SEC Proposes Extending Temporary Principal Trade Rule

October 9, 2012

The SEC proposed extending the date on which Rule 206(3)-3T under the Advisers Act will sunset from December 31, 2012 to December 31, 2014. Rule 206(3)-3T is a temporary rule that allows investment advisers dually registered as broker-dealers to engage in principal transactions. Without the two year extension, the rule would expire on December 31, 201.  The SEC stated in the proposing release that the issues raised by principal trading should be considered as part of the SEC’s broader consideration of the regulatory requirements applicable to broker-dealers and investment advisers.

Comments on the proposing release must be submitted to the SEC on or before 30 days after publication in the Federal Register.

Click to access the release proposing the rule.


Investment Advisers, Investment Companies, Regulatory