Changes possible for principal-trading rules
The SEC is expected soon to consider a staff proposal that would ease restrictions on principal trading in nondiscretionary advisory accounts.
The SEC is expected soon to consider a staff proposal that would ease restrictions on principal trading in nondiscretionary advisory accounts. The proposal, drafted as the securities industry approaches the Oct. 1 deadline for moving clients out of fee-based brokerage accounts as required under a federal court order, would allow a brokerage firm also registered as an investment adviser to fill customer orders from its own inventory if it meets certain other requirements. The plan would be implemented as an interim rule taking effect Jan. 1 for two years.
Learn more about reprints and licensing for this article.
