SEC Proposed Rule on Principal Trades with Advisory Clients

Orrick - Finance 20/20
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On October 9, the SEC proposed an amendment to rule 206(3)-3T under the Investment Advisers Act of 1940, a temporary rule that establishes an alternative means for investment advisers registered with the SEC as broker-dealers to meet the requirements of section 206(3) of the Act when they act in a principal capacity in transactions with certain of their advisory clients. Comments must be received within 30 days after publication in the Federal Register. SEC Proposed Rule.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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