Temporary Rule Regarding Principal Trades with Certain Advisory Clients and Proposed Interpretive Rule Under the Advisers Act Affecting Broker-Dealers
November 01, 2007
Investment advisers registered as broker-dealers with the Securities and Exchange Commission ("SEC") now have an alternative means to meet the requirements of Section 206(3) of the Investment Advisers Act of 1940 ("Advisers Act") when acting in a principal capacity in transactions with certain advisory clients. This alternative is set forth in Rule 206(3)-3T, a final temporary rule under the Advisers Act ("Temporary Rule"). The SEC has also proposed reinstating three interpretive positions formerly set forth in Rule 202(a)(11)-1 under the Advisers Act ("Proposed Rule"). The SEC has taken these actions in response to a recent court decision invalidating Rule 202(a)(11)-1 under the Advisers Act.
