Alert March 29, 2011

SEC Staff Issues Q&A on Pay to Play Rule

The staff of the SEC’s Division of Investment Management has posted on the SEC website responses to questions about Rule 206(4)-5 under the Investment Advisers Act of 1940 (the “pay to play rule”).  Topics covered include (a) recordkeeping, (b) the definitions of  “covered associate,” “government entity” and “official,” (c) use of third-party solicitors and (d) interpretations of MSRB Rule G-37 as authority regarding the pay to play rule.