News & Analysis as of

Investment Adviser Rule 206(4)-5

WilmerHale

Recent Exemptions from Rule 206(4)-5 Demonstrate the Importance of Strong Compliance Policies and Quick Corrective Action

WilmerHale on

Recently, the Securities and Exchange Commission (SEC) has demonstrated its willingness to largely forgo the strict consequences of Investment Advisers Act Rule 206(4)-5 (the “Pay-to-Play Rule”) in circumstances where...more

WilmerHale

Pay-to-Play Update: A Quartet of Recent Settlements Underscores the Breadth of Risk Posed by Rule 206(4)-5

WilmerHale on

With the midterm elections less than a month away and political campaign activity in full swing, the Securities and Exchange Commission (SEC) has demonstrated a renewed interest in “pay-to-play” enforcement after a long...more

Vedder Price

Investment Services Regulatory Update - December 2019

Vedder Price on

New Rules, Proposed Rules, Guidance and Alerts – PROPOSED RULES – SEC Proposes Rule Changes for Proxy Advisory Firms – On November 5, 2019, the SEC issued a release proposing amendments to the federal proxy rules...more

Stinson - Corporate & Securities Law Blog

Pay-to-Play Enforcement Sweep Snares Private Equity and Venture Capital

On January 17, 2017, the SEC announced nine settled enforcement actions for violations of the pay-to-pay rule against private equity, venture capital and hedge fund sponsors. The firms involved agreed to pay monetary...more

Carlton Fields

Court Upholds SEC on “Backtested” Investment Strategy Illustrations

Carlton Fields on

An investment adviser seeking to show how a particular investment strategy would have performed during specified time periods would be well advised to: use only historical performance data and not a mix of historical...more

Burr & Forman

SEC Approves FINRA & MSRB (Almost) Pay-to-Play Rules

Burr & Forman on

The SEC announced August 25 that it approved FINRA’s pay-to-play rules governing placement-agent or solicitor broker-dealers and was “prepared” to approve the extension of MSRB Rule G-37 to municipal advisors as well....more

Proskauer - The Capital Commitment

Private Fund Advisers Must Pay Close Attention to Nuances under Pay-to-Play Restrictions in Light of Upcoming Elections Nationwide

As the elections approach nationwide, advisers to private investment funds with current or prospective state or local government entity investors should be mindful of political activities by their personnel which could raise...more

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