Financial Advisor: SEC Scrutinizing Finra Pay-To-Play Proposal (In the News)

Dan Jamieson

Facing freedom-of-speech issues, the SEC is taking a closer look at a pay-to-play proposal from the Financial Industry Regulatory Authority that would regulate political contributions…

Pay-to-play rules are designed to prevent fraud in the awarding of state pension contracts. They can cover a broad array of advisors, including retail reps who may work with defined benefit or defined contribution plans such as 403(b) and 457 plans.

But the political-giving restrictions are being challenged by opponents who say recent Supreme Court rulings raise doubts about the constitutionality of such limits.

Republican state parties in New York and Tennessee and the Center for Competitive Politics, a group that advocates for removing political spending limits, have objected to Finra’s proposal on constitutional grounds.

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