The SEC’s new proposed rule would prohibit investment advisers from making political contributions to elected officials in positions of influence over the selection of an adviser. In 1999, the SEC first sought to curtail pay-to-play practices. According to Chairman Mary Shapiro, “In the ten years since, we have seen a number of criminal and regulatory actions that suggest the need to act to finally address these practices….In light of the potential for fraud, and the substantial size and increased scope and importance of the government plan market, it is time for the Commission to act to prevent adviser pay to play practices.”
View new SEC proposed rule
FrontLine Compliance, LLC is a regulatory compliance consulting firm of former high-level regulatory insiders offering customized services to broker-dealers, investment advisers, investment companies, hedge funds, and insurance company affiliates. Staffed by former SEC and FINRA regulators, and chief compliance officers, FrontLine Compliance provides the kind of industry knowledge, experience and expertise on regulatory issues only available from well-seasoned insiders. For more information about the firm, please visit www.frontlinecompliance.com.
FrontLine Compliance, LLC
Forward to a Friend