SEC Proposes Ending 'Pay-to-Play' Restriction for Investment Advisers

The Securities and Exchange Commission has proposed rescinding its "political contribution rule" for investment advisers. This deregulatory move would remove the two-year prohibition on advisers providing compensated services to government clients after making political contributions. The SEC suggests existing fraud and fiduciary duty rules are adequate to prevent "pay-to-play" practices, potentially altering ethical standards and political influence in financial advisory services.