pay-to-play

A little-noticed sentence in a bill sitting on New Jersey Governor Chris Christie’s desk could, if it becomes law, threaten to curtail the ability of national party committees to raise money from Wall Street and financial industry executives.  The Republican and Democratic Governors Associations, the Republican National Committee, the Democratic…
Continue Reading Pay-to-Play Law on Gov. Christie’s Desk Poses Potential Threat to National Parties

A constitutional challenge to the SEC’s “pay to play” rule moved one step closer to resolution today, even as significant hurdles remain in an effort to strike down the rule.

The U.S. Court of Appeals for the District of Columbia Circuit heard arguments this morning on an appeal brought by…
Continue Reading D.C. Circuit Hears Constitutional Challenge to SEC Pay to Play Rule

When the history of the Securities & Exchange Commission’s pay-to-play rule is written, 2014 could be the inflection point.  Developments this year suggest two dramatically different paths for the rule in the years to come: either the rule will unravel from court challenges or it will become an increasingly prominent…
Continue Reading The SEC Pay-to-Play Rule Year in Review

On November 14, the Financial Industry Regulatory Authority (FINRA) issued a notice asking for comment (by December 15) on its proposal to establish three rules designed to restrict pay-to-play practices.  The three rules include a pay-to-play prohibition (Rule 2390), a disclosure requirement (Rule 2271), and a recordkeeping requirement (Rule 4580). …
Continue Reading FINRA Likely to Adopt Pay-to-Play Rule

New Jersey, already home to some of the most complex and restrictive pay-to-play laws in the nation, is considering an aggressive new expansion of those laws.  A bill under consideration that recently passed through a senate committee would prohibit certain individuals and entities involved in managing state employee retirement funds…
Continue Reading New Jersey Considering Aggressive Expansion of Pay-to-Play Legislation

In an important decision, the US District Court for the District of Columbia yesterday dismissed a constitutional challenge to the SEC’s “pay to play” rule, which restricts contributions and fundraising by some individuals who are associated with hedge funds, private equity funds, and other registered investment advisers. The…
Continue Reading Court Dismisses Challenge to SEC Pay to Play Rule (For Now)

The Securities & Exchange Commission hit a Philadelphia-area private equity firm today with a major penalty, in the SEC’s first case involving alleged violations of its 2010 “pay-to-play” rules.  More enforcement actions may be coming.

The SEC pay-to-play rules were adopted to prevent, among other things, executives of investment firms…
Continue Reading SEC Announces Major Fines In First Pay-to-Play Enforcement Case

Medford, New Jersey recently disqualified five would-be city contractors from receiving municipal contracts until 2017 for allegedly making political contributions in violation of the Township’s pay-to-play ordinance.

The ordinance, adopted in 2012, imposes an automatic four-year bar on contracting with a company that contributes to candidates or committees in…
Continue Reading Contractors Handed 4-Year Ban Under New Jersey Township’s Pay-to-Play Law

Connecticut’s campaign finance regulator, the State Elections Enforcement Commission (“SEEC”) recently released an important advisory opinion that made clear that a state contractor that is otherwise barred from giving to a state political party under Connecticut’s pay-to-play law can give to the party’s federal account, a point SEEC staff had…
Continue Reading Connecticut Pay-to-Play Law Does Not Bar Giving to a State Party’s Federal Account