The U.S. Securities and Exchange Commission (SEC) has proposed easing regulations that bar investment advisers from managing public pension funds after making political contributions to state and local officials. The regulator submitted the proposal to the White House for review, aiming to reduce compliance burdens.
Background
The SEC’s pay-to-play rule, adopted in 2010, prohibits investment advisers and covered employees from fundraising for candidates, state, and local political parties in jurisdictions where the adviser is seeking or conducting government investment advisory business. The rule also imposes a two-year ban on collecting fees for managing public assets if the firm, key personnel, or an affiliated political action committee donates to state or local political campaigns.
The proposed changes are part of the U.S. President’s deregulation push, but may face opposition from Democrats, who argue that loosening the restrictions could invite political corruption and put billions of dollars in state and local public pension funds at risk.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
