SIFMA Submits Comments to SEC on Extending the Sunset Date of Advisers Act Temporary Rule

SIFMA submitted comments to the SEC regarding the SEC's proposal to extend the sunset date of Investment Advisers Act Rule 206(3)-3T to December 31, 2016.

SIFMA explained that the rule has been in place for seven years, and that this was SIFMA's fifth comment letter on the rule, all of which were written in support of it. SIFMA stated that it "strongly supports" the proposal to extend the sunset date, and recommended a longer extension period of five years rather than two "to ensure the SEC has adequate time to consider broader rulemaking regarding the standard of conduct applicable to broker-dealers and investment advisers" under Dodd-Frank Section 913.

Additionally, SIFMA said, the longer extension would provide adequate time for the SEC to develop and implement a more permanent regulation of principal trading and "avoid the uncertainty caused by the need for further sunset date extensions in the future."

See:SIFMA Comment Letter. Related news:SEC Proposes Extension to Temporary Rule Regarding Principal Trades with Certain Advisory Clients Published in Federal Register (August 15, 2014); SEC Proposes to Extend Temporary Rule Regarding Principal Trades with Certain Advisory Clients (August 12, 2014).