SEC Proposed Extension to Temporary Rule Regarding Principal Trades with Certain Advisory Clients Published in Federal Register

The SEC proposed to extend the expiration date of Investment Advisers Act Rule 206(3)-3T to December 31, 2016. The publication of the SEC proposal in the Federal Register begins the thirty-day comment period.

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.

Comments on the proposal are due by September 17, 2014.

See: 79 FR 48709; Rule 206(3)-3T.Related news: SEC Proposes to Extend Temporary Rule Regarding Principal Trades with Certain Advisory Clients (August 12, 2014).