On April 15, 2024, the U.S. Securities and Exchange Commission (SEC) censured and imposed a $60,000 civil penalty on Wayzata Investment Partners LLC (Wayzata) for violating SEC Rule 206(4)-5 (the Pay-to-Play Rule). Under the...more
4/29/2024
/ Campaign Contributions ,
Civil Monetary Penalty ,
Compensation ,
Fund Managers ,
Government Entities ,
Investment Adviser ,
Investment Management ,
New Rules ,
PACs ,
Pay-To-Play ,
Political Campaigns ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
State and Local Government
With the election season in full swing, there is increased interest in political contributions. It is important for financial institutions subject to SEC Rule 206(4)-5 for investment advisers, CFTC Rule 23.451 for swap...more
On June 18, 2019, the U.S. Court of Appeals for the District of Columbia Circuit (the court) dismissed a challenge to Financial Industry Regulatory Authority (FINRA) pay-to-play Rule 2030 (the rule) brought by the New York...more
6/28/2019
/ Administrative Authority ,
Arbitrary and Capricious ,
Campaign Contributions ,
Corruption ,
Dismissals ,
Federal Contractors ,
Federal Election Campaign Act ,
Financial Industry Regulatory Authority (FINRA) ,
First Amendment ,
Government Entities ,
Important Governmental Objectives ,
Investment Adviser ,
Pay-To-Play ,
Political Contributions ,
Political Parties ,
Preemption ,
Securities and Exchange Commission (SEC) ,
Solicitation ,
Standing
Financial institutions and their employees may be subject to the following federal pay-to-play rules: SEC Rule 206(4)-5 for investment advisers; CFTC Rule 23.451 for commodities-backed swap dealers; FINRA Rule 2030 for...more
5/2/2019
/ Broker-Dealer ,
CFTC ,
Commodities-Backed Swap ,
De Minimus Doctrine ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Institutions ,
Investment Adviser ,
MSRB ,
Municipal Advisers ,
Pay-To-Play ,
Political Contributions ,
Securities and Exchange Commission (SEC) ,
Swap Dealers
With heightened attention to investment and depository rules as well as increased enforcement of federal and state pay-to-play rules, registered investment advisers (RIAs) and broker-dealers should address the unique legal...more
1/23/2019
/ Broker-Dealer ,
CFTC ,
Commodities ,
Compliance ,
Conflicts of Interest ,
Contingency Fees ,
Custody Rule ,
Federal Contractors ,
Financial Industry Regulatory Authority (FINRA) ,
Gifts ,
Investment Adviser ,
Investment Funds ,
Lobbying ,
MSRB ,
Municipal Securities Issuers ,
Pay-To-Play ,
Personal Liability ,
Political Contributions ,
Public Officials ,
Registered Investment Advisors ,
Registration Requirement ,
Securities and Exchange Commission (SEC) ,
State and Local Government ,
State Contractors ,
Work Restrictions
On October 24, 2016, the Financial Industry Regulatory Authority (FINRA) announced in Regulatory Notice 16-40 that its pay-to-play and related recordkeeping rules, FINRA Rules 2030 and 4580, will take effect on August 20,...more
This week, on Thursday, August 25, 2016, the SEC approved FINRA Proposed Rules 2030 and 4580 (the Proposed Rules) as they had been proposed by FINRA. The Proposed Rules would impose pay-to-play restrictions and recordkeeping...more
On July 15, 2016, Donald Trump announced that he selected Indiana Gov. Mike Pence as his vice presidential running mate. Contributions to the Trump/Pence campaign are now subject to prohibitions and restrictions under the...more
On June 21, 2016, the Financial Industry Regulatory Authority extended the time for the Securities and Exchange Commission (SEC) to act on Proposed Rules 2030 and 4580 (the Proposed Rules) to August 26, 2016. The Proposed...more
On March 29, 2016, the Securities and Exchange Commission (SEC) filed an order instituting proceedings (the Order) intended to determine whether to approve or disapprove Financial Industry Regulatory Authority (FINRA)...more
On December 16, 2015, the Financial Industry Regulatory Authority (FINRA) submitted Rules 2030 and 4580 (the Draft Rules) to the Securities and Exchange Commission (SEC) for approval. The Draft Rules set forth pay-to-play...more
On December 16, 2015, the Financial Industry Regulatory Authority (FINRA) and Municipal Securities Rulemaking Board (MSRB) submitted their respective pay-to-play rules to the Securities and Exchange Commission (SEC) for...more
On June 25, 2015, the Securities and Exchange Commission (SEC) issued Release No. IA-4129 setting July 31, 2015, as the compliance date for SEC Rule 206(4)-5's placement agent restrictions on using third-party and affiliated...more