Mystery Rule 3a-4 Needs Extension, Details Classified Apparently
Published Date: 1/10/2025
Notice
Summary
The SEC is asking to extend the approval for Rule 3a-4, which helps certain investment advisory programs, like wrap fee programs, avoid extra registration rules. This rule affects advisors managing smaller client accounts by letting them offer personalized advice without extra paperwork. The extension means these programs can keep running smoothly without new costs or delays for now.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Large Paperwork Burden on Program Sponsors
The SEC estimates 27,979,460 clients participate annually in programs relying on Rule 3a-4 (2,127,147 new and 25,852,313 continuing clients). Staff estimate 1.5 hours per new client, 1 hour per continuing client for initial interviews, plus 1 hour per client per year for quarterly statements, for a total annual paperwork burden of 57,022,493 hours. The SEC has submitted an OMB request to extend approval of this information collection and is accepting public comments through February 10, 2025.
Safe Harbor Lets Wrap Programs Avoid Registration
If you have an investment account in a wrap-fee or similar advisory program, Rule 3a-4 (17 CFR 270.3a-4) provides a safe harbor so those programs do not have to register as investment companies under the Investment Company Act. The rule was adopted in 1997 and is designed to let advisers offer discretionary, tailored advice to smaller accounts without the Act's registration requirements.
Client Protections: Info, Contacts, Statements
If you participate in a program relying on Rule 3a-4, the sponsor (or its designee) must obtain information about your financial situation and investment objectives when the account is opened, allow you to impose reasonable restrictions (for example, designate securities not to be purchased), contact you annually to check for changes, and provide a written quarterly statement describing account activity. The sponsor must also notify you quarterly to contact them about any changes and make personnel reasonably available to consult with you.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Related Federal Register Documents
2026-12810 — Mattresses From Poland: Rescission of Circumvention Inquiry on the Antidumping Duty Order
The U.S. Department of Commerce has stopped looking into whether mattress parts from Poland, finished into mattresses in the U.S., are dodging extra import taxes. This change affects mattress makers and importers, and it means no new duties will be added starting June 25, 2026. The investigation ended because the companies who asked for it decided to pull back their request.
2026-12774 — Foreign-Trade Zone (FTZ) 83, Notification of Proposed Production Activity; BASF Mobile Emissions Catalysts LLC; (Mobile Emissions Catalyst Products); Huntsville, Alabama
BASF Mobile Emissions Catalysts LLC in Huntsville, Alabama, wants to start making new mobile emissions catalyst products inside Foreign-Trade Zone 83. This means they can bring in parts and materials without paying some import taxes right away, helping them save money and speed up production. The government is letting folks know about this plan so they can share their thoughts before it kicks off.
2026-12842 — Government Owned Inventions Available for License: Compositions and Methods for Producing Dendritic Cell-based Vaccines With Enhanced Efficacy
The National Cancer Institute has created a new way to make cancer vaccines stronger by using special omega-3 fats to boost immune cells called dendritic cells. This could help scientists and companies develop better cancer treatments that work more effectively. If you’re in biotech or medicine, now’s the time to team up or license this exciting technology and help bring improved vaccines to patients faster.
2026-12832 — Certain New Pneumatic Off-The-Road Tires from India: Preliminary Results of Countervailing Duty Administrative Review; 2024
The U.S. Department of Commerce found that some Indian makers of big off-the-road tires got unfair government help in 2024. This means extra duties might be charged on these tires to keep things fair for U.S. businesses. The review covers January to December 2024, and companies can still share their thoughts before final decisions.
2026-12786 — Agency Information Collection Activities: Requests for Comments; Clearance of a Renewed Approval of Information Collection: Alternative Pilot Physical Examination and Education Requirements (BasicMed)
The FAA wants to keep collecting info from pilots who use BasicMed, a way to fly small planes without the usual medical exam if they meet certain rules. This helps pilots prove they’re eligible to fly safely. If you’re a pilot or interested, you can comment by July 27, 2026, and this process doesn’t add extra costs but keeps things clear and simple.
2026-12833 — Agency Information Collection Activity: Application for DIC, Survivors Pension, and/or Accrued Benefits
The VA is updating the application form for survivors’ benefits like DIC, pension, and accrued payments. Veterans and their families who apply for these benefits should know the form is being reviewed to make it easier and clearer. You’ve got until August 24, 2026, to share your thoughts—no cost changes yet, just smoother paperwork!
Previous / Next Documents
Previous: 2025-00224 — New Postal Products
The Postal Service has asked for approval of new deals that offer special shipping options to businesses. This affects companies using competitive mailing services and could change prices or services soon. If you want to share your thoughts, you have until January 13, 2025, to comment online.
Next: 2025-00249 — Submission for OMB Review; Comment Request; Extension: Rule 30e-2
The SEC is asking to keep Rule 30e-2 going, which makes certain investment trusts send clear, detailed financial reports to their investors every six months. This rule helps investors stay informed and confident about where their money is. It also allows trusts to save paper by sending one report to multiple investors at the same address if they agree, making things easier and greener without extra costs or delays.