SEC Moves to Nix Rule on Investment Adviser, Political Donations

The Securities and Exchange Commission proposed removing a rule that currently prohibits investment advisers from providing services to public pension funds if they have made recent political donations to state or local elected officials. The SEC released the proposal on Thursday. The rule being targeted, known as the "pay-to-play" rule, was adopted in 2010 and restricts advisers from soliciting or receiving compensation from government entities within two years of making political contributions to officials who control those entities' pension fund investments.

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