SEC Targets Pay-To-Play In State Pension Funds

Law360, New York (May 11, 2009, 12:00 AM ET) -- In the wake of an alleged kickback scheme at the New York State Common Retirement Fund, the U.S. Securities and Exchange Commission is considering a rule barring independent investment advisers from working with public pension funds once they have donated to the political campaigns of the fund managers.

A pay-to-play rule targeting investment advisers working with state pension managers could be officially submitted for public comment as soon as July, John Heine, a spokesman for the SEC, said Monday.

A favorite cause of SEC Chairwoman Mary...
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