Extension of Temporary Rule Regarding Principal Trades with Certain Advisory Clients Proposed On August 12th, the Securities and Exchange Commission (“SEC”) requested comment on its proposed amendment of Rule 206(3)-3T under the Investment Advisers Act of 1940, a temporary rule that establishes an alternative means for investment advisers who are registered with the SEC as broker-dealers to meet the requirements of Section 206(3) of the Investment Advisers Act when they act in a principal capacity in transactions with certain of their advisory clients. The amendment would extend the date on which Rule 206(3)-3T will sunset from December 31, 2014 to December 31, 2016. The extension is being proposed because the SEC believes that the issues raised by principal trading, including the restrictions in Section 206(3) of the Advisers Act and the SEC’s experiences with, and observations regarding, the operation of Rule 206(3)-3T, should be considered as part of its broader consideration of the regulatory requirements applicable to broker-dealers and investment advisers in connection with the Dodd-Frank Act. Comments should be submitted within 30 days after publication in the Federal Register, which is expected shortly. SEC Release No. IA-3893.
On August 12th, Crowdfund Insider summarized a letter sent by nine U.S. Senators urging the SEC to reconsider the provision of proposed Regulation A+ which would limit the application of state Blue Sky laws to Regulation A+ offerings. Regulation A+.
OIG Report of Investigation
On August 11th, the SEC posted the Office of the Inspector General’s March 5, 2014 Report of Investigation concerning the unauthorized disclosure of non-public information from an SEC executive session meeting.
A Pay-to-Play Corollary
On August 11th, the International Business Times summarized a study conducted by Maria Correira of the London Business School which found an inverse correlation between making campaign contributions and being the subject of an enforcement action. A $1 million increase in contributions led to a 50 percent less chance of being targeted. Pay-to -Play.
On August 8th, the SEC announced it has named Thomas M. Piccone to lead the National Exam Program in the Denver Regional Office. On August 12th, the agency announced that Robert J. Keyes, a senior officer in the New York Regional Office, will retire at the end of this month.