Summary:
The proposed rule seeks to extend Rule 206(3)-3T's sunset date to December 31, 2014. Rule 206(3)-3T provides alternative means for investment advisers who are registered with the SEC as broker-dealers to meet the requirements of Section 206(3) of the Adviser's Act when they act in a principal capacity in transactions with certain clients. The temporary rule was originally scheduled to sunset on December 31, 2009. The sunset date was extended to December 31, 2010 (74 FR 69009 and 75 FR 742) and again to December 31, 2012 (75 FR 82236). The SEC completed a study required by Section 913 of the Dodd-Frank Act and considered the findings, conclusions and recommendations of the 913 study in order to determine whether to promulgate rules concerning the legal or regulatory standards of care for broker-dealers and investment advisers. The SEC believes the issues raised by principal trading should be further considered in relation to regulatory requirements for broker-dealers and investment advisers under the Dodd-Frank Act.