All Insights

Client Alerts

SEC Provides Limited Principal Trading Relief and Proposes Interpretive Rule for Broker-Dealer Exclusion

October 23, 2007

By The Investment Management Practice Group

On September 24, 2007, the Securities and Exchange Commission adopted Temporary Rule 206(3)-3T under the Investment Advisers Act of 1940 to afford investment advisers that are dually registered as broker-dealers limited relief from the principal trading restrictions under Section 206(3) of the Advisers Act. In a companion release, the SEC proposed Rule 202(a)(11)-1 under the Advisers Act to address the application of the Advisers Act to broker-dealers. The Proposed Rule would re-codify nearly identical interpretative positions that were included in the original version of Rule 202(a)(11)-1 that was adopted by the SEC in 2005 and subsequently vacated by the court of appeals for the D.C. Circuit on March 30, 2007.

Get In Touch With Us

Contact Us