Politics & Regulation

SEC curtails pay to play practices

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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