Pay-to-Play's Paper Repeal: SEC Roundup
Welcome to SEC Roundup, a bimonthly video series by former Securities and Exchange Commission senior trial counsels Nick Morgan and Tom Zaccaro, founders of the nonprofit advocacy group Investor Choice Advocates Network.
The SEC has proposed scrapping Rule 206(4)-5, which cuts off government-client fees for two years after a political contribution. Advisors shouldn't delete their policies.
Sidley's Hardy Callcott — former SEC assistant general counsel for Market Regulation and former Schwab general counsel — tells Morgan and Mark Hiraide why most RIAs will keep their political giving bans anyway: MSRB Rule G-37, FINRA Rule 2030 and a thicket of state and local rules survive the repeal untouched.
Also covered: why the SEC prosecuted the New York pension scandal years before the rule existed, and why 206(4)-5 still binds through the November midterms. Comments close Nov. 9.
See the video for the discussion.
Courtesy photo
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