After losing some high-profile legal challenges in recent weeks, the Securities and Exchange Commission’s “pay to play” rule for investment advisers has survived an attempt by Republican groups to brand the requirements as unconstitutional.
In 2010, the SEC enacted a rule limiting investment advisers’ campaign contributions to government officials. If an investment adviser contributes to the political campaign of a government official with the power to influence their hiring by a government client, the adviser must wait two years before performing compensated services for that client.
