SEC Division of Investment Management Director David W. Grim notified SIFMA Executive Vice President and General Counsel Ira D. Hammerman that Investment Advisers Act (the "Act") Rule 206(3)-3T, which originally was adopted in 2007 and has been extended in one-year increments since, is scheduled to expire on December 31, 2016 and will not be extended again. The rule provides an "alternative means for an investment adviser that is also registered with the [SEC] as a broker-dealer to comply with section 206(3) of the Advisers Act when it acts in a principal capacity in transactions with certain of its advisory clients."
Mr. Grim said that few firms rely on Rule 206(3)-3T currently, but added that some firms may wish to submit applications for exemptive orders under the Act that could provide similar means to comply with Section 206(3). Mr. Grim also noted that "in evaluating any such request, [the SEC] would need to consider, among other things, whether the order is necessary or appropriate in the public interest and consistent with the protection of investors."
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