SEC moves to ease pay-to-play rules for investment advisers
US SEC proposes reforms to pay-to-play rules limiting political donations by investment advisers seeking public pension business.
The U.S. Securities and Exchange Commission (SEC) has put forward a proposal to overhaul its "pay-to-play" regulations, which currently bar investment advisers from making political contributions to officials who oversee public pension funds they seek to manage. The reform was announced on Thursday.
The existing rules were designed to prevent advisers from winning lucrative public fund contracts through campaign donations. However, under the administration of President Donald Trump, the SEC has argued that these restrictions impose unnecessary compliance costs and are too restrictive for the industry.
The proposed changes are part of a broader regulatory easing agenda at the agency. The SEC's move signals a shift in enforcement philosophy, prioritising reduced regulatory burden over the strict anti-corruption measures originally put in place.
Details of the specific amendments were not disclosed in the initial announcement. The proposal will now enter a public comment period before any final rule is adopted.