• New SEC Rule: No IA Pay-to-Play
  • July 27, 2010 | Author: Thomas K. Potter
  • Law Firm: Burr & Forman LLP - Nashville Office
  • A unanimous Securities and Exchange Commission adopted a new rule June 30, aimed at curbing rampant "pay-to-play" practices among investment advisers and the politicians who control contracts to manage public pension funds -- which, at over $2.6 trillion, account for over a third of all U.S. pension assets. Such cozy quid-pro-quo arrangements have led to a spate of recent criminal prosecutions, including the former treasurers of New Mexico, Connecticut and the City of Chicago.