Regulatory Notice 17-37

SEC Approves “Pay-to-Play” and Related Rules for Capital Acquisition Brokers (CABs)

Effective Date: December 6, 2017

Summary

The Securities and Exchange Commission (SEC) approved Capital Acquisition Broker (CAB) Rule 203 (Engaging in Distribution and Solicitation Activities with Government Entities) and CAB Rule 458 (Books and Records Requirements for Government Distribution and Solicitation Activities). These rules apply established “pay-to-play” and related recordkeeping rules to the activities of member firms that have elected to be governed by the CAB Rules. The rules will allow CABs to engage in distribution or solicitation activities for compensation with government entities on behalf of registered investment advisers.

The rules become effective on December 6, 2017.

The text of the rules is set forth in Attachment A.

Questions concerning this Notice should be directed to:

  • Joseph P. Savage, Vice President and Counsel, Office of Regulatory Analysis, at (240) 386-4534; or
  • Victoria Crane, Associate General Counsel, Office of General Counsel, at (202) 728-8104.

Related Documents: 

DateTitleFormat - Size
11/6/2017Regulatory Notice 17-37 Attachment APDF - 8.04 KB