After pay to play allegations
at a number of US public pension plans, the US Securities and
Exchange Commission's new rule regulating placement agent
relationships became effective last month.
This comes more than a year after the commission voted
unanimously to propose measures to curtail pay to play among
managers seeking money from state and local governments.
The new rule prohibits an investment adviser from providing
advisory services for compensation to a government client for
two years after the adviser or its executives or employees make
a contribution to certain elected officials or candidates.
The SEC is also prohibiting an adviser from providing or
agreeing to provide, directly or indirectly, payment to...