Politics & Regulation

SEC proposes ending pay to play for pensions


Ongoing pension kickbacks investigation prompts regulator move.

If the U.S. Securities and Exchange Commission has its way, politicians can kiss away any hopes of receiving another donation from money managers. A new proposal from the regulator would bar individual investment advisers who make financial contributions to elected political officials from working with pension funds for two years.

The SEC proposal results from an ongoing investigation into pension kickbacks that the regulator has been conducting on New York’s $110 billion pension fund with New York Attorney General Andrew Cuomo. In particular, the agency has been looking into the fees paid to placement agents by investment firms.