SEC “Pay to Play” Rule Could Inhibit Barbour, Daniels

If investment advisers have any intention of getting paid to advise public pension plans in either Indiana or Mississippi over the next several years, many of their employees will have to be careful about how much campaign money they give to Republican Govs. Mitch Daniels of Indiana and Haley Barbour of Mississippi.

The Securities and Exchange Commission’s new, so-called “pay to play” restrictions that penalize investment advisers for donating money to certain politicians have election lawyers wondering how much candidate fundraising will suffer in 2012 – particularly when it comes to the potential presidential efforts of Daniels and Barbour. The scope of the rules is broad and extends to the indirect activities of investment advisers. However, some interested parties highlight the fact that investment advisers represent only a small portion of the fundraising pool from which candidates can draw.

Real Clear Politics
2/4/11