Alert July 21, 2009

SEC to Consider Proposing Pay to Play Rules for Advisers Relating to Advisory Contracts with Public Entities

The SEC announced that at its open meeting on Wednesday, July 22, 2009 at 2:00 p.m. it will consider whether to “propose a rule to address ‘pay to play’ practices by investment advisers.”  The SEC’s announcement describes the proposal as “designed, among other things, to prohibit advisers from seeking to influence the award of advisory contracts by public entities through political contributions to or for those officials who are in a position to influence the awards.”