Broker-Dealer Principal Trades Rule Set to Expire on December 31, 2016

December 12, 2016

Rule 206(3)-3T under the Advisers Act, a temporary rule that has been extended several times by the SEC, permits investment advisers registered as broker-dealers to avoid transaction-by-transaction disclosure and obtaining consent on principal trades with non-discretionary advisory account advisory clients, subject to several conditions. Rule 206(3)-3T, by its terms, will expire at the end of the year. Firms impacted by the expiration can submit applications to the SEC for exemptive orders from section 206(3) of the Advisers Act seeking relief similar to that provided in the expiring rule.