• SEC Proposes Rules to Curtail Pay to Play Practices
  • August 18, 2009
  • Law Firm: Arnold & Porter LLP - Washington Office
  • On August 3, 2009, the US Securities and Exchange Commission (SEC) issued a release (Release) in which it proposed rules to curb the making of political contributions and other payments by investment advisers for the purpose of influencing the award of advisory contracts by government entities. The rule proposal, originally introduced in 1999, was reintroduced following recent "pay to play" scandals, including one involving an alleged scheme by New York state officials and placement agents to extract kickbacks in the form of sham placement agent fees from investment advisers in exchange for procuring advisory business from the New York State Common Retirement Fund. www.arnoldporter.com