe the rules and forms should
be corrected as of the date advisers begin using them. Because the
amendments are technical and do not have a significant substantive
impact, we have determined that the need for an administratively
efficient transition to electronic filing through IARD outweighs any
possible disadvantage to investment advisers from having these
amendments become effective with less than 30 days' notice. Therefore,
we find that there is good cause for these technical amendments to
become effective on January 1, 2001.
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\3\ 5 U.S.C. 553(d)(3).
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III. Correction of Publication
PART 275--[CORRECTED]
Accordingly, the publication on September 22, 2000 of the final
regulations (IA-1897), which were the subject of FR Doc. 00-23888, is
corrected as follows:
Sec. 275.203-1 [Corrected]
1. On page 57448, in the third column, in Sec. 275.203-1, in the
Note to Paragraph (b)(2), in the twelfth and thirteenth lines, the
phrase ``If you are a State-registered adviser,'' is removed.
[[Page 81738]]
Sec. 275.203-3 [Corrected]
2. On page 57449, in the first column, in Sec. 275.203-3, in
paragraph (a)(1), in the third line, after ``registered'', the phrase
``or are registering'' is added.
3. On page 57449, in the second column, in Sec. 275.203-3, in
paragraph (a)(2)(i), in the second and third lines, the phrase '' NASD
Regulation, Inc. (NASDR)'' is removed.
4. On page 57449, in the second column, in Sec. 275.203-3, in
paragraph (a)(3), in the fourth line, the phrase ``with NASDR'' is
removed.
5. On page 57449, in the second column, in Sec. 275.203-3, in
paragraph (b)(2), in the third and fourth lines, the phrase ``with
NASDR'' is removed.
6. On page 57449, in the second column, in Sec. 275.203-3, in
paragraph (b)(3), in the seventh line, ``NASDR'' is removed and in its
place ``NASD Regulation, Inc.'' is added.
7. On page 57449, in the second column, in Sec. 275.203-3, in the
Note to Paragraphs (a) and (b), in the first line, ``Paragraphs (a)
and'' is removed and in its place ``Paragraph'' is added.
Sec. 275.204-1 [Corrected]
8. On page 57450, in the third column, in Sec. 275.204-1, in the
Note to Paragraph (c), in the twelfth and thirteenth lines, the phrase
``If you are a State-registered adviser,'' is removed.
Form ADV (referenced in Sec. 279.1) [Corrected]
9. On page 57453, in the first column, in the fourth paragraph, in
the third line, the phrase ``file the paper version of Form ADV with''
is revised to read ``submit the paper version of Form ADV to''.
10. On page 57453, in the second column, following instruction
number 16, after the bolded paragraph, the heading ``Federal
Information Law and Requirements'' and the paragraph that follows are
revised to read as follows:
Privacy Act Statement
Sections 203(c) and 204 of the Advisers Act (15 U.S.C. 80b-3(c) and
80b-4) authorize the SEC to collect the information required by Form
ADV. The SEC collects the information for regulatory purposes, such as
deciding whether to grant registration. Filing Form ADV is mandatory
for advisers who are required to register with the SEC. The SEC
maintains the information submitted on this form and makes it publicly
available. The SEC may return forms that do not include required
information. Intentional misstatements or omissions constitute federal
criminal violations under 18 U.S.C. 1001 and 15 U.S.C. 80b-17.
11. On page 57453, in the second column, in the second paragraph
under the heading ``SEC's Collection of Information'', in the fifth
line before ``The form is filed'', the sentence ``By accepting a form,
however, the SEC does not make a finding that it has been completed or
submitted correctly.'' is added.
12. On page 57462, in Item 3.B, ``On the last day of'' is removed
and in its place ``In'' is added.
13. On page 57463, in Item 5.A, in the parenthetical at the end of
the Item, ``100'' is removed and in its place ``1,000'' is added.
14. On page 57463, in Item 5.B(1), in the parenthetical at the end
of the Item, ``100'' is removed and in its place ``1,000'' is added.
15. On page 57463, in Item 5.B(2), in the parenthetical at the end
of the Item, ``100'' is removed and in its place ``1,000'' is added.
16. On page 57464, in Item 5.B(3), in the parenthetical at the end
of the Item, ``100'' is removed and in its place ``1,000'' is added.
17. On page 57464, in Item 5.C, in the parenthetical at the end of
the Item, ``100'' is removed and in its place ``500'' is added.
18. On page 57466, in Item 5.H, in the parenthetical at the end of
the Item, ``100'' is removed and in its place ``500'' is added.
19. On page 57467, in Item 7.A, in the last sentence of the Item,
the phrase ``investment advisers with which you are affiliated'' is
revised to read ``your related persons that are investment advisers.''
20. On page 57474, after Item 2.A and before ``Item 2.B. Bond/
Capital Information, if required by your home state.'' the following is
added:
If this address is a private residence, check this box: {time}
21. On page 57478, in Instruction number 4, in the second line,
after ``or ``I'' if the owner'', the phrase ``or executive officer'' is
added.
22. On page 57512, in the first column, the second to last full
paragraph, ``I certify that investment adviser will, within five days
of a state's request, provide to that state a copy of the investment
adviser's Form ADV Part II.'' is removed.
