SEC Proposes to Extend Temporary Rule Regarding Principal Trades with Certain Advisory Clients
The SEC proposed an amendment to Investment Advisers Act Rule 206(3)-3T to extend the date as to when the rule would sunset. The proposed extension is from December 31, 2014 to December 31, 2016.
Rule 206(3)-3T is a 2007 temporary rule establishing an alternative means for investment advisers registered with the SEC as broker-dealers to meet the requirements of Investment Advisers Act Section 206(3) ("Prohibited Transactions by Investment Advisers"). The rule applies when these advisers act in a principal capacity in transactions with certain advisory clients. The comment deadline will occur 30 days after the publication of the proposed rule in the Federal Register.