SEC Proposes Rescission of 'Pay-to-Play' Rule for Investment Advisers
- Reports
- 8
- Developments
- 11
- Repetition
- 25%
New informationRepeats or wire copies
What happened
The Securities and Exchange Commission proposed on September 3, 2026, to rescind Rule 206(4)-5 under the Investment Advisers Act of 1940. This rule, known as the 'pay-to-play' rule, prohibits investment advisers from providing compensation services to a government client for two years after making a political contribution to certain elected officials or candidates. The SEC must complete a 60-day public comment process before deciding whether to adopt a final rescission.
From mondaq.com, bondbuyer.com
Why it matters
The proposal responds to concerns that the rule is overly prescriptive and difficult to administer. While the SEC considers the proposal, the rule remains in force unless a final rescission is adopted. The Commission has not set a compliance date or transition period for any potential changes.
From mondaq.com
Who's involved
- Securities and Exchange CommissionGovernment agency proposing rule changes to federal securities laws.
How it developed
Newest first. Tap a step to see who reported it.SEC highlights potential contribution restrictions from other regulatory bodies.1 source
- New rules from the SEC have eased regulatory uncertainty in the crypto sector.Sub-event
- Experts, including Hester Peirce and Paul S. Atkins, weighed in on the SEC's rule-making process, supporting rule elimination and criticizing regulatory overreach.Sub-event
SEC rules proposal modeled on MSRB Rule G-37, with commentary from Hester Peirce.1 source
- Revised custody rules clarify how Bitcoin is held, as the SEC rule revision addresses prior opposition from the Small Business Administration.Sub-event
- The SEC granted exemptions allowing fund companies to add ETF share classes to their offerings.Sub-event
- The SEC contemplated a new rule addressing the use of AI and conflicts of interest.Sub-event
Cancellation of meeting regarding new crypto rules.1 source
Show 3 earlier steps
SEC proposes new rules under federal securities laws.1 source
SEC proposed an overhaul of Regulation E-Delivery.1 source
SEC is considering rules to increase safe harbor availability and regulate crypto asset offerings.1 source
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The entities involved
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Securities and Exchange Commission
government agency of the Philippines
Related events
- An SEC filing is required under US regulations.
- DragonFi Securities tested new market access under regulatory supervision by the Securities and Exchange Commission.
- FDTA mandates agency-specific rules for market participants.
- Digital asset rules could potentially fall under the purview of the Commodity Futures Trading Commission (CFTC).
- The SEC proposes changes to margin financing rules in the Philippine capital market.