The Securities and Exchange Commission limits the ability of investment advisers and fund managers from contributing to certain politicians that can influence investment decisions for state pension funds. Under Rule 206(4)-5, you can contribute up to $150 to any candidate or up to $350 if you can vote for the candidate.
Mike Pence is the Governor of Indiana. In that role he appoints members to the state pension boards and can influence their investment decisions. He meets the definition of “covered official” under the rule for those pension plans. Therefore, contributions to Governor Pence are subject to the SEC rule.
Since Governor Pence is running as the Republican Vice Presidential candidate, contributions to the Republican presidential campaign are limited by the SEC rule. He has not resigned as governor.
If you have an Indiana state pension fund as a client or an investor. You are not allowed to contribute more than $350 to the Republican presidential campaign. If you hope to have one as an investor or client, you should not make a contribution. The limitation applies for two years after you make the contribution.
Violating the rule means you can’t collect fees from that state pension fund for two years. It does not matter if the violation is unintentional.
The limitation applies to “covered associates” at the investment adviser or fund manager so it may not apply to all of the firm’s employees. But you need to be careful.
The Democratic Party has not yet picked a Vice-Presidential candidate. The SEC Rule may or may not apply depending on the selection.
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