Federal Register #S7-2026-31

SEC Proposes Rescission of Political Contribution Rule for Investment Advisers

This opportunity concerns a regulatory proposal from the Securities and Exchange Commission (SEC), not a procurement action. - Government Buyer: - Securities and Exchange Commission (SEC) - No OEMs or vendors are involved, as this is a regulatory change. - No products or services are requested; no part numbers or quantities are provided. - Key Details: - The SEC proposes to rescind the political contribution rule under the Investment Advisers Act of 1940. - The rule currently restricts investment advisers from providing services to government clients for two years after certain political contributions. - The SEC believes existing regulations (fraud prohibitions, fiduciary duties, compliance rules, codes of ethics) are sufficient to address pay-to-play concerns. - Amendments to related books and records requirements are also proposed. - Unique Requirements: - Focus on rescinding the rule and updating recordkeeping obligations for investment advisers. - No procurement or purchasing activity is involved.

Description

The Securities and Exchange Commission (SEC) proposes to rescind the political contribution rule under the Investment Advisers Act of 1940. This rule currently prohibits investment advisers from providing investment advisory services for compensation to a government client for two years after making certain political contributions. The rule has been in place for over fifteen years but has led to unintended consequences and is considered burdensome and complex by market participants. The SEC believes existing requirements are sufficient to address pay-to-play practices and proposes to rescind the rule and amend related books and records requirements.

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