PART 279--[CORRECTED]
Form ADV-W (referenced in Sec. 279.2) [Corrected]
23. On page 57514, at the top of the third column, before ``SEC's
COLLECTION OF INFORMATION.'', the following paragraph is added:
PRIVACY ACT STATEMENT. Section 203(h) of the Advisers Act (15
U.S.C. 80b-3(h)) authorizes the Commission to collect the information
required by Form ADV-W. The Commission collects this information for
regulatory purposes, such as reviewing an adviser's application to
withdraw. Filing Form ADV-W is mandatory for an investment adviser to
withdraw from registration. The Commission maintains the information
submitted on Form ADV-W and makes it publicly available. The Commission
may return forms that do not include required information. Intentional
misstatements or omissions constitute federal criminal violations under
18 U.S.C. 1001 and 15 U.S.C. 80b-17. The information contained in Form
ADV-W is part of a system of records subject to the Privacy Act of
1974, as amended. The Commission has published in the Federal Register
the Privacy Act System of Records Notice for these records.
24. On page 57514, in the third column, in the paragraph titled
``SEC's COLLECTION OF INFORMATION.'', in the seventeenth line, after
``withdrawal.'', add the following sentence ``By accepting a form,
however, the SEC does not make a finding that it has been completed or
submitted correctly.''
25. On page 57514, in the third column, remove the last sentence.
Form ADV-H (referenced in Sec. 279.3) [Corrected]
26. On page 57522, at the end of the paragraph under Item 4, How to
Submit Your Form ADV-H, the address ``NASD Regulation, Inc., P.O. Box
9495, Gaithersburg, MD 20898-9495.'' is removed and in its place ``U.S.
Securities and Exchange Commission, Office of Registrations and
Examinations, Mail Stop 0-25, 450 Fifth Street, N.W., Washington, DC
20549.'' is added.
27. On page 57522, before ``SEC'S COLLECTION OF INFORMATION.'', the
following paragraph is added:
PRIVACY ACT STATEMENT. Section 203(c)(1) of the Advisers Act (15
U.S.C. 80b-3(c)(1)) authorizes the Commission to collect the
information required by Form ADV-H. The Commission collects this
information for regulatory purposes, such as processing requests for
[[Page 81739]]
temporary hardship exemptions and determining whether to grant a
continuing hardship exemption. Filing Form ADV-H is mandatory for
investment advisers requesting a temporary or continuing hardship
exemption. The Commission maintains the information submitted on Form
ADV-H and makes it publicly available. The Commission may return forms
that do not include required information. Intentional misstatements or
omissions constitute federal criminal violations under 18 U.S.C.
Sec. 1001 and 15 U.S.C. Sec. 80b-17. The information contained in Form
ADV-H is part of a system of records subject to the Privacy Act of
1974, as amended. The Commission has published in the Federal Register
the Privacy Act System of Records Notice for these records.
28. On page 57522, at the bottom of the page, in the paragraph
titled ``SEC'S COLLECTION OF INFORMATION.'', in the fifth line, after
``grant a continuing hardship exemption.'', add the sentence ``By
accepting a form, however, the Commission does not make a finding that
it has been completed or submitted correctly.''
29. On page 57522, remove the last sentence on that page.
Form ADV-NR (referenced in Sec. 279.4) [Corrected]
30. On page 57524, at the bottom of the page, after ``Adviser CRD
Number:____________ '', add ``Adviser SEC File Number: 801-______''.
31. On page 57524, after ``Adviser Name:____________'', the
following paragraphs are added:
PRIVACY ACT STATEMENT. Section 211(a) of the Advisers Act (15
U.S.C. 80b-11(a)) authorizes the Commission to collect the information
required by Form ADV-NR. The Commission collects this information to
ensure that a non-resident general partner or managing agent of an
investment adviser appoints an agent for service of process in the
United States. Filing Form ADV-NR is mandatory for non-resident general
partners or managing agents of investment advisers. The Commission
maintains the information submitted on Form ADV-NR and makes it
publicly available. The Commission may return forms that do not include
required information. Intentional misstatements or omissions constitute
federal criminal violations under 18 U.S.C. 1001 and 15 U.S.C. 80b-17.
The information contained in Form ADV-NR is part of a system of records
subject to the Privacy Act of 1974, as amended. The Commission has
published in the Federal Register the Privacy Act System of Records
Notice for these records.
SEC'S COLLECTION OF INFORMATION. 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.
Section 211(a) of the Advisers Act authorizes the Commission to collect
the information on this Form from applicants. See 15 U.S.C. 80b-11(a).
Filing of this Form is mandatory for non-resident general partners or
managing agents of investment advisers. The principal purpose of this
collection of information is to ensure that a non-resident general
partner or managing agent of an investment adviser appoints an agent
for service of process in the United States. The Commission will
maintain files of the information on Form ADV-NR and will make the
information publicly available. Any member of the public may direct to
the Commission any comments concerning the accuracy of the burden
estimate on page one of Form ADV-NR, and any suggestions for reducing
this burden. This collection of information has been reviewed by the
Office of Management and Budget in accordance with the clearance
requirements of 44 U.S.C. 3507.
Dated: December 21, 2000.
By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-32942 Filed 12-26-00; 8:45 am]
BILLING CODE 8010-01-U