SEC Extends Temporary Adviser Principal Trading Rule

December 28, 2010

The SEC extended a temporary rule—Rule 206(3)-3T of the Investment Advisers Act of 1940—that allows advisers, who are registered as broker-dealers, to engage in principal trading subject to certain notice and consent requirements. Without the two-year extension, the rule would expire on Dec. 31, 2010. The extension will allow the SEC to take into account recent legislative developments, as well as its own experiences with the operation of the rule to date. Publication is expected in the Federal Register on Dec. 30, 2010.

Please click here to access the release.


Investment Advisers, Regulatory