Will FINRA step in to prevent a ban on placement agents working with government investors? You may remember that last August, the SEC published a proposed rule that would create a prohibition on paying a third party, such as a placement agent, to solicit a government client on behalf of the investment adviser: IA-2910. The … Read more »
Tag: pay-to-play
SEC Warns Firms on Muni Pay-to-Play Rules
While sources are wallowing in the exposure of a political figure in a “pay to play” scandal, I thought there might be some lessons for other investment managers as states and perhaps the SEC roll out limitations on political contributions. The original story seemed mildly interesting. The SEC warned firms that municipal securities rules prohibiting … Read more »
California Regulates Use of Placement Agents
California has followed the lead of New York and started regulating the use of placement agents. California’s law requires placement agents to disclose contributions and gifts made to state and local pension and retirement board members, as well as information about the placement agent’s compensation, the services provided, and any lobbying or regulatory registrations. The … Read more »
Shifting Regulatory Landscape in the US and Abroad
This afternoon, I am speaking at the PERE Real Estate CFOs Forum in New York on the Shifting Regulatory Landscape in the US and Abroad. Moderator: Gilbert D. Porter, Partner, Haynes & Boone LLP Panel Members: Andrea Carpenter, Director, INREV (European Association for Investors in Non-listed Real Estate Vehicles) Doug Cornelius, Chief Compliance Officer, Beacon … Read more »
Schwarzman Stands up for Placement Agents
“Eliminating placement agents as a group because there were a few bad actors who have tarnished the industry is analogous to eliminating Major League Baseball because several of its players behaved illegally.” Steven Schwarzman, The Blackstone Group’s chairman and chief executive, has submitted a comment letter on the SEC’s proposed ban on placement agents interacting … Read more »
Reasons Why the SEC Wants to Regulate Political Contributions
The SEC has proposed a New Rule on Political Contributions by Certain Investment Advisers to prevent advisers from participating in pay to play practices affecting the management of public pension plans. They had proposed a similar rule in 1999. Many of the comments to that rule said that pay to play was not a problem … Read more »
New SEC Rule on Political Contributions by Certain Investment Advisers
The SEC has just published the text of the proposed rule on political contributions by investment advisers. SEC voted unanimously to propose this rule at its July 22nd Open Meeting. http://www.sec.gov/rules/proposed/2009/ia-2910.pdf The proposed rule is intended to curtail “pay to play” practices by investment advisers that seek to manage money for state and local governments. … Read more »
SEC to Consider Pay to Play Rule for Investment Advisers
At the SEC open meeting on Wednesday July 22, the Commission will consider whether to propose a rule to address “pay to play” practices by investment advisers. The proposal is 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 … Read more »
California’s Pay-to-Play Laws
California requires disclosure of gifts to officials at public agencies. The disclosure is made using Form 801 (.pdf). This form is for use by all state and local government agencies to disclose payments made to the agency when the payments provide a personal benefit to an official of the agency. Examples may include travel, meals … Read more »
Colorado’s Pay-to-Play Law
The Colorado voters passed Amendment 54 in the November, 2008 elections, which amends the Colorado Consitution to limit campaign contributions: Text of the Proposed Initiative (.pdf) and Text of the Constitutional Amendment (.pdf). The consitutional amendment carries a presumption of impropriety between contributions to political campaigns and the award of sole source government contracts. Read more »