Regulatory Notice 14-50
FINRA Requests Comment on a Proposal to Establish a “Pay-to-Play” Rule
FINRA is requesting comment on a proposal to establish “pay-to-play” and related rules that would regulate the activities of member firms that engage in distribution or solicitation activities for compensation with government entities on behalf of investment advisers that provide or are seeking to provide investment advisory services to such government entities within two years after a contribution to an official of the government entity is made by the member firm or a covered associate. This proposal responds to Rule 206(4)-5 under the Investment Advisers Act of 1940 (Advisers Act), which includes a provision that, upon its compliance date, will prohibit an investment adviser and its covered associates from providing or agreeing to provide, directly or indirectly, payment to a member firm to solicit a government entity for investment advisory services on behalf of the investment adviser unless the member firm is subject to a FINRA pay-to-play rule. Specifically, FINRA is seeking comment on three proposed new rules: Rule 2271 (Disclosure Requirement for Government Distribution and Solicitation Activities); Rule 2390 (Engaging in Distribution and Solicitation Activities with Government Entities); and Rule 4580 (Books and Records Requirements for Government Distribution and Solicitation Activities).
Questions concerning this Notice should be directed to Victoria L. Crane, Associate General Counsel, Office of General Counsel, at (202) 728-8104.
|Date||Commenter||Format - Size|
|12/12/2014||NASAA||PDF - 265.93 KB|
|12/12/2014||Center for Competitve Politics||PDF - 250.32 KB|
|12/15/2014||Financial Services Institute||PDF - 130.55 KB|
|Monument Group||PDF - 724.04 KB|
|Investment Company Institute||PDF - 111.04 KB|
|3PM Association||PDF - 229.91 KB|
|Monahan & Roth, LLC.||PDF - 67.75 KB|
|12/22/2014||Investment Adviser Association||PDF - 147.07 KB|
|12/22/2014||SIFMA||PDF - 97.23 KB|
|1/2/2015||Sutherland Asbill & Brennan LLP||PDF - 2.4 MB|