SEC Roundup 105: The SEC Pay-to-Play Repeal Illusion

<p>The SEC has proposed scrapping Rule 206(4)-5, the pay-to-play rule that cuts off government-client fees for two years after a political contribution. Advisers shouldn't delete their policies. Sidley's Hardy Callcott — former SEC assistant general counsel for Market Regulation and former Schwab general counsel — tells Nick Morgan and Mark Hiraide why most RIAs will keep their political giving bans regardless: MSRB Rule G-37, FINRA Rule 2030 and a thicket of state and local rules survive 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 November 9.</p><p><br /></p><p>Investor Choice Advocates Network (ICAN Law) is the only nonprofit public-interest litigation firm focused exclusively on SEC overreach and fair access to capital markets. The SEC's three mandates are to protect investors, keep markets fair and facilitate capital formation, and they work together. Real protection means going after fraud, not locking people out. Choice is the protection. Join our email list:<a href="https://www.icanlaw.org/newsletter-signup" rel="ugc noopener noreferrer" target="_blank"> https://www.icanlaw.org/newsletter-signup</a><br /></p>