SEC Proposes Bar On Pay-To-Play Pension Schemes

Law360, New York (July 22, 2009, 7:59 PM EDT) -- The U.S. Securities and Exchange Commission proposed rules Wednesday that would block investment advisers from working with public pension funds once they have made donations to the politicians who oversee those funds.

At a public meeting, the SEC voted to authorize the proposal and submit the rules for public comment for 60 days. The proposal is designed to prohibit investment advisers from seeking to influence the award of advisory contracts by public entities through political contributions.

A favorite cause of SEC Chairwoman Mary L. Schapiro, the...
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