SEC Warns Muni Bond Firms To Watch Political Donations

Law360, New York (August 31, 2012, 2:20 PM EDT) -- The U.S. Securities and Exchange Commission warned municipal securities professionals Friday not to contribute to the political campaigns of officials with whom they are doing or seeking to do business, saying they could run afoul of a Municipal Securities Rulemaking Board prohibition on "pay-to-play" practices.

SEC examiners say some firms have become lax in their compliance with MSRB Rule G-37, according to a risk alert released by the agency. The rule bars investment firms from underwriting municipal bonds for two years after any of its professionals...
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