Temporary rule 206(3)-3T provides
investment advisers who are registered with the Commission as
broker-dealers relief by establishing an optional, alternative
means for them to meet the requirements of section 206(3) of the
Advisers Act when they act in a principal capacity in transactions
with certain of their advisory clients. The Commission also adopted
temporary rule 206(3)-3T to enable fee-based brokerage customers to
make an informed choice between fee-based advisory accounts and
commission-based brokerage accounts, while continuing to have
access to certain securities held in the principal accounts of
certain advisory firms. The temporary rule, and its attendant
paperwork burdens, will expire and no longer be effective on
December 31, 2009
This temporary
collection of information encompasses certain new disclosures and
the creation of new records of investment advisers, prompted by a
recent court decision invalidating rule 202(a)(11)-1 under the
Investment Advisers Act of 1940, which provided that fee-based
brokerage accounts were not advisory accounts and were thus not
subject to the Advisers Act. See Financial Planning Association v.
SEC, 482 F.3d 481 (D.C. Cir. 2007). As a result of the court's
decision, which takes effect on October 1, fee-based brokerage
customers must decide whether they will convert an estimated one
million accounts (holding $300 billion) to fee-based accounts that
are subject to the Advisers Act or to commission-based brokerage
accounts
US Code:
15
USC 80b-6A Name of Law: Investment Advisers Act of 1940
US Code:
15 USC 80b-11(a) Name of Law: Investment Advisers Act of
1940
Temporary rule 206(3)-3T
provides investment advisers who are registered with the Commission
as broker-dealers relief by establishing an optional, alternative
means for them to meet the requirements of section 206(3) of the
Advisers Act when they act in a principal capacity in transactions
with certain of their advisory clients. The Commission also adopted
temporary rule 206(3)-3T to enable fee-based brokerage customers to
make an informed choice between fee-based advisory accounts and
commission-based brokerage accounts, while continuing to have
access to certain securities held in the principal accounts of
certain advisory firms. The temporary rule, and its attendant
paperwork burdens, will expire and no longer be effective on
December 31, 2009
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
Temporary rule for principal trades with certain advisory clients, rule 206(3)-3T