US SEC Proposes Scrapping Pension Adviser Rule
The US Securities and Exchange Commission proposed removing pay to play rules for investment advisers. The agency cited unintended consequences and free speech concerns after over fifteen years of administering the regulations.
The United States SEC proposed scrapping pay-to-play regulations that bar investment advisers from winning public pension fund business after making political donations. The overhaul targets rules enacted 15 years ago to curb quid-pro-quo arrangements in government contracts. Proponents of the shift argue the existing framework suppresses political speech and imposes severe penalties for minor infractions.
