The purpose of this paper is to explain the SEC's proposed new rules under the Advisers Act that would prohibit making or receiving various types of payments and political contributions that could be construed as direct or indirect efforts to win investment advisory business from government entities.
The paper outlines the proposed rules, provides interpretive comments, and explains the background and motivation for the rules.
The proposed rules are aimed at over $2.2 trillion of assets in public pension plans. The SEC's action comes after a number of widely publicized pay‐to‐play scandals. However, some state systems have affirmatively decided not to ban placement agents, one of them affirming that placement agents can provide a useful service.
The paper provides practical interpretation and guidance from experienced employee benefits and executive compensation practice lawyers.